How Much Is a Kilo of Agarwood in the Philippines?

The cost of a kilo of Agarwood in the Philippines varies greatly due to factors such as quality, type, and market demand. High-quality Agarwood can cost anywhere from $30,000 to $50,000 per kilogram. Lower quality Agarwood, on the other hand, is less expensive, falling in the range of $1000 to $5000 per kilogram. It should be noted that these prices are subject to change, depending on fluctuations in global Agarwood prices and market conditions. It’s always best to check with local suppliers for the most up-to-date prices.

How Much Is Agarwood Tree in the Philippines?

The agarwood tree is known for producing Agarwood, which is highly sought after for it’s unique and complex fragrance. Agarwood is an extremely valuable raw material, and the cost of agarwood in the Philippines is quite high. This natural product that’s harvested from the agarwood tree, and processed into an essential oil, resin, or woodchips. The high price of agarwood is due to it’s rarity and difficulty of harvesting, as well as the labor-intensive process of producing the finished product.

It’s unique fragrance is used as a base note in many high-end perfumes and scented products. It’s rarity and scarcity make it a luxury item, and only a limited number of agarwood trees exist in the Philippines.

The process of harvesting agarwood isn’t an easy one. It involves slicing the bark of the agarwood tree, which is a slow and delicate process. Once the agarwood is harvested, it’s then left to dry and age, which takes several years. The longer the aging process, the more fragrant and valuable the agarwood becomes. This long and tedious process contributes to the high cost of agarwood.

The growing demand for agarwood has also led to illegal harvesting and trafficking. The agarwood tree is endangered in many parts of the world, and this has led to strict regulations and bans on the harvesting and trading of agarwood in many countries. As a result, the agarwood industry is heavily regulated, and only licensed individuals and companies may legally sell and trade agarwood in the Philippines.

It’s scarcity, difficulty of harvesting, and high demand contribute to it’s high cost in the Philippines. The cost of agarwood can reach as much as P160,000 per kilo in the Philippines.

Different Uses of Agarwood: This Article Can Provide Some Insights on the Different Uses of Agarwood, Including It’s Use in Traditional Medicine, Aromatherapy, and Cuisine.

• Agarwood is used in traditional medicine for it’s various health benefits.
• It’s known to have anti-inflammatory, anti-asthmatic, and analgesic properties.
• Agarwood oil is used in aromatherapy for it’s calming and relaxing effects.
• It’s believed to reduce stress and anxiety and improve overall wellbeing.
• In cuisine, Agarwood chips are used to flavor drinks, desserts, and dishes.
• The wood is also used in the production of incense and perfumes.

Now that we’ve an understanding of the weight and value of an agarwood tree, let’s delve deeper into the process of how agarwood is harvested and why it’s such a sought after commodity in various industries.

How Many Kg Is One Agarwood Tree?

Agarwood tree, also known as Aloeswood or Gaharu, is a precious and highly sought-after tree species due to it’s aromatic resinous heartwood. This tree variety has been in use for centuries in different cultures, from traditional medicine to religious and cultural ceremonies. It’s wood is burned as incense, it’s oil used in perfumes, and it’s chips for flavoring tea, wine, and other beverages.

A mature agarwood tree can weigh around 600 kilograms, with the weight decreasing by 5% after moisture content has been deducted. This weight and moisture element depends on how long the tree has been left to develop resin. The older the tree, the more resin it would have developed, and hence be more valuable. It’s worth noting that a tree can only develop resin after being infected by a specific fungus.

Agarwood trees are rare and not readily available, making them one of the most expensive tree species globally. The price of agarwood varies depending on various factors such as where they were grown, the age of the tree and the amount of resin developed. These prices can range anywhere between Rs. 50,000 to Rs. 5,00,000/kg of raw agarwood.

Due to the limited supply of agarwood trees and high demand, it’s under constant threat from illegal logging and poaching. Agarwood trees are being illegally harvested from protected forests, threatening the sustainability of the species. Sustainable plantation and cultivation are never as valuable as the aged agarwood trees.

Another factor that influences the value of agarwood is the type of resin produced. This resin can vary in color, texture, and aroma. Moreover, the appearance of the resin, which should be vivid and streaked with contrasting colors, can also influence the price of the wood.

Agarwood is an exotic and valuable tree species. Therefore, sustainable plantation of agarwood is necessary to protect this valuable species from extinction.

