Joining the Agarwood Growers Agriculture Cooperative (AGAC) or any Agarwood Agriculture Cooperative offers substantial benefits, especially for smallholder farmers, plantation developers, and investors in the Philippine agarwood industry. Below are the key advantages:
1. Collective Bargaining Power
- Pooling members’ production enhances negotiation strength for higher prices of agarwood chips, oil, and byproducts.
- Collective bargaining power refers to the strength a group gains when negotiating together, rather than as individuals — especially in matters of pricing, contracts, or access to resources.
- example: A group of 50 agarwood farmers under AGAC can negotiate a long-term supply contract with a Dubai-based incense trader for triple the price offered by local middlemen — thanks to volume, quality assurance, and documentation.
- Access to bulk buyers, exporters, and contract markets in the Middle East and Asia.
2. Lower Cost of Inputs & Services
- Members benefit from bulk purchasing of:
- Certified Aquilaria malaccensis seedlings (eventually)
- BarIno™ resin inoculants
- Organic fertilizers and pest control inputs
- Shared equipment and services: sprayers, grinders, fermenters, drying and oil extraction facilities.
3. Access to Training & Technical Support
- Regular capacity building from partners like:
- Crown Organogenesis Protocols Inc. (COPI)
- CvSU, DENR, DOST-PCAARRD, and AGAP
- Topics include:
- Best practices in cultivation
- Resin inoculation (Fusarium & chemical)
- CITES compliance and documentation
4. Legal & Regulatory Facilitation
- Cooperative acts as a collective legal entity to apply for:
- CITES registration & permits
- Export and farm certification requirements
5. Shared Post-Harvest & Processing Facilities
- Community-level access to:
- Oil extraction labs
- Drying and grading areas
- Packaging and storage
- Reduces post-harvest losses and increases product value.
6. Value Addition & Branding
- Co-op members can tap into value-added product lines:
- Herbal teas (e.g., Aquilaria leaf tea)
- Resin-infused incense or cones
- Co-branded essential oils under shared trademarks
7. Financial Access & Capital Mobilization
- Easier access to:
- Cooperative financing and microloans
- Government funding (e.g., DA’s Civil Society Organization, CDA, DTI)
- Investors through cooperative-managed plantations or outgrower schemes
8. Sustainable Certification & Climate Programs
- Supports group applications for:
- Organic certification
- Climate-smart farming grants
- Carbon credit opportunities
9. Democratic Participation & Ownership
- Each member has voting rights, equity shares, and a voice in:
- Decision-making
- Profit-sharing
- Project prioritization (e.g., eco-tourism, nursery, etc.)
10. Networking & National Advocacy
- Be part of a nationally organized sector, influencing:
- Government policy
- Conservation strategies
- Protection of Aquilaria malaccensis in the Philippines
Optional Add-Ons:
- Co-branded product marketing (e.g., “Agarwood by AGAC”)
- Access to resin buyer guarantees via collective contracts
- Inclusion in technical pilot projects (e.g., FusaTrinity™ trials)