Honeybush industry set for growth

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first_imgPlanting out young honeybush seedlings. (Image: Marina Joubert) The Cyclopia maculata honeybush speciesgrows naturally in the area around Genadendal. (Image: Marina Joubert) MEDIA CONTACTS • Marina Joubert   Southern Science   +27 83 409 4254RELATED ARTICLES • South Africa develops rooibos flavour wheel • Research to boost rooibos exports • Rooibos yoghurt fights cancer • Emerging farmers on the rise • Online ad help for small businessWilma den HartighSouth Africa’s honeybush tea industry has been identified as an important growth sector in the country’s economy, according to a recent study.According to Stephen Hobson, an agricultural economist from Stellenbosch University who led the study, the industry has the potential to grow from an annual average of 150 tons of tea processed to 1 500 tons, thereby increasing its annual turnover from R10-million (US$$124 000) to R100-million ($12.4 million).The study was commissioned by the Coega Development Corporation, on behalf of the Eastern Cape Department of Economic Development and Environmental Affairs and the South African Honeybush Tea Association.“At present, the local and international demand for honeybush far outstrips the supply, so there is significant room for growth,” Hobson said in a statement.Competitive edgeThe honeybush industry, which is only 12 years old, is still in its infancy. In 2010 a total of 139 tons of honeybush tea was exported. The main buyers of honeybush are the Netherlands, Germany, the UK and US.However, this is only the beginning of what the industry can achieve. Honeybush has a unique selling point as it is indigenous to South Africa and grows only within the fynbos region.“We believe that honeybush should be marketed and positioned as a unique, niche product,” says Marlise Joubert, a researcher at the Agricultural Research Council (ARC) Infruitec Nietvoorbij Research Institute in Stellenbosch.According to Tea & Coffee Asia, the Asia region’s quarterly journal for the tea and coffee businesses, Honeybush tea is fast becoming a mainstream product and a strong competitor for Rooibos tea, South Africa’s other highly successful herbal tea export.If the expected growth targets for the industry are achieved, honeybush cultivation could make a major contribution to job creation and poverty alleviation in the Western and Eastern Cape.With increased production and formalised cultivation practices, the industry can remain sustainable and contribute to much-needed economic developed in poor communities.Growing the industryIndustry statistics show that cultivated honeybush is harvested from fewer than 10 farmers who have established successful honeybush plantations.“Currently 70% of honeybush tea is wild-harvested, and only 30% cultivated – a situation that is not sustainable,” Hobson said, adding that the industry must reverse this ratio, and work towards cultivating the bulk of the honeybush crop by involving small and emerging farmers.Cultivating honeybush on a larger scale will help to supply the growing demand for honeybush and it will relieve the pressure on wild honeybush populations.Harnessing indigenous knowledgeA honeybush farming project in the town of Genadendal in the Western Cape is a good example of the industry’s efforts to establish the town’s small farmers as independent producers of the unique product.There are at least 20 different species of honeybush, but Cyclopia maculata is the species which grows naturally in the area around Genadendal.The goal of the project, which was launched last year, is to work with the people of Genadendal to grow honeybush commercially and sustainably.Researchers from the ARC are working closely with the Genadendal Small Farmers’ Association, led by local community leader Reverend Chris Wessels.The Genadendal community has a long history of harvesting and processing wild-growing honeybush. However, honeybush production can be challenging as farming practices vary depending on the species and area.Farmers also need access to seeds or seedlings, knowledge about soil preparation, plantation care, harvesting, processing and marketing.Good farming principlesTo help local farmers cultivate honeybush successfully, the industry is compiling a growers’ guide to honeybush farming.With step-by-step information and basic illustrations, the handbook will equip small-scale farmers with the necessary skills and knowledge needed to grow honeybush.