Impact of Globalization on Oud Oil Production - Coursework Example

Oud Oil is also known as Agarwood Oil or Aloeswood Oil and other name considering its location. It is known as krissana in Thailand, Indonbesia and Malysia call it gaharu (Agarwal and Gupta 60). Middle East know it as Oudh. This is natural oil that is very scarce and it is obtained for species of Agarwood trees. An agarwood tree is mostly pale cultured and light. When the tree is infected by a disease, the tree reacts to the infection by producing embedded dark aromatic resin. This resin is rare and makes the oil expensive since it exhibits one of it kind fragrance and medicinal value. according to Agarwood-type Resin from Gyrinops Walla Gaertn. At international level the trade incorporates wood, powder, wood chips and oil. Oud oil usually obtained though water distillation procedure (Barden 78). The wood is prepared into tiny pieces for distillation process. In the process of distillation, the dust produced is also tapped. The chips of the wood are commonly soaked in water to ease the extraction of oil when heated. Soaking is one of the factors that dictate the smell of the oil. When soaked for a short duration, it becomes hard to extract the oil. On the other hand when soaked for long the oil smells rotten. After soaking procedure, the wood is put on big stills and is cooked at ideal pressure and temperature. This also affects the smell of the oil. When cooked at high temperatures and pressure, unpleasant results of the extract are obtained. It becomes burnt and pungent type of oil. Another method that can be used to obtain the oil is by applying ancient Indian hydro-distillation. In this process the wood is cooked for many days. The first three days produce the best quality oil. This method is time consuming. The most efficient method of obtaining the oil is by using steam distillation. This process involves cocking the oil under standard pressure replacing boiling water with steam. This process is efficient since it can take only a day. The control of pressure should be adhered to since it adversely affects the scent of the oil. History Oud is extracted from Aquillaria species. The oil is applicable to the skin directly. If the oil pure the release may take not less than 8 hours (Agar and David 90). The oil can be added in small quantities to other oils to enhance their aroma and blending. The pure form of the oil is burned in incense mostly in Japan Buddhist, Muslim and Hindu use it in their religious and traditional occasions (Mackenna and Hughes 97). Potentiality Internationally Oud oil has a significant stake when it comes to global trading. Currently it is estimated agarwood trade at global level is in the ranges of 6-12 USD. This assessment of the worthiness of agarwood trade is based on data as per CITIES Traffic records and Asia Plantation Capitl’s findings (Jensen and Anders 54). Black market controls the huge part of the trade in cities like Japan, UAE, Taiwan as CITIES indicates according to Draft Report on the International Market for Agarwood . The illegal trade of agarwood makes it hard for any organization to come up with official documentation of market data in any given state. If illegal trade dealing with agarwood was to be halted, the multibillion trade would rise in volumes. This trade has the potential to develop a multibillion trade venture that would interest any economy of the world. The respective governments of states that promote the business of agarwood should put in place mechanisms that ensure that the trade is carried out legally. If this is achieved, the trade will interest investors from all over the world since they are assured that they will get returns on the capital they intend to invest. Additionally, if the black market is banned the legal trading of the product will upgrade the quality of standardization of the oil (Zich James 112). Proceedings of the Third Png Gaharu repotrted that globally the demand for organic oils for producing fragrance has gone up by 100 percent for a period of few years. If the company the produces Oud oil is to acquire an International Fragrance Organization (IFRA) license, it will go a long way in enhancing its global competitiveness. To enhance productivity, efficacy in the extraction procedure is needed so as high quality of oil is obtained and at the same time saving on time and energy is realized. To enhance profitability and competitiveness, the manufacturer of the oil can produce other products like cosmetics, food and beverages. Also the manufacturer can add value of the agarwood since all parts of the wood bear value. For instance, tea can be produced from the leaves, dust obtained after distillation can be converted to