This report has been prepared for the South & Central Regional Forestry Hub (the Hub), who determines the opportunities and barriers for the forestry and wood products sector. This report provides the knowledge and technical support required for the development of a white cypress (Callitris glaucophylla) plantation project. A literature review was undertaken and stakeholders were consulted to find information relevant to establish a white cypress plantation on private land in the Hub regions. It is part of a more comprehensive research and development program investigating white cypress plantation potential. The findings from this study were:
· There is 5,114,370 ha of X-class land potentially available for white cypress plantation development. This includes areas that are not suitable for cropping, primarily located in the semi-arid Brigalow Belt, Queensland.
· A review of best-silviculture practices for white cypress plantation development suggests:
o Seed collection from across the range of the species distribution in Queensland to investigate the best provenance and to facilitate future genetic improvement work.
o Plantation establishment should occur at the start of the rainy season from December to February. Trees should be planted at a wide spacing of 5 x 5m or 3.3 x 5m (400 – 600 trees/ha).
o Irrigation water should be applied for the first 2 years following plantation establishment.
· A review of plantation management regimes (post-establishment) suggests:
o Stocking rates of 400 stems/ha.
o Thinning should occur at a young age reducing stocking to 260 stems/ha.
o Weeds and grasses should be controlled to minimise fire risk.
· White cypress has naturally durable timber with good mechanical properties. Heartwood is highly resistant to decay and termite attack, sapwood is resistant to lyctus attack, and both sapwood and heartwood resist impregnation with commercially available preservatives.
· Demand for white cypress timber is greater than the supply available from native forests.
· The current local white cypress processing capacity in Queensland is approximately 112,000 m3. There are currently 10 existing white cypress sawmills in Queensland. The recent testing of commercial plywood production using spindleless lathes suggests that this capacity could increase.
· Potential uses and markets: White cypress has excellent nail-holding ability, very high tensile strength and is easy to sand and glue which makes it suitable for a wide range of uses for construction and decorative purposes. It could also be potentially used for making essential oils and landscape mulch, bioenergy and plywood. The main market identified for white cypress wood products is domestic, with most of the resources going to Melbourne.
· Key recommendations for the development of a white cypress plantation:
o Any cypress plantation should be developed on X-class private lands with rainfall ranges between 500 – 700 mm/year in the southern half of bioregion 11 (Brigalow Belt).
o The cost of establishing one hectare of white cypress plantation was estimated to be $10,550 with costs likely to come down if knowledge, expertise and capacity are developed, including an effective seed supply, improved planting techniques, optimised irrigation and enhanced silvicultural practices (e.g weeding and thinning).
o White cypress plantations have potential to contribute to economic and environmental values compared to grazing the land. Three scenarios showed the net present values for white cypress plantations over 40 years. Net present values (NPV) were all negative based on assumptions of 40 years rotation, stocking of 260 trees/ha at final harvest, merchantable yield of 61.7 tonnes/ha and stumpage prices ranging from $50 – $120/tonne. This analysis ignored potential income from bioenergy, carbon markets, cattle grazing and environmental credits. When these are included NPV may be positive.
o Sensitivity analysis or bioeconomic analysis regarding plantation development inputs, productivity, potential carbon credits, bioenergy and timber products should be conducted to estimate financial returns from white cypress commercial plantations.
o Policies that give confidence to investors will be needed to facilitate the development of white cypress plantations.