“As a young industry poised for expansion, we have a huge responsibility to ensure that we adopt biodiversity-friendly farming practices,” Joubert says.The industry is teaming up with local authorities in the Western and Eastern Cape to control and protect wild honeybush, thereby ensuring sustainable harvesting.Market developmentProfessor Lizette Joubert, a researcher at the ARC Infruitec Nietvoorbij Research Institute in Stellenbosch, says that the specific type of honeybush that grows in the Genadendal area holds significant economic potential for the local community.She says it is important to produce a unique herbal tea that can compete in local and foreign herbal tea markets based on its quality, taste, flavour and health benefits.“That is why researchers will investigate and document the sensory characteristics and health-promoting properties of honeybush tea grown near Genadendal,” she adds.The project also aims to add value to locally produced honeybush by looking at the production of extracts that can be used in many applications in the food and cosmetics industries.Johan Kritzinger, director of Honeybush Natural Products, a processing company, was quoted in Tea & Coffee Asia, saying “the future for honeybush would appear to be extremely bright”.A variety of research initiatives undertaken by the scientific community has shown that honeybush has numerous marketable aspects, such as its health properties. It’s caffeine-free and has a high content of antioxidants, which are believed to have anti-cancer properties.Research has also found that honeybush can be blended with other herbs to create beverages with specific health benefits.Modern consumers want to buy healthy beverages and this is increasing the demand for products such as honeybush.last_img read more


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first_imgBJP Rajasthan unit president Madan Lal Saini died at the All India Institute of Medical Sciences (AIIMS) in New Delhi on Monday after a brief illness. He was shifted from Jaipur to Delhi on Saturday for treatment of blood-related ailment in Haematology Department after being diagnosed with infection in lungs.Mr. Saini, also a Rajya Sabha MP, was 75. He was appointed the BJP State chief in June last year, after the party remained headless for about three months following the resignation of Ashok Parnami. Mr. Saini had emerged as a “consensus candidate” after differences emerged over the selection of certain other leaders.He was shifted to the intensive care unit in AIIMS when his condition deteriorated. He breathed his last on Monday evening, the party sources said here.A large number of BJP workers, led by former BJP State president Arun Chaturvedi, gathered at the party’s State headquarters here and paid tributes to the departed leader. Mr. Saini was active in politics for several decades after joining the Rashtriya Swayamsevak Sangh in 1952.He was elected an MLA from Gudha in Jhunjhunu district in 1990 and had later unsuccessfully fought the Lok Sabha election twice from Jhunjhunu in 1991 and 1998. He was elected a Rajya Sabha member from the State in March 2018.According to the party sources, Mr. Saini’s body will be brought here on Tuesday morning and taken for cremation in his native village, Patan, in Sikar district in the afternoon.Chief Minister Ashok Gehlot expressed grief over Mr. Saini’s death and said he was “shocked and saddened” to hear about his passing away. Prime Minister Narendra Modi said Mr. Saini’s death was a “major loss for the BJP family.”last_img read more


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first_imgThe league relived its rich history by bringing back its celebrated stars from different generations.Former FEU star Rachel Anne Daquis during the UAAP Season 80 opening ceremonies at Mall of Asia Arena Saturday, September 9. Photo by Tristan Tamayo/INQUIRER.netHost Far Eastern University drew the loudest cheers when the likes of volleyball standout Rachel Daquis and basketball hotshot Terrence Romeo walked down memory lane along with the school’s other greats.FEATURED STORIESSPORTSWATCH: Drones light up sky in final leg of SEA Games torch runSPORTSSEA Games: Philippines picks up 1st win in men’s water