The arena’s largest Indian sandalwood producer has struck a deal that can gaze Santalum album exported from Western Australia’s Ord Valley and developed into new products for the booming Chinese traditional medicine market.
- Sandalwood big Quintis has signed an MOU with Lanzhou Foci Pharmaceuticals
- The traditional Chinese medicine market has been identified as a famous convey alternate for Indian sandalwood producers
- Quintis plans to elongate its harvest operations across WA’s Ord Irrigation Blueprint
The day earlier than nowadays Quintis signed a memorandum of realizing with China’s largest manufacturer of traditional medicines, Lanzhou Foci Pharmaceuticals, a dispute-owned company listed on the ShenZhen Inventory Change.
The collaboration is belief to be the important of its sort for the sector, which accounts for more than a Third of all pharmaceutical sales in China and has skilled famous convey during the coronavirus pandemic.
Quintis chief govt officer Richard Henfrey said the milestone came at a inspiring time for a couple of of its diversified key markets, which had viewed the sandalwood producer pivot and diversify.
“We sell products into nine diversified customer segments,” he said.
“Some of those had been somewhat laborious hit by COVID, worship the heady scent alternate … nevertheless aromatherapy, to illustrate, is doing thoroughly.
“We’re an increasing selection of more selling wood products into the handicraft markets, the incense market, and the Chinese traditional medicine market as effectively.”
A shift in markets
Mr Henfrey, who brings with him more than a decade of experience heading up widespread weight loss program company Blackmores, says he believes the traditional medicine, pharmaceutical and beauty markets will be the supreme convey industries for sandalwood over the next 5 years.
“The traditional Chinese medicine market is getting a range of strengthen politically in China — or no longer it’s viewed as a in fact significant allotment of the healthcare gadget,” he said.
“I divulge there is also a worthy different for sandalwood as an active ingredient in over-the-counter pharmaceuticals and therapeutic skincare products, as effectively cosmetics.
“The latter are industries the establish sandalwood doesn’t possess a net page in the market in any admire nowadays.
A brand new leaf
Mr Henfrey said it modified into as soon as a brand new generation for Quintis, more than three years since the sandalwood big had foremost contracts cancelled, entered a trading cease and fell into administration.
In October 2018 it recapitalised as a non-public company, resumed harvest operations and performed a product rebrand and leadership depart, all whereas defending more than one complaints and the attempted takeover of several Quintis-managed sandalwood plantations.
Twelve months into the job Mr Henfrey is convinced there is a gleaming future ahead for Indian Sandalwood in northern Australia.
“There is diminutive doubt its been somewhat a rough mosey,” he said.
“The industry modified into as soon as recapitalised at the tip of 2018 and now we possess no longer looked wait on since then.
“We’re now at the point the establish we gain to reap the rewards … I feel very fortunate to possess the flexibility to bring on the big imaginative and prescient that Quintis modified into as soon as founded with.”
The address Lanzhou Foci Pharmaceuticals comes off the wait on of Quintis’ supreme ever industrial harvest in 2020, which noticed more than 100 hectares battle by design of their processing shed in Kununurra.
The harvest modified into as soon as across its 2004 Managed Funding Blueprint plantation and trees owned by Quintis, despite the incontrovertible reality that worthy of the MIS wood modified into as soon as sold wait on from growers by the sandalwood big earlier this year.
From the storage shed in Kununurra, the provocative wood is trucked more than 3,500 kilometres south to the company’s facility at Mount Romance come Albany, which is dwelling to world’s largest Sandalwood oil distillery.
“The usual of the wood is de facto somewhat a diminutive greater than we have had in previous years [and] we’re getting some in fact true oil yields from that wood,” Mr Henfrey said.
In the period in-between foremost competitor Santanol, owned by international forestry big Mercer International, is expected to model as much as ten thousand kilos of Indian sandalwood oil this year, after experiencing a file harvest in the Ord.
Frequently described as “liquid gold”, nearly half of all perfumes enjoy sandalwood oil, which has been fetching as worthy as $250,000 a tonne on the international market this year.
In 2019, more than 100 tonnes of heartwood from the 2003 MIS plantation modified into as soon as sold for a complete of $8.4 million greenbacks, valued at an average price of $78,000 per tonne.
Like a flash convey ahead
Quintis has more than 12 thousand hectares of plantations across Northern Australia and employs more than 150 workers in its forestry operations in WA, the Northern Territory and Queensland.
For the reason that company’s first harvest in 2013, more than 500 hectares of Indian sandalwood has been harvested and that quantity is determined to develop greatly as the company looks to be like against expanding its harvest operations in the approaching years.
“The work we’re doing now may perhaps be to develop and originate a brand new harvesting project, the time is now to scale that up and originate that more worthy, safe and scalable,” Mr Henfrey said.
“Potentially the supreme trade to come wait on is improved genetics, from next year onwards we have bought plantings of our dangle genetics which had been developed by design of inferior-breeding trees.
“Over the next 10 years you are going to birth to glance loads more enhancements in the amount and quality of heartwood coming by design of in future harvests, which we’re in fact brooding about.”