1.1 Overview of the Philippine Agarwood Industry

1️⃣ Introduction to Agarwood

  • Agarwood, also known as “oud”, is a highly valuable fragrant resin produced by Aquilaria species.
  • It is used in perfumery, incense, traditional medicine, and luxury goods.
  • The Philippines is home to both native and endemic Aquilaria species, making it a potential key player in the global Agarwood industry.

2️⃣ Philippine Agarwood Species

  • Native Indigenous Species (DAO 2017-11):
    • Aquilaria brachyantha – Binukat
    • Aquilaria cumingiana – Butlo
    • Aquilaria filaria – Lapisan (Lapnisan)
    • Aquilaria malaccensis – Bari (Endangered, listed under CITES)
  • Native Endemic Species:
    • Aquilaria apiculata – Mangod
    • Aquilaria citrinicarpa – Agododan
    • Aquilaria parvifolia – Butlong Liitan
    • Aquilaria urdanetensis – Makolan

3️⃣ Market Demand & Economic Potential

  • The global Agarwood market is projected to reach billions of dollars due to its high demand in:
    ✅ Luxury perfumes (Oud oil)
    ✅ Traditional medicine & wellness
    ✅ Religious & cultural rituals
    ✅ High-end jewelry (beads, carvings)
  • The Philippines can capitalize on its natural Agarwood resources through:
    Sustainable plantation farming
    Advanced resin induction techniques
    Scientific research & quality control
    Export & trade partnerships

4️⃣ Industry Challenges & Sustainability Concerns

  • Illegal poaching & deforestation – Unregulated harvesting threatens wild Agarwood populations.
  • Strict regulations & CITES protection – Permits and compliance are needed for legal trade.
  • Need for advanced propagation techniques – Organogenesis and tissue culture can boost supply.
  • Market awareness & industry support – Farmers, investors, and government collaboration are crucial.

5️⃣ Key Government & Institutional Support

  • Department of Environment & Natural Resources (DENR) – Regulation, conservation, and permits
  • Department of Trade & Industry (DTI) – Market expansion, export promotion, and trade fairs
  • Department of Agriculture (DA) – Support for farmers, financial assistance, and training
  • Department of Science & Technology (DOST) – R&D, innovation, and technology transfer
  • Universities (CvSU, DLSU, CLSU) – Research on cultivation, extraction, and product development

6️⃣ The Future of the Philippine Agarwood Industry

  • Expansion of commercial plantations with sustainable resin inducement techniques.
  • Strengthening investment & foreign trade partnerships for value-added processing (CO₂ extraction, perfumery).
  • Development of a traceability system to ensure ethical sourcing and legal trade.
  • Government-backed initiatives for policy reform and industry development.
  • Integration of Agarwood into pharmaceutical & wellness industries.
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