poloSPORTSMalditas save PH from shutout“What I really miss about the UAAP is the crowd,” said Romeo in Filipino.Former Ateneo volleyball player Alyssa Valdez during the UAAP Season 80 opening ceremonies at Mall of Asia Arena Saturday, September 9. Photo by Tristan Tamayo/INQUIRER.netAteneo wasn’t to be outdone with its star-studded volleyball tandem of Alyssa Valdez and Marck Espejo among its greats. Brace for potentially devastating typhoon approaching PH – NDRRMC One of University of the East’s biggest stars Robert Jaworski wasn’t able to attend but part of its contingent was Tisha Dominguez-Abundo, who led the school to a volleyball title in the late 60s.“I’m still hoping for our volleyball team to wake up from its long slumber,” said Abundo.Olympian Yan Lariba of La Salle was represented by his mother Imelda during the ceremony. Former Green Archer Renren Ritualo, the deadliest marksman during his time, was also present.Legendary basketball coach Aric del Rosario bannered University of Santo Tomas. Del Rosario built the UST dynasty that reigned from 1993 to 1996.Former UST Growling Tigers Cyrus Baguio and Dylan Ababou during the UAAP Season 80 opening ceremonies at Mall of Asia Arena Saturday, September 9. Photo by Tristan Tamayo/INQUIRER.netDel Rosario was joined by the likes of cagers Cyrus Baguio, one of the most exciting players to watch during his collegiate career, and Dylan Ababou, who was a vital part of the Tigers’ team that ended the school’s 10-year title drought in 2006.ADVERTISEMENT Frontrow holds fun run to raise funds for young cancer patients  MOST READ Nonong Araneta re-elected as PFF president The African basketball championship: Unique and entertaining Chief Justice Peralta on upcoming UAAP game: UP has no match against UST PLAY LIST 01:00Chief Justice Peralta on upcoming UAAP game: UP has no match against UST03:48Passengers flock to Naia one day before ‘Undas’01:19Magalong: Albayalde also got SUV out of ‘agaw bato’ operation in 201301:37Protesters burn down Iran consulate in Najaf01:47Panelo casts doubts on Robredo’s drug war ‘discoveries’01:29Police teams find crossbows, bows in HK university01:35Panelo suggests discounted SEA Games tickets for students02:49Robredo: True leaders perform well despite having ‘uninspiring’ boss02:42PH underwater hockey team aims to make waves in SEA Games Read Next WATCH: Streetboys show off slick dance moves in Vhong Navarro’s wedding Fire hits houses in Mandaluyong Citycenter_img LATEST STORIES E.T. returns to earth, reunites with grown-up Elliott in new ad  LOOK: Loisa Andalio, Ronnie Alonte unwind in Amanpulo for 3rd anniversary For the complete collegiate sports coverage including scores, schedules and stories, visit Inquirer Varsity. National University had Danny Ildefonso, who went on to win a couple of PBA MVP awards and eight titles in the pros, two-time UAAP MVP Ray Parks and rising tennis star Tin Patromonio, who recently won silver in the 2017 Southeast Asian Games in Malaysia.NU Standout Danny Ildefonso during the UAAP Season 80 opening ceremonies at Mall of Asia Arena Saturday, September 9. Photo by Tristan Tamayo/INQUIRER.net“It feels good as an athlete that your hard work and passion are recognized,” said Parks.University of the Philippines flaunted senator Pia Cayetano, who was the Lady Maroons’ former captain who helped bring a volleyball title to the school in the early 80s. The Maroons also had Ronnie Magsanoc, who, along with Benjie Paras, was one of the leaders of UP’s championship run in 1986.Joe Lipa, Ronnie Magsanoc and Pia Cayetano lead former UP standouts during the UAAP Season 80 opening ceremonies at Mall of Asia Arena Saturday, September 9. Photo by Tristan Tamayo/INQUIRER.net“It’s an honor and privilege to be part of the selected few. It’s also nice to meet former greats whom you followed before but just formally met now,” said Magsanoc.Adamson’s Ewon Arayi, who made her mark as a standout in women’s basketball, was also part of the gathering of stars. Don’t miss out on the latest news and information. BSP sees higher prices in November, but expects stronger peso, low rice costs to put up fight The UAAP Season 80 officially opens at Mall of Asia Arena Saturday, September 9. Photo by Tristan Tamayo/INQUIRER.netThe UAAP recognized its glorious past as it honored former athletes who personified the league’s theme for its 80th Season: “Go For Great.”The parade featuring the member schools’ legends across all sports was the highlight of the nostalgic opening ceremony Saturday at Mall of Asia Arena.ADVERTISEMENT View commentslast_img read more


