Aquilaria and Agarwood - The market and opportunities

Aquilaria And Agarwood

The Aquilaria trees are large evergreens native to South East Asia. They grow in a wide range of soils and mature very quickly, producing flowers and seeds as early as 4 years old. If the trees are infected by either fungus or insect, the tree produces a fragrant resin known as Agarwood in order to protect and repair its self. In the wild, Agarwood can take up to 100 years to form inside the tree, using our patented inoculation process, we can produce Agarwood in the tree within 6 – 8 years.

Due to its precious value, the Aquilaria tree is registered as an endangered species by CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora). In respect of tree conservation, the concept of Aquilaria plantations was initially developed in Thailand, with inoculation techniques, capable of providing premium quality Agarwood comparable to the natural source.

Agarwood has a widespread and varied use going back thousands of years and was recorded in the New Testament. When distilled oil is produced which is used in perfumes and can be sold for up to $20,000 USD per kg, the oil in its purest form is known as Oud or Oudh.

Currently the demand for Agarwood and its products including Oud oil, far exceeds the available supply. Oud oil is used in some of the most expensive perfumes in the world, Lacoste, Tom Ford, Versace and Yves St Laurant. The wood its self also has many other uses such as medical, religious and is carved into many different items. Today Agarwood is recognised as the most precious wood in the world, an extremely high value with 1 kg being sold for as much as $5,000 USD.

Key highlights

The main highlights are the followings:

1. High Fixed Return
   
   Forestry Forward Purchase Plan products are a widely accepted asset class generating high percentage guaranteed return at over 12% a year. Forestry is generally protected from inflation, economic recession, the stock market fluctuations, and political instability.

2. Strategic Locations
   
   Plantations are located in non-flood areas in Trat province providing perfect growing conditions for Aquilaria and Agarwood inoculation. Asia Forestry Factory is located close to the raw material supply via our plantations, to minimize the logistical cost. The assets are protected with physical security as well as monitored by forestry teams acting as fire prevention wardens.
   
   If any of the trees die unexpectedly, reserve stock is waiting to replace your tree. This is an added area of protection to support your investment.

3. Professional Teams
   
   The plantations are well managed and monitored by professional forestry teams. With inoculation techniques, Asia Forestry is capable of providing premium quality Agarwood comparable to the natural source.

4.Environmentally Sound

You are part of the socially responsible investor who looking to reap the rewards of financial growth with environmental responsibility.

For further information on this fantastic investment opportunity you can request a brochure using the appointment widget located top right of this blog.

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Why would you want to build using Wood?

Why on earth a wood house?

Everybody knows that wooden houses are for children, doggies, and weirdos who live in the backwoods. Yes, they have seen the light, and now also modern intelligent people realize wood is the world’s best building material. Soon, we will have wooden bridges, arenas, houses, kindergartens, and even skyscrapers all over.

You’re going to love it.

So, has wood come into fashion? Hmmmm. Since when did it ever fall out of fashion? It’s always been the best building material whichever way you look at it.

Now get your brain around this. Relative to its weight, wood is the world’s strongest building material. That’s the way nature made it which is why building with wood is quick, easy, and economical (as all do-it-yourself women know, it’s a piece of cake) and because nature made wood so strong and flexible, tall wooden buildings remain standing even during earthquakes.

Now, here’s something for your heart.

Wood is beautiful, feels good, and has a wonderful scent, creates and excellent indoor climate and acoustics, and keeps you warm, but don’t take our word for it. If you “wood” give it a try.

Here’s something for your conscience. 

Wood is the most environmentally friendly material. It’s the only building material made by the sun, and with carbon from the air, so wood stores carbon and reduces the greenhouse effect, and it’s the only renewable material in perpetual supply forever and ever (from properly managed forests of course), and should wooden houses be demolished, you don’t end up with waste, nooooo! For wood can be recycled or burned. Thus using the solar energy stored in the wood to replace using coal, oil, and gas. Brilliant! Which is why modern intelligent people choose wood, caring

Invest in wood for wood is good

Wood - Nature's Genius

Wood - nature's genius

Are you also fed up?

Fed up with being told that everything is going to hell?

What with CO2, the greenhouse effect, flooding, drought, hunger, exhaustion of natural resources, mountains of rubbish, and the pure hell of toxic pollution.

Well, don’t worry because there is a solution, wood.

