2018/19 Sandalwood nut season
In this 2018/19 season we currently have a buyer keen to trade with the ASC for current
season’s Sandalwood nuts. The buyer will buy current season, viable sandalwood nuts, de-husked and free of non-viable waste (non-viable waste includes: green and/or poorly formed nuts; damaged nuts; and nuts affected by parasites or mould).
The ASC is intending to assist growers in the filling of this order by creating and managing a ‘Pool’ for its Members. This pool, “FY18/19 Pool No 1” will be open from the 30th of November 2018 and will close on the 31st of March 2019, or at a time earlier if the Pool target of 20 tonnes is reached. A second pool would then be opened for additional tonnage that may be forthcoming.
Members interested in participating in the ‘FY18/19 Pool No 1’ should contact the ASC to receive more information on the Pool. This will be posted to growers directly in the near future, once the criteria for the proposed Pools have been finalised. Please contact Bruce Storer for more information Email: MOB: 0459 549 109
Pools have operated in the grain industry since the 1930 in Western Australia. Participants in a pool deliver their produce, cleaned and packaged as requested by the Buyer, to a depot of the ASC. The Buyer will pay the pool manager, ASC, for the goods delivered. Participants in the pool are then paid by ASC in accordance with their contribution to the delivery. The pool manager subtracts a fee from the moneys paid for the delivery, which covers costs prescribed in the pool mandate (description of the pool’s operation). The members of the pool will be paid for clean net tonnes delivered to an ASC depot. When the Number 1 Pool has reached 20 tonnes it will be closed, and a second pool will be opened. The ASC cannot guarantee the time frame on the sale of the Number 2 Pool but are confident of securing a buyer for any additional receivals. The ASC is only the pool manager and nuts remain the property of the grower until purchased by the buyer. All growers will share equally in the proceeds according to their deliveries to ASC depots. All nuts will need to meet the delivery standard that is mentioned above.
Pools have the potential to create stability in supply and demand situations and can assist in yield fluctuation due to seasonal conditions. They also have the ability to collectivise growers produce for a better market price.
From the Chair - Dean Butler
Welcome to the Australian Sandalwood Co-operative (ASC) and the first of our quarterly reports. The board that has been elected to represent the ASC bring a wealth of industry and research experience to propel the Australian Sandalwood plantation industry forward: Grant Pronk, Geoff Woodall, Andrew Robinson, Ros McFarlane (treasurer), Bethan Lloyd, Bruce Storer (Secretary) and Dean Butler (Chair).
It is an exciting time to be involved as the industry has reached an important stage in its development. Over the coming years the patience of growers will be rewarded financially for their investment and hard work.
Since or formation meeting in April the board and I have been busy with sorting out all the details of setting up the business details of the ASC. We have also been busy with establishing contacts with processors and working towards establishing the business function of the co-operative in a way that will return the best results to our members. The board has also provided feedback to the DBCA regarding the sandalwood regulations for the Biodiversity Conservation Act 2016 which will regulate the industry in WA.
The ASC will work on establishing markets for all parts of the sandalwood tree including the leaf material, nuts and timber. Initially the ASC will focus on nuts and then the leaf and timber products. In the future the board will explore all avenues for value adding and maximising returns to growers.
This year the board is busy working on the logistics for our first order of 20 tonnes of nuts. More information will be provided in coming weeks regarding this year’s harvest. This will provide a valuable learning experience for us in establishing the logistics and communication required for moving product within WA. In the future this will provide the basis for marketing all sandalwood product Australia wide. I do encourage all members to forward any opportunities for marketing development to the ASC.
I attended the Co-operatives WA conference in early September representing the ASC. This was a great occasion to network with board members from other Western Australian co-operatives. I was encouraged from the feedback I received from the other delegates as to the marketing potential we had as growers of a uniquely Australian product. The Geraldton Fisherman’s Co-operative were an interesting local example. The Geraldton Fisherman’s Co-operative supply 60% of the WA rock lobster export and effectively set the price paid to all WA rock lobster fishermen.
I look forward to working with you all as we develop the industry throughout Australia.