Corporate Farming is designed for corporations and business enterprises looking to venture into Agarwood Production with the capability to establish their own facilities.
This outlines a structured business and regulatory pathway for agarwood plantation owners, ensuring compliance with legal, environmental, and quality standards. Here’s a refined breakdown for clarity:
Business Registration & Compliance Steps
✅ Step 1: Business Registration (SEC). Registering your Agarwood production business is legally required and strategically important for the long-term success, credibility, and profitability of your operations.
- Sales Invoice and Local Transport Permit (LPT) will reflect your registered business name to maintain documentation consistency.
- Without a registered business, you cannot legally trade, transport, or export agarwood.
✅ Step 2: Purchase Certified Agarwood Seedlings. Buy Certified & DNA-Sequenced Agarwood (Bari) Seedlings (Medium or Small size).
- Strict ONE STOCK POLICY is enforced for seedling inventory.
- No support will be provided for plantations using seedlings from non-accredited sources.
✅ Step 3: Obtain a Clearance from Environmental Management Bureau (DENR-EMB). Either a Certificate of Non-Coverage (CNC) or an Environmental Compliance Certificate (ECC)—is critical for any agarwood production or processing business. This clearance ensures that your operations are environmentally sound, legally compliant, and eligible for permits and expansion.
- File your CNC/ECC with the Environmental Management Bureau (EMB) in your regional DENR office.
- With Certified True Copy of Land Title (TCT) / CLOA
- With Lease Contract (if applicable)
- With Site Development Plan (SDP) from a licensed Architect/Engineer
✅ Step 4: Apply for a Wildlife Culture Permit (WCuP)
- To legally cultivate and commercially trade agarwood (Aquilaria malaccensis), you must apply for a Wildlife Culture Permit (WCuP) from the DENR-Biodiversity Management Bureau (BMB), as mandated by RA 9147 (Wildlife Act).
✅ Step 5: Agarwood Inoculation & Harvesting Timeline
- 3rd Year: Initial random inoculation testing using DLSU-developed inoculum technology.
- 5th Year: First harvest of inoculated trees.
✅ Step 6: Product Testing & Market Entry
- To submit Agarwood (Chips) products to the Bureau of Philippine Standards (BPS) for quality testing — a critical step for building buyer trust and commanding premium pricing.
- Testing results will be shared with potential buyers for pricing considerations.
✅ Step 7: Digital Traceability (Blockchain)
- Digital traceability is a technology-driven system that ensures transparency, authenticity, and sustainability in the Agarwood industry. It allows every step of the Agarwood supply chain—from plantation to final product—to be tracked and verified using blockchain, RFID tagging, QR codes, and smart contracts.
- History documentation from planting to harvest.
✅ Step 8: CITES Export clearance
- CITES Export Clearance is a regulatory requirement for trading wildlife and plant species listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). This process is managed by the Biodiversity Management Bureau (BMB) of the Department of Environment and Natural Resources (DENR).
- To legally export Agarwood or any product derived from Aquilaria spp., CITES Export Clearance and Product Export Clearance are mandatory.
Financial Planning & ROI Analysis
- Cost & Returns Analysis of Agarwood Chips Production (Ensure profitability & sustainability).
- Projected Income Statement for 1,000 Agarwood Trees (A guide for potential investors).
Ready to start your agarwood business? Follow this structured path to ensure legal compliance, sustainable growth, and high-value production.
Key Benefits of Corporate Farming:
✅ Automatic AGAP Membership – Corporate farmers automatically become members of the Agarwood Growers Association of the Philippines (AGAP) Inc. upon purchasing seedlings from an accredited nursery.
✅ Grower’s Rights & Interests Protection – AGAP serves as a unified body to safeguard the rights and interests of corporate agarwood growers.
✅ Capacity Building & Knowledge Enhancement – Access to trainings, workshops, and technical expertise to improve agarwood farming practices.
✅ Modernization & Innovation – Encouraging advanced technologies such as inoculation techniques, biotech applications, and smart farming for better productivity.
✅ Increased Crop Yields & Quality – With proper inoculation and farming techniques, corporate growers can expect higher-quality agarwood resin production.
✅ Economic Growth & Sustainability – Contributing to rural economic development, creating job opportunities, and supporting environmentally sustainable agroforestry.