Yes, trees and wood products are the way forward because wood is the world’s most environmentally friendly raw material.

Get this. Trees and forests are a source of raw material that grow every year, and forests are much prettier than coal mines and oil drilling platforms, but you may ask isn't it wrong to cut down trees? No, luckily cutting down trees is absolutely fine if forests are managed with the purpose of producing wood for manufacture and when we cut down trees, new ones are planted in their place. Furthermore, plantation forest areas are expanding; increasingly increasing by many 000's square kilometers each year.

Wood products are also healthier for the climate because trees take CO2 out of the atmosphere and store it in their trunks, then later in wood products. So, we are reducing the greenhouse effect every time we use wood in houses, bridges, furniture, and cars, and when you dispose of wood products the story still isn't quite over, burn them, for there’s energy stored in the wood, and by doing so you release only as much CO2 as the tree consumed when it grew thus replacing the use of coal, oil and gas, preventing CO2 emissions and resulting in no waste which is why wood is the world’s most environmentally friendly raw material; a resource that both grows and produces clean energy instead of waste which is more than you can say about metal or plastic, concrete, coal, oil and gas now isn't it.

So use wood for wood is good.

Invest in wood for wood is good

http://www.silvinvest.co.uk/investments

http://youtu.be/eTr6IaSzMZU

Re|Source 2012: Knowing the Unknowns: a bumpy road ahead?

Check out the excellent video regarding Commodities and Resources currently and envisioned and the impact on business, population and national security

FANTASTIC INVESTMENT OPPORTUNITIES

FANTASTIC INVESTMENT OPPORTUNITIES

Agarwood is the heartwood found at the centre of Gyrinops and Aquilaria trees. These trees are large evergreen species found naturally in certain parts of Southeast Asia including Cambodia and Thailand. The valuable heartwood is created when the centre of the tree is infected with a certain type of mould. This produces a one-time chemical reaction inside the trunk itself transforming the core into a dark, dense timber that is saturated in heavily scented resin.

The final result of this reaction, also knows as Oud, has such an attractive and strong scent that it is highly sought after for use in the production of incense, perfumes and essential oils across the world and is also used in the development of some more traditional medicines.

Different Types of Oud

Depending on the type of tree grown and the location of the plantation, the resulting Oud can have a varying range of qualities to fulfil the differing requirements for this product

.

Oud al Seyufi is the darkest of all the resins created in the region and is derived from some of the best Agarwood found in the plantations of Thailand and Cambodia. Thanks to its age and high quality, though the aroma of this product is initially very heavy, it soon transforms into a sweet, strong smell that is perfect for use in creating some of the most highly sought after fragrances of today.

Oud al Safii comes from Agarwood grown on the border between Thailand and Cambodia. With woody undertones, this attractive scent is able to remain on the skin for longer which builds longevity in the perfumes it is used to create. Oud al Safii Thai is a lighter, oily resin which is grown within the Thai province of Trat. The zesty aroma and pure form of the final product makes this ideal for the production of essential oils and related products.

Though most Oud is supplied in a syrupy liquid form, it is also possible to produce Oud Powder and Wood-chips. The wood-chips themselves can be burned directly to produce a wonderful aroma while the powder is used to create incense sticks in order to release its delicious scent.

The Benefits of Managed Plantations

Though Gyrinops and Aquilaria trees are found naturally within the plantations regions, the development of managed sites for Agarwood has not only made is it possible for a sustainable and continuous source of this valuable product to be developed, but it also enables the facilities themselves to oversee the entire Oud extraction process. By keeping the entire procedure on-site, the expert management team are able to maintain a level of quality control that is not possible in the wild and ensure the level of supply is able to meet the increasing demand for such a highly valued product.

From the growth of the initial seed through to the final supply, such control ensures the final product delivered to the marketplace is in its purest form, thus maintaining the best price for the commodity and a high rate of return for all those that choose to invest.

Telephone Appointments can be made using the appointment widget located top right of this blog www.silvinvest.co.uk

Consider How important Trees are for our everyday needs?

Consider How important Trees are for our everyday needs?

If you consider the situation with the depletion of our natural forests, it is not hard to foresee how it is massively important to start the process of afforestation projects.

Oil, Gas, Iron Ore etc.,etc. can (ultimately) all be replaced with alternatives no matter how unstable the world may become due to their scarcity. However, trees are not a natural resource that can be depleted to near extinction. Obviously, we need them to exist. Unless, we as a race, find an alternative to oxygen!

