Abaca Farming: June 2006

Fiber Crops Program Area Research Planning and Prioritization

Industry Status

Industry Status
	The Philippine abaca has remained a viable source of export earnings contributing an average of US$50 M from 1985 to 1995. It still dominates the world market supply of 85%. Being a consistent dollar earner and contributor to the upliftment of the socio-economic condition of the people, abaca is identified as the flagship commodity of the Eastern Visayas Region. Description Introduced during the Spanish time as clothing material Mostly found in upland areas and and interior parts of the country Recommended varieties include Linawagan Puti, Linawagan pula, Sogmod, and Lausigon for Region V; Laylay, Inosa, Linawaan, Linlay, Putian, Laguis, Linlib, and Linino for Region VIII; and Inosa, Tangongon, and Maguindanao for Mindanao Regions Fiber yields ranges from 1.0 to 1.5 t/ha Has superior tensile strength and enduring durability under water An excellent material for pulp and paper, its pulp contains more fiber than those derived from other sources making it more durable Production Production is 70,400 mt valued at P1.27B (1996) Area fluctuated from 116,850 ha to 104,700 ha (1986-1996) It has a ten-year national average yield of 0.93 t/ha Eastern Visayas is noted as the largest abaca producer in the Philippines, with Bicol as second Processing Cordage companies: Davao Cordage Co., Manila Cordage Co., Pacific Cordage Co., Philippine Rope Industries, Inc., Far East rope Corp., and Interrope Corp. Pulp and Paper Industries: Canlubang Pulp Manufacturing Corp., Isarog Pulp and Paper Co., Inc., Albay Agro Industrial Development Corp., and New Tech Pulp Co. Products ropes and other cordage products fibercraft products such as bags, hats, place mats, and other cottage industries abaca pulp Abaca Grades Excellent - AD, EF, S₂, S₃ Good - I, G, H Fair - JK, MI Coarse - L Residual - Y₁, Y₂, O. T, WS Demand Demand for raw abaca fiber in the world market increased by 6.6% from 18.4 T mt in 1994 to 19.32 T mt in 1995. Raw fiber production decreased from 48,915 mt to 45,541 mt (1994-1995) Foreign Trade Export earnings from abaca fibers and manufacturers reached US$94.5 M in 1995 from US$82.4 M in 1994. North America absorbs 72% of the abaca cordage. Europe (44%) and Asia (53%) account for the total export of 11,506 mt pulp. Europe also accounts for 48% of the annual abaca fiber exports with North America (23%). Price Trends Abaca fiber sells at P27.00/kilo Average export price of abaca hand-stripped is pegged at $164/bale Prospect and Potential The rising demand for abaca fiber can be attributed to the following factors: GATT ratification new market opened for tea bags and meat casing in India, China and Eastern Europe increased demand by US and Russia for abaca-based fiber paper and wrapper for cigarette increased demand for abaca fabric because of its growing popularity increased demand for special paper for stencil paper, currency paper, filters, high-tech capacitor papers, and other non-woven and disposable products highly preferred for cordage material over synthetic materials which are not environment friendly as replacement for asbestos which is carcinogenic and banned in other countries comparative advantage of Philippine abaca over that of Ecuador source of high-grade handmade paper and as art medium Problems low supply of high-quality fibers pest and disease infestation lack of capital for the establishment of plantations low farm gate price of fibers lack of field technicians

http://www.pcarrd.dost.gov.ph/divisions/crd/
cin/abaca/industry%20status.htm

Rice, coconut, mango, abaca top priority in technology intervention

Rice, coconut, mango bamboo, and abaca were named top priority commodities for technology intervention over the long term with a P19.45-billion budget under the Philippine Agriculture (PA) 2020 program to be launched by government this semester.

Dr. Albert P. Aquino, Socio-Economics Research director of the Philippine Council for Agriculture, Forestry, Natural Resources Research and Development (PCARRD), said President Gloria Macapagal Arroyo was set to have launched PA 2020 last December.

But industry and government players collaborating on the long-term plan are putting final touches on the apolitical farm roadmap aimed to be sustainable until 2020 as originally envisioned by the National Academy for Science and Technology (NAST).

“This brings a big plan that integrates government agencies’ plans with the industries. It should be sustainable (amid administration changes). It will organize agriculture as a business,” said Aquino.

