The main field activities over the past six months have been the completion of sample collecting trip for 25 additional sandalwood trees in Delta Downs, Cape York during the week of 3rd - 8th April 2005. Tree data and samples were collected as well as information relevant to the associated vegetation, soil type, regeneration and morphological characteristics were collected for every tree sampled to assist in the characterisation of variation between trees and sites.

Wood core samples collected in 2004 in Vanuatu and Cape York have been examined by GCMS by Mike Russell of NSW Essential Oil Laboratory for chemical analysis. Much of the data has been processed and analysed and there is significant variation within and between populations for all morphological characters measured for both species. Oil yields as estimated using an internal standard were substantially lower than found by industry when extracting oil by distillation. We are currently attempting to reconcile any potential error in this estimate by directly comparing oil yields of a given sample between solvent extraction and water distillation.
The continuous variation found for all major oil constituents, means there is no chemotype division in S. austrocaledonicum as previously reported for this species [Ehrhart, 1998 #3373]. The populations from the two northern islands (Santo & Malekula) have a greater proportion of trees with high values for the commercially important oil constituents (santalols) than the populations sampled from the southern islands. This broad geographical variation overlaid further significant tree-to-tree variation in oil constituents within each population, whereby each population had a range of trees with high and low quality as compared with the international standard for sandalwood oil. No correlation has been found for between any of the morphological or ecological characters and the important oil-constituents. This information does not support current perceptions that heartwood colour is an indicator of oil quality.

Genetic fingerprinting has been undertaken on three of the Vanuatu populations (Santo, Malekula & Erromango). Genetically Santo and Malekula are quite similar and each clearly distinct from genotypes of Erromango. Erromango exhibits considerable tree-to-tree genetic variation across all 5 loci screened, however a high level of relatedness was found among the individuals from Santo & Malekula. Many of the individuals with high oil quality in the northern islands are related and could be the considered to be siblings or the result of self-pollination as there is considerable homozygosity amongst the loci screened. This has important implications for both the conservation of these populations and also the domestication programme. It would seem that introgression between these northern populations (i.e. population mixing) is required to generate new genetic variation and avoid deleterious effects of future inbreeding. The high level of relatedness between individuals in the Northern populations with high oil quality has reduced the number of selection candidates for the domestication programme to a total of 16 trees.

Also evident during the field collections is the threatened state of the current sandalwood resource in Vanuatu. In all islands except Erromango it was difficult to locate 25 trees within a single site, even with the assistance of villagers that have intimate knowledge of their lands. Although there are significant resources still remaining in Erromango the harvesting pressure is very acute on this island. Recruitment was low in the islands where trees were most difficult to locate (Malekula, Moso & Santo), moderate levels were found in Erromango & Tanna and high levels of recruitment were found in Aniwa.

Significant variation was also found for all morphological characters measured within and between populations of Cape York sandalwood (S. lanceolatum). The indigenous participants have requested that at this stage the identity of the sites be kept confidential to ensure that intellectual property is protected. The oil samples of Cape York were generally much higher in nuciferol and curcumenol than those of Vanuatu, which confirms existing knowledge of the oil profile of S. lanceolatum. One particular population had a high proportion of individuals with high concentrations of - and '-santalol and 6 of which met the requirements of the international standard for sandalwood oil. This result was most unexpected given that the current knowledge reports that S. lanceolatum is of the lowest quality for all sandalwood. This information is very important and offers the potential for the domestication of high quality, drought tolerant sandalwood. The growth rate of S. lanceolatum in such environments is important and current work undertaken by Jon Luly (JCU) is looking to quantify growth potentials in Cape York (See section 4.3 for further details). Acacia's were the main associated species in each of the populations evaluated, but no associated putative host species had an effect on any of the morphological or oil characters measured. Therefore future selection for oil characteristics can be undertaken independently of any host associations. Relationships between host and sandalwood growth rates are an important consideration in its production in agroforestry and will be undertaken during the host x genotype interaction experiment.

Seedlings are currently being germinated in Vanuatu to become the rootstock for the superior scions collected during the germplasm field collection planned for October/November 2005. Analysis of collected leaf samples in both Vanuatu and Cape York by molecular markers is continuing, and the complete data set is expected to be available by the end of the next reporting period.

