Farmer/Grower/Wescorp Agarwood Agreements

Wescorp does not wish to be a grower as it recognizes that its skill is in the processing and marketing of aromatic timber products for oil, craft and the agarbatti industry.

Working with farmers, we hope to establish farmer plantations that will plant 500,000 trees per annum. The minimum number of trees to be planted to enter into an agreement is 5,000 trees. This is only 5 hectares per annum in the right areas for rainforest plantations.

In 2009, Wescorp has agreements with farmers in Far North Queensland to plant 48,000 trees, which we anticipate being harvested in 2016/7. That is harvested in 7 to 8 years from planting.

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 is looking for more farmers for each year and expects to plant a further 60,000 trees from November 2009 to March 2010. If you are interested, please contact our office or Tim Coakley at tim@wescorp.com.au.