Agarwood

Agarwood

1. Introduction

Agarwood is a highly prized incense that is extremely rare. It has at least a 3000-year history in the Middle East, China and Japan.

The resin is used by Traditional Chinese, Unani, Ayurvedic and Tibetan physicians. Used medicinally, Agarwood is a remedy for nervous disorders such as neurosis, obsessive behavior and exhaustion. Agarwood is highly psychoactive and is used in spiritual rituals.

Chinese medicine uses powdered Agarwood as a treatment for cirrhosis of the liver and as a director or focuser for other medicines. It has also been used as a treatment for lung and stomach problems. Internal use of the powdered wood is supposed to enhance Chi or body energy. Asa perfume ingredient, Agarwood (oud) is sought after and purchased by perfume houses worldwide as an essential component of some of their high-class perfume. Day by day the use of Agar is increasing worldwide in aroma therapy.

The source of Agarwood is the Aquilaria tree.This evergreen tree bears flowers that are sweetly scented.

Cultivated Agarwood LLC based in the USA provides patented inducement technology to cultivate Agarwood on plantations in an environmentally and economically sustainable way. This technology will keep the global multi-billion dollar annual Agarwood market supplied with a better product made in a highly efficient process.

This precious, naturally occurring product is now on the verge of disappearing from its tropical forest habitats because of indiscriminate and destructive harvesting. Cultivated Agarwood produced with CA kits^® is the only feasible, legal and sustainable alternative.

The University of Minnesota (UMN) and The Rainforest Project Foundation (TRP) have jointly developed this patented technology. CA LLC owns the exclusive, worldwide Cultivated Agarwood technology license, which includes rights to possible future improvements.CA LLC has complete control on commercializing this technology in any conceivable way including sub-licensing.

CA LLC is pleased to have just signed the ^6th country exclusive Cultivated Agarwood Technology license in Bangladesh with Khwaja Agri- Horticultural Research Centre.

CA LLC is actively selling CA kit^s' sold in SE- Asia region and now have agreements in places in Australia, Bangladesh, Laos PDR, Malaysia, Thailand and Vietnam.

2.     Plantation development and products

The Aquilaria tree is an evergreen that grows up to 40 meters high a imeters in diameter. Generally, Aquilaria and Gyrinops grow on all kinds of soils including poor soils, and from a few meters above sea level to altitudes up to 1000 to 1500 meters depending on species. Best growth is achieved at around 500 meters above the sea level. The trees grown in tropical (rain forest) habitat, with 1800 ml. or more rainfall is considered better. It can grow and survive on plain land but not in water logged condition. The number of trees varies between 900-1100 (depending on spacing) in one hectare.

Trees with a minimum DBH of 10 cm can be applied CA kit Trees grown from high quality seedlings under best possible circumstances can reach this size within five years.

The average age of the trees at harvest time is 6 to 9 years (depending on the country and environmental conditions). Recent innovations have allowed harvests as early as 15 months after CA Kit applications.

The harvested products are a mix of very high quality black yellow and high-medium quality Agarwood .From these Agarwood chips, better quality of oil and incense stick, powder can be produced.

3.     Present Scenario

Natural Formation

Agarwood is the woody part of Aquilaria and Gyrinops trees containing resin. Agarwood only rarely and infrequently occurs in those tree species. Wounding tree triggers resin formation. This resin in Aquilaria or Gyrinops tree forms very slowly and fills areas around the wound(s) to fend off microbial invasion.

In natural forest conditions, trees rarely produce Agerwood and the very few trees that do produce, it produce exceedingly small amounts. Since it takes so long (decades) to form quality Agarwood, demand for Agarwood is much greater than the supply.

Induced Formation:

Simple wounding techniques are being used to induce small amounts of low grade Agarwood in countries such as Bangladesh, Lao PDR, India, Vietnam and others. Axe wounds, severe bark removal, nailing and other types of wounding are being applied. These methods only yield small amounts of low quality resin and due to their low yield, these methods lead to destruction of many trees.

Cultivated Agarwood in plantations with CA Kit

The technology to cultivate Agarwood in defined plantations was developed by Prof. Robert Blanchette at the University of Minnesota, USA working with Henry Heuveling van Beek of TRP (The Rainforest Project Foundation) - and currently CA LLC.

UMN and CA LLC consultants and Staff are also conducting Agarwood projects and research investigations in Bhutan, Cambodia, Indonesia, Laos, Papua New Guinea, Singapore and Vietnam.

The technology consists of a CA kit-per-tree treatment containing special tubes and capsules filled with a non-hazardous chemical compound. The size of CA kit^e depends on the DBH and height of the tree.An Agar tree having its minimum size of 10 cm diameter in breast height is fit for kit application.

1^st Generation process:

1^st generation process was developed in 1996-97, using different methods of wounding along with a variety of biological agents such as fungi and other compounds. However, while superior to previously known inducement methods, UMN/TRP research and hundreds of field tests showed limited amounts of resin formation and inconsistent results with this early technology.

2^nd Generation Process:

Excellent results were obtained when 2^nd generation technology was tested: Holes are drilled into the tree in a particular pattern, gel capsules are applied with resin-inducing compounds and special PVC tubes are inserted for aeration to remain in the tree while Agarwood resin forms. Complete installation takes about 20-30 minutes per tree by an experienced crew.

CA LLC has designed and manufactured the Agarwood inducement kit, CA Kit^e, which is available to CA LLC licensees. The application will vary according to tree size and the diameter at breast height, DBH of the tree. Kits are provided in standard sizes or specific bulk packs to treat larger trees.

3^rd Generation Process:

A 3^rd generation advanced inducement technology is now developed with a special booster treatment, which can be applied 9 - 12 months after the initial treatment to maximize resin formation. Harvesting can be initiated 6 to 10 months after the booster treatment. Trees, which are allowed to grow longer, are expected to produce higher quality Agarwood.

4. Technology Comparison:

CA LLC Agarwood inducement technology is without doubt the highest yielding, lowest cost and certified treatment available. It produces Agarwood in 100% of all Agarwood growing tree specie anywhere in the world. With more than 14 years of research experience, Cultivated Agarwood technology stands out as the most cost efficient technology capable of large-scale Agarwood production.

This patented technology is an easy to use Agarwood cultivation process, and unique in its approach and application. More Agarwood can be formed in a shorter period and at a lower cost. CA-LLC uses the entire tree to form Agarwood; it is the least labor intensive and the highest yielding method for producing Agarwood.

A comparative study

Simple Inducement Nailing Technology	3rd GENERATION CA technology
Only low yields	Highest possible yields
Commercially not viable	Commercially viable
High cost/ low return	Medium cost/ high return
High labor intensity	Low labor intensive
Simple application	Easy application
Technology free	Medium cost manufacture
Training Simple	Training easy
More then 36 months	Duration 12-24 months
Not certified	Will be certified
Applied .	Applied commercially
Scientifically tested	Scientifically tested

5. Market:

The traditional markets for Agarwood and Agarwood products are in specific countries with high end markets predominantly in the Middle East, particularly in UAE, Saudi Arabia, Japan, Korea and in emerging markets such as Europe and the USA. As certified, environmentally acceptable Agarwood becomes more available. The USA and Europe markets will likely see an increase in cultivated Agarwood consumption for use in personal care product, aroma therapy, incense, and use as traditional medicine. High quality oil will be used more by perfumers as the amount available increases.