Source: Prakash Farms Agarwood Tree – IndiaMART

The scarcity and value of agarwood have made it a contentious issue in many countries, including the Philippines. While the country is home to agarwood trees, it’s commercial trade is prohibited by law. In the following sections, we will explore the reasons behind this ban and what it means for those involved in the agarwood trade in the Philippines.

Is It Legal to Sell Agarwood in Philippines?

Agarwood, also known as lapnisan, is a highly prized aromatic wood that’s found in the heart of the jungles in Mindanao and Visayas. It’s known for it’s distinct fragrance and is used in the production of incense, perfumes, and traditional medicines. However, despite it’s value, the selling of agarwood is illegal in the Philippines. The government has implemented strict regulations to protect the trees from being over harvested or poached by illegal loggers.

In the past, the Philippines used to be a major source of agarwood. However, due to the high demand and illegal trade, agarwood trees have become endangered in the country. To address this issue, the government has prohibited the buying and selling of agarwood in the country. The sale of agarwood is punishable by law, and violators can face imprisonment, fines, and other penalties.

The government has also implemented programs to promote the conservation and sustainable use of agarwood in the country. Through these initiatives, the government aims to protect the trees from being depleted and preserve them for future generations. These programs include the establishment of protected areas, reforestation efforts, and education campaigns to promote awareness about the importance of preserving the agarwood trees.

The Department of Environment and Natural Resources (DENR) in the Philippines has made it clear that the propagation of agarwood-producing species is allowed, but with highly regulated methods in place. That said, collection of it’s seeds directly from the wild isn’t permitted, as strict measures are being taken to ensure it’s conservation.

Is It Legal to Plant Agarwood in the Philippines?

Agarwood production is a lucrative industry worldwide, with high demand for it’s fragrant oil used in perfume and traditional medicine. The Philippines is no exception, and the DENR wants to ensure that the industry is sustainable and legal. The propagation of Aquilaria malaccensis, the primary species that produces agarwood, is allowed, but only under strict regulations and guidelines.

The DENRs regulations on agarwood production are in line with the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), which the Philippines is a signatory. The CITES regulates the international trade of endangered species and it’s products, including agarwood. As part of it’s commitment to CITES, the DENR has listed Aquilaria malaccensis as a priority species for conservation in the Philippines.

To obtain agarwood legally in the Philippines, one must have the necessary permits and licenses issued by the DENR. These include permits for planting, harvesting, and transport of agarwood and it’s products. Violators of the DENRs regulations can face hefty fines and imprisonment, as well as the confiscation of plants and products.

To ensure that agarwood cultivation in the Philippines is sustainable, the DENR has partnered with various organizations and stakeholders, including local communities and non-government organizations. These collaborations aim to promote responsible and ethical agarwood production while protecting natural resources. Through these efforts, it’s expected that agarwood production in the Philippines will thrive while preserving the countrys biodiversity.

Overall, while agarwood production is allowed in the Philippines, it’s highly regulated and comes with strict guidelines and permits.

The Process of Obtaining Permits and Licenses for Agarwood Production in the Philippines

• Submit a letter of intent to the Department of Environment and Natural Resources (DENR)
• Prepare the necessary documents such as proof of land ownership or memorandum of agreement for leasing, and environmental clearance certificate
• Obtain a Tree Cutting Permit from the DENR
• Secure a Forest Land Use Agreement or Socialized Industrial Forest Management Agreement
• Apply for a Certificate of Registration from the Department of Trade and Industry (DTI)
• Register with the Bureau of Internal Revenue (BIR)
• Obtain a Local Business Permit from the local government unit (LGU)
• Apply for an Export Permit from the DENR if exporting agarwood products

Now that we’ve a basic understanding of what agarwood is, let’s take a closer look at the yield of this precious commodity. While there are many species that can produce agarwood, not all of them yield the same amount of oil. In fact, the yield can vary greatly depending on factors such as the species of tree, the age of the tree, and the quality of the wood. So, how much agarwood can we expect to get from a single tree? Let’s find out.

What Is the Yield of Agarwood?

Agarwood, also known as Oud, is a highly sought after resinous wood that’s mainly produced in Southeast Asian countries like India, Thailand, and Malaysia. Harvesting Agarwood involves the physical injury to the trees which triggers the process of resin formation that eventually leads to the production of the fragrant resinous substance.

The yield of Agarwood is a crucial factor in determining how much of this precious substance can be produced from a particular amount of trees or wood.

