- Sandalwood (Santalum album) is one of the world’s most expensive hardwoods.
- The fully grown tree contains the essential sandalwood oil which is known for its unique medicinal and olfactory properties.
- For a kilogram of oil, wholesale pays up to USD 5,000, retail prices of MLM tops USD 25,000; the heartwood is equally demanded and can even achieve higher margins, at prices of USD 150+ per kilogram.
- Already in early Vedic documents (around 2.000 BC) sandalwood‘s special properties were recognized, making it the holy tree of Ayurvedic medicine and Hindu tradition.
- Later establishing its uniqueness within other cultures (foremost Buddhism), religions and natural medicines all over Asia. Specifically, TCM (Traditional Chinese Medicine) listed sandalwood for various healing implications over 1,500 years ago, and is today‘s biggest buyer in Australia.
- Consequently, sandalwood has been a traded commodity since over 2,000 years. Known as the „Wooden Gold“, and its essential oil as the „Liquide Gold“. A currency of its own.
- In 1792, the legendary Mysore Tipu Sultan declared sandalwood a Royal Tree. Meaning, the tree was nationalized, all income directly financing the war against the British.
- Since, sandalwood has remained under governmental „protection“, thus de-incentivizing farmers and private entrepreneurs in India to take on the long-term challenge of growing sandalwood.
- Due to overexploitation of wild stocks, sandalwood has become a rare species, a tree threatened by extinction. Since over twenty years, sandalwood is on the Red List of endangered species and under protection of the IUCN (International Union for Conservation of Nature).
- Consequently, there is a long-term global shortage of supply.
- IUCN has explicitly praised the successful cultivation and reforestation of sandalwood in critical commercial size in northern Australia as saving this species.
- Due to this situation, JC Sandalwood investors become part of a „quasi monopoly“ of this treasured commodity.
DIVERSIFIED SALES MARKETS
- Sandalwood essential oil is highly in demand by the pharma and medical industry (Ayurveda, TCM & Western medicine) as well as the beauty (perfumes, lotions), wellness (aromatherapy) and food industry (flavoring).
- Sandalwood is also in demand by over 1 billion people worldwide using it as part of their culture for traditional rituals: the Tilak/Bindi forehead-dot, incense, daily pujas, handicrafted wooden figures (Ganesha, Buddha), funeral piles, etc..