where IS SANDALWOOD found?
+AUSTRALIAN SANDALWOOD
Australian sandalwood (Santalum spicatum) is the only desert species of sandalwood that grows in low rainfall areas. No irrigation is required with very little fertilisation. A very hardy native tree, highly resistant to pests and disease, that grows in marginal soil in its indigenous growing area; the wheatbelt of Western Australia. Little maintenance is required as the relatively low volume of weeds can be controlled with sheep once the trees are established. An addiitonal benefit is organic certification is achieveable if required by an end market
+INDIAN SANDALWOOD
India Sandalwood (Santalum album) is a tropical sandalwood of India, that in a plantation environment needs regular rainfall and/or irrigation and fertiliser. Non-indigenous to Australia, thus increasing the risk of pests and disease. Also requires robust and ongoing weed control with herbicides making certification more difficult.
WHAT IS THE rotation period OF COMMERCIAL PLANTATIONS?
+AUSTRALIAN SANDALWOOD
Harvesting from 15 years.
+INDIAN SANDALWOOD
Harvesting from 15 years.
hOW IS IT HARVESTED?
+AUSTRALIAN SANDALWOOD
WA sandalwood is simple to process post harvesting as there is no need to remove the white sapwood prior to processing for oil. Wood is processed with sapwood on.
+INDIAN SANDALWOOD
Harvesting is more expensive as there is limited access to the plantations during the wet seasons. Trees have to be de-barked and de-sapped to remove the heartwood from the log. Oil production cannot be undertaken with too much sapwood on the heartwood as it impacts the oil.
WHAT ARE THE END MARKETS?
+AUSTRALIAN SANDALWOOD
Primary application for the native wood is for processing in to essential oil for fragrance and the wood for incense. Main export markets include India, China and Taiwan. The plantation growing areas are close to export facilities and ports
+INDIAN SANDALWOOD
Primary application for the native wood is for processing in to essential oil for fragrance and used substantially in the chewing tobacco and pan masala market in India. Main markets are domestic India and export to Europe. The primary plantation growing areas are Kununnurra, Northern Territory and Far North Queensland. Some sites are remote and some distance from export facilities and ports.
hOW MUCH IS IT WORTH?
+AUSTRALIAN SANDALWOOD
Santalum spicatum oil currently sells for around $1,500 per kg. The lower price point of this oil currently provides a competitive advantage for applications and demand.
+INDIAN SANDALWOOD
Santalum album oil currently sells for around $2,500 per kg and trades at a premium to Santalum spicatum.
WHAT ADDITIONAL REVENUES CAN A PLANTATION GENERATE?
+AUSTRALIAN SANDALWOOD
Sandalwood nuts have potential to generate an annual income similar to other permanent tree crops crops like almonds. The oil extracted from the nuts has a wide range of health care and cosmetic applications. In addiiton host trees have a value within local market as a biomass source.
+INDIAN SANDALWOOD
Nuts are much smaller than Santalum spicatum species and uneconomic to harvest. Distance from port and/or cities makes finding markets for lower value host trees more challenging. No supplementary income expected from the nuts or other by-products.
HOW DOES THE INVESTMENT RISK COMPARE?
+AUSTRALIAN SANDALWOOD
Severe drought could cause some mortality or reduce growth rate. Direct investment, costs and margins very transparent. Relatively low maintenance post establishment. The market for plantation grown Santalum spicatum is developing with the native trees traded and exported for over 160 years. Fire risk is present within the wheatbelt but our plantations geographically diversified with internal fire break and strong support from neighbouring fire prevention and trained fire crews.
+INDIAN SANDALWOOD
Tropical storms and cyclones could cause mortality or total loss of plantations in Northern Australia. The Indian sandalwood production model requires a high concentration of capital on a per hectare basis and is more complicated in establishment and management. It also has higher maintenance / operating costs throughout production cycle. The markets for plantation grown Santalum spicatum is developing. Fire remains a risk in the north of Australia with many of the current plantations less geographically diversified.