Planted sandalwood developments in Vanuatu

The Vanuatu sandalwood industry has a very promising future, where for the first time in its recorded history the resource is expanding. Recent planting activity has resulted in the establishment of between 270 and 550 ha of smallholder plantings and 150 ha of commercial plantings since 2000. While volumes harvested from wild sources are likely to decline over the immediate future the increased sandalwood planting may conservatively result in a sustainable annual yield of approximately 300 tonnes by 2030. At current prices the production of sandalwood by smallholder farmers is economically feasible and perhaps offers the highest returns of any agricultural activity in Vanuatu. With such smallholder sandalwood planting expected to continue, the future harvest of this resource is likely to improve export volumes resulting in improved balance of trade and government tax revenues, but importantly it will also stimulate the local cash economy and ultimately improve ni-Vanuatu livelihoods