Qualification Level: TESDA NC I – Sustainable Agarwood Enterprise Management
Crop Focus: Agarwood (Aquilaria spp.)
Objective: Introduce strategies for diversifying Agarwood products to maximize revenue, reduce risk, and enter multiple market segments
I. INTRODUCTION
Agarwood can be processed into multiple products: raw chips, essential oils, or luxury wood items.
Product diversification allows farmers and enterprises to capture higher value, mitigate market fluctuations, and reach various buyers.
Key Principle: Diversification enhances profitability and market resilience while supporting sustainable harvesting practices.
II. MAIN PRODUCT CATEGORIES
1. Agarwood Chips / Raw Resin
- Source: Harvested from resin-rich heartwood
- Market: Perfume manufacturers, incense producers, traditional medicine suppliers
- Pros: Minimal processing, quick revenue
- Cons: Lower margin compared to processed products
Best Practices:
- Sort chips by grade, size, and resin content
- Store in airtight, dry containers
- Maintain traceability and quality records
2. Agarwood Oil / Essential Oil
- Source: Extracted from resinous wood through steam distillation or CO₂ extraction
- Market: Perfume, aromatherapy, cosmetics industries
- Pros: High-value product, niche market, longer shelf-life
- Cons: Requires equipment, technical know-how, and careful handling
Best Practices:
- Use high-grade resin for oil extraction
- Maintain purity, hygiene, and proper storage
- Follow traceability and compliance standards
3. Luxury Agarwood Wood
- Source: Sections of resin-infused wood suitable for carving, furniture, or ornamental use
- Market: Artisans, luxury furniture makers, cultural and ceremonial items
- Pros: High-value, limited supply creates premium demand
- Cons: Requires skilled craftsmanship and selective harvesting
Best Practices:
- Preserve structural integrity during harvest
- Store in controlled environment to prevent cracking or warping
- Consider certification or labeling to enhance market value
III. VALUE-ADDED STRATEGIES
- Blended products: Combine small resin chips with oil for artisanal incense or sachets
- Custom packaging: Market small, branded gift items or premium sets
- Educational / experiential products: Include farm tours, resin sampling, or DIY kits for niche markets
- Branding: Build reputation for quality, sustainability, and traceability
IV. MARKET CONSIDERATIONS
- Local vs. international demand: Oil and luxury wood have higher export potential
- Quality grading: Implement grading systems for chips, oil purity, and wood quality
- Traceability: Record tree ID, harvest date, resin grade, and processing method
- Certification: Organic or sustainably harvested certification increases market access
V. BEST PRACTICES FOR DIVERSIFICATION
- Harvest selectively to protect tree health and future resin cycles
- Apply quality control standards for each product type
- Maintain proper storage and handling for resin, oil, and wood
- Monitor market trends to determine optimal product mix
- Integrate traceability systems across all products
VI. TESDA NC I PERFORMANCE STANDARD
Learner must demonstrate ability to:
- Identify potential Agarwood product lines (chips, oil, luxury wood)
- Apply proper harvesting, processing, and storage techniques
- Maintain quality control and traceability for each product type
- Assess market suitability and value for diversified products
VII. FARMER-FRIENDLY CHECKLIST
☐ Sort harvested resin and wood by grade and quality
☐ Decide on product type based on tree maturity, resin quality, and market demand
☐ Process oil using approved extraction methods
☐ Store chips, oil, and wood under appropriate conditions
☐ Maintain traceability and batch records for all products
☐ Explore value-added and branding opportunities
Key Takeaway: Diversifying Agarwood products into chips, oil, and luxury wood maximizes revenue, spreads market risk, and strengthens the enterprise’s position in both local and international markets.