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In mid-June 2019, we found an offer on the market for Bruneian agarwood, so our team decided to check it out
Retail price for this Oud wood is between $3,500 to $4,000 USD per kg. Please note in Brunei, due to strict restriction and regulation, the wild agarwood price is on the higher end. The second reason is its currency: Brunei Dollar is higher than the Australian Dollar
See it yourself, resinous brown wood (not white), excellent age of infection. Material: Wild, resinous, incense grade Agarwood from Brunei Darussalam, Temburong district which is very limited.
We managed to secure around 6kg of this quality.
Originally, we planned to sell this Agarwood Chip but one of business partner asked us to distill these Oud Wood
Let's do the math, let's be conservative, be the lower end $3500 USD
$3500 x 6kg = $21,000 USD.
We asked our partner the reason for his thought. He said somebody completed a similar project before, and it is our turns. So, just do it!
From the past experience, this would produce around 80ml of oil (+ or - 10%)
Does it mean that we are going to convert 6kg of incense-grade wood chips, retail for $21,000 USD, to approximately 80ml of oud oil?
Ohhh, what about other overhead? What about labor cost, electricity, gas and time?
Time is a big one, it will take us around 50 days of non-stop distilling. A whopping 1200 hours invested into this oil. Let's say we hired a junior for $5 per hour (that is way below minimum wage), it will cost us an extra $6000 USD in labour. This number is very conservative because we are quite certain, a fast-food worker earns way more than $5 USD per hour, he/she will earn even more on Saturday, Sunday, and nightshift. Let's say we use $5 per hour to account for the labor as you may argue in South East Asia, $5 per hour is a lot of money.
Please note we have not accounted for electricity yet which is another cost.
So to distill 80ml of this oil it will take $27,000 USD,
1 ml will cost $337.5 USD or $506 AUD which is very normal for high-end Oud Oil, oil which
There are 3 main components to make a high-quality oil: Agarwood Chips, The distiller, and the equipment he used
Oops, there is some extra information for you in case you are interested, we forget to let you know that 6kg of these Brunei agarwood chips are made up of three species:
So what? You asked. It means you get a good complexity developed overtime.
In addition, no funny barnyard note. The resin from these wood chips is good enough so there is no need to soak (a process to improve yielding). It means you get a true smell of oud
He knows what he is doing and he uses "slow cook low heat" technique to achieve excellency. The temperature is set just right so it does not burn the wood which sometimes creating burning bitterness note.
Overall, strong vanillic sweet impression and a hint of spiciness. Insanely good
For sure this oil is not for everyone, this is not the ordinary oil. it is for serious oud collectors. If you want to give your nose a special treat, then keep reading
For this special pre-order
Actually, there was no soaking, we submerged the pulverised woodchip into water and start distilling.
30ml was sold, and this number is counting down.
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