To ensure efficiency, transparency, and profitability in the Agarwood Farming & Oud Oil Business, we have developed a structured Supply Chain & Distribution Model covering all stages—from cultivation to export sales.
1. Supply Chain Overview
The supply chain for Agarwood & Oud Oil consists of five key stages:
1️⃣ Cultivation & Plantation Management – Growing agarwood trees on sustainable farms.
2️⃣ Inoculation & Resin Formation – Scientific induction of infection to stimulate resin production.
3️⃣ Harvesting & Processing – Extraction of chips, oil, and wood derivatives.
4️⃣ Product Manufacturing – Conversion into luxury products (incense, perfumes, accessories, cosmetics, etc.).
5️⃣ Distribution & Export – Selling through wholesale, direct retail, and strategic partners.
2. Step-by-Step Supply Chain Model
Step 1: Cultivation & Plantation Management
✅ Sustainable plantations established on leased or owned farmland.
✅ Seedlings grown from certified DNA-sequenced mother trees.
✅ Adherence to CITES regulations & DENR (Philippines) guidelines.
✅ Blockchain-enabled traceability system to track tree growth & ownership.
Key Partners: Local farmers, cooperatives, forestry experts, regulatory bodies (DENR, CITES, DA).
Step 2: Inoculation & Resin Formation
✅ Inoculation performed at Year 3-5 using DLSU-developed Inoculum Technology.
✅ Randomized resin testing to monitor agarwood formation & quality.
✅ Trees assessed for oil yield potential, with high-quality trees marked for oud oil extraction.
Key Partners: Biotechnologists, agarwood scientists, research institutions.
Step 3: Harvesting & Processing
✅ Trees are selectively harvested at Year 5-7 based on resin quality.
✅ Wood is processed into:
- Agarwood chips & powder for incense & perfume blending.
- Oud oil extraction using Supercritical CO₂ or Hydro Distillation.
✅ Waste materials are repurposed into biodegradable charcoal & organic fertilizers.
Key Partners: Processing plants, perfumers, essential oil extraction labs.
Step 4: Product Manufacturing & Value Addition
✅ Processed oud oil & agarwood chips are converted into luxury products:
- Pure oud oil for niche & high-end perfumery.
- Agarwood incense, scented candles, and diffusers.
- Luxury accessories (beads, bracelets, necklaces, carvings).
- Agarwood-infused skincare & wellness products.
✅ Product testing & certification via Bureau of Philippine Standards (BPS) & export licensing.
Key Partners: Perfume brands, cosmetic manufacturers, spa & wellness brands.
Step 5: Distribution & Export Strategy
✅ Wholesale Distribution:
- Direct supply to Middle Eastern, Chinese, European, and Southeast Asian markets.
- Partnerships with luxury perfume brands, cosmetic companies, and incense traders.
✅ Retail & E-commerce Sales: - Branded oud oil & incense products sold via e-commerce (Amazon, Alibaba, Shopify).
- Direct-to-consumer luxury brand positioning.
✅ Franchise & Licensing Opportunities: - Global licensing agreements for Agarwood-based product lines.
Key Partners: Export buyers, e-commerce retailers, duty-free shops, luxury distributors.
3. Distribution Model & Logistics
A. Domestic & International Export Channels
Wholesale Bulk Orders – Large shipments to perfume houses & incense manufacturers.
Direct Retail Sales – Online sales via Amazon, Alibaba, and Shopify.
B2B Distribution – Supplying fragrance brands, wellness centers, and spas.
Exclusive Partnerships – Brand collaborations with high-end retailers & boutique perfumeries.
B. Logistics & Fulfillment Strategy
Export Compliance: Licensed under CITES & DENR permits for international shipping.
Secure Packaging: Airtight glass vials & wooden boxes for oil & chips, preventing contamination.
Cold Chain Storage: Ensuring proper temperature & humidity control for oud oil.
Blockchain Traceability: Digital tracking for product authenticity & ethical sourcing.
Key Partners: Export agencies, freight forwarders, customs brokers, e-commerce fulfillment centers.
4. Blockchain-Enabled Transparency & Digital Traceability
Why Blockchain?
✔️ Proves Authenticity – Prevents fake agarwood & ensures ethical sourcing.
✔️ Tracks Ownership – Investors track tree growth, harvest, and product sales.
✔️ Enhances Market Trust – Ensures consumers receive genuine, certified oud oil.
How it Works:
1️⃣ Every agarwood tree is registered with a unique ID.
2️⃣ Inoculation, harvesting, and oil extraction logged on blockchain.
3️⃣ Customers verify product origins via QR code scanning.
Tech Partners: Blockchain developers, agritech firms, digital tracking platforms.
5. Summary of Key Competitive Advantages
✅ End-to-End Value Chain Control – From seedling production to global sales.
✅ Sustainable & Certified Production – Compliance with CITES & DENR regulations.
✅ Multiple Revenue Streams – Oud oil, chips, perfumes, accessories, and more.
✅ Premium Branding & Market Positioning – High-end luxury segment targeting.
✅ Blockchain-Enabled Digital Traceability – Enhancing trust & transparency.