Improving market access for Vanuatu sandalwood

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Sandalwood is an important crop for Vanuatu given its high value and alignment to existing lifestyles. It is only one of few crops that generates income in the remotest areas of Vanuatu and supports livelihoods for these communities.

This report aims to provide specific guidance to PHAMA, the Vanuatu Department of Forests (VDOF) and other stakeholders on activities to support improved market access for Vanuatu’s sandalwood industry. The structure of Vanuatu’s sandalwood industry has been reported on extensively over recent years. This report draws on previous studies and presents current industry perspectives, primarily in relation to market access and focusses on industry structures, international markets, and potential roles for PHAMA or other programs to improve market access for sandalwood products.

Findings from this report indicate there appears to be scope for Vanuatu sandalwood producers (smallholder farmers and their agents) to pursue higher prices for their products, through improvements to market information and product differentiation based on quality and the end market, coupled with associated changes to sales arrangements.

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