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Hi,
I have been doing research on this area recently. Just want to share my observations.
1) There is limited data on yield and pricing of agarwood products, this is as most of the trade takes place in the black market. Cultivated agarwood is a relatively new development, and wild agarwood is rare (1 in 7000 aquilaria trees or so are infected) and felling of trees is illegal in many places.
2) Cultivated agarwood uses inoculation methods to stimulate the growth of the resin which gives the wood it's distinct smell. The quality of the inoculated wood is not of the type that fetches the high prices. A further risk arises if new inoculation methods are found that can flood the market with cheaper / higher quality wood.
3) The Indian government is encouraging and subsidizing planting of trees. This might dramatically increase supply of agarwood oil in the future.
I have been doing research on this area recently. Just want to share my observations.
1) There is limited data on yield and pricing of agarwood products, this is as most of the trade takes place in the black market. Cultivated agarwood is a relatively new development, and wild agarwood is rare (1 in 7000 aquilaria trees or so are infected) and felling of trees is illegal in many places.
2) Cultivated agarwood uses inoculation methods to stimulate the growth of the resin which gives the wood it's distinct smell. The quality of the inoculated wood is not of the type that fetches the high prices. A further risk arises if new inoculation methods are found that can flood the market with cheaper / higher quality wood.
3) The Indian government is encouraging and subsidizing planting of trees. This might dramatically increase supply of agarwood oil in the future.