From consultations with inter-agencies — industry representatives, farmers’ cooperatives, government institutions — PA 2020 has come up with 14 agro-industry clusters.

These are rice and white corn, sugarcane, coconut and palm oil, export fruits, coffee, abaca, vegetables with legumes and root crops, ornamentals, herbal crops, pasture-ruminants, feed corn, livestock and poultry, capture fisheries, culture fisheries, and forestry.

But of these, the top five crops will have priority for science and technology intervention.

For the P18.6-billion rice program, unmilled rice output will increase from 14.6 million metric tons (MT) in 2005 to 17.61 million MT in 2020 owing to high-yielding varieties (HYV) that will bring a milled rice output of 11.8 million MT.

The higher milled output is also derived from increased milling recovery rate from 65 percent to 67 percent using state-of-theart mills as use in rice-exporting Vietnam.

For coconut, a P570 million program is planned to raise declining yield from one MT per hectare to an average of two MT per hectare per year as a result of HYV that will be planted on 100,000 hectares.

Modernization of copra processing, fertilization program for the same area, establishment of 24,600 seednuts/nursery, and government’s partnership with private funders are all hoped to raise productivity and expand the existing 75 million old and unproductive coconut trees.

Coconut will be sustained as an export winner with emerging high value products like coconut biodiesel, virgin coconut oil, coconut sap sugar, wine, and coir fiber. For this, 1,500 copra dyers nationwide should be efficiently operated while 20,000 kukum dryers will be put up.

Kukum dryers allow copra (coconut meat) to have a low moisture content to meet world market’s, speciallly Europe’s, demand for minimum (cancer-causing) aflatoxin level.

Mango is aimed to emerge from competition with Mexico and India as it increases yield from six MT per hectare to 12 MT per hectare through manipulation of flowering, flushing, and fruiting.

The program will raise export by at least 10 percent to million through improved cultivar through genetic engineering (delayed ripening mango, disease-free mango), integrated crop management, and fertilization.

Cutting post-harvest loss from the present 30 percent to a targeted 10 percent is also an important component of raising mango productivity.

This loss will be cut through commercialization of controlled atmosphere which preserves mango for long-distance shipment over 30 days and the establishment of packing-houses with good post-harvest practices.

Abaca will have a P222 million budget that will raise planted area from 136,000 hectares as of 2005 to 168,800 hectares in 2020 through planting of HYV and disease-free seedlings. Fiber production will be raised from 78,000 MT to 151,800 MT and raise export of abaca products from 19,000 MT in 2005 to 26,500 MT.

Other interventions are the development of transgenic or irradiated mosaic or bunchy-top resistant abaca seedlings, mechanization of fiber extraction that will raise fiber recovery, and geographical clustering for abaca growers to become producers and marketing cooperatives.

A P25 million budget for bamboo poles will expand the country’s bamboo plantations by 30,000 hectares for three years through good species, establishment of pilot plantations and nurseries, and development of technologies for processing bamboo. This will supply the Philippines’ deficit of 14 million bamboo culms per year and raise Philippines’ handicraft export of 0 million as of 2000 .

Bamboo is an important raw material in furniture and handicraft industries which make use of bamboo by 40 percent of their total raw material requirements. (mb.com.ph)

http://www.craftandfurniture.com/2006/03/05/
rice-coconut-mango-abaca-top-priority-in-technology-intervention/

FIDA pushes P2-B abaca program

By MELODY M. AGUIBA

The Fiber Industry Development Authority (FIDA) is implementing a P2.12 billion abaca expansion on 50,390 hectares for 2005 to 2010 as it eyes growth in abaca�s $70 million yearly export specially as markets in rich countries prefer environment-friendly natural fiber over synthetics.

Cecilia Gloria J. Soriano, FIDA administrator, said FIDA will begin implementing the expansion this year which should sustain the growth abaca has been posting.

"We are among those crops that are recording growth. This year, we�ll begin developing new areas," she said in an interview.

The abaca sector posted a 16.21 percent growth in the first quarter of 2005 to 20,360 metric tons (MT) which is a faster growth than the 4.16 percent posted in the same quarter last year.

