Qualification Level: TESDA NC I – Sustainable Agarwood Enterprise Management
Crop Focus: Agarwood (Aquilaria spp.)
Objective: Equip farmers and enterprises with strategies to secure financing, leverage cooperatives, and attract investment for sustainable Agarwood production
I. INTRODUCTION
Agarwood cultivation is capital-intensive, requiring investment in seedlings, inoculants, irrigation, biofertilizers, and processing facilities.
Farmers and enterprises can leverage financing options, cooperative structures, and investor partnershipsto scale operations and improve profitability.
Key Principle: Combining internal resources, cooperative support, and external investment ensures financial sustainability and growth.
II. FINANCING STRATEGIES
1. Self-Financing
- Using personal savings or family capital
- Pros: Full control, no interest or obligations
- Cons: Limited scale, higher personal risk
2. Bank Loans / Agricultural Credit
- Agricultural loans for planting, irrigation, and equipment
- Pros: Access to larger capital, structured repayment
- Cons: Requires collateral and credit history; interest costs
3. Government Programs
- DA, DTI, or local LGU funding, grants, or subsidies for smallholder farmers
- Pros: Low-cost financing, technical support
- Cons: Limited funding, specific eligibility criteria
4. Crowdfunding / Community Investments
- Pool funds from community members or small investors
- Pros: Mobilizes local support; raises awareness
- Cons: Requires structured agreements and transparency
III. ROLE OF COOPERATIVES
- Pooling resources: Bulk purchase of seedlings, inoculants, fertilizers, and tools
- Shared services: Training, processing, storage, and marketing
- Collective bargaining: Better pricing for inputs and outputs
- Access to finance: Easier loan applications and grant eligibility
- Knowledge sharing: Best practices for cultivation, inoculation, and quality control
Example: Agarwood Growers Association or local cooperatives forming partnerships with investors or research institutions.
IV. INVESTMENT ATTRACTION STRATEGIES
- Present Viable Business Models
- Managed plantations, integrated estates, or value-added production
- Clear ROI projections, cost-benefit analysis, and scalability
- Demonstrate Sustainability & Traceability
- Certified sustainable practices
- Transparent record-keeping of tree growth, inoculation, harvest, and yields
- Offer Structured Partnerships
- Joint venture agreements
- Profit-sharing or off-take agreements
- Clear exit strategies and investor protections
- Highlight Market Potential
- Local and international buyers
- Premium pricing for oil, chips, or luxury wood
- Growth trends in perfumery, incense, and luxury goods
- Leverage Pilot Projects
- Showcase small-scale plantations or demonstration farms
- Demonstrate inoculation success and resin quality
V. BEST PRACTICES
- Maintain accurate records of costs, yields, and financial transactions
- Ensure cooperative governance with transparency and accountability
- Use clear contracts when working with investors
- Align financing and investment with operational capacity
- Regularly report progress and financial performance to stakeholders
VI. FARMER-FRIENDLY CHECKLIST
☐ Identify available financing options (self-finance, bank, government, community)
☐ Join or form a cooperative for shared resources and bargaining power
☐ Develop a clear business plan or investment pitch
☐ Maintain traceable records to assure investors of sustainability
☐ Explore structured partnerships with investors or joint ventures
☐ Ensure compliance with regulatory requirements for funding and trade
☐ Periodically review financial performance and adjust strategies
VII. TESDA NC I PERFORMANCE STANDARD
Learner must demonstrate ability to:
- Identify and access financing options suitable for Agarwood production
- Participate in cooperative management for resource pooling and marketing
- Prepare investor-ready documentation, including business plans and ROI projections
- Implement transparent record-keeping to support investment attraction
Key Takeaway: Combining financing, cooperative support, and strategic investment attraction enables Agarwood enterprises to scale sustainably, improve profitability, and maintain compliance and traceability, while reducing financial risk for farmers and investors.