15 replies to this topic
Posted 2008-08-11 23:48:32
My family in-law is considering starting up an agarwood plantation in the Ratchaburi area.
I looked around on the forums and internet websites and managed to gather very useful information about it. However I would appreciate a 1st hand dialogue with a person who has experience in such an activity.
Posted 2008-08-13 09:24:54
I have a friend who set up the first Agar wood plantation here in Vietnam and who does consultancy. Here is his e-mail: email@example.com ; his name is Henry van Beek.
Posted 2008-08-13 13:14:46
thanks!!! i will contact him...
Posted 2008-08-13 15:18:24
Don't know about the long term market viability of agarwood. There have been hundreds of plots around my area put in this year alone.
I expect that the main company will keep a real close hold on their worms that help induce resin.
More info. on agarwood.
Posted 2008-08-13 20:59:34
thanks for your comment.. and which area are you referring to?
I quiet don't understand how that works..
do you need to enter in some form of tree management / tree buy-back agreement with this company or can u simply grow you own trees and buy their inducement products off-the-shelf and carry on on you own? This is not clear to me...
Posted 2008-08-13 22:41:42
Spotted an agarwood plantation on the way home from Udon Thani today, young trees inter-planted with banana plants,
I asked the mrs about this and appantley the young trees dont like a lot of sun, so bananas are used as shade/cash crop, then removed after a year or so,
Posted 2008-08-14 13:30:36
very interesting comment... does anyone know if other type of plantation grows well with agarwood trees? maybe for more than a year... thanks...
Posted 2008-08-31 12:56:42
i am going to start my agarwood plantion this month
could you please tell me what is the plant called or its number for goo quality
because kissana has many varieties , i dont know whether the seller of seadling will give me the good quality or not
i want to start it in khonkaen district in thailand, can anyone give me info, where can I get the good quality seadlings..
thanks and regards
Posted 2008-10-07 12:45:13
i have around 200 agarwood trees of age around 6 - 7 years,
i am in thailand.
i dont know where can i buy the CA KIt.
i had contacted touchwood, but they are selling the investment scheme & dont want to sell the CA KIT,
Posted 2008-10-07 21:26:58
and by looking at the other multiple posts of the same nature I might conclude that we have a representative from Touchwood trying somehow to drive up the allready un-realistic prices and portfolios of their investment scheme.
Take my word for it, many people are going to get burn't with krissana or agarwood in the following years with the only people making any money being the fund managers taking their very overpriced setup and servicing fees.
If anyone wants realistic tree farming setup to sale costs (with respect to eucalypt, my specialty, however, not to dissimilar to agarwood ) feel free to PM me.
Posted 2008-10-08 14:40:54
In Nakhon Nayok there's that many argawood trees their selling seedlings at the corner store!
Posted 2008-10-08 15:19:05
Here in lies my point....
In prachinburi (home of touchwood), every second new planting this season was agarwood & there is currently a large (will remain un-named) company trying to secure leases to around 10k - 15k (more than 20 square kilometres) Rai of land to plant out with agarwood.
The bottom will fall out of the resin market in a few years time & all those healthy 20% per year returns "promised" by touchwood will be out the window. You'll be lucky to get 700B per ton for the wood from the power stations and large companies with big boilers. Won't even be half the money you've put into their fund.
Anyway, thats my prediction.
Posted 2008-10-09 08:47:01
Soundman's thesis isn't far fetched. It's worth noting that the Sri Lankan Touchwood (listed on the Colombo stock market) has qualified financial statements. The Sri Lanka accounting standards board has said that the company's valuation of it's "biological assets" is "clearly unreliable". In other words, the Company has stated an inflated book value for its assets (trees) rather than using accounting standards which call for valuation at cost. This will tend to inflate the value of the Company's stock and make it easier to sell shares to investors.
There was a famous case in Hong Kong several years ago involving a stock market listed orchid grower. Investors lost everything.
Posted 2008-10-09 09:41:35
Indeed. Touchwood's 'financial viability' and accounting standards have been the subject of much speculation for a while.
They have made some incredibly bold claims over the last few years; all of them completely worthless. What they haven't talked much about is mounting debts, a ridiculously ambitious expansion plan of office openings around the world, followed by an equally quick closing program as they ran out of money.
Nor do they talk about their promises of a very substantial return on the first harvest (scheduled for earlier this year) which they failed to make because their trees were nowhere up to the quality needed for sale. And they're amazingly quiet on their inability to repay investors who have become disillusioned and have subsequently sued them, or the lines of creditors being turned away from their office for normal operating expenses.
They recently made one farang redundant, but couldnt pay his severance package.
Of course, that doesnt prevent the management - all from the same family - from swanning around in very expensive cars, giving high level executive positions to hopelessly unqualifed failing family members in other countries (need a new financial director - let's call brother X who's dentistry practice in Melbourne has gone bust), or continuing to make bold assertions about how they will soon be a Fortune 500 company.
Invest at your own risk.
Posted 2008-10-09 11:28:10
Yup...Sri Lanka Accounting and Auditing Standards Monitoring Board mentioned that it thought Touchwood had overstated biological assets by 10x. If these assets are adjusted down to the Standards Board estimate, Touchwood Sri Lanka would be technically insolvent (negative net worth). This also implies that the Company has actually been generating losses rather than the profits it's reported.
The standards board also pointed out that the Company used a significantly higher discount rate for expenses than it did for future revenue in its present value analysis, clearly inflating the value of its tree investments.
I wouldn't touch this with a barge pole...toxic waste
Posted 2008-10-09 18:05:56
If potential investors (losers) want to ignore the warning from that have been posted over the past few months, note the last 3 posters. They do not seem to have a axe to grind, stake in a competitor company, nor passing mindless gossip. They give a lot of insight into a potential business venture that some of us may refer to as a scam........