A development plan indicated that FIDA will extend credit and technical trainings to farmers and will distribute to them high-yielding and disease-free planting materials. In line with the expansion, a 76-hectare nursery will be established costing P5.9 million and a tissue culture laboratory worth P314,500.

Over the five-year period, separate nurseries are eyed to be established in private lands totalling to 407 hectares; in state universities and colleges, five hectares, and in identified local government units (LGU), 29 hectares.

It is estimated that to be able to hit the 50,390-hectare expansion, a total of 16.624 million seedlings will be needed.

The Philippines earned $73.513 million in abaca export in 2004. Although this export income is down from $78.171 million in 2003 as price dropped, volume of export actually rose to 46,145 MT in 2004, up by 4.8 percent from 44,019 MT in 2003. Production in 2004 was at 72,891 MT.

Specific export products were pulp, $40.413 million (20,469 MT); fiber, $14.147 million (19,310 MT); cordage, $9.064 million, (6,365 MT); yarns, $196,824; fabrics, $121,041; and fibercraft, $73.513 million (46,145 MT).

FIDA has identified suitable areas for abaca based on soil which must be clay loan or sandy loam with a topography that is rolling to moderately rolling, and an elevation of 300 to 500 meters while rainfall in the area must be evenly distributed.

"Disease incidence should be manageable, abaca should be one of the priority crops of the local government unit, and there should be availability of buyers," FIDA said.

Government has also been targeting to raise abaca yield through development of varieties that are disease-resistant since low average yield of only 600 kilos per hectare is far below the potential abaca yield of five MT per hectare.

In 2004, abaca expansion reached to 8,251 hectares, bringing total abaca area in the Philippines to 127,258 hectares, up from 121,399 hectares in 2003. There is a total of 77,526 abaca farmers in the country and a total 105 active cooperatives.

Expansion locations cover 41 provinces. In Region 3 and 4, initially identified locations are Aurora, 150 hectares; Oriental Mindoro, 159 hectares; and Palawan, 311 hectares. In Regions 5 to 6, expansion will be in Albay, 352 hectares; Camarines Sur, 146 hectares; CAmarines Norte, 10 hectares; Catanduanes, 361 hectares; and Sorsogon, 107 hectares.

In Regions 6 to 8, expansions are in Aklan, Capiz, and Iloilo, 115 hectares each; Negros Oriental, 358 hectares; Cebu, 200 hectares; Leyte, 291 hectares; and Northern Samar, 1,525 hectares; Western Samar, 358 hectares; Eastern Samar, 100 hectares; and Biliran, 450 hectares.

Identified areas in Region 9 and 10 are Isabela City in Basilan, 50 hectares; Zamboanga City, 100 hectares; Zamboanga del Sur, 200 hectares; Zamboanga del Norte, 300 hectares; Zamboanga Sibugay, 200 hectares; Bukidnon, 119 hectares; Camiguin, 50 hectares; Lanao del Norte, 200 hectares; Misamis Occidental, 100 hectares; and Misamis Oriental, 100 hectares.

For Regions 11 and 12, the areas are Davao del Sur, 169 hectares; Davao City, 50 hectares; Compostela Valley, 195 hectares; Davao Oriental, 260 hectares; South Cotabato, 195 hectares; Sarangani, 130 hectares; and North Cotabato, 26 hectares.

In Region 13, expansion areas are Agusan del Norte, 906 hectares; Agusan del Sur, 200 hectares; Surigao del Sur, 100 hectares; and Surigao del Norte, 50 hectares.

In Autonomous Region for Muslim Mindanao, the areas are Lanao del Sur, 100 hectares; Maguindanao, 50 hectares; Basilan, 200 hectares; Sulu, 120 hectares; and Tawi Tawi, 73 hectares.

http://www.mb.com.ph/issues/2005/05/14/BSNS2005051434724.html

10,000 hectares eyed for abaca planting in Cam. Sur

By MELODY M. AGUIBA

A 10,000-hectare planting of abaca requiring P400 million in investment is eyed in Camarines Sur in an aim to revive the Bicol Region’s long-ago glory in abaca production and meet huge demand for abaca-made specialty products in Europe.

Camarines Sur Gov. Luis Raymund F. Villafuerte Jr. said the province has already put up a one-hectare nursery in Presentacion, Caramoan, Camarines Sur that is producing abaca seedlings good for 1,500 hectares.

