AGARWOOD VALUE CHAIN (End-to-End Overview)
From tree → resin → raw materials → processed goods → high-value products
1. Cultivation & Upstream Production
- Stage 1: Nursery → Plantation Establishment
- Seedling production (COPI organogenesis protocols)
- Hardening, acclimatization, transport to field
- Planting, spacing, shade management
- Nutrient management (COBI organic fertilizers, mycorrhiza, compost tea)
- Stage 2: Resin Induction
- Natural infection (rare)
- Artificial inoculation (Fusarium oxysporum, chemical inducers, dual-action blends like BarIno FusaTrinity™)
- Mechanical wounding, drilling methods
- Monitoring resin formation (12–36 months)
- Stage 3: Harvesting & Primary Processing
- Felling & heartwood extraction
- Sorting: white wood, mixed wood, resinous heartwood
- Grades: Low → Mid → High → Kyara-class (premium)
2. RAW MATERIAL VALUE CHAINS
A. Agarwood Chips Value Chain
Raw → Semi-processed → Graded → Exported
- Flow:
- Harvested resinous sections
- Manual cleaning, trimming
- Grading by resin content, color, density, aroma
- Packaging (kiln-dried or natural-cure)
- Export to Middle East & East Asia
- Market Uses:
- Burning for cultural/religious ceremonies (Middle East, Japan)
- Bakhoor & traditional incense
- High-end collectors (rare chips, kyara)
- Value Addition Opportunities:
- Micro-chipping and uniform grading for export
- Vacuum-sealed chip packaging (premium retail)
- Chip-infused blends for incense manufacturers
B. Agarwood Oil (Oud) Value Chain
Resinous heartwood → Extraction → Distillation → Filtration → Aging → Bottling
- Extraction Workflow (CESI Model):
- Wood cleaning & particle-size preparation
- Hydro/steam or supercritical CO₂ extraction
- Fermentation (traditional) or enzymatic pre-treatment
- Distillation (24–72 hours)
- Fraction separation & cooling
- Filtration & polishing
- Aging (3–18 months)
- Bottling & export
- Market Uses:
- Luxury perfumery (fine fragrance houses)
- Arabic attars, mukhallats
- Aromatherapy blends (ANOC)
- Cosmetic raws (body oils, balms)
- Value Addition Opportunities:
- Fractionated oils for perfumers
- Batch-certified oils: provenance + GC-MS profile
- White-label oud oils for fragrance brands
3. SECONDARY VALUE CHAINS (Transformed Products)
C. Incense & Combustible Aroma Products
Chips / powder / spent wood → incense → bakhoor → cones → coils
- Flow:
- Grinding low–mid grade chips into powder
- Blending with natural binders (joss powder, makko)
- Forming: sticks, cones, coils, bakhoor tablets
- Drying (sun-dry or controlled curing)
- Perfuming: dipping in oud oil or mukhallat blends
- Packaging & branding
- Market Uses:
- Middle Eastern bakhoor
- Japanese-style incense (premium)
- Spa & wellness centers
- Religious offerings
- Value Addition Opportunities:
- ANOC-branded incense line
- Oud-infused premium incense
- Spa distribution partnerships
- Ritual & meditation product bundles
D. Perfumery & Fragrance Value Chain
Oud oil → accords → fragrances → branded products
- Flow:
- Oud oil (pure or blended)
- Perfume formulation (top-heart-base structure)
- Accords (amber, floral, spicy)
- Maturation (2–8 weeks)
- Filtration & stabilization
- Bottling, labeling, packaging
- Distribution (retail, export, wholesale)
- Market Uses:
- Niche perfumes
- Luxury eau de parfum lines
- Attars & mukhallats
- Solid perfumes, body oils
- Value Addition Opportunities:
- Ethereal Scent luxury line (ANOC)
- Hotel signature scents (B2B)
- Subscription fragrance boxes
- Export-ready oud perfumes
3. ARTISANAL & HIGH-CRAFT VALUE CHAIN
E. Artisanal / Craft Products
High-grade wood → sculptures → jewelry → decor → cultural art
- Flow:
- Selection of highly resinous, visually aesthetic pieces
- Carving, shaping, polishing
- Finishing (waxing, resin enhancement)
- Certification (grade, provenance)
- Premium display packaging
- Product Lines:
- Prayer beads (misbaha, mala)
- Mini-sculptures & carvings
- Pendants & jewelry
- Collectible display pieces (kyara wood)
- Value Addition Opportunities:
- Premium art line for collectors
- Cultural collaborations (Japan, Middle East)
- Limited-edition carved pieces with provenance certificates
- Museum & gallery partnerships
5. CROSS-CUTTING VALUE CHAIN ENABLERS
These strengthen ALL product categories:
- Sustainable Plantation Management
- Traceability (blockchain, QR-coded trees)
- CITES compliance
- Carbon farming certification
- Organic certification (COBI products)
- Processing & Technology
- Supercritical CO₂ extraction (CESI)
- Advanced inoculation protocols (CMBI, BarIno FusaTrinity™)
- Quality control labs (GC-MS, FTIR, sensory evaluations)
- Marketing & Branding
- Story-driven branding (ethical, scientific, Filipino-source identity)
- Premium packaging (wood boxes, gold foil labels)
- Export documentation & channel development
- International Trade Networks
- Gulf: UAE, KSA, Bahrain, Qatar, Kuwait
- East Asia: China, Japan, Hong Kong, Korea
- Niche markets: USA/EU natural perfumery
6. Summary Table: Agarwood Value Chains
| Segment | Source Material | Main Processing | End Products | Market |
|---|---|---|---|---|
| Chips | Heartwood | Cleaning, grading | Chips, flakes | Middle East, Japan |
| Oil | High-resin wood | Distillation, aging | Pure oud, blends | Perfume, aromatherapy |
| Incense | Chips/powder | Blending, forming | Sticks, cones, bakhoor | Cultural, spa/wellness |
| Perfumery | Oud oil | Formulation | EDP, attars, solids | Luxury fragrance |
| Artisanal | High-grade wood | Carving | Jewelry, collectibles | High-end collectors |