I agree, but noted the following from the annual report P11:...

I agree, but noted the following from the annual report


P11: High quality seed stock continues to be a competitive advantage for TFS. To further improve the quality of seedlings used in new plantings TFS has continued to invest in clonal seed orchards. In 2009 progeny from select trees was established as part of a controlled trial. Subsequent measurements highlighted better growth rates for these trees, with progeny from selected trees around 18% larger in diameter than trees in the control group. Since FY13 sandalwood seed has been harvested from the orchards, helping TFS to further strengthen its competitive advantage.


Comment: This suggests oil yields will increase. The profit is highly sensitive to oil yields. See note 11(iii) page 87. A 10% increase in heartwood yield increases profit by $45m




P15: In 2016, the Company commissioned a top tier global management consultancy firm to provide a study of the global Indian sandalwood market. This study found that TFS is likely to supply 80% of the world's legal and authentic Indian sandalwood by 2030.


Comment: TFC will be able to control the market similar to De Beers (diamond) and OPEC (oil). Although, a long time before it has any effective control.




P21: Indian sandalwood has a long tradition as a premium ingredient in fine fragrances yet scarcity and dwindling supply has limited its contemporary use.


Comment: This suggests the demand for sandalwood oil in perfumes could easily be increased with marketing.