The three key project activities completed during this reporting period were the delivery of training to village participants during February, the establishment of the 'host' trial in Port Vila and the collection of scion material from the selected trees in the southern islands of Vanuatu and an additional 25 heartwood cores from the island of Anietyum during June 2006.

(a) A training workshop was organised and held for Vanuatu Department of Forestry staff and one representative from each of the villages participating in the ACIAR funded sandalwood project. The travel, accommodation and living expenses of the villagers attending the workshop were funded by SPRIG. There were two primary aims of the workshop (a) to disseminate the results of the research, and participatory development of the sandalwood improvement programme and (b) build the capacity of ni-Vanuatu project participants to successfully establish sandalwood plantings. The training focussed on delivery of information on nursery establishment and procedures, sandalwood propagation, plantation establishment and plant improvement. The information was reinforced by practical demonstration and participation in media preparation and seed, cutting and grafting propagation activities. A visit to a sandalwood plantation and oil distillation factory in Port Vila was also arranged to stimulate ideas and information sharing among participants. Surveys of the workshop attendants both before and after the workshop revealed that the aims of the workshop were, for the most part achieved. Most responded indicating that they had a much better understanding of the processes involved in operating a successful nursery and establishing sandalwood plantations, and many were also enthusiastic in attending future sandalwood training activities.

(b) Success in vegetative propagation of S. austrocaledonicum has continued using the non-mist propagator using a range of seedling genotypes. Clonal stocks of these seedlings have increased and will begin to be used for further vegetative propagation over the next reporting period. Comparisons of environmental variables were made between the propagators in Australia and Vanuatu, which has helped to standardise conditions between the two sites, it is expected that with similar maintenance regimes that success can be achieved in both countries.

(c) A replicated sandalwood x host experiment (868ATH) was established near Port Vila, in collaboration with the Vanuatu Department of Forestry (VDOF) and the Summit Estate sandalwood plantation company. A one hectare area was selected, surveyed, pegged and planted with 120 host plants each of three species (Canarium indicum, Casuarina equisetifolia and Pterocarpus indicus). A fourth host species (Micromelum minutum) was not ready at this time and this will be planted at the end of the year when the sandalwood trees and an intermediate host (Sesbania formosa), are also established. A working plan (attached) for this experiment has been completed and provides a comprehensive guideline for experiment establishment activities. Participating VDOF staff gained valuable experience in the research methodologies required to effectively establish a large field trial, recognising and minimising the effects of site and management variability and reducing experimental errors.

(d) Grafts from nineteen superior, high-oil yielding, sandalwood trees, (identified in a previous project trip), were collected from trees on the islands of Moso (4 clones), Erromango (6 clones), Aniwa (5 clones) and Tanna (4 clones). Unfortunately, additional selected trees on Erromango (2) had been illegally harvested and one tree on Aniwa had suffered fatal damage during a storm. Grafting scions (30-40) were collected from the remaining 19 selected trees, and transported back to Port Vila where a minimum of 20 scions were grafted onto potted, sandalwood root-stock at the VDOF, Tagabe nursery. These grafted trees will be carefully managed to ensure that individuals from each clone survive and can be used to establish the first grafted clonal seed orchard of Santalum austrocaledonicum in Vanuatu as the primary component of a new breeding strategy for this species. The Vanuatu Department of Agriculture has agreed to grant exclusive use of a small area of land (50 x 80m) for establishing the grafted seed orchard. This plot is adjacent to the VDoF nursery in Tagabe and fencing materials are now being sought to secure the block.

(e) An additional Santalum austrocaledonicum population on the southern-most island of Anietyum was identified and sampled. Twenty-five trees were located in the villages and surrounds of Anelgehut (12), Utchee (1), Umetch (4) and Enestchei Bay (8). Individual trees were measured, surrounding vegetation (hosts) described, wood cores collected for oil analysis and leaf samples collected for molecular and botanical study. The collection of the Anietyum population completes the population survey of all naturally occurring sandalwood populations in Vanuatu. Analysis of wood cores will identify superior oil yielding individuals in this population for future inclusion in the grafted clonal seed orchard at Port Vila.