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first_imgEthel Booba on hotel’s clarification that ‘kikiam’ is ‘chicken sausage’: ‘Kung di pa pansinin, baka isipin nila ok lang’ LATEST STORIES For the complete collegiate sports coverage including scores, schedules and stories, visit Inquirer Varsity. Sports Related Videospowered by AdSparcRead Next Trump strips away truth with hunky topless photo tweet FEU Auditorium’s 70th year celebrated with FEU Theater Guild’s ‘The Dreamweavers’ Lacson: SEA Games fund put in foundation like ‘Napoles case’ Cavs officials downplay tension between James, Irving “Due to bad weather and suspension of classes, the NCAA games today, July 27, are cancelled,” he said in a statement. The league was supposed to hold the third leg of NCAA on Tour in San Sebastian-Cavite, where juniors and seniors games between San Sebastian and Jose Rizal University were to be played. FEATURED STORIESSPORTSSEA Games: Biñan football stadium stands out in preparedness, completionSPORTSPrivate companies step in to help SEA Games hostingSPORTSWin or don’t eat: the Philippines’ poverty-driven, world-beating pool starsTropical storm Gorio has been ravaging Metro Manila leading to heavy downpour and flooding.The NCAA has yet to reschedule the said games. Don’t miss out on the latest news and information. center_img Church, environmentalists ask DENR to revoke ECC of Quezon province coal plant MOST READ National Coffee Research Development and Extension Center brews the 2nd National Coffee Education Congress Robredo should’ve resigned as drug czar after lack of trust issue – Panelo El Nido residents told to vacate beach homes Robredo: True leaders perform well despite having ‘uninspiring’ boss PLAY LIST 02:49Robredo: True leaders perform well despite having ‘uninspiring’ boss02:42PH underwater hockey team aims to make waves in SEA Games01:44Philippines marks anniversary of massacre with calls for justice01:19Fire erupts in Barangay Tatalon in Quezon City01:07Trump talks impeachment while meeting NCAA athletes02:49World-class track facilities installed at NCC for SEA Games Due to inclement weather, the NCAA was forced to postpone its Thursday games.NCAA management committee chair Fr. Glynn Ortega, OAR of host school San Sebastian announced the news early Thursday morning.ADVERTISEMENT View commentslast_img read more


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first_imgSEA Games hosting troubles anger Duterte TS Kammuri to enter PAR possibly a day after SEA Games opening Is Luis Manzano planning to propose to Jessy Mendiola? LOOK: Joyce Pring goes public with engagement to Juancho Triviño Azkals now have full squad Trending Articles PLAY LIST 00:50Trending Articles00:50Trending Articles00:50Trending Articles02:42PH underwater hockey team aims to make waves in SEA Games01:44Philippines marks anniversary of massacre with calls for justice01:19Fire erupts in Barangay Tatalon in Quezon City01:07Trump talks impeachment while meeting NCAA athletes02:49World-class track facilities installed at NCC for SEA Games02:11Trump awards medals to Jon Voight, Alison Krauss Don’t miss out on the latest news and information. MOST READ Hotel management clarifies SEAG footballers’ kikiam breakfast issue LATEST STORIEScenter_img View comments SEA Games: Biñan football stadium stands out in preparedness, completion SEA Games: Biñan football stadium stands out in preparedness, completion “We’ll come out [ready].”But Cone pointed out that the schedule change is not something to complain about, even after having to cut short his US vacation.“The idea of being a member of this group [with that] fan base overrules any inconveniences that we may have,” he said. “We’re going deep into our two-a-days (practices).”As a matter of fact, Cone is having a bit of a throwback fun.“We haven’t gone this hard in our two-a-days since during the ‘90s,” he said shortly after their second session at Upper Deck gym in Pasig.ADVERTISEMENT Private companies step in to help SEA Games hosting “The league tapped us suddenly to play in the opening game at the Philippine Arena,” Tim Cone told reporters on Friday, confirming an earlier Inquirer report. “I told the guys that’s the curse and blessing of being a member of Ginebra.”