Cultivation & Plantation | Inoculation & Resin | Harvesting & Processing | Product Manufacturing | Distribution & Export
The supply chain for Agarwood & Oud Oil consists of five key stages:
- Cultivation & Plantation Management – Growing agarwood trees on sustainable farms.
- Inoculation & Resin Formation – Scientific induction of infection to stimulate resin production.
- Harvesting & Processing – Extraction of chips, oil, and wood derivatives.
- Product Manufacturing – Conversion into luxury products (incense, perfumes, accessories, cosmetics, etc.).
- Distribution & Export – Selling through wholesale, direct retail, and strategic partners.
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.
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.