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Wood contains natural compounds that can be extracted or converted into high value products for use in the manufacture of adhesives, tannins, oils and even explosives. Sometimes wood is an alternative source of commonly used compounds otherwise obtained from oil or produced in non-environmentally friendly ways. In most cases the processing plants for these products are likely to be located near sawmills or other sites where wood waste is cheap and available. Although farmers may not grow trees specifically for these markets, new industries may have a role in underpinning the profitability of sawmills.

Growing wattles for tannin is an example of a dedicated plantation established for industrial products. Even though tannin is highly concentrated in the bark of species like Black Wattle (Acacia mearnsii), Australia currently imports wattle tannins from Africa. However, current research is evaluating the potential for revitalising the industry in Australia by using genetically improved stock and mechanical harvesting.

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