“You’re going to be asked to do things because of your popularity and your fan base that other teams are not going to be asked of,” he said, adding that the league initially slated Ginebra to debut in Guam on Jan. 19.FEATURED STORIESSPORTSPrivate companies step in to help SEA Games hostingSPORTSUrgent reply from Philippine ‍football chiefSPORTSSEA Games: Biñan football stadium stands out in preparedness, completionBut with the Kings now playing six days earlier, Cone has had to cram and push his players hard to get in competitive form.“We thought we’re coming back in the 19th so we extended our [break] a little bit, give our guys extended rest. But now we’re rushing to get ready for the 13th,” Cone said. Photo by Tristan Tamayo/INQUIRER.netBeing the PBA’s most beloved franchise has it’s perks: There’s a ready sixth man pushing the team every game from jam-packed stands.But then, there’s also the drawbacks.ADVERTISEMENT “These guys are experiencing what’s it like to play for me when I was a young coach—when I wanted to kill people,” Cone added in jest.Ginebra’s opponent in the opening is still to be revealed.The curtain-raiser for league’s 44th season marks the second time the PBA will tip off at Philippine Arena in Bocaue, Bulacan. In 2014, 52,612 fans trooped to the venue to watch rookie Manny Pacquiao debut for Kia and play against Blackwater. Ginebra top-billed the event with TNT.The Leo Awards, where the previous season’s top individual performers will be feted, will also be mounted during the opening rites.Sports Related Videospowered by AdSparcRead Nextlast_img read more


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first_imgMOST READ Cayetano: Senate, Drilon to be blamed for SEA Games mess Private companies step in to help SEA Games hosting PH underwater hockey team aims to make waves in SEA Games PLAY LIST 02:42PH underwater hockey team aims to make waves in SEA Games01:44Philippines marks anniversary of massacre with calls for justice01:19Fire erupts in Barangay Tatalon in Quezon City01:07Trump talks impeachment while meeting NCAA athletes02:49World-class track facilities installed at NCC for SEA Games02:11Trump awards medals to Jon Voight, Alison Krauss UP sweeps La Salle in UAAP elims “Our last six losses all boiled down on the breaks of the game,” Jarencio said. “But this time, it’s like we played a perfect game. From first half all the way to the second.“We really finished strong,” he added. “The players knew that our backs are against the wall.”Batang Pier, now with a 3-6 record, not only snapped KaTropa’s five-game winning streak but also snuffed out their chances of securing the twice-to-beat advantage in the quarterfinals.TNT wrapped up its elimination round campaign at 7-4 and are now sitting at the fourth place in the tournament ladder.“The key was communication,” Jarencio said, whose squad are still due to play two more teams in Alaska and Barangay Ginebra. “Our defense? Our offense? It has all been laid out prior the conference. But communication? That was what we’re able to tweak [this game].ADVERTISEMENT NorthPort needs no less than a sweep of its final two assignments and for the Top 8’s bottom half to lose their remaining games to qualify for the next round of hostilities.Batang Pier tackles the Alaska Aces this Wednesday before facing crowd favorite Barangay Ginebra on April 3.The scores:NorthPort 109 – Pringle 27, Anthony 14, Tautuaa 13, Taha 13, Flores 11, Grey 9, Bolick 8, Elorde 8, Lanete 6, Guinto 0, Sollano 0.TNT 83 – Trollano 15, Washington 13, Pogoy 10, Cruz 7, Reyes 7, Castro 7, Rosario 6, Miranda 6, Taha 5, Williams 4, Golla 2, Semerad 1, Heruela 0, Carey 0, Casino 0.Quarters: 22-16, 53-31, 82-61, 109-83.Sports Related Videospowered by AdSparcRead Next Bloomberg: US would benefit from more, not fewer, immigrants Google Philippines names new country director PBA IMAGESNorthPort coach Pido Jarencio asked his wards to make a name for themselves following a six-game slide that had caused its playoff bid to slowly fade away.The Batang Pier heeded that call with a wire-to-wire victory to overwhelm TNT, 109-83, in the PBA Philippine Cup Sunday at Araneta Coliseum.ADVERTISEMENTcenter_img Don’t miss out on the latest news and information. Wintry storm delivers