PotentialPotential agroforestryagroforestry speciesspecies andand regionalregional industriesindustries forfor lowerlower rainfall rainfall southernsouthern AustraliaAustralia FLORASEARCHFLORASEARCH 2 2 Australia Australia Potential agroforestry species and regional industries for lower rainfall southern Australia FLORASEARCH 2 Australia A report for the RIRDC / L&WA / FWPA / MDBC Joint Venture Agroforestry Program Future Farm Industries CRC by Trevor J. Hobbs, Mike Bennell, Dan Huxtable, John Bartle, Craig Neumann, Nic George, Wayne O’Sullivan and David McKenna January 2009 © 20092008 Rural Industries Research and Development Corporation. All rights reserved. ISBN 1 74151 479 7 ISSN 1440-6845 Please cite this report as: Hobbs TJ, Bennell M, Huxtable D, Bartle J, Neumann C, George N, O’Sullivan W and McKenna D (2008). Potential agroforestry species and regional industries for lower rainfall southern Australia: FloraSearch 2. Report to the Joint Venture Agroforestry Program (JVAP) and the Future Farm Industries CRC*. Published by RIRDC, Canberra Publication No. 07/082 Project No. UWA-83A The information contained in this publication is intended for general use to assist public knowledge and discussion and to help improve the development of sustainable regions. You must not rely on any information contained in this publication without taking specialist advice relevant to your particular circumstances. While reasonable care has been taken in preparing this publication to ensure that information is true and correct, the Commonwealth of Australia gives no assurance as to the accuracy of any information in this publication. The Commonwealth of Australia, the Rural Industries Research and Development Corporation (RIRDC), the authors or contributors expressly disclaim, to the maximum extent permitted by law, all responsibility and liability to any person, arising directly or indirectly from any act or omission, or for any consequences of any such act or omission, made in reliance on the contents of this publication, whether or not caused by any negligence on the part of the Commonwealth of Australia, RIRDC, the authors or contributors. The Commonwealth of Australia does not necessarily endorse the views in this publication. This publication is copyright. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved. However, wide dissemination is encouraged. Requests and inquiries concerning reproduction and rights should be addressed to the RIRDC Publications Manager on phone 02 6271 4165. Researcher Contact Details Trevor J. Hobbs SA Dept. of Water, Land & Biodiversity Conservation, Waite Road, Urrbrae SA 5064 Phone: 08 8303 9766 Fax: 08 8303 9555 Email: [email protected] Dan Huxtable WA Dept. of Environment and Conservation Locked Bag 104 Bentley Delivery Centre WA 6983 Phone: 08 9334 0186 Fax: 08 9334 0367 Email: [email protected] Mike Bennell SA Dept. of Water, Land & Biodiversity Conservation, Waite Road, Urrbrae SA 5064 Phone: 08 8303 9674 Fax: 08 8303 9555 Email: [email protected] John Bartle WA Dept. of Environment and Conservation Locked Bag 104 Bentley Delivery Centre WA 6983 Phone: 08 9334 0321 Fax: 08 9334 0367 Email: [email protected] In submitting this report, the researcher has agreed to RIRDC publishing this material in its edited form. RIRDC Contact Details Rural Industries Research and Development Corporation Level 2, 15 National Circuit PO Box 4776 BARTON ACT 2600 KINGSTON ACT 2604 Phone: 02 6271 4100 Fax: 02 6271 4199 Email: [email protected]. Web: http://www.rirdc.gov.au Published in October 2008 * CRC for Plant-based Management of Dryland Salinity officially concluded operations on 30 June 2007. Its successor the Future Farm Industries Cooperative Research Centre continued to manage CRC PBMDS research projects until 30 June 2008. ii Potential agroforestry species and regional industries for lower rainfall southern Australia Foreword The FloraSearch project, which was initiated in 2002, was Significant financial and in-kind contributions were also developed to focus on the development of commercially made by project partners within the Cooperative viable woody crops for southern Australian agricultural Research Centre for Plant-based Management of regions. The project focuses on selecting and developing Dryland Salinity2: SA Department of Water, Land new crop species to supply feedstock for large-scale and Biodiversity Conservation; WA Department markets including wood products, renewable energy of Environment and Conservation; Ensis/CSIRO and fodder. New developments in prospective industry Forestry and Forest Products; NSW Department sectors are reviewed, prospective species are targeted of Primary Industries; and Victorian Department for ongoing development, and the results from