What is Agarwood?
Agarwood is a highly valuable resinous heartwood formed in the trees of the genus Aquilaria, often called “liquid gold” due to its rarity and high market value. It is widely used in:
- Luxury perfumery
- Traditional medicine (e.g., Traditional Chinese and Ayurvedic systems)
- Religious and cultural rituals (e.g., incense in the Middle East and Asia)
Global prices for high-grade agarwood chips or oil can range from USD $5,000 to over $50,000 per kilogram depending on purity and quality.
What is Passive Agarwood Investment?
Passive Agarwood Investment is a model where individuals or institutions invest in agarwood plantations or trees without being involved in day-to-day operations. Experts manage the cultivation, resin induction, and harvest, while investors benefit from long-term returns.
How It Works
- Investors purchase a share of a managed agarwood farm or a specified number of trees.
- A professional entity (e.g., CAPI or PAFC) handles:
- Land preparation and planting
- Inoculation (resin induction)
- Maintenance and protection
- Harvesting and marketing
- After 6–8 years, resin is harvested and sold to buyers in high-demand markets (Middle East, China, India).
- Profits are shared between investors and the managing entity based on agreed terms.
Why Passive Investment in Agarwood?
| Benefit | Description |
|---|---|
| High ROI Potential | Potential returns of 3x–10x initial investment over 8–10 years |
| Hands-off Approach | No need for land ownership or technical know-how |
| Tangible Asset | Trees are real assets that appreciate over time |
| Sustainable & Ethical | Promotes reforestation and regulated trade (CITES-compliant) |
| Diversification | Adds long-term value to investment portfolios |
Sample ROI Projection (per 1,000 trees)
| Item | Value |
|---|---|
| Initial Investment | PHP 500,000 – PHP 800,000 |
| Maturity | 7 years |
| Estimated Gross Revenue | PHP 3M – PHP 6M |
| Net ROI | 200%–600% |
Note: Actual ROI varies based on species, inoculation method, and market price.
Ideal for:
- Individual investors seeking long-term passive income
- OFWs and retirees
- ESG-focused funds and green investors
- Cooperatives and LGUs
- Corporate CSR or land banks