A tie-up with funding agencies and the private sector is firming up planting of the seedlings on identified land that will help beef up the province’s production of abaca or "Manila hemp."

"Bicol used to be the biggest producer of abaca in the Philippines. Nobody can deny its abaca is number one — clean, good quality pulp," said Villafuerte in an interview.

Camarines Sur has already identified 4,000 hectares of land for abaca while an agreement with private companies for the actual planting may subsequently be signed. Production cost for per hectare is placed at about P40,000.

Abaca product exporter Isarog Pulp and Paper Co. is interested in leasing government land for the planting.

Among prospective markets, the European market for synthetic raw materials needing more environment-friendly substitute is eyed for the abaca production.

"There’s a big demand (for abaca products reaching to as much as) 650,000 metric tons in the market per year. The automotive industry has a big demand for it. Fiber glass is being replaced with indigenous materials," Villafuerte said.

Daimler Chrysler is an immediate market for the crop as the company has already been using cannabis sativa hemp in its Canadian and European manufacturing facilities. Daimler Chrysler has already accepted the country’s abaca for use in the exterior lining or to line the chassis of Mercedes Benz and Plymouth after scientific testing of the crop was conducted by the Leyte State University.

Daimler Chrysler authorities said the local abaca has the strength equal to fiber glass and is even light-weight and recyclable.

10,000 hectares eyed for

abaca planting in Cam. Sur

(Cont’d from page B-1)

Camarines Sur is confident of fighting abaca disease (mosaic virus, bractmosaic, bunchy-top) which has decimated its abaca plantations with a sanitized abaca planting program including abaca’s non-intercropping with corn which is one source of the disease.

As of 2001, total abaca area in the Bicol region was 45,925 hectares (a sizable part of a total 107,292 hectares of total Philippine abaca area) of which 26,020 hectares of were affected by disease.

The Philippines earns an average of .5 million from abaca products yearly (as of 1993 to 2002) with raw fibers taking up a big part of the volume reaching to 17,137 metric tons (MT) worth .177 million.

Other manufacture exports are abaca pulp, 13, 610 MT, .197 million; abaca cordage, ropes, and twines, 7,838 MT, .077 million; yarns and fabrics, 7,380; and fibercrafts, .786 million.

Export markets are the UK, Japan, US, France, Singapore, and other European countries.

Other markets for the abaca expansion are specialty currency paper as abaca is now used on Philippine bills after Japan initiated its use on its paper money.

Abaca pulp is also used as material for electrolytic (condenser) paper, tea bags, coffee filter, meat and sausage casings, cable insulation paper, adhesive tape paper, lens tissue, mimeograph stencil base tissue, carbonizing tissue, cigarette paper, vacuum cleaner bag, abrasive base paper, weatherproof bristol, and high-grade decorative paper.

There are 70,000 farmers that depend on abaca for their livelihood while 18 companies are licensed for its export.

Other abaca-producing provinces in the country are Southern Catanduanes, Leyte, Davao Oriental, Surigao del Sur, Suly, Davao del Sur, Samar, and Sorsogon.

http://www.mb.com.ph/issues/2006/02/19/BSNS2006021956656.html

Popular Abaca Technologies

Popular Abaca Technologies

Titles :

How to Grow Abaca

Abaca Nursery Establishment: A Field Manual

Proceed to Popular Root Crop Technologies

HOW TO GROW ABACA

Introduction

The climatic condition in Region VIII which covers Leyte and Samar is best suited for abaca production. Recently, Region VIII is the highest abaca producing area of the country since some of the abaca plantation in Bicol and Mindanao are infested by pests and diseases.

Inorder that Region VIII will not be affected by the disease which seriously affect the production in Bicol and Mindanao and to continually enhance or increase the quality and yield of fiber, it is necessary to follow the proper way of growing abaca as suggested in this guide.

Selection of Plantation Site

plant abaca in nearly plain and sloppy areas

choose the area which are not waterlogged during rainy season or located in cool and shady area favorable for newly planted abaca during the dry season.

Planting Materials

Abaca has two types of planting materials:

Corm - oftentimes used as planting materials since it is less bulky and will easily germinate. Can be harvested 18 months after planting.

Sucker - usually used as replant for deceased seedpieces. Can be harvested 12 months after planting.

