Title
Design and Evaluation of AgriTrace™: A Blockchain-Based Traceability System for Sustainable Agarwood (Aquilaria spp.) Production
Chapter 1 – Introduction
1.1 Background of the Study
Agarwood, derived primarily from Aquilaria species, is one of the most valuable non-timber forest products in the world, widely used in perfumery, incense, and traditional medicine. Its high market value has resulted in persistent challenges including illegal harvesting, species misidentification, adulteration, weak documentation, and non-compliance with international regulations such as CITES. In the Philippines and other agarwood-producing countries, these challenges limit farmer income, reduce buyer trust, and threaten sustainability efforts.
Blockchain technology offers a promising solution through immutable, transparent, and decentralized record-keeping. When applied to agriculture, blockchain enables end-to-end traceability of products—from planting and inoculation to harvest, processing, and export. AgriTrace™ is a proposed blockchain-enabled traceability framework tailored specifically for agarwood production systems, integrating farm-level data, scientific validation, and compliance documentation into a single digital ledger.
This study proposes the design and evaluation of AgriTrace™ as a proof-of-concept system to enhance transparency, traceability, and trust in the agarwood value chain.
1.2 Statement of the Problem
The agarwood industry faces the following key problems:
- Lack of reliable traceability from farm to market.
- Difficulty verifying legality, species identity, and production methods.
- Limited trust between farmers, traders, regulators, and international buyers.
- Fragmented and paper-based documentation systems vulnerable to tampering.
- Absence of scientific verification layers (e.g., DNA-based species confirmation and standardized inoculation records) within existing traceability systems.
This study seeks to address the question: How can a blockchain-based traceability system, integrated with DNA barcoding and inoculation logs, improve transparency, regulatory compliance, and stakeholder trust in the agarwood supply chain?
The agarwood industry faces the following key problems:
- Lack of reliable traceability from farm to market.
- Difficulty verifying legality, species identity, and production methods.
- Limited trust between farmers, traders, regulators, and international buyers.
- Fragmented and paper-based documentation systems vulnerable to tampering.
This study seeks to address the question: How can a blockchain-based traceability system improve transparency, compliance, and stakeholder trust in the agarwood supply chain?
1.3 Objectives of the Study
General Objective:
To design and evaluate a blockchain-based traceability system (AgriTrace™) for sustainable agarwood production.
Specific Objectives:
- To identify critical traceability data points in the agarwood value chain.
- To design the AgriTrace™ system architecture using blockchain principles.
- To develop a functional prototype or system model of AgriTrace™.
- To evaluate the system in terms of usability, transparency, and data integrity.
1.4 Significance of the Study
- Farmers: Improved market access and product credibility through verifiable legality and origin.
- Buyers & Traders: Reduced risk of CITES violations and fraudulent sourcing.
- Regulators (DENR, CITES Authorities): Streamlined monitoring, reporting, and audit trails for compliance enforcement.
- Researchers & Developers: A reference model for blockchain-enabled compliance systems for high-value forestry crops.
1.5 Regulatory and Legal Context (CITES and DENR)
Agarwood-producing species under the genus Aquilaria are listed under Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), requiring documented proof of legal origin, sustainable production, and authorized export permits. In the Philippines, agarwood production and trade are regulated by the Department of Environment and Natural Resources (DENR), including requirements for tree registration, transport permits, and environmental compliance.
Current compliance systems rely heavily on manual documentation, fragmented databases, and post-harvest verification, creating opportunities for data loss, falsification, and regulatory bottlenecks. Integrating CITES and DENR compliance data into a blockchain-based system such as AgriTrace™ can provide immutable, time-stamped records that strengthen legal traceability from plantation establishment to final trade.
- Farmers: Improved market access and product credibility.
- Buyers & Traders: Enhanced trust and reduced risk of fraud.
- Regulators: Easier compliance monitoring and reporting.
- Researchers & Developers: A reference model for blockchain applications in high-value forestry crops.
1.5 Scope and Limitations
The study focuses on conceptual design and prototype-level evaluation of AgriTrace™. It covers agarwood production stages from planting to harvest documentation but excludes full-scale commercial deployment, live cryptocurrency transactions, and international trade execution.
Chapter 2 – Review of Related Literature
2.5 CITES, DENR, and Digital Compliance Systems
This section reviews international and national regulatory frameworks governing agarwood, including CITES Appendix II requirements and DENR permitting processes. It also examines emerging digital compliance tools such as electronic permitting, traceability databases, and blockchain-supported governance models used in forestry and wildlife trade control.
2.6 DNA Barcoding and Scientific Verification in Forest Products
This subsection discusses the principles of DNA barcoding, its application in plant species identification, and its use in combating illegal trade in timber and non-timber forest products. Studies demonstrating the role of molecular identification in regulatory enforcement and market authentication are reviewed, highlighting its relevance to agarwood traceability.
