A lot of koala communication in the colony happens by smell - I wonder if that is why they have such amazing noses?
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I think I remember you saying that they have poor eye sight , so perhaps their sense of smell compensates this !! The nose looks very tough and leathery ! so I should imagine its to prevent him having sun-burnt nose !!
It`s all natural. It seems human people do it also , maybe we don`t want te be remmeber on it. If you partner don`t smell nice you won`t fall in love with him/her. ( so they said)