From its wood to its oils, sandalwood is a highly-valued commodity used in a variety of applications. High demand for sandalwood over the years has led to overharvesting, threatening the supply and demand equilibrium of the many industries involved in the trade of its by-products.
Striving to be the world's leading sustainable sandalwood supplier, TFS implements best practices in climate, community and biodiversity to deliver long-term benefits to investors, the company and the environment. TFS manages its plantations on behalf of retail and institutional investors.
TFS has established about 5,000 hectares of Indian sandalwood (Santalum Album). Sandalwood is widely used in fragrance, incense, herbal medicine, worship and carving products. It is challenging to grow the plant due to its parasitic nature and 14- to 15-year growth cycle. It takes a specialist such as TFS to successfully nurture sandalwood and overcome high-entry barriers.
Australian Securities Exchange-listed TFS is the first company to grow Indian sandalwood commercially in Australia. It planted its first Indian sandalwood seedlings a year after its establishment in 1998.
When TFS first started planting Indian sandalwood, the survival rate of trees was 30 to 40 per cent. TFS now boasts a 90 per cent survival rate. TFS' plantation is considered among the most sustainable in the world. Ensuring species preservation and a continuous supply cycle, TFS planted more than 600,000 sandalwood seedlings last year.
"It has taken time to get everything right, from soil preparation to the amount of water needed. Forestry investors have cited our forestry project as probably one of the best worldwide because of the difficulty," says Quentin Megson, chief financial officer at TFS. "We have a niche, a specific intellectual property on how to grow sandalwood. It is very difficult to replicate on a commercial scale."
Through its subsidiary, distiller Mount Romance, TFS buys Australian sandalwood (Santalum Spicatum) that is indigenous to Western Australia. Mount Romance incorporates sandalwood oil in cosmetics, aromatherapy fragrance and therapeutic products. The company is the leading producer of Australian sandalwood and sandalwood beauty products.
