Agarwood Marketing


Now agarwood product is only one industrial agriculture which producer or agriculturist able to set up price oneself. Not allow buyer set up price. Which make a low price problem now.  Agriculture products have supply more than demand. Mostly Thai people doing very good products but not expert to sale. Not like Singapore, they only small country but expert in business then their country has progressive. Even agarwood product, Singapore is also a broker for long time. Recently world market have agarwood oil demand  about 4,000,000 CC. / Month and demand have continuously grow up but now(2006) Thailand productivity only 50,000 CC/Year.  Cause many countries struggle to seek a raw material and hurry growing agarwood and turn to take an interests the agarwood seriously because more buyer but less vendor. Now Thai Agarwood Community which have branch 59 office, member 100,000 guys and had grow agarwood tree already 12 Millions. The agarwood we had growing already give product since 4 years ago.

Group of Countries who want Agarwood Products

Group 1: EU. Now marketing had changed from Middle East to around the world. Now market in France, USA., Canada, Netherland,  England, Germany, mostly use agrwood product in term of tension treat medicine, concentrate perfumes  and may use as a medicine composition. Now is in R& D process to use herbal replace modern medicine.  EU. is big market now and also in the future because they are use agrwood as medicine. Some country use agarwood product to protect weevil such as USA., Canada.

Group 2: Middle East (Arabian). This group has been use agarwood product since the Greek time until now. Mostly use in religion ceremonial. Such as rub the body before perform a ceremony. Islam is strict and have a lot of precept. Mostly perfumes have alcohol mixing then they can’t use. Most of them use agrawood oil as perfume and agrwood part for tension treat, aromatherapy. These groups are Saudi Arabia, Dubai, Barane, Lebanon, Israel, Jordan, etc.

Group 3: China, Taiwan, Singapore.  Mostly use agarwood product as a herbal composition. Most Chinese people expert in herbal and have many citizen then have big demand. They may be big market place in the future. Especially agarwood joss  stick, because Chinese people have tradition which use joss every family.

Group 4:  Japan, Korea, etc. Mostly use as gum benzoin, oil or medicine.

Group 5: India, Pakistan, Srirungka, etc.  Mostly use for religion ceremonial, gum benzoin, cosmetics and treat tension.

      For Thailand market, now some of Thai people have turn back to use agarwood product as medicine such as Agarwood refining medicine,  treat the diabetes, cancer, Stomach and Intestines Disease, etc. Mostly get effective then Thailand market have growth. Especially Spa, have interested from a lot of foreign tourists cause agarwood market have progressive and good future.

Technical Term for  the Agarwood .

      For Thailand market, now some of Thai people have turn back to use agarwood product as medicine such as Agarwood refining medicine,  treat the diabetes, cancer, Stomach and Intestines Disease, etc. Mostly get effective then Thailand market have growth. Especially Spa, have interested from a lot of foreign tourists cause agarwood market have progressive and good future.

Technical Term for the Agarwood .

- Mai-Lhong:   There is the wood has reaction to get  resin or  Agarwood resin core.
- Mai-Pak:   There is the wood has chipping or drilling at base or trunk and has reaction to get resin. Have 2 type , one is Oldness Mai-Pak ( 120 Baht / Kg), second is New Mai-Pak
(70-80 Baht / kg) .
- Mai-Lam-Sao:  There is the wood has bug drilling or drilled and have reaction to get resin in stage No. 2. (200-300 Baht/ Kg)      
  There is the wood had reaction to get resin until wood have rather darkened color. Have many color.(400-1,500 Baht /Kg.)   
- Mai-Kan: There is the wood has more agarwood resin. (5,000-150,000 Baht/Kg.)

-  Supper: This is the best of agarwood . Have a lot collective resin and wood have good fragrance. Cause wood chip get high density. When put down on the water, will sink. Black color and rather heavy weight. (150,000-240,000 Baht/ Kg.)
-  Oil or Agarwood oil: There is final product from agarwood by refining

-  Tola :
It is unit to measure agarwood oil of Middle East people. 1 Tola = 12.5  cc.= Weight 12 g.





Glow Area Comparison of Each Area in Thailand

Breed Growth (cm) Adjustable follow Environment Encourage Agarwood Oil  Price Remark
  Average / 5 Yrs.
High from ground
 130  cm.
Eastern Western Northern Southern North Eastern Middle Good Medium Poor Good Medium Poor  
Subintegra 50-70          
Crassna 20-40                
Malaccensis 50-70                  
Baillonil 20-30                    

             Totally Agarwood grow in Thailand is
                          9,541,814 Trees

Note:  1: From Oct 2004- Dec 2005
2. Only registered with Thailand Krisana Community
3. On March 9, 2006, Had registered with CITES as  7,404,452 Trees.

 The breed that encourage grow in now
Aquilaria Subintegra Var. Trad is the most breed grow in Thailand.  Because it is the best Agarwood
breed in the world. Able to adjust oneself follow the environment throughout every area in Thailand .
Good growth and easy to encourage resin (agarwood oil) with best quality that markets want a lot.

Expansion Growing Threat
  1. Government officer especially Forestry Officer have forbids people to growing. They informed that agarwood is a forbidden tree. Can grow but can’t cut.  In fact, Agarwood just only forbidden things from forest and must be from forbidden forest area only.  If that land is not forest then agarwood also not forbidden tree.  (According to Act. Forestry. Buddhist Era 2535 )
  2. Between cutting or moving, not have any rules or law to support. Now use agreement between seller and buyer in term of agrwood cooperative and industrial.
  3. Agarwood which had growing can not feed to refinery and some province/area have    announcement forbid to setting refinery plant.    
  4. Most people don’t have agarwood knowledge in deep.     
  5. Have some group deceive people by give agrwood knowledge in long way. Reason for benefit when they sale agrwood seeding. Now have a lot at North East part and North part of Thailand. It will be a problem to government later.
  6. Forestry Department and Wild Animal/ Seed Department are modifying law about agrwood to support grower which the exiting law is outmoded and obstacle in growing agrwood. It is Officer’s grudge power by without any vision.
  7. Government has no good support to grower.
  1. Should have training to officer in term of law,  subjective, vision and have to separate names

   “ Economy Park –Forest “ and  “Forest” from each other. Because more trees are come from   growing not just conservation.

  1. Should launch  regulation and rules  for harvest and moving agarwood which support and convenience to grower and informed to officer it may concern.
  2.  Should coordinate with Industry Department/ Industry Ministry to modify Ministry’s law No. 2 on July 12, 2002 about agarwood which growing in Thailand can not feed to refinery plant. Change to “ Refinery plant set up have to feed agrwood only growing from grower and had registerd with department it may concern only”.  Then they  can set up refinery plant wherever have growing agarwood by match up quantity. It’s make  agarwood in forest still alive and protect forest destruction correctly.   
  3. Should urgent  give the knowledge to people about agrwood correctly. Especially the technocrat who not have agarwood knowledge, do not give knowledge to people in long way.  
  4. Should expel deceive movement.  Because they are useless people, destroyed people mind, destroyed economy, destroyed nation. This way has to coordinate with citizen.
  5. Should coordinate with Forestry Department / Wild Animal and Seed Park to have more vision about economic tree. Not modify law to be threat to people. Should working by let people as center.
  6. Should urgent and do every way to have Royal Decree set up “ Economy Wood National Office”

people organization. Because people who growing economic tree will get benefit and convenience to grow by completed. People have income. Nation has income. Have good environment and solving Thai people poorness problem by integration.