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Farmer/Grower/Wescorp Agarwood Agreements

Wescorp Agarwood (WA) does not see itself as a grower, rather it recognizes that its skill is in the processing and marketing of aromatic timber products for the agarbatti (incense), oil and wood craft industries.

Working with farmers we hope to establish farmer plantations that will see 500,000 new seedlings planted each year. To enter into a tree growing agreement with WA a minimum of 5,000 trees is required. This equates to 5 hectares of cleared agricultural land.

In 2009 WA commenced growing agreements with farmers in Far North Queensland (FNQ) and planted approximately 48,000 trees, we anticipate these trees will be harvested in 2016/17, that is harvesting will commence 7 to 8 years from planting. Plantations have continued to be established on an annual basis in accordance with WA’s plantation plan.

Uniquely, the farmer’s income is derived from the FOB price of the sales of agarwood products with the farmers receiving 65% and Wescorp Agarwood receiving 35% of the sale price. Each party has to look after their own costs, the farmers for planting, growing and harvesting over the 7 to 8 years, and Wescorp for processing and marketing. It is a rare chance for the farmers to be fully informed of the markets and achieving the same price as the processor and exporter.

Wescorp Agarwood is keen to speak with more farmers that maybe interested in exploring the possibilities with being involved in this exciting industry that is developing in FNQ. For further enquiries please contact Wescorp Agarwood Assistant Manager Fleur Coakley at fleur@wescorp.com.au.

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