Hon Mia Davies MLA

Hon Mia Davies MLA

Former Minister for Water; Sport and Recreation; Forestry

    New leaf for sandalwood industry

    29/12/2015 8:45 AM
    • New sandalwood industry processing, sales and marketing structure adopted following extensive public consultation
    • Request for proposals will be sought for the processing, sales and marketing of Western Australia's wild sandalwood (Santalum spicatum) resource

    The State Government has completed extensive consultation on Western Australia's sandalwood industry ahead of key contracts for the sale, processing and marketing of the products coming to an end on June 30, 2016.


    Forestry Minister Mia Davies said the majority of respondents to the independent consultation wanted to see modifications to the existing sales and marketing structure.


    "We have taken careful note of stakeholder feedback in developing a new purchase, sales and processing industry structure," Ms Davies said.


    "It has been developed to ensure market stability, create opportunities for new entrants, prioritise regional investment and pave the way for a smooth transition to a mixed wild and plantation-based industry into the future.


    "The Government supports industries that bring sustainable benefits to regional and Aboriginal communities and the sandalwood industry can clearly provide social and economic opportunities."


    During January 2016, a request for proposal (RFP) process will start inviting detailed proposals for the purchase of wild sandalwood for oil extraction; a sales and marketing agent; and processing and storage.


    The level of timber available to the industry for harvest will be consistent with the revised Sandalwood Order announced by Environment Minister Albert Jacob.


    Stakeholders are encouraged to register with Tenders WA (http://www.tenders.wa.gov.au ) to ensure they receive all relevant information.  Early tender advice is available on the website now.


    A summary of public consultation findings on the future of the industry and other information relating to the new processing, sales and marketing arrangements are available on the Forest Products Commission's website at http://www.fpc.wa.gov.au/go/sandalwood  


    Fact File

    • WA's wild sandalwood is worth on average $11,000 per tonne and generated more than $25 million in revenue for the Forest Products Commission in 2014-15
    • The Forest Products Commission is the State Government agency responsible for the harvesting and sale of WA sandalwood from Crown land (including land subject to pastoral leases)
    • The Department of Parks and Wildlife is responsible for regulating and licensing the wild Western Australian sandalwood industry on both private and public land
    • Current contracts for the harvesting, processing, marketing and sale of wild WA sandalwood (Santalum spicatum) are due to expire at the end of June 2016

     Minister's office - 6552 5500