After unseasonably low rainfall for the 2014/15 and 2015/16 wet seasons, it is great to see a return to the normal monsoonal rainfall patterns that Northern Australia expects and relies upon. Above average totals have been recorded in most of the TFS Operational districts since late last year and the wet season still has a couple of months to run. Some areas, especially in the Kimberley region of Western Australia have already recorded well above their expected full year rainfall since mid-December.
The figures to date show:
Predominately above average falls in most areas are a positive to both the plantations and the surrounding environment. There has been no material damage to Plantation areas from the recent rainfall events. As part of TFS’ rigorous due diligence process pre land acquisition, thorough analysis of flood propensity and drainage issues are undertaken. All farm areas, either developed or greenfield are assessed and then designed or re-engineered with high volume rainfall events factored in. New plantations will have extensive drainage control and erosion management infrastructure installed and existing irrigated farming land will be surveyed and redesigned to the same standard.
The below average falls year to date in the Burdekin are not expected to have any negative impact due to the heavy rainfall last year recharging the Burdekin dam.
In both the Ord River Irrigation Area (ORIA) surrounding Kununurra and the Burdekin River Irrigation Area (BRIA) in QLD, most of the plantations are within areas managed by our Bulk Water Suppliers (Ord Irrigation Co-operative and Sunwater respectively). Both of these areas have extensive drainage systems networking the farming land and the providers through the maintenance and upgrade of these systems ensure fast and efficient removal of drainage water in the wet season.
Indian Sandalwood (Santalum album) is a tropical tree species that genetically is conditioned to these types of environments. The occurrence of localised short term flooding and soil saturation within the plantations are normal seasonal events that the trees in their native environs would experience repeatedly over normal seasons. The high rainfall and monsoonal events that occur in the hottest months of the year have a flow on positive of cooling the atmosphere and the environment and create more optimal growing conditions for the trees at this time.
The high rainfall events are essential for the broader environments in which TFS operates as well. High inflows into both surface and sub surface water storages, from which TFS draws its irrigation supplies from are essential on an ongoing bases. In the Kimberley, there has been significant recharge of both Lake Argyle and the Arthur Creek Dam at Kingston Rest. Both storages having been depleted over the last few years of drier weather and are now either overflowing or close to capacity again. In the Northern Territory this also means the recharge of the Oolloo and Tindal Aquifer systems from which TFS draws ground water for irrigation. Large wet seasons regenerate the natural landscape and provide a boost to the river and estuarine systems which are unique to Northern Australia. This not only rebalances the water systems but it also boosts the plant and animal life that is reliant on the systems.
TFC Price at posting:
$1.46 Sentiment: Buy Disclosure: Held