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Oil Mallee must look to multi-product industries

Author

Listed:
  • Cooper, Don
  • Bartle, John
  • Schilizzi, Steven
  • Pannell, David J.

Abstract

Oil mallees are one of the preferred options to combat dryland salinity in the Western Australian wheatbelt, but their economics are uncertain. We compare three scenarios: on-farm mallee oil production, industrial oil and wood-based electricity production, and a combined oil, electricity and activated carbon system. Only the third option has any serious chances of being a profitable venture, with the second being the worst. The first could break even if oil yields increased from 3 to 4%. Results are sensitive to the price volatility of activated carbon and the operations cost of the cogeneration plant.

Suggested Citation

  • Cooper, Don & Bartle, John & Schilizzi, Steven & Pannell, David J., 2001. "Oil Mallee must look to multi-product industries," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125582, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare01:125582
    DOI: 10.22004/ag.econ.125582
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    1. repec:ags:aare02:125118 is not listed on IDEAS
    2. John, Michele & Kingwell, Ross S., 2002. "A review of options for dryland salinity management in low rainfall agricultural environments in Western Australia," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 183424, Australian Agricultural and Resource Economics Society.

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