Costs and benefits analysis of Aquilaria species on plantation for agarwood production in Malaysia
The establishment of Aquilaria plantation for agarwood production has been regarded by the planters as a green ‘gold mine’ of the future. This study examines the costs and benefits of planting Aquilaria spp. for agarwood production. The analysis shows that whether planting Aquilaria spp. integration...
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| Format: | Article |
| Language: | English |
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Center for Promoting Ideas
2010
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| Online Access: | http://psasir.upm.edu.my/id/eprint/13810/ http://psasir.upm.edu.my/id/eprint/13810/1/Costs%20and%20benefits%20analysis%20of%20Aquilaria%20species%20on%20plantation%20for%20agarwood%20production%20in%20Malaysia.pdf |
| _version_ | 1848842216838004736 |
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| author | Mamat, Mohd Farid Yacob, Mohd Rusli Lim, Hin Fui Radam, Alias |
| author_facet | Mamat, Mohd Farid Yacob, Mohd Rusli Lim, Hin Fui Radam, Alias |
| author_sort | Mamat, Mohd Farid |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The establishment of Aquilaria plantation for agarwood production has been regarded by the planters as a green ‘gold mine’ of the future. This study examines the costs and benefits of planting Aquilaria spp. for agarwood production. The analysis shows that whether planting Aquilaria spp. integration with banana (Musa spp.) or planting Aqualaria spp. as a single crop for agarwood production, both options are viable. An investment return for planting Aquilaria spp. integrated with banana (Musa spp.) on 1,000 hectares of land is higher with an internal rate of return (IRR) of 54.85% compared with 38.49% for a single crop Aquilaria plantation. The Net present value (NPV) of investment at a 10% discount for 1,000 hectares integrated planting is RM185.6 million (1 RM=USD0.32 in 2008) while the option involving single crop Aquilaria plantation for agarwood production is RM153.6 million. |
| first_indexed | 2025-11-15T07:55:37Z |
| format | Article |
| id | upm-13810 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T07:55:37Z |
| publishDate | 2010 |
| publisher | Center for Promoting Ideas |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-138102018-08-14T08:42:47Z http://psasir.upm.edu.my/id/eprint/13810/ Costs and benefits analysis of Aquilaria species on plantation for agarwood production in Malaysia Mamat, Mohd Farid Yacob, Mohd Rusli Lim, Hin Fui Radam, Alias The establishment of Aquilaria plantation for agarwood production has been regarded by the planters as a green ‘gold mine’ of the future. This study examines the costs and benefits of planting Aquilaria spp. for agarwood production. The analysis shows that whether planting Aquilaria spp. integration with banana (Musa spp.) or planting Aqualaria spp. as a single crop for agarwood production, both options are viable. An investment return for planting Aquilaria spp. integrated with banana (Musa spp.) on 1,000 hectares of land is higher with an internal rate of return (IRR) of 54.85% compared with 38.49% for a single crop Aquilaria plantation. The Net present value (NPV) of investment at a 10% discount for 1,000 hectares integrated planting is RM185.6 million (1 RM=USD0.32 in 2008) while the option involving single crop Aquilaria plantation for agarwood production is RM153.6 million. Center for Promoting Ideas 2010 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/13810/1/Costs%20and%20benefits%20analysis%20of%20Aquilaria%20species%20on%20plantation%20for%20agarwood%20production%20in%20Malaysia.pdf Mamat, Mohd Farid and Yacob, Mohd Rusli and Lim, Hin Fui and Radam, Alias (2010) Costs and benefits analysis of Aquilaria species on plantation for agarwood production in Malaysia. International Journal of Business and Social Science, 1 (2). pp. 162-174. ISSN 2219-1933; ESSN: 2219-6021 http://ijbssnet.com/journal/index/46 |
| spellingShingle | Mamat, Mohd Farid Yacob, Mohd Rusli Lim, Hin Fui Radam, Alias Costs and benefits analysis of Aquilaria species on plantation for agarwood production in Malaysia |
| title | Costs and benefits analysis of Aquilaria species on plantation for agarwood production in Malaysia |
| title_full | Costs and benefits analysis of Aquilaria species on plantation for agarwood production in Malaysia |
| title_fullStr | Costs and benefits analysis of Aquilaria species on plantation for agarwood production in Malaysia |
| title_full_unstemmed | Costs and benefits analysis of Aquilaria species on plantation for agarwood production in Malaysia |
| title_short | Costs and benefits analysis of Aquilaria species on plantation for agarwood production in Malaysia |
| title_sort | costs and benefits analysis of aquilaria species on plantation for agarwood production in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/13810/ http://psasir.upm.edu.my/id/eprint/13810/ http://psasir.upm.edu.my/id/eprint/13810/1/Costs%20and%20benefits%20analysis%20of%20Aquilaria%20species%20on%20plantation%20for%20agarwood%20production%20in%20Malaysia.pdf |