Agarwood Market Report by Sustainable Asset Management

Singapore is one of the biggest re-exporter of gaharu (also known as Agarwood). And Sustainable Asset Management, a Singapore company that see the commercial opportunity for gaharu in this rapidly growing market. By 2013, Sustainable Asset Management had prepare Agarwood Market Report that I think it is quite details and informative on gaharu plantation, gaharu products, history, the current status of gaharu species globally and gaharu market nowadays. So, I would like to suggest it you. However, if you have any reports or information or experience in gaharu, kindly share with me too. 

You could download the report from this link: https://www.google.com.my/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CCkQFjAA&url=http%3A%2F%2Fwww.investmentinternational.com%2Flp%2Fagarwood%2Fdownload.php&ei=kwoQU-eUMMyVrgecj4CYAg&usg=AFQjCNFn1y1YaOkbXwEEVnrLlNYAemfBfQ&sig2=lIh_YyHUuzypOEYsJt6m_w

Gaharu products

Gaharu has been used in Middle East, Egypt, Japan, China and India since 3,000 years ago (Mark et al., 2013). It has been widely used in religious and ceremonial context in Islam, Buddhism and Christianity. However, overexploitation had significantly driven the species into near extinction and pushing the prices upward dramatically. 

Due to its distinctive fragrance, it has been broadly used from producing incense, medicinal products, perfume, cravings, beverages (tea and wine), insect repellent, necklaces and bracelets to daily products such as soaps and shampoo. Now, you might slowly see why gaharu has such soaring demands. 

Let me show you some of the gaharu products pictures. 

Gaharu necklaces (108 beads)

Gaharu wood chip (the small picture shows the resin line in the chip)

Gaharu incense sticks
(Retrieved from http://www.agarharvest.com/Agarwood-Incense-Stick/Agarwood-Incense-Stick,Oudh-Incense-Stick-4A-300stick)

Gaharu tea
(Retrieved from http://www.agarharvest.com/Agarwood-Tea,Gaharu-Tea,Jinkoh-Tea/Agarwood-Tea-50bag)

Gaharu oil
(Retrieved from http://www.agarharvest.com/Agarwood-Oil,Oudh-Oil/Agarwood-Oil,Oudh-Oil-1A-60cc)

Gaharu soaps
(Retrieved from http://orenkasturi.storenvy.com/collections/96598-gaharu-collection/products/470116-gaharu-soap-nano-aloudh)

Cost per tree

Well, gaharu seedlings isn't necessary to be planted in large scale. You can also plant one or two trees at house surrounding. Then, you  can inoculate at any time, or even no need to inoculate. This is because gaharu trees also been used in landscape plants for decades.

Lately, the nearest suggested planting distance is 5ft X 5ft. This can prevent gaharu trees being blown by strong wind. For cost purpose, I will divide the gaharu seedling into two categories which are local gaharu species and China's gaharu species. The difference between these two species is the years being planted if inoculation is done. 

So, local species gaharu trees are expected can reach to a diameter of 15cm after being planted for 4 - 5 years. And China's species which have higher growth rate is expected can reach 15cm diameter by year 3. This is the time where inoculation is the most suitable period to be carried. With 2 years prolong after inoculation, the cost is calculated on the basic of local gaharu species - 7 years and China's gaharu species - 5 years. The costs details are shown in the table below. 

Costs needed for a gaharu trees. 

As reported by Suharti et al. (2011), productivity of a gaharu tree with the diameter between 15cm to 25cm can produce an average of 0.75kg high quality gaharu and 4kg low quality gaharu. However, we will only assume one tree can produce 2kg of low quality gaharu instead of exaggerate profit can be earned with one gaharu tree.  So, the expected return from a gaharu tree is:

Expected return from a gaharu tree.

May today is your best day ever!
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