CAG Companies in 2020.
Our Hong Kong Company has now transferred all sales activities to Singapore. Cultivated Agarwood Global Pte Ltd is the new business vehicle for all agarwood activities previously managed via Hong Kong.
From now, to next year and beyond we continue to see the following developments [mostly] as previously stated:
- The international up and down stream cultivated agarwood product markets are growing and will continue to do so in future
- The unfortunate diminishing forest-based supplies in all native agarwood producing countries will continue almost unabated: previously important exporter countries of forest based agarwood are now becoming exhausted, such as Cambodia and Laos. However, all are now producing cultivated products of different qualities and purity
- CITES regulations remain an obstacle to conservation, and the endless CITES meetings which achieve little to nothing but barriers to even legal trade, fail to be the so much wowed instrument supporting genetic diversity, and only continues to create rent seeking and fraud CITES remains woefully ineffective in reducing illegal ex- and imports. The secretariat seems not even interested in communicating with genuine business and cultivators. And exists to maintain itself, and the people working for them
- As previously mentioned we can see more and more new consumers and new players in both up and down stream development of cultivated agarwood, with new products using plantation based agarwood continuing to enter the market. We maintain only a minority of CA producers will survive in the medium long-term, and an oversupply of trees, often of low quality will never produce decent or profitable products
- Consumers are still largely unaware of product origin
- Numerous large, mainstream, European and USA-based personal care companies have and will continue to enter the [Gulf] market and beyond, particularly with perfumes and colognes. Almost all of these use only synthetics, or very low grade agarwood resin components; these contain extremely little quality oil and continue to use the aura of high value, a small segment of real high quality, used to sell products at inflated prices
- Fraudulent investment schemes, poisonous or poorly performing Inducement technologies, and a general lack of transparency continues to cloud the agarwood/oud business; these remain active and on-going today with no end in sight
- Overall we foresee a relatively stable market, and a notable increase in cultivated product use, and we are expanding efforts to produce quality certified products. By end of 2020 we expect to begin a much larger venture; we will announce this by mid-2020
- Producers offer highly priced assessments of markets which are self-serving and questionable
Our Vietnam sister company, Seven Mountains Ltd, has built a new processing facility and will soon expand to continue providing high quality, honest and clean end products, in a modest and prudent way, in the near future in collaboration with several licensees. Cultivated Agarwood Companies; our Singapore and Vietnam company staff wish you a clean, peaceful and beautifully scented 2020.
Henry Heuveling van Beek,
Director CAG Companies
- The best, scientifically developed, patented Cultivated Agarwood inducement treatment in the world
- Very selective, limited number of CA country agreements to protect our licensees and markets
- High yields, at moderate costs, serving clients with very decent and profitable returns
- Additional improvements to our CAKIT treatments increased effectiveness are continuing