NURSERY REVISION DATE DESCRIPTION PREPARED BY REVIEWED BY APPROVED BY. A. Archer W. Hammond

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1 NURSERY Document No: MANUAL 010 REVISION DATE DESCRIPTION PREPARED BY REVIEWED BY APPROVED BY 00 Sept 09 Initial issue 01 Jan 10 Reviewed regarding incorporation of FSC CoC A. Archer W. Hammond S. Hunter R. Breidahl A. Archer W. Hammond R. Breidahl Hard copies of this document are not controlled. You are required to ensure the document is up to date by checking the controlled read-only version on the WAPRES Intranet.

2 Document Title: Nursery Page: 2 of Seed to Sail - At the Nursery The Orchard "Operations and staff expertise have improved rapidly at the nursery - we are now in the position to grow more trees and diversify beyond bluegums." Simon Hunter, Nursery and Tree Improvement Manager. Why do we need a Nursery? The nursery is an integral component of WAPRES because it allows us to take our genetically improved seed and produce seedlings with superior performance qualities. Similarly, our stringent quality control in the nursery ensures greater success in establishing the bluegums in the field. Where is our Nursery Located? The WAPRES nursery is located about 10 kilometres west of Manjimup. When the nursery was initially built in 1993 it had a holding capacity of 2.4 million seedlings. As a direct result of significant upgrades to the site, its capacity now stands at about 7 million seedlings. The Future WAPRES markets it s nursery services to clients wishing to grow containerised seedlings. The nursery specialises in growing E.globulus (bluegums) grown from genetically improved seed through our Tree Breeding programme although seed from native stands or seed supplied by the client is also used. A wide range of other species, (of both Eucalypts and Pines), as well as species suited to sawlog production, carbon credit sequestration and land care projects are also grown. Currently the nursery is growing host oak and hazelnut seedlings for the expanding truffle industry based around Manjimup. How do we produce our Bluegum Seedlings? a. Germinating the Seed The germination process is initiated prior to the seed being sown to maximise uniform establishment in the seedling trays. This is achieved by drenching the seed in water and placing the seed in a germination chamber for 96 hours, where both humidity and temperature are controlled.

3 Document Title: Nursery Page: 3 of 6 b. Sowing the Seeds The seed is sown mechanically using a vacuum driven needle-bar seeder. This allows for the accurate placing of individual seeds into each cell. Up to 230,000 seeds can be sown in a day. A coir-based (coconut coir) media is used for this 1 st stage of the sowing operation. Slow release fertilisers and soil wetting agents are added prior to seeding, using a media mixer. The seedling tray used, called a miniplug, has 512 individual cells of 5cc each. The seedling will spend up to 8 weeks in this tray before being transplanted into a larger tray type. After sowing, the trays are topped with Vermiculite, irrigated and then stacked on pallets and wrapped under plastic for two days to optimize temperature and humidity, which assists in achieving an even germination. Sown trays are then unwrapped and racked out on the nursery benches. c. Transplanting (miniplugs into trays). After 8 weeks of growing in the miniplug tray, the seedlings are brought back into the seeding shed for transplanting into the larger tray types. These tray types vary in the number of cells per tray and in the individual cell volumes from 50cc, 86cc and 98cc. The trays are mechanically filled with composted pine bark, dibbled and then moved onto a continuous feed convey. Here, a team of about 17 staff, remove the miniplug seedling from the miniplug tray and transplant it by hand into the larger celled trays. Composted pine bark is used as the transplant media as it readily available as a by-product and it does not harbour the pathogens found in sands and soils. Apart from providing an ideal media for root development, trays are 30% lighter with pine bark when compared with conventional mixes of sawdust, sand and peat. The pine bark is tested at various stages through the composting process to ensure that it meets a predetermined set of specifications of chemical and physical properties including ph, EC (salinity), air filled porosity and several critical nutrient levels. d. Irrigating and Fertilizing the Seedlings Water is pumped from a dam on site which is then treated and filtered. Exact quantities of a range of different fertilisers are injected into the irrigation system from tanks holding the concentrated solutions. The fertiliser regime is manipulated at various stages to provide a healthy and hardened seedling.