US travel woes before Thanksgiving LATEST STORIES “I told them, legends are made when their team is down,” Jarencio said in Filipino. “That’s our situation right now. We want to make a name for ourselves.”The Batang Pier cranked it up in the middle quarters, breaking loose for a 27-point cushion behind the performances of Stanley Pringle, who scored a total of 27 and do-it-all forward Sean Anthony, who finished with 14.FEATURED STORIESSPORTSPrivate companies step in to help SEA Games hostingSPORTSPalace wants Cayetano’s PHISGOC Foundation probed over corruption chargesSPORTSSingapore latest to raise issue on SEA Games food, logisticsSophomore Lervyn Flores registered a career-best 13 points that earned him the Player of the Game nod.NorthPort erected a 30-point bubble to keep TNT squarely on the back seat and fan the flames of their bid to crack the Top 8 of the Philippine Cup. Trump tells impeachment jokes at annual turkey pardon event Panelo: Duterte ‘angry’ with SEA Games hosting hassles Colombia protesters vow new strike after talks hit snag View commentslast_img read more


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first_imgPerlas’ Bea Tan and Dij Rodriguez topped Pool A with a 2-0 record following a 21-17, 21-13 victory over San Beda’s Ella and Nieza Viray, while Air Force 1’s May Ann Pantino and Jozza Cabalsa completed a three-match sweep of Pool C assignments following a 21-10, 21-7 decision over University of the Philippines’ alums Pam Legaspi and Aliya Ong.NU Boysen 1’s Roma Joy Doromal and Kly Orillaneda ruled Pool B with a 2-0 slate after scoring a 21-10, 21-8 win over Pangasinan 2’s Tricia Abalos and Abigail Guzman.FEATURED STORIESSPORTSPrivate companies step in to help SEA Games hostingSPORTSPalace wants Cayetano’s PHISGOC Foundation probed over corruption chargesSPORTSSingapore latest to raise issue on SEA Games food, logisticsPangasinan has a team that made it to the top eight as Alaminos’ Karen Mae Vinluan and April May de Guzman turned back Legaspi and Ong, 21-17, 22-20, to finish second in Pool C with a 2-1 cardThe other women’s quarterfinalists are San Beda’s Viray twins (1-1), Air Force 2’s Mikaela Andres and Angel Antipuesto (1-1), and NU Boysen 2’s Landicho and Epa (1-1). LATEST STORIES Don’t miss out on the latest news and information. Trending Articles PLAY LIST 00:50Trending Articles00:36Manny Pacquiao part of 2019 SEA Games opening ceremony00:50Trending Articles02:42PH underwater hockey team aims to make waves in SEA Games01:44Philippines marks anniversary of massacre with calls for justice01:19Fire erupts in Barangay Tatalon in Quezon City01:07Trump talks impeachment while meeting NCAA athletes02:49World-class track facilities installed at NCC for SEA Games02:11Trump awards medals to Jon Voight, Alison Krauss THE participants of the BVR On Tour: Lingayen Open give a thumbs-up sign together with Pangasinan 2nd District Rep. Leopoldo N. Bataoil during the opening ceremony Tuesday at the Capitol Beachfront. CONTRIBUTED PHOTOLINGAYEN – Sta. Lucia’s Jackie Estoquia and DM Demontaño made a successful comeback in the Beach Volleyball Republic On Tour, winning two matches to advance to the quarterfinals Tuesday at the Capitol Beachfront here.Playing for the first time since the Santa Ana Open in Cagayan last year, Estoquia and Demontaño displayed tremendous improvement in the sand court, opening their campaign with a 21-7, 21-12 conquest of Rizal Technological University’s Hannah Patrocenio and Myla Lim before completing a sweep of Pool D matches with a 21-10, 21-12 romp of NU Boysen 2’s Bingle Landicho and Kath Epa.ADVERTISEMENT SEA Games hosting troubles anger Duterte Action resumes Wednesday with the quarterfinals starting at 7 a.m., with the semis and finals to be played in the afternoon.Sports Related Videospowered by AdSparcRead Next ‘Walang bigayan’: Expect all-out war between sister teams Magnolia, San Miguel Cayetano: Senate, Drilon to be blamed for SEA Games mess Hontiveros presses for security audit of national power grid Philippine Arena Interchange inaugurated View comments Duterte wants probe of SEA Games mess Panelo: Duterte ‘angry’ with SEA Games hosting hassles DA eyes importing ‘galunggong’ anew MOST READ Private companies step in to help SEA Games hostinglast_img read more


