Income with sandalwood is in year 4 depending on rainfall. Though generally subsoil moisture reserves are always good at depth under annual farming systems even in low rainfall areas. With sandalwood at $5/kg and nut yields of 300kg/ha that is a gross margin of $1500/ha/year.
Now nuts are currently fetching $40/kg so that busts that gross margin out to $12,000/ha.
Avongrow's figures are very conservaive on nut yields because there was no nut yield data at the time of putting that publication out. It has since become clear that yields of up to 500kg/ha are possible. Probably 300kg/ha in the more marginal areas.
Wheat at 3t/ha is a gross margin of $900/ha and rarely is wheat able to be grown year on year to infinity.
There is a growing sandalwood industry on the York and Eyre Peninsula though they are at least a decade behind the growth here in Western Australia. Also in the Mallee and Wimmera region in Victoria.
Now what is the gross margin for carbon sequestration? At one tonne per year that is $5/ha. Lets make it 5 tonne which could never be achieved in these low rainfall areas and you are still looking at a mere $25/ha. Farmers are interested in figures, not the SP of a listed company.
COZ Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