incense sticks and the distilled water can be incorporated as an ingredient to produce soap. For the product to obtain its optimal recognition in the global market, more research and analysis of agarwood in medical filed is very crucial. Oud oil has the capability of becoming successful when it comes to global marketing. This is because the oil has the various uses and benefits. When used in field of aromatherapy, it aid in the treatment of stress, anxiety, depression and other diseases of the nervous system. It also treats liver cirrhosis, kidney and lung complication and stomach ulcers. Additionally, it can be applied in the management of rheumatism and asthma. On the other hand, the oil can be used and a perfume and a cologne. In addition the oil is used by some communities in their religious and traditional occasions (Call and Elizabeth 50). This product has the potential to compete at a global level bearing on mind is several appliance both as a cosmetic and medicine. The product can be globally known and recognized. This can be done by letting the population knows that such a product exits. This can be achieved through advertisement. There are two main consumers of oud oil. The Middle East, mostly the Arabian Peninsula and North-east Asia mainly countries like Japan, Taiwan and Korea. Medicinal, cultural and religious usage of the oil in Asia has created a huge demand for the oil. It has been used as an item of trade for more than 2,000 years by Indians and Arabs and it has been sourced from South-eastern Asia. Target Customers Oud oil has a target customer group when it comes to consumers at a global level. Oud oil has been appreciated for many years. The target customers can be divided into various groups. When it comes to religion, the Muslim fraternities cherish the oil and use it in special occasions. Culturally some communities use the oil as welcome fragrance to their residence. For such a purpose, only the affluent in the society can afford to by the oil for such occasions Aba and Goard 30). Those who the oil for esthetic reason chose to do so because the oil has a distinctive smell that can only be associated with Arabian Peninsula. Those who order the oil to experience such a distinctive smell mainly come from wealth class of the population since they can easily afford such luxuries. The expensive nature of Oud Oil in global market makes the product a preserve of few. For this reason, only the wealthy and the upper middle class of the population who can afford the price. Such people in the society want to stand out in the community and therefore it’s not a big issue to pay the price. Works Cited Aba, Oud M. A, and J Goard. "Stochastic Models for Oil Prices and the Pricing of Futures on Oil." Applied Mathematical Finance. (2015). Print. Agar, Nick, and David Springett. Woodturning Evolution: Dynamic Projects for You to Make. Lewes, East Sussex [England: Guild of Master Craftsman, 2011. Print. Agarwal, Manisha, and Sangeeta Gupta. Wood Anatomy of Sapindales. Dehra Dun: Bishen Singh Mahendra Pal Singh, 2008. Print. Agarwood-type Resin from Gyrinops Walla Gaertn a New Discovery. Department of Forestry and Environmental Science, 2012. Internet resource. Barden, Angela. Heart of the Matter: Agarwood Use and Trade and Cites Implementation for Aquilaria Malaccensis. Cambridge: Traffic International, 2000. Print. Call, Elizabeth. Mending the Web of Life: Chinese Medicine & Species Conservation. Mending the Web, 2006. Print. Chakrabarti, Kalyan, Kumar Ashok, and Vivek Menon. Trade in Agarwood. New Delhi: TRAFFIC-India, WWF, India, 1994. Print. Draft Report on the International Market for Agarwood with Special Reference to Papua New Guinea. Papua New Guinea: Denzil Phillips International Ltd., 2005. Print. Jensen, Anders. Understanding the Commercialisation of Non-Timber Forest Products: Aquilaria Crassna and Agarwood in and from the Lao Pdr. Copenhagen: University of Copenhagen, Faculty of Life Sciences, Danish Centre for Forest, Landscape and Planning, 2008. Print. Mckenna, Dennis J, and Kerry Hughes. The Incense Bible: Plant Scents That Transcend World Culture, Medicine, and Spirituality. Hoboken: Taylor and Francis, 2014. Internet resource. Nor, Azah M. A. "Profiles of Selected Supreme Agarwood Oils from Malaysia." Seminar on Medical Aromatic Plants (2008 : Kuala Lumpur). (2010). Print. Proceedings of the Third Png Gaharu (agarwood/eaglewood) Inter Agency Committee Meeting: Thursday 13-Friday 14 June 2002, Wwf Conference Room. Papua New Guinea: Government of Papua New Guinea, 2002. Print. Zich, Frank, and James Compton. The Final Frontier: Towards Sustainable Management of Papua New Guinea's Agarwood Resource. Sydney: Traffic Oceania, 2001. Print. Read More