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first_imgTo apply, please download the ‘TFA National Indigenous Team Expression of Interest’ document and follow the instructions.Position descriptions for both Coaches and Managers are also available to download; please see below.Expression of interest for these positions closes on COB Friday 16th October 2009 and should be forwarded to Adam Raptis at adam.raptis@austouch.com.au or fax (02) 6212 2822.Related Filestfa_national_indigenous_team_eoi-pdfindigenous_coach_position_description-pdfindigenous_managers_duty_statement-pdflast_img


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first_imgAPTN National NewsAlberta’s Wildrose Party is holding onto a polling lead as the province heads into an election next week.After 40 years in power, it seems that the Progressive Conservative-hold on Canada’s largest economy is slipping.APTN National News reporter Noemi LoPinto has more on what to expect if the Wildrose Party takes the legislature.last_img


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first_imgCALGARY – It’s more vital than ever that three other pipelines to oil export markets proceed as planned in the wake of TransCanada Corp. (TSX:TRP) shelving its Energy East pipeline on Thursday, says AltaCorp Capital analyst Dirk Lever.Lever says Canadian producers will have to transport any incremental new oil production over the next year or so using railcars, and the pipeline transportation system out of Western Canada will remain tight for years.“We already know the next incremental barrel of production has got to go by rail because the pipelines are effectively full,” he said Friday.In a report in July, RBC Capital Markets predicted oilsands production would grow by 900,000 barrels per day in the next five years thanks to startup of Suncor Energy Inc.’s (TSX:SU) 194,000-bpd Fort Hills mine and several smaller projects, including an 80,000-bpd expansion at Canadian Natural Resources Ltd.’s (TSX:CNQ) Horizon mine and upgrader.It pointed out that about three-quarters of the new bitumen production is not going to be upgraded, which means it will have to be diluted to create a product composed of 30 to 40 per cent lighter petroleum in order to flow in a pipeline. That will increase the demand for pipeline volumes beyond what is required for the heavy oil alone, it said.Opponents of pipeline projects who look at the oil forecasts and conclude they aren’t needed sometimes overlook the diluent component of shipping bitumen, said Tim McMillan, CEO of the Canadian Association of Petroleum Producers.“We will exceed our current and projected pipeline capacity by 2030 with (Energy East) gone … not just on a strategic level but by volume,” he said.Lever said Energy East could come off the shelf and be proposed again for regulatory approval if any of the other pipelines don’t go ahead or if market conditions change to encourage higher production growth.“Energy East was more than what was needed,” he said of the proposal to ship 1.1 million bpd from Alberta to New Brunswick.“Producers weren’t going to pay for that much excess capacity so I’m not surprised it fell to the wayside. If one of those (other pipelines) falls away, then Energy East would be needed.”He said the next capacity increase is expected to come with Enbridge Inc.’s (TSX:ENB) Line 3 pipeline replacement project, which is under construction in Canada and awaiting its last U.S. regulatory approvals in Minnesota. It is expected to add 370,000 bpd of capacity by early 2019.But that additional room will only just accommodate new output from oilsands expansions and the situation will remain tight until the Trans Mountain expansion pipeline to the West Coast proposed by Kinder Morgan is in service, expected to add 590,000 bpd by late 2019, Lever said. That project is being actively opposed in court by the B.C. government and other intervenors.TransCanada hasn’t yet approved its Keystone XL pipeline into the U.S. but Lever said its 830,000-bpd capacity would likely provide enough room for Canadian oil production growth until about 2030, when the industry expects Canadian production to reach five million barrels per day.Lever pointed out that having excess pipeline capacity is important because it gives producers options to supply different markets and offers the pipeline operators flexibility to schedule maintenance downtime.Follow @HealingSlowly on Twitter.last_img read more