2.7 Digital Logging of Inoculation and Cultivation Interventions
This subsection reviews literature on digital farm logs, precision agriculture records, and inoculation tracking systems. It emphasizes how standardized inoculation logs—such as BarIno™ resin induction records—can serve as proof of plantation-based, non-wild agarwood production.
This section reviews international and national regulatory frameworks governing agarwood, including CITES Appendix II requirements and DENR permitting processes. It also examines emerging digital compliance tools such as electronic permitting, traceability databases, and blockchain-supported governance models used in forestry and wildlife trade control.
2.1 Agarwood Production and Value Chain
This section reviews agarwood biology, cultivation practices, resin induction methods, harvesting, grading, and trade dynamics. Particular emphasis is placed on the role of resin induction technologies such as fungal inoculation systems (e.g., BarIno™) and the increasing importance of scientific validation tools like DNA barcoding for species authentication and regulatory compliance.
This section reviews agarwood biology, cultivation practices, resin induction methods, harvesting, grading, and trade dynamics, highlighting traceability gaps.
2.2 Traceability Systems in Agriculture
A review of conventional and digital traceability systems used in agriculture, forestry, and specialty crops, including QR codes, centralized databases, and certification schemes.
2.3 Blockchain Technology in Agri-Food Systems
Discussion of blockchain fundamentals, smart contracts, and existing applications in coffee, cocoa, timber, and fisheries traceability.
2.4 Research Gap
While blockchain has been applied to several agri-food sectors, limited research exists on its application to agarwood—a high-value, regulation-sensitive forest product requiring scientific and legal verification.
Chapter 3 – Methodology
3.1 Research Design
The study employs a design-and-development research approach, combining system modeling and evaluative analysis.
3.2 System Requirements Analysis
Identification of key traceability and compliance data inputs including:
- Tree identity and coded farm location
- Species declaration supported by DNA barcoding reference codes
- Laboratory metadata (sampling date, tissue type, testing institution)
- DENR registration numbers and permits
- BarIno™ inoculation logs (date, method, formulation batch code)
- Cultivation and monitoring records
- Harvest authorization records
- CITES export reference codes (where applicable)
- Ownership transfer and transaction logs
Identification of key traceability and compliance data inputs including: - Tree identity and coded farm location
- Species verification and origin declaration
- DENR registration numbers and permits
- Inoculation and cultivation records
- Harvest authorization records
- CITES export reference codes (where applicable)
- Ownership transfer and transaction logs
Identification of key data inputs including: - Tree identity and location (coded)
- Species verification
- Inoculation and cultivation records
- Harvest and grading data
- Ownership and transaction logs
3.3 System Architecture Design
AgriTrace™ will be modeled as a permissioned blockchain system aligned with regulatory and scientific oversight, incorporating:
- Role-based access for farmers, laboratory partners, DENR officers, inoculation technicians, and exporters
- Smart contracts that validate required DENR permits, DNA barcoding references, and BarIno™ inoculation logs before allowing record progression
- Hash-linked storage of laboratory reports and inoculation certificates (off-chain files with on-chain hashes)
- QR or digital ID linkage between physical agarwood products and blockchain records
- Audit-ready data structures enabling scientific and regulatory verification
AgriTrace™ will be modeled as a permissioned blockchain system aligned with regulatory oversight, incorporating: - Role-based access for farmers, aggregators, DENR officers, and exporters
- Smart contracts that validate required DENR and CITES documentation before allowing record progression
- QR or digital ID linkage between physical agarwood products and blockchain records
- Audit-ready data structures for regulatory inspection
AgriTrace™ will be modeled using: - Permissioned blockchain framework
- Smart contracts for data validation
- QR or digital ID linkage for physical assets
3.4 Prototype Development
A low-code or simulated blockchain environment will be used to demonstrate data flow and immutability.
3.5 Evaluation Methods
The system will be evaluated using:
- Expert review (IT and agriculture stakeholders)
- Usability surveys
- Qualitative assessment of transparency and traceability improvements
3.6 Data Analysis
Descriptive statistics and thematic analysis will be used to interpret evaluation results.
Chapter 4 – Expected Results
- A documented AgriTrace™ compliance-integrated system framework
- A functional prototype or simulation demonstrating CITES- and DENR-aligned traceability
- Evaluation results showing improved regulatory transparency, auditability, and stakeholder trust
- A documented AgriTrace™ system framework
- A functional prototype or simulation
- Evaluation results demonstrating improved traceability and trust
Chapter 5 – Conclusion and Recommendations
The study is expected to demonstrate the feasibility of blockchain-based traceability for agarwood and recommend pathways for pilot implementation and future system expansion.
References
(To be completed following university citation guidelines)