QIN (ASX) 2002 Project

Originally posted by 2018_Change ↑

Yes a very poor result for 2002 growers due to a combination of low yields and dramatically lower prices. But even in 2002 with rock-bottom prices the growers who chose the deferred fees and gave away a % of their crop in lieu of fees still made a small profit. This illustrates how profitable sandalwood can be where it is marketed properly and high prices are achieved along with improved yields and survival rates. Yields have improved in later plantations by over 500% due to better survival rates and better quality trees as a result of improved forestry practices.

Further, the manner in which the board managed and marketed the 2002 tree tender was extremely poor and little wonder few buyers were attracted. Wood was left in a dirty and very hot tin shed with no lighting and it was very difficult to inspect the logs, nothing was done to showcase the wood to buyers whatsoever. Matthys, Dilalo, Thompson once again showcasing their sales and marketing skills for growers and shareholders.

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If that's the case, the growers should stop the sale at this point, and seek answers from the company. The company sold the wood to themselves, so it should be a simple matter to put things on hold. It has taken 15 years to get to this point, so a couple of more months won't make any difference. The matter I want determined is what happened to the tree roots, as these contain up to 6% oil, and are the best part of the trees for processing. Are the roots included as part of the heartwood sale? Also, I would like to see details of the company harvested trees from TFS 2002, and what amount was involved! This appears to be a case of being taken for a ride. The sooner the company and grower trees are separated the better, it is an absolute conflict of interest! Why don't the growers have the option to have the heartwood converted to oil as the company does? The company buys the grower wood, converts it to oil, sells it. Therefore, has a bigger mark up for themselves! Stuff the growers, their only here to fill our pockets!