Beyond the Hype: Navigating the High-Stakes Legality of the ‘Wood of the Gods’

 

For many Filipinos, the allure of agarwood is a siren song of "liquid gold" and overnight riches. Social media is saturated with ads promising millions of pesos for a few backyard trees. But for Donnabel Abalos Cabrido, the reality of the "wood of the gods" involved less magic and more bureaucracy.

Cabrido, the CEO of Sur Aloeswood Corp. and Soar Aloeswood Agriventures Corporation, entered the industry in 2024, fueled by curiosity. She soon discovered that planting a seedling was the easy part; navigating the labyrinth of Philippine environmental laws was the true test of an investor's resolve.

"We asked for the requirements on how to legally plant agarwood," Cabrido said. "We complied with all the legalities, including acquiring necessary permits. We also attended Regional Wildlife Management Committee meetings."

Today, Cabrido has transitioned from a curious investor to a vocal advocate for legal propagation. Her company, based in Sitio Morales, Barangay Centrala, in Surallah, South Cotabato, operates as a legitimate hub for seedlings and consultancy, aiming to steer others away from the "get-rich-quick" misinformation that plagues the sector.

The Regulatory Maze

The agarwood industry in the Philippines is a high-stakes environment where the Department of Environment and Natural Resources (DENR) maintains a tight grip. Because Aquilaria species are protected, any commercial activity without a Wildlife Culture Permit (WCuP) is a criminal offense.

The path to legitimacy is rigorous. Applicants must present an Agarwood Propagation Plan to the Regional Wildlife Management Committee (RWMC). This body inspects plantation sites and evaluates the technical capacity of the farmer. Once approved, the permit holder is tied to a cycle of transparency, including mandatory quarterly reports on tree health and inventory.

According to DENR Region 12 officials, the barrier to entry is intentionally high. As of April 2026, only 11 WCuP holders operate in the region, including Cabrido’s company. The agency continues to caution the public against “fly‑by‑night” sellers who lack these credentials.

"Even though it is hard, we aim to help other people to plant legally," Cabrido said. "That is why we asked the DENR if we could open it up to the public."

A Multi-Billion Dollar Market

The global demand for agarwood—the resinous heartwood produced by Aquilaria trees when infected by a specific mold—shows no signs of slowing. Used in high-end perfumes, traditional medicines, and religious ceremonies, top-tier agarwood (locally known as lapnisan) can fetch up to ₱5.7 million per kilogram.

The economic projections are staggering. A 2025 report from Mak Data Insights valued the global agarwood industry at $14.8 billion. That figure is projected to climb to $35.2 billion by 2035, driven by the expanding luxury markets in Asia and the Middle East.

While Vietnam, Indonesia, Thailand, and Malaysia currently dominate the export market, the Philippines is positioned as an emerging player. Of the 21 known Aquilaria species worldwide, nine are found in the Philippines. Six of these are endemic, meaning they are found nowhere else on Earth. This includes Aquilaria malaccensis, a primary source of high-quality resin.

Conservation Through Cultivation

The biological wealth of the Philippines is also its greatest risk. All Aquilaria species have been listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) since 2005. In the Philippines, agarwood is protected under the Wildlife Resources Conservation and Protection Act (RA 9147). This means international trade is strictly regulated to prevent the extinction of the species in the wild.

In Manila, lawmakers are attempting to bridge the gap between conservation and commerce. House Bill 10320, the "Agarwood Industry Development Act," is currently under consideration. The bill seeks to formalize the industry, providing a framework for sustainable harvesting while protecting wild stands from poachers.

For Cabrido, the bill represents a future where indigenous communities and small-scale farmers can legally manage agarwood as a "retirement crop."

"In reality, it is a long-term investment," Cabrido said. "It is not like other investments where you reap rewards after a month. It is like your retirement investment."

The Challenge of Misinformation

The primary obstacle for her company remains the "hype" factor. Social media platforms are often flooded with unregulated sellers offering "guaranteed" returns. Cabrido notes that many people are lured by the promise of fast cash, unaware that Aquilaria trees require at least five to seven years of maturation and a complex inoculation process to produce the valuable resin.

Cabrido has made education a cornerstone of her business model. She hosts sessions explaining the technicalities of buying certified seedlings, filing for Environmental Compliance Certificates (ECC), and applying for CITES export clearances.

"On my part, I just follow what the DENR instructed based on existing laws," she said.

The business in Surallah now serves as a blueprint for what a compliant plantation looks like. By hiring specialized consultants and maintaining a direct line to the DENR, Cabrido is betting that the "tedious process" she once almost quit will eventually be her company's greatest competitive advantage.

"I’m hoping that we can help other people surpass their struggles in life," Cabrido said. "Since nature gives this opportunity, we should also take care of our environment."

As the global fragrance market matures, the "wood of the gods" may finally provide a legal, sustainable windfall for the Philippines—provided farmers are willing to trade the hype for a permit.

 

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This feature story was first published in PhilStar.com