In general, the yield of Agarwood from a single tree is relatively low and can range between 1-5kgs. On average, producing just 1kg of Agarwood resin requires the extraction of around 10-12 kgs of wood. This low yield makes Agarwood one of the most expensive wood products in the world.

The yield of Agarwood also depends on the process used to extract the oil. The traditional method of distillation involves a slow and careful process of heating the wood and collecting the condensed oil. This method results in higher-quality oil but also leads to a lower yield. The modern method of supercritical CO2 extraction is more efficient and results in higher yields but can produce lower quality oil.

Despite the challenges involved in producing Agarwood, the demand for this precious substance continues to grow. It’s unique fragrance makes it a popular ingredient in the perfumery industry while it’s therapeutic properties make it a sought-after ingredient in traditional medicines.

The production of Agarwood is also faced with environmental challenges, including deforestation and the over-harvesting of trees.

The Different Grades and Qualities of Agarwood and How They Affect the Yield and Price.

• Grade A Agarwood – Highly resinous and aromatic, with a dark colored wood that’s undergone natural aging for decades. This is the most premium quality Agarwood and commands the highest price in the market.
• Grade B Agarwood – Less resinous and aromatic than Grade A, but still of good quality. The price of Grade B Agarwood is lower than Grade A, but still commands a high price due to it’s scarcity.
• Grade C Agarwood – Lesser quality Agarwood with lower resin content and aroma. This grade is often used for commercial purposes such as incense sticks and isn’t as highly sought after as Grade A and B.
• Grade D Agarwood – The lowest grade of Agarwood, typically with very little resin content and aroma. This grade is often used for industrial purposes due to it’s low value.

Agarwood trees are impressive with their towering heights and straight trunks without branches. Their thick buttresses provide additional support, making them even more impressive. However, their size isn’t the only interesting thing about them, and there are many fascinating characteristics to explore.

How Big Are Agarwood Trees?

The leaves of the agarwood tree are broad, smooth, and leathery with a glossy finish. They’re dark green in color and give an evergreen feel to the tree. The leaves grow up to 13 cm in length and 5 cm in breadth. The flowers of the agarwood tree are small, yellowish-green in color and grow in clusters. The fruit is fleshy, round, and green in color that eventually turns brown when ripe.

The agarwood tree is native to the forests of Southeast Asia and can be found in countries such as Thailand, Malaysia, Vietnam, and Indonesia. The tree is well-known for it’s fragrant wood, which is highly valued in medicine and perfume-making industries. The aroma of agarwood is unique and is often described as musky, rich, and deep. The wood is also used in traditional Chinese medicine to treat various ailments such as asthma and digestive problems.

Due to the high demand for agarwood, the tree is now considered endangered in the wild. To counter this, many countries have established agarwood plantations for sustainable harvesting. Agarwood trees are slow-growing and take around 15-20 years to produce high-quality resin. The resin is produced as a result of a fungal infection within the tree, and it’s this resin that’s the distinct aroma.

In recent years, the cultivation of agarwood has gained popularity not only in Southeast Asia but also in other parts of the world. In India, for example, agarwood cultivation is now being promoted as a profitable agribusiness. The trees are grown in nurseries and then transplanted in the field. The cultivation process requires a lot of patience and knowledge to ensure that the trees produce high-quality resin.

Agarwood trees are medium-to-large evergreen trees that can grow up to 40 meters in height with a diameter of 180 cm. The trees are native to Southeast Asia and are highly valued for their fragrance in the perfume and medicinal industries.

The Process of Cultivating and Harvesting Agarwood Trees for Commercial Purposes

• Find a suitable location with proper soil and climate conditions for growing agarwood trees
• Plant the agarwood sapling and provide proper care and maintenance
• Wait for at least 6-8 years for the tree to mature and produce resin
• Monitor the resin production and harvest the agarwood when it’s ready
• Process the harvested agarwood to extract the valuable fragrant oil
• Store the agarwood oil and sell it in the commercial market

Conclusion

Agarwood is an expensive resinous wood used for various purposes, from religious to medicinal, and it’s price varies depending on several factors, such as it’s grade, geographical origin, and age. Although the cost might seem steep, it’s essential to note that the demand for this wood continues to increase globally, driven by it’s unique properties, scarcity, and exquisite fragrance. As such, the market for agarwood presents an entrepreneurial opportunity for farmers and traders in the Philippines to tap on the growing demand, expand their businesses and contribute to the growth of the regional economy.