Time of Planting

Abaca usually planted at the start of the rainy season

Planting can be done anytime if there will be no distinct wet and dry season

Land Preparation

Land clearing and preparation of the area will depend on the type of soil, slope and terrain, and kind of weeds growing in the area.

Lowland area

For newly opened areas, cut the unwanted trees after the rainy season, but leave some trees that serve as shade for the new plants.

Plow and harrow the area to reduce weed population.

For cultivated areas, underbrush the existing weeds. Plow and harrow the area to reduce weed population.

Upland area

In forested area, cut unwanted trees but leave some that serves as shade for new plants.

Construct a contour line perpendicular to the slope using an "A frame".

Use wood or bamboo sticks along the contour line to prevent soil erosion and conserved the inherent fertility of the soil.

Leguminous tree species can also be used like madre de cacao or ipil-ipil along the contour. If it will grow taller than the abaca plant, pruned the trees and let debris decompose to add organic matter to the soil.

Plow the spaces along the contour to condition the soil and destroy growth of weeds.

Planting Method and Distance

Plant abaca at a distance of not less than two meters.

Follow the "square method" in short-distanced planting (2m x 2m) for cultivar planted that are not droopy. If not, plant different intercrops under abaca.

Use the "square method" in long-distanced planting (2.5m x 2.5m or 3m x 3m) specially if you wish to intercrop under abaca or if the cultivar planted have droopy leaves.

After the desired planting distance has been established, marked each hill with a bamboo stick.

Hole Preparation

Bore a hole in every hill prior to planting.

Separate top soil from subsurface soil.

The size of hole will depend on the size of prepared planting material.

Planting

Put topsoil at the bottom of the prepared hole.

Place sucker or corm of abaca at the hole. Compress remaining soil around the planted material.

Make a mound of soil around the plant to minimize impounding of water from precipitation or irrigation.

Try to visit the newly planted abaca two or three weeks after planting to ensure germination of the seedpieces. Replant the missing hills and those suckers that has no new leaves developed.

Fertilization

The amount of commercial fertilizer needed will depend on the inherent fertility of the soil. Thus, soil sampling is very much needed to assess the soil fertility.

Fertilization guide in a one hectare abaca plantation:

Type of Fertilizer	Amount of Fertilizer Needed (sacks)	Time of Fertilization (MAP1)
Urea	2	3 MAP
Urea	2	6 MAP
Complete	2	9 MAP
Complete	2	12 MAP

In old abaca plantation, apply fertilizer once before and after rainy season at 8 bags per hectare (4 Urea and 4 complete).

Remove weeds around abaca plant before fertilizing. Use drill method in fertilizing abaca and apply fertilizer at a distance of 1½ feet from the base.

Shade

Provide shade to newly germinated abaca plants until it is fully established.

Leave few trees in the area planted to abaca.

In deforested areas, plant ipil-ipil, madre de cacao or any other trees that can provide enough shade to the germinating abaca seedpieces.

Trees can serve as windbreaks to abaca plants against the devastation of typhoons or storms.

Trees can add fertility to the soil and hold excess moisture.

Weeding

Control weeds around the abaca plants three months after planting. Make this a practice from establishment stage until abaca plants can be harvested.

Underbrush properly the weeds in the field which could serve as host among disease causing insect and pest vectors.

Remove some dried leaves and "bacbac" from abaca plant every three months.

Potential Intercrops

Intercropping under abaca can provide additional income. The plants that can be utilized under abaca are as follows:

For newly opened abaca plantation:

For old abaca plantation

pineapple

ginger

taro

Advantages in Planting Intercrops Under Abaca

Additional income can be derived from intercrop aside from the income earned from abaca.

If legumes were planted like mungbean, bushbean or peanut under abaca, fertility status of the soil will be alleviated.

Maintening the number of suckers

Remove the undesirable suckers of abaca inorder to maintain fertility of the soil and to enhance the growth of the remaining plants. This will be done simultaneously during the weeding period.

Source:

National Abaca Research Center
Visayas State College of Agriculture
Baybay, Leyte

back to index...

