AN ECONOMIC ASSESSMENT OF MINT
Executive Summary

Mint is grown primarily for the oil produced from its leaves.  The 
two major species of mint grown for commercial uses are peppermint
 and spearmint.  Peppermint is grown more widely in the United States 
because its taste is preferred to that of spearmint.  Both types of mint 
require similar production practices, and many growers produce both 
types.

Peppermint is the major mint produced in the United States.  Between 
1972-75 and 1990-94, production of peppermint increased 108 percent.
While spearmint is less popular than peppermint, its production also 
rose during this period, by 87 percent.  Very little mint oil is imported, 
as it is considered inferior to domestic oil.  Imported oil is usually 
blended with domestically-produced oil and re-exported.

Washington and Oregon are the two largest producers of both species 
of mint.  Indiana is the third-largest mint state in terms of acreage.  
Mint production has only begun in the past several years in Idaho, with 
acreage devoted to mint showing signs of expanding.  Mint is also 
produced in Wisconsin, Montana, and other states. 

Spearmint grown in the Pacific Northwest is subject to a spearmint 
marketing order.  The marketing order is a growers' allotment program 
and limits the quantity produced.  Growers in the Midwest are not 
subject to the marketing order, and hence, there are no limits on 
midwestern production.  There are no marketing orders for peppermint.

Each spearmint grower in the Pacific Northwest has an allotment base, 
which is determined by spearmint oil sales plus inventory during a set 
period before the order was enacted.  Each year the marketing order 
committee (composed of growers) determines spearmint demand for 
the year and allocates the expected quantity demanded to each grower's 
base allotment.

Oils produced in certain locations are considered to be of premium 
quality due to their flavor.  For example, peppermint oil from the 
Willamette Valley in Oregon, and spearmint oil produced in the
Midwest, are considered premium oils.  These oils receive a higher 
price than the peppermint or spearmint oils produced in other locations.
Also, Scotch spearmint oil has a more desirable flavor than native 
spearmint oil, and it also receives a higher price.

Peppermint oil has more end uses than does spearmint oil because of 
consumer preferences.  Peppermint is the number-one mint used in 
chewing gum, the most important use of mint.  It is also used 
extensively in toothpaste, mouthwash, candy, and liqueur.  Spearmint is 
used mostly in toothpaste and mouthwash.  Both are used in medicines.

Mint oil is marketed by 6 to 7 dealers (brokers) in the United States.  
These dealers act as middlemen, purchasing the oil from the growers, 
mixing it to obtain the correct flavor for the designated end user, and 
selling to both domestic and international end users.  Examples of major
end users include Wrigley's, Warner Lambert, and Colgate. 

Peppermint and spearmint both require similar production practices, and 
have similar weather, soil, and light requirements.  They are planted and 
harvested in the same manner, using the same equipment.  However, it is 
necessary that peppermint and spearmint be grown in different fields so
that they can be harvested separately.  They can be planted in adjacent 
fields, as long as the plants can be kept apart at harvest.  Peppermint and 
spearmint do not cross-pollinate, so the species remain pure.

Proper temperature and day length are essential to the quality and 
quantity of oil produced.  Mint requires long periods of sunlight to 
obtain the largest quantity of oil.  Nearly all mint is grown in the 
northern U.S., where 13 or more hours of sunlight are available 
during the summer months.

Oil quality is highest when mint is grown in locations with hot days 
and cool nights.  Cool night-time temperatures minimize the 
presence of menthofuran, which imparts a bitter taste to the oil.  
Most oil that is high in menthofuran is exported to countries that 
have more of a preference for the bitter flavor than do most 
Americans.

Mint is a perennial that may be productive for up to 15 years.  
Generally, the longevity of a commercial mint field is three to 
seven years.  After this period, mint is rotated to another field.  
Rotating mint out of a field allows replenishment of nutrients 
and is essential for the control of verticillium wilt, the major 
peril affecting mint production.

Verticillium wilt affects the mint plant gradually.  The fungus 
first infects the roots and then kills the stem.  Plants are stunted 
because of shortened internodes.  The leaves turn yellow and 
may eventually become red.  The mint plant's opposite leaves 
bend towards each other because of asymmetric growth.  
Stands become thin as individual plants die.  After the first year 
or two of infection, the verticillium fungus begins to lessen the 
quantity and quality of production.  After the plants have been 
in a verticillium-infested field for several years, the disease can 
cause the destruction of the entire stand.

Other production perils include excess moisture (which can 
promote fungal diseases), days and nights that are too warm 
(which increases the menthofuran level in the mint oil, reducing 
its quality), drought (especially in the Midwest and Montana, 
where irrigation is less common than in the Pacific Northwest),
and excessive cold.

The demand for mint insurance would most likely be greatest 
in the Midwestern mint-producing states.  These states have 
experienced several crop losses in recent years, and appear to 
be the most interested in crop insurance coverage for mint.  
Droughts and excessive moisture have been the major perils.

Disaster assistance payments also provide an indicator of 
Midwestern demand.  Midwestern growers accounted for 
less than a fifth of peppermint production between 1988 and 
1993, but received over half the disaster payments made for 
that crop.  Indiana, Michigan, and Wisconsin accounted for 
about 20 percent of spearmint output, but received 86 percent
of total spearmint disaster payments.  

While participation in the program may be lower in the Pacific 
Northwest, there is also a potential need for insurance in that 
area.  Water shortages, hail, and in some instances, cold 
winters, can reduce production and destroy the mint crop.