POLICY BRIEF
Justification for a Standalone TESDA Qualification: Agarwood Farming (NC I – NC III)
Submitted to:
Technical Education and Skills Development Authority (TESDA) – Central Office
Sector: Agriculture, Forestry and Fishery
Sub-sector: Non-Timber Forest Products (NTFPs) / High-Value Tree Crops
EXECUTIVE SUMMARY
Agarwood (Aquilaria spp.) is one of the highest-value non-timber forest products (NTFPs) in the world, commanding premium prices in the fragrance, incense, wellness, and cultural heritage markets, particularly in the Middle East, East Asia, and Europe.
Despite its economic, cultural, and ecological importance, the Philippines currently lacks a dedicated Technical Vocational Education and Training (TVET) qualification for Agarwood Farming. Skills related to agarwood are fragmented across general agriculture, forestry, or tree-crop programs, none of which adequately address the species-specific biology, legal constraints, biosecurity risks, ethical trade requirements, and international compliance standards unique to agarwood.
This policy brief formally recommends the creation of a standalone TESDA National Certificate (NC) ladderized qualification: Agarwood Farming NC I, NC II, and NC III, to support legal production, farmer protection, environmental sustainability, and export competitiveness.
1. POLICY PROBLEM STATEMENT
1.1 Absence of Standardized Skills Certification
At present:
- No TESDA qualification specifically addresses Agarwood (Aquilaria spp.) production
- Farmers and workers rely on informal knowledge, often transmitted without legal or scientific safeguards
- This creates risks of:
- Illegal harvesting
- Environmental damage
- Poor product quality
- Rejection in export markets
- Exposure to criminal liability under DENR and CITES regulations
1.2 High Regulatory and Compliance Complexity
Agarwood is:
- Listed under CITES Appendix II
- Regulated by DENR forestry and wildlife laws
- Subject to chain-of-custody, traceability, and export documentation requirements
Generic agriculture or forestry NCs do not cover these compliance layers, leaving farmers and workers vulnerable to violations despite good intentions.
2. STRATEGIC IMPORTANCE OF AGARWOOD
2.1 High-Value, Export-Oriented Commodity
- Agarwood and oud oil are among the most expensive plant-derived products globally
- Strong demand in:
- GCC and Middle East markets
- East Asia (Japan, China, Taiwan)
- Niche European luxury markets
- Agarwood farming aligns with national export diversification goals and value-added agriculture strategies
2.2 Environmental and Climate Alignment
Agarwood farming:
- Is a tree-based, perennial, carbon-sequestering system
- Supports agroforestry and reforestation objectives
- Provides an economic alternative to destructive forest extraction
- Encourages cultivated rather than wild-harvested sources
A dedicated qualification supports DENR-led conservation-through-cultivation strategies.
2.3 Cultural and Heritage Significance
Agarwood has:
- Deep cultural, spiritual, and medicinal significance across Asia and the Middle East
- Long-standing use in religious rituals, traditional medicine, and perfumery
- Recognition as intangible cultural heritage in many societies
Skills training must therefore include ethical handling, cultural respect, and provenance awareness, which generic farming programs do not address.
3. WHY AGARWOOD CANNOT BE COVERED BY EXISTING NCs
| Existing NC | Limitation for Agarwood |
|---|---|
| Agriculture NC II | Lacks species-specific resin biology and inoculation |
| Agroforestry NC II | Does not cover CITES compliance and export traceability |
| Tree Crop Production NC | Focused on fruit or timber, not resinous NTFPs |
| Forestry NC | Oriented toward timber and forest management, not plantation-based agarwood |
Agarwood farming involves:
- Induced resin formation
- High biosecurity risk
- Ethical and legal trade constraints
- Premium quality grading
These are unique and non-transferable competencies.
4. PROPOSED SOLUTION
4.1 Establish a Standalone TESDA Qualification
Agarwood Farming NC I – NC III, with:
- NC I: Entry-level, assistive, compliance-aware skills
- NC II: Skilled production, inoculation, harvesting, post-harvest handling
- NC III: Plantation supervision, quality control, traceability, market readiness
4.2 Alignment with TESDA Mandate
The proposed qualification:
- Supports employability and livelihood creation
- Protects workers through standardized safety and legal training
- Responds to industry demand
- Strengthens TVET relevance in high-value agriculture
5. EXPECTED POLICY OUTCOMES
5.1 Farmer and Worker Protection
- Reduced illegal practices
- Clear understanding of legal boundaries
- Professional recognition of skills
5.2 Environmental Safeguards
- Reduced pressure on wild agarwood
- Promotion of plantation-based production
- Integration of sustainability standards
5.3 Industry and Export Readiness
- Consistent product quality
- Improved traceability
- Enhanced international credibility of Philippine agarwood
5.4 Institutional Synergy
- Strong coordination between TESDA, DENR, DA, SUCs, and industry
- Platform for research, innovation, and curriculum upgrading
6. IMPLEMENTATION READINESS
The proposed Agarwood Farming NC:
- Uses existing TESDA competency frameworks
- Can be delivered through:
- TESDA Training Centers
- LGU and barangay-based programs
- Accredited private and cooperative farms
- Requires no new policy instruments, only curriculum approval
7. CONCLUSION AND RECOMMENDATION
Given its high economic value, regulatory sensitivity, environmental impact, and cultural importance, Agarwood Farming clearly meets the criteria for a standalone TESDA National Certificate qualification.
TESDA Central Office is therefore respectfully urged to:
- Approve the development of Agarwood Farming NC I – NC III
- Authorize the issuance of corresponding Training Regulations
- Recognize Agarwood as a priority high-value NTFP skill area