modelling of Primary Industries. of industry potential are provided that support the This report is an addition to RIRDC’s diverse range ongoing relevance and importance of this project. of over 1800 research publications. It forms part of This project was funded by the Joint Venture our Agroforestry and Farm Forestry R&D program, Agroforestry Program (JVAP), which is supported by which aims to integrate sustainable and productive three R&D corporations – Rural Industries Research agroforestry within Australian farming systems. The and Development Corporation (RIRDC), Land & JVAP, under this program, is managed by RIRDC. Water Australia (L&WA), and Forest and Wood Most of our publications are available for viewing, Products Research and Development Corporation downloading or purchasing online through our website: (FWPRDC1), together with the Murray-Darling Basin Commission (MDBC). The R&D corporations were ■ downloads at www.rirdc.gov.au/fullreports/index.html funded principally by the Australian Government. ■ purchases at www.rirdc.gov.au/eshop State and Australian Governments contributed funds to the MDBC. Peter O’Brien Managing Director Rural Industries Research and Development Corporation 1 Now Forest & Wood Products Australia (FWPA) 2 Now Future Farm Industries CRC (FFI CRC) Foreword iii Acknowledgments Abbreviations The authors acknowledge the Joint Venture ABARE Australian Bureau of Agricultural Agroforestry Program and Cooperative Research and Resource Economics Centre for Plant-based Management of Dryland AER Annual Equivalent Return Salinity for funding this project. We would also like to recognise the significant support of our parent bdt Bone Dry Tonne organisations – SA Department of Water, Land and CP Crude Protein Biodiversity Conservation and WA Department of CRC PBMDS Cooperative Research Centre for Plant- Environment and Conservation. based Management of Dryland Salinity The input and helpful advice of project collaborators dbh Diameter at Breast Height and interested supporters of the FloraSearch project dm Dry Matter is gratefully appreciated. This includes Rosemary Lott, Mike Ewing, Kevin Goss, Graeme Olsen, Don Cooper, ECe Electrical Conductivity Richard Mazanec, Brendan George, Malem McLeod, FWPA Forest & Wood Products Australia George Freischmidt, John Doran, Des Stackpole, Isla FTWG Field Trials of Woody Germplasm Grundy, Peter Milthorpe, Peter Jessop, Peter Butler, Andrew Fisher, Joe Landsberg and Julian Morison. The GJ Gigajoule high quality of field surveys, trial site management, GWh Gigawatt hour databases, administrative support would not have IWP Integrated Wood Processing been possible without the support of Merv Tucker, Peter Georgaras, Gary Brennan, Julie Dean, Ligita Bligzna JVAP Joint Venture Agroforestry Program and a cast of many casual and contract field assistants. L&WA Land & Water Australia Finally we would like to recognise and thank the MAI Mean Annual Increment warm-hearted and giving nature of numerous farmers MDBC Murray-Darling Basin Commission and landholders across southern Australia for access MDF Medium Density Fibreboard to their cherished woodlots and revegetation efforts – even when we were armed with chainsaws and ME Metabolisable Energy lance-like measuring poles. MJ Megajoule MW Megawatt NPV Net Present Value PJ Petajoule RIPA Regional Industry Potential Analysis RIRDC Rural Industries Research and Development Corporation SARDI South Australian Research and Development Institute iv Potential agroforestry species and regional industries for lower rainfall southern Australia Contents Foreword .................................................................................. iii Acknowledgments .......................................................................... iv Abbreviations .............................................................................. iv Executive summary ......................................................................... x 1. Introduction ......................................................................... 1 2. Product and market directions ........................................................ 3 High Priority Industry Types .............................................................. 3 Wood Fibre Industries ............................................................ 3 Bioenergy (electricity generation) . ................................................. 9 Eucalyptus Oil ...................................................................12 Integrated Wood Processing Plant (oil/charcoal/bioenergy) . ........................... 14 Fodder Industries ................................................................15 Emerging Industry Types ................................................................