Opportunities for the smallholder sandalwood industry in ... - ACIAR

Box 3. Industry strengths and opportunities
• Industry priorities have been defined within a
sandalwood policy.
• Vanuatu sandalwood is currently perceived as
being of higher quality than S. spicatum.
• A unique natural and cultural environment and
vibrant tourism industry in Vanuatu may offer
domestic marketing opportunities (e.g. agritourism
and ‘suitcase export’ of locally made goods).
• The exotic images associated with Vanuatu, if
coupled with certified sustainable production
practices, could be developed as the basis of
niche marketing strategies in high-value markets.
• Linkages are evident among many key stakeholders
(government and private sector). The
consideration of issues of common concern
presents an opportunity for the establishment
of an industry peak body.
• Pre-existing commercial-sector investment and
processing infrastructure exist.
• An available land resource exists that is conductive
to sustainable production.
• Research and development programs are
being undertaken to improve product quality
and promote industry investment and growth
(Page et al. 2010).
• Local people have experience in commercial
production and processing techniques.
• Production of locally made products using
sandalwood could be viable, sold via existing
retail outlets or within an agritourism,
Mt Romance type facility in or near Port Vila.
• The sandalwood industry can ‘partner’ with
other Vanuatu industries (e.g. tourism) in
activities such as the development of promotional
programs and branding.
Given the vibrant and expanding tourism industry
in Vanuatu, opportunities may exist for marketing
Vanuatu sandalwood products domestically, focusing
on producing value-added products for sale within
existing retail outlets accessed by tourists, or as part
of an agritourism facility, such as described in the
Mt Romance case study. This is particularly relevant
given the recent increases in the tourism sector in
Vanuatu and the demand for cultural attractions that
are unique to Vanuatu.
A number of activities, including niche market
positioning, improved cooperation among industry
participants, the establishment of a peak industry
body and the development of product standards,
could improve the future growth and viability of the
Vanuatu sandalwood industry (Table 8). These market
Case study: Mt Romance
Beginning as a family business selling cosmetic
products at local markets, Mt Romance is now
the world’s leading supplier of Australian sandalwood
oil (Santalum spicatum). Mt Romance
promotes itself as:
Working with the aromatic Australian
Sandalwood tree to produce an essential oil
renowned for its sustainability, aroma and
therapeutic properties … through fusion of
Indigenous wisdom with scientific and commercial
capabilities, Mt Romance has helped
establish Australian Sandalwood oil as a
unique ingredient in the global fragrance and
cosmetic industries.
Mt Romance is an internationally known
supplier in global markets. Its range of retail
products includes soaps, cosmetics, toiletries,
candles and perfumes sold online or direct
from The Sandalwood Factory in Albany, about
5 hours south of Perth, Western Australia.
This regional tourist attraction offers visitors
the opportunity for tours, shopping, dining and
relaxation.
Source: www.mtromance.com.au
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