This model allows multiple investors or members to jointly fund and manage a plantation or designated production area.
Profits from agarwood cultivation, harvesting, and product sales are shared among participants according to predefined agreements. Governance is typically handled by the cooperative or managing entity.
Key Advantages
Shared Risk
Financial exposure, operational risk, and biological uncertainties are distributed among members.
Lower Individual Investment
Entry cost is reduced since capital, labor, and infrastructure costs are pooled.
Community & Social Impact
Supports local farmers, sustainable practices, and can generate employment opportunities within the plantation ecosystem.
Structured Governance
Formal cooperative or legal entity ensures transparent decision-making and standardized management practices.
Access to Expertise
Members benefit from professional plantation management, technical know-how, and shared resources.
Considerations & Risks
Requires Clear Agreements
Contracts must define:
- Profit-sharing percentages
- Voting rights and governance structure
- Exit mechanisms
- Cost allocations
Potential for Conflicts
Disputes may arise without strong governance, especially regarding harvest, reinvestment, or operational decisions.
Biological & Market Risk Still Present
Even in a cooperative, tree survival, resin yield, and market prices directly affect profits.
Longer Decision Cycles
Shared management may slow operational decisions compared to single-owner models.
Best Suited For
- Investors seeking lower capital exposure
- Philanthropic or impact-driven investors
- Communities or groups looking to co-own a high-value plantation
- Those seeking a hands-off investment with shared oversight