Joint Venture with Local Farmers

Joint Venture Model with Local Farmers for Agarwood cultivation can create a mutually beneficial partnership between investors, businesses, and small-scale growers.

Joint Venture Business Model for Agarwood Cultivation

1. Objectives & Benefits
– Empower local farmers with financial and technical support.
– Ensure sustainable agarwood cultivation and supply chain integrity.
– Strengthen export potential by maintaining high-quality agarwood products.

2. Business Structure
– Our company as investor: Provide funding, technology, and market access.
– Farmers: Provide land and labor for agarwood cultivation.
– Joint Management Team: Oversees operations, ensures compliance, and supports farmers.

3. Investment & Revenue Sharing
– Capital Investment: Provide cultured seedlings, inoculation technology, farm infrastructure.
– Revenue Distribution: Profits from oud oil, agarwood chips, and by-products are shared. 70% to Investors, 30% to Farmers after cost deductions.
– Buyback Agreement: Investors commit to purchasing agarwood at pre-agreed prices

4. Operational Plan
✅ Land & Soil Preparation – Assess soil suitability & conduct sustainability checks.
✅ Cultured Seedling Distribution – Certified DNA-sequenced agarwood seedlings.
✅ Training & Capacity Building – Farmers receive technical training in:
– Best cultivation practices
– Inoculation techniques
– Sustainable harvesting methods
✅ Monitoring & Quality Control – Regular farm inspections & support from agronomists.
✅ Processing & Market Access – Centralized distillation & export partnerships.

5. Sustainability & Compliance
– Adherence to CITES regulations & DENR forestry policies.
– Certification for organic & ethical sourcing.
– Incorporate carbon credit programs for sustainability impact.

6. Market Strategy
– Export to high-demand markets (Middle East, China, Europe).
– Partner with luxury perfume, wellness, and incense brands.
– Develop white-label products for global retailers.

7. Expected Returns
– Breakeven in 5-7 years based on tree maturity & resin production.
– ROI through oud oil sales, agarwood chips, and derivative products.
– Additional revenue from value-added products (soaps, perfumes, etc.).