4 Document Title: Nursery Page: 4 of 6 e. Dispatching the Seedlings Seedlings are graded to ensure at least 95% of cells contain a plantable seedling prior to dispatch. Seedlings which do not meet the seedling specification i.e. height or collar diameter are discarded. WAPRES uses both its own and contractor's vehicles for seedling deliveries. Deliveries total around 700,000 seedlings per week, starting in early June and continuing until mid August. Deliveries are also made to the Green Triangle in South Australia and Victoria. At the Orchard "WAPRES has seen large growth in the number of genetically improved seeds it produces each year and now produces enough for its entire nursery capacity of 7 million seedlings." Simon Hunter, Nursery and Tree Improvement Manager, Treefarms. Why Are Our Seed Orchards So Important? Our seed orchards are critical to the operations of WAPRES because they allow us to improve the genetic composition of the bluegums we plant. This means that we can select and breed trees that provide the most profit for the woodfibre industry, where financial returns are dependant on wood volume, density and pulp yield. Where Are Our Seed Orchards Located? WAPRES has a number of orchards located throughout the southwest of Western Australia. Location Established Type Manjimup East Margaret River Manjimup (Nursery site) ,1996,2000, 2004,2005,2007 Seedling seed orchard Seedling seed orchard Clonal orchards

5 Document Title: Nursery Page: 5 of 6 How Do We Produce Our Bluegum Seeds? a. Selecting the Parent Trees Trees growing in breeding trials throughout Australia possessing genes for rapid growth and improved wood properties are identified using state of the art genetic analysis, supported by the Southern Tree Breeding Association (STBA). Scion material (growing tips) from these selected trees are grafted onto rootstock in our greenhouse facility at the nursery. These clones will then be planted into seed orchards containing other selected clones where they will mate and produce improved offspring in the form of seed. This selection and grafting process occurs annually. b. Establishing and Maintaining the Orchard The trees in a seed orchard look very different to plantation trees. The trees are more widely spaced and they are routinely lopped to about 6 metres to make seed collecting easier. Application of the hormone, Paclobutrazol, encourages the reproductive growth of the trees. This leads to enhanced lowering of the trees, allowing more seed to be produced. A beneficial side effect of the hormone is that it stunts growth, again making seed collection easier. c. Pollinating the Flowers Birds and bees mostly pollinate bluegum flowers, as opposed the conifers being pollinated by wind. Encouraging pollinators through the planting of other flowering trees in the vicinity and avoiding practices that may harm them i.e. chemical spraying of insecticides, is important for maximising pollination and maintaining seed numbers. The best quality seed is produced by the method of mass supplementary pollination (MSP). Flowers are pollinated by hand with pollen collected from selected parents in the seed orchard. Although this method is labour intensive, the increased number of seed and the extra genetic gain, make it an attractive alternative to natural pollination. d. Collecting the Seed Elevator platforms i.e. squirrels are used to reach into the tree canopy and hand pick the bluegum capsules. Normally each capsule will yield 12 to 14 seeds, however a capsule can yield anywhere between 5 and 50 seeds.

6 Document Title: Nursery Page: 6 of 6 e. Breeding for the Next Generation of Trees To produce the next generation of improved trees, selected elite trees are cross pollinated by hand. The flower is covered with a balloon to ensure it is not contaminated with extraneous pollen through natural pollinators i.e. bees. Each year, breeding trials are established using seed from these control pollinations. After four years of age, the trees grown from these crosses are assessed on growth and wood density to select the next generation of parent trees. The Future WAPRES plans to continue to be a leader in the production of genetically improved bluegum seed. The seed will be used to ensure the Company's plantations are of the highest genetic quality possible and will keep it's nursery at the forefront of supplying the highest quality seedlings to its customers. Any surplus seed will be sold to domestic and overseas markets. WAPRES is involved in research aimed towards increasing yield and improving wood properties. Secondary breeding strategies will include improving resistance to pests and diseases, maximising growth and survival in water limiting environments and sawlog properties.