AGARWOOD which is also known as liquid gold is one of the most expensive woods in the world. Agarwood belongs to the family of Aquilaria sp and it is native to South East Asia. This tree is very unique because it can produce a type of oil with fragrance which is known as oud oil. Initially, there will be a resin formation and the oud oil will be extracted from the esin. Resin formation occurs as a response to internal injury or infections on the stem.
Oud oil becomes very expensive because [ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”2,3″ ihc_mb_template=”1″ ] of its rarity and in the wild less than 7 % produce the oil. This is where biotechnology plays its role where the production of oud can be induced by inoculation method. An organic compound will be injected into the tree trunk to induce the production of oud oil. However, due to illegal logging this tree is listed as an endangered species.
This is a protected species under Convention of Endangered Species of Flora and Fauna (CITES). This tree can be found abundantly in Malaysia forest and it has the ability to grow well in Malaysia. Moving forward, the government should look into this industry because it has a lot of potentials and economic value. Oud oil has a high demand in Middle East and widely used in fragrance industry.
The finest oud that was distilled has starting price of USD 50,000 per kilogram. Although, Malaysia is the second largest producer of palm oil but it contributes to environmental degradation and greenhouse emission. In this scenario, agarwood will be a better option compared to oil palm because it saves the environment and has the demand in the global market too.
Malaysia has the potential to become one of the largest producers of agarwood since it belongs to our rich tropical rainforest. This is where Malaysian Agricultural Research and Development Institute, Forest Research Institute Malaysia and local universities should emphasize on serious research to produce high quality oud oil and it would lead to the rise of price in the global market.[/ihc-hide-content]