Logically, it can be seen that trees will, in fact, be more precious and usable in the future, especially within an ever growing population.

Why?

Well think of all the uses of trees.

Heat

Wood to many people is still the primary source of heat.

Going back to basics, wood was the first material used for heating and at present it is making a marked comeback in the form of wood pellets for their use within industrial power generation and also within the home using wood burning stoves. This is not just in the industrialised countries but also, increasingly, within developing nations. Charcoal is still, a regulary used form of fuel for heating and cooking. Wood is recognised as an environmentally safer material when contrasted against other raw materials i.e. oil or coal. With the cost of oil, coal and gas increasing, it is also economically viable.

Construction

It seems obvious that wood will remain the main source material in the construction industry. What is likely to replace it? As population and demographics explode this will put a massive strain on supply and demand. Unless, that supply is illegally sourced from existing forests causing further depletion to one of our greatest natural resources.

Furniture

I would suggest that the need for wood in this sector is likely to increase further as man-made materials are in some way linked to the expensive raw material, Oil. We know oil can't last forever. It won't be long before it is just too uneconomic to use Oil. Unlike wood, Oil takes many thousands of years to form.

Paper

This is likely to rise and then fall in demand as most text will be electronic. However, packaging and tissue usage will likely increase. This is a reality and again linked to population and economic issues. Paper is likely to be a major industry for many years to come.

Transport

Consider how many pallets are used to transport goods worldwide and within a local economy. Again, what is a likely alternative.

With worldwide government intervention trying to halt illegal logging and also with the introduction of Carbon Credits as an Asset class, I believe that the afforestation of large swathes of land is likely and necessary. Don't forget timber is the worlds third biggest commodity traded.

Thought? If carbon emissions are a major factor in #climate change and #trees are a major sequester of carbon why don't we plant more trees?

Forestry Plantations are potentially a solid long term investment. You can find information of Sustainable Forestry Investments at www.silvinvest.co.uk

A Brief History of Agarwood and the Aquilaria Tree

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REF: http://en.wikipedia.org/wiki/Aquilaria

History

The odour of agarwood is complex and pleasing, with few or no similar natural analogues. As a result, agarwood and its essential oil gained great cultural and religious significance in ancient civilizations around the world, being mentioned throughout one of the world's oldest written texts – the Sanskrit Vedas from India.

As early as the third century AD in ancient China, the chronicle Nan zhou yi wu zhi (Strange things from the South) written by Wa Zhen of the Eastern Wu Dynasty mentioned agarwood produced in the Rinan commandery, now Central Vietnam, and how people collected it in the mountains.

Starting in 1580 after Nguyễn Hoàng took control over the central provinces of modern Vietnam, he encouraged trade with other countries, specifically China and Japan. Agarwood was exported in three varieties: Calambac (kỳ nam in Vietnamese), trầm hương (very similar but slightly harder and slightly more abundant), and agarwood proper. A pound of Calambac bought in Hội An for 15 taels could be sold in Nagasaki for 600 taels. The Nguyễn Lords soon established a Royal Monopoly over the sale of Calambac. This monopoly helped fund the Nguyễn state finances during the early years of the Nguyen rule.

Xuanzang's travelogues and the Harshacharita, written in seventh century AD in Northern India, mentions use of agarwood products such as 'Xasipat' (writing-material) and 'aloe-oil' in ancient Assam (Kamarupa). The tradition of making writing materials from its bark still exists in Assam.

Agarwood is known under many names in different cultures:

• In Urdu (Pakistan), it is known as agar(in Bengali, also aguru).
  
  
• It is known by the same Sanskrit name in Telugu and Kannada as Aguru.
  
  
• It is known as chénxiāng (沉香) in Chinese, "Cham Heong" inCantonese, trầm hương in Vietnamese, and jinkō (沈香) in Japanese; all meaning "sinking incense" and alluding to its high density. In Japan, there are several grades of jinkō, the highest of which is known as kyara (伽羅).
  
  
• Both agarwood and its resin distillate/extracts are known as oud(عود) in Arabic (literally "rod/stick") and used to describe agarwood in nations and areas in Arabic countries.[9] Western perfumers may also use agarwood essential oil under the name "oud" or "oude".
  
