Sandalwood giant Quintis has sold 363 hectares of its Kununurra sandalwood portfolio to northern cattle identity Sterling Buntine as the price of the heartwood continues to drop.
Key points:
- Quintis is the world’s largest producer of Indian sandalwood
- The price of sandalwood, used in fragrances to furniture, has fallen 50 per cent in the past three years
- Sterling Buntine joins large-scale wheat grower Ron Greentree as recent purchasers of Kununurra sandalwood plantations
It is the second time this year the company has offloaded land in the fertile Ord River Irrigation Area (ORIA) in northern Western Australia, with wheat farmer Ron Greentree purchasing 517ha of sandalwood from Quintis in August for $7.675 million.
Sterling Buntine owns cattle stations across the north of WA, the Northern Territory, and Queensland, and was part of a group of cattle barons who in 2016 made an unsuccessful $385 million bid for the for S Kidman and Co properties.
In a statement a spokesperson from Quintis told the ABC the company “is transitioning from its traditional, capital intensive ‘set and forget’ land ownership model to a more dynamic model where real estate in sandalwood growing areas is traded in and out”.
This will be done “according to the company’s own plantations requirements, the requirements of its customers, and macro factors affecting real estate values”, it said.
The sale of Quintis’ Packsaddle plantation to Mr Buntine includes more than 165,000 Indian sandalwood trees and 476,000 host trees planted 12 months ago in what was then seen as a new cycle of longevity for the company.
The sandalwood takes 15 to 20 years before it is ready for harvest for use in a range of fragrances, cosmetics, traditional medicines, furniture, and handicrafts.
Last year’s planting marked the first time the producer of exotic timber, which manages the largest Indian sandalwood plantation area in the world, planted new trees since it entered administration in 2018.
After recapitalising as a private company later in 2018 and recording a record harvest in 2021, Quintis CEO Richard Henfrey said the price of heartwood dropped significantly.
“I’ve been in the role three years and in that time it’s probably come down by 50 per cent,” Mr Henfrey said.
After speaking to industry sources, the ABC understands Mr Buntine plans to clear the land of sandalwood and repurpose it for broadacre farming.
Mr Buntine did not respond to the ABC’s request for comment.
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