ABACA NURSERY ESTABLISHMENT:
A Field Manual

Introduction

Abaca is a well known crop in the Philippines especially in Region 8 for its fiber's good quality and strength. To step-up the industry and to maintain and conserve this crop which is indigenous in the Philippines, farmers are being motivated and encouraged by the different government and non-government agencies to plant abaca. Hence, there exists a growing demand for abaca planting materials. In fact, the National Abaca Research Center (NARC), could no longer cope with the requests for planting materials from farmers who wish to rehabilitate or establish an abaca plantation. It is then a challenge to our abaca cultivators, extension and development workers, financing institutions and local government units to solve the rising demand of planting materials.

Selecting the Site

The site for abaca nursery should be:

located in flat or rolling areas but not in steep places

accessible and not too far from the road

well-drained and does not get flooded during heavy rains. This is to avoid rotting of the seedpieces and/or planting materials

near a river or creek which can be a good source of water during drought

Preparing the Field

Prepare the fields depending on the vegetation of the area.

Manually clear and plow the area until it is properly cleaned.

Planting Material

Corm is a good planting material since it is less bulky and will easily germinate.

Do not mix different cultivars.

Choose healthy and disease free planting materials to avoid disease infestation of the area.

Spacing

Plant corms at 1m x 1m planting distance.

Mark the desired area to be planted with a bamboo stick.

Plant the seedpieces following the square method.

Planting

Bore a hole that could approximately accommodate the size of the seedpiece or planting material.

Plant the seedpiece in the hole with the side or facing upward to minimize rotting and to enhance germination.

Replant the missing hills with good and viable seedpieces.

Fertilizing

Get enough soil sample and send it to the nearest "Soil Testing Laboratory". The amount of fertilizer needed will depend on the inherent fertility of the soil.

For distant farms, if stunted growth of the plant is noted, use complete fertilizer at the amount of two to three bags per hectare.

Fertilize the abaca plant 2-4 months after planting.

Fertilize plants using the ring method a radius of 1½ inches from the base of the plant.

Maintenance

Weed the area regularly until the plants mature and are ready for harvesting as seedpieces and/or planting materials.

Plant intercrops such as peanut, mungbean or sweetpotato at the early stage of growth to reduce weed population.

Keep the nursery area free from any pests and diseases.

Rapid Sucker Multiplication Technique

Remove or puncture the pseudostem of the mother plant 4-6 months after planting in order to regenerate eyebuds or suckers. This technique, known as "decapitation", was based on the premise that the nutrients absorbed for the growth of the motherplant will be utilized for regeneration of eyebuds and suckers.

Harvesting of abaca seedpieces

Harvest abaca seedpieces 12-14 months after planting.

Uproot all suckers but leave 2-3 healthy suckers for the next cropping period.

Chop the corms into seedpieces having 1 or 2 eyebuds in each seedpiece. They should be free from any pests and diseases to reduce disease infestation to the abaca growing areas.

Place the seedpieces in bags and store the seedpieces in cool and shaded areas to reduce damage and dehydration.

Label each bag with the cultivars name and the number of seedpieces accommodated.

Source:

National Abaca Research Center
Visayas State College of Agriculture
Baybay, Leyte

http://www.pcarrd.dost.gov.ph/consortia/
vicarp_website/Webpages/abaca_crp.html

New abaca pulp mill put up in Eastern Leyte

By MELODY M. AGUIBA

A new abaca pulp milling facility has been put up by Specialty Pulp Mills Inc. (SPMI) in Eastern Leyte as one of a string of expansion activities in the abaca sector that is trying to meet brisk demand for specialty abaca uses in Europe and Japan.

The Fiber Industry Development Authority (FIDA) reported that several abaca firm are expanding one of which is that of SPMI which will require 16,000 MT of abaca fiber per year. Since one MT of abaca pulp requires two MT of fiber, it is estimated that the mill will be producing about 8,000 MT of abaca pulp per year.

"These expansion programs only mean one thing � that they�re trying to meet an increasing demand in the market. Our only competitor in abaca export is Ecuador. But Ecuador is not processing abaca. They�re only exporting raw abaca fiber," said Mystique Pelayo, FIDA planning officer, in an interview.

"That�s why we�re encouraging investors to put up mills here so it will create employment and even give producers the advantage of lower cost," she said.

According to a FIDA official, at an average price as of 2004 at $2,200 per MT of abaca pulp, SPMI, an affiliate of Chingbee Trading, could create an abaca value of $17.6 million.