  
• In Europe it was referred to as Lignum aquila (eagle-wood) orAgilawood, because of the similarity in sound of agila to gaharu.
  
  
• Another name is Lignum aloes or Aloeswood. This is potentially confusing, since a genus Aloe exists (unrelated), which has medicinal uses.
  
  
• In Tibetan it is known as ཨ་ག་རུ་ (a-ga-ru). There are several varieties used in Tibetan Medicine: unique eaglewood: ཨར་བ་ཞིག་ (ar-ba-zhig); yellow eaglewood: ཨ་ག་རུ་སེར་པོ་ (a-ga-ru ser-po), white eaglewood: ཨར་སྐྱ་ (ar-skya), and black eaglewood: ཨར་ནག་(ar-nag).
  
  
• In Assamese it is called as "sasi" or "sashi".
  
  
• The Indonesian and Malay name is "gaharu".
  
  
• In Papua New Guinea it is called "ghara" or eaglewood.
  
  
• In Thai language it is known as "Mai Kritsana" (ไม้กฤษณา).
  
  
• In Tamil it is called "akil" (அகில்) though what was referred in ancient Tamil literature could well beExcoecaria agallocha.
  
  
• In Laos it is known as "Mai Ketsana".
  
  

Formation

There are fifteen species in the genus Aquilaria and eight are known to produce agarwood.In theory agarwood can be produced from all members; however, until recently it was primarily produced from A. malaccensis. A. agallocha and A. secundaria are synonyms for A. malaccensis. A. crassna and A. sinensis are the other two members of the genus that are usually harvested.

Formation of agarwood occurs in the trunk and roots of trees that have been infected by a parasitc ascomycetous mould, Phaeoacremonium parasitica, a dematiaceous (dark-walled) fungus. As a response, the tree produces a resin high in volatile organic compounds that aids in suppressing or retarding the fungal growth, a process called tylosis. While the unaffected wood of the tree is relatively light in colour, the resin dramatically increases the mass and density of the affected wood, changing its colour from a pale beige to dark brown or black. In natural forest only about 7% of the trees are infected by the fungus. A common method in artificial forestry is to inoculate all the trees with the fungus.

Hydro-Distillation process used to extract agarwood essential oils.

Aquilaria species that produce agarwood

The following species of Aquilaria produce agarwood:

Aquilaria khasiana,  Aquilaria apiculina Aquilaria acuminata Aquilaria baillonil Aquilaria baneonsis Aquilaria beccariana Aquilaria brachyantha Aquilaria crassna  Aquilaria cumingiana

Aquilaria filaria Aquilaria grandiflora Aquilaria hirta Aquilaria malaccensis Aquilaria microcapa Aquilaria rostrata Aquilaria sinensis Aquilaria subintegra

Conservation of agarwood-producing species

Overharvesting and habitat loss threatens some populations of agarwood-producing species. Concern over the impact of the global demand for agarwood has thus led to the inclusion of the main taxa on CITES Appendix II, which requires that international trade in agarwood is subject to controls designed to ensure that harvest and exports are not to the detriment of the survival of the species in the wild.

In addition, agarwood plantations have been established in a number ofcountries. The success of these plantation depends on the stimulation of agarwood production in the trees. Numerous inoculation technique shave been developed, with varying degrees of success.

Currently the demand for Agarwood and its products including Oudh oil, far exceeds the available supply. Oudh oil is used in some of the most expensive perfumes in the world, Lacoste, Tom Ford, Versace and Yves St. Laurent. The wood itself also has many other uses such as medical, religious and is carved into many different items. Today Agarwood is recognised as the most precious wood in the world, an extremely high value with being sold for as much as $5,000 USD.1kg and the essential oil can be worth anything up to $80,000 per kilo depending on quality.

The Opportunity is a forward purchase contract where you purchase saplings at a set price, the more you purchase the cheaper the saplings are. You are then given a forward purchase price at which the product provider will buy the trees back from you at maturity in 6yrs time. This means the returns of 72%+ for the 6yr term are guaranteed, backed by a company with a great reputation of plantation management and of producing quality grade Oudh oil.

Underlying Asset is the Agarwood trees, they are held by the customer, the returns are guaranteed by the current sale of the Oudh oil at today's price.

Security

A Guaranteed Return

Ownership and harvesting rights

Replacement of dead or damaged trees

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