Western Australia Sandalwood Harvest Cap Reduced by 500 Tonnes
Western Australia's Department of Biodiversity, Conservation and Attractions proposes cutting the annual limit on living sandalwood trees from 1,250 to 750 tonnes, impacting key Asian export markets including China, Taiwan, India, and Malaysia.
New Harvest Limits Proposed
Western Australia's Department of Biodiversity, Conservation and Attractions (DBCA) has drafted a review proposing a significant reduction in the annual harvest of wild sandalwood. The recommended cap on living trees will fall by 500 tonnes, from 1,250 tonnes to 750 tonnes per year.
This adjustment is part of a broader proposal to decrease the total wild harvest limit from 2,500 tonnes to 2,000 tonnes annually, while the cap for dead wood remains unchanged at 1,250 tonnes. Ministers are expected to approve these new limits by early next year, following an independent panel review of the draft.
Uncertainty for Exporters
The proposed changes create uncertainty for exporters, particularly as current harvest contracts with the state's Forest Products Commission (FPC) are set to conclude by the end of December this year. Fleur Coakley, executive chair of Wescorp Sandalwood, stated that the industry lacks clarity on future allocations.
In the 2023–24 financial year, the FPC generated $16.4 million from wild sandalwood sales, with 94 percent of this volume exported to 11 countries. Major Asian markets for this export include China, Taiwan, India, and Malaysia, directly affected by the reduced supply.
Shift Towards Plantations
Industry figures recognize an inevitable transition towards plantation-grown sandalwood to supplement diminishing wild harvests. The FPC currently manages 5,631 hectares of sandalwood plantations. Additionally, Silvalis, formerly WA Sandalwood Plantations, oversees more than 15,000 hectares of private plantations.
Keith Drage, director of Dutjahn Sandalwood Oils, a 50 percent Indigenous-owned producer, supports this shift, noting the industry has time to prepare for a move from government-managed Crown land harvesting to independent Aboriginal operators and plantations.
Consequences for Asian Buyers
Asian manufacturers and procurement teams relying on Western Australian wild sandalwood must prepare for reduced availability and potential price increases from early next year. Buyers in China, Taiwan, India, and Malaysia, which together account for a significant portion of exports, should evaluate their supply chains.
This change necessitates exploring alternative sourcing from plantation-grown sandalwood suppliers, such as those managed by FPC or Silvalis, or considering other materials. Procurement directors should contact their current suppliers to understand how the new 750-tonne limit on living trees will affect their contract terms for 2027 and beyond.
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