Demand for abaca pulp in developed countries has been expanding in light of product developments in abaca and an intensified interest in using what is natural brought about by a consciousness on environmental sustainability.

Other companies that are expanding are the Newtech Pulp Mill which is co-owned by a German firm exporting abaca products, Albay Agro Industrial Development Corp., owned by the Gozons, and Isarog Pulp and Paper Co. (IPPC). There are six abaca mills in the Philippines �one in Laguna, two in Bicol, two in Leyte, and one in Mindanao.

While abaca used to be just a material for making rope or cordage, it is also now being used as material for tea bags, meal casing such as the very thin film for salami, cigarette paper, currency notes, and other specialty paper.

SPMI�s mill is one of the two milling companies in Eastern Leyte, the other is Pulp Specialty Philippines Inc., an affiliate of IPPC.

The Leyte-Samar region is presently the Philippines� biggest abaca producing region with an output of 26,322 MT as of 2004 or 36 percent of the country�s 72,900 MT production as yield here reaches to 1,500 MT per hectare. While Bicol has the biggest abaca area, it is only second biggest producing province with a 21,949 MT output in 2004 as Bicol farmers cannot use tall varieties because it is a typhoon belt. The small varieties give a yield of only 400 to 450 MT per hectare.

The Philippines� abaca export earnings totals to about $80 million yearly. On top of the export, this fiber is used locally by the Bangko Sentral ng Pilipinas (BSP) for the Philippine currency.

Through Monetary Board Resolution 578, abaca was officially approved for use as 20 percent of the raw material for making P20, P50, P200, P500, P1,000, and P2,000 peso bills.

"The integration of 20 percent abaca pulp and 80 percent cotton blend in our banknote paper has, according to BSP, greatly improved its durability and quality resulting in longer circulation life and better texture," FIDA said.

Abaca has also added security features to the peso as it has discouraged production of counterfeit currencies because of its unique strength and texture.

Ironically, FIDA said it was the Japanese Printing Bureau that initiated the use of abaca for currencies with a 30 percent abaca content in producing the Japanese yen banknote paper. BSP now needs about 300 MT of abaca pulp per year which is augmenting domestic use of abaca pulp.

The abaca pulp sector, FIDA said, is the biggest growth area in the abaca sector, using up an average of 62.8 percent of annual local production for the past 10 years.

With increasing demand in the world market, FIDA has set up an abaca expansion plan on an additional 50,390 hectares of abaca land up to 2010.

It is trying to improve farm productivity, yield, disease resistance in varieties, credit provision to farmers, and expansion of farms in non-traditional areas.

http://www.mb.com.ph/issues/2005/06/26/
BSNS2005062637834.html

IS THERE ANY FUTURE FOR THE PRODUCTION OF ABACA? Problems of and Prospects for the Philippine Abaca Industry

IS THERE ANY FUTURE FOR THE PRODUCTION OF ABACA? Problems of and Prospects for the Philippine Abaca Industry

Dr. Roberto F. Rañola, Jr.

(San Miguel Corporation Professorial Chair Lecture in Agricultural Economics, delivered on June 24, 2004 at the Department of Agricultural Economics, College of Economics and Management, University of the Philippines Los Baños)

This paper deals with the problems and prospects of the Philippine abaca industry. There are three major aspects of the industry that are considered - production, processing and the marketing and utilization of abaca. Five major factors affect field level production of abaca. These include the area devoted to abaca production, use of different abaca varieties for commercial production, capital and farm investment, technology, use of different abaca varieties for commercial production, capital and farm investment, technology and cultural management and dissemination of location-specific technologies. On the other hand, the quality and yield of abaca are affected by methods of harvesting and fiber extraction. Lastly, the market conditions at the farmers' and local manufacturers' levels and the domestic and world markets have significant effects on the level of productivity of abaca farming.

The findings show that over time as a result of these interlinked factors, the area devoted as well as the total production of abaca have been declining over time. However, the yield per hectare has improved which may be indicative of the improvements in various abaca technologies as well as institutional support, especially in the Eastern Visayas. However, there are a number of factors which are pushing down the performance of the industry. Among these are the pest and diseases which are ravaging the abaca farms in certain areas, especially Bicol, the unfavorable biophysical conditions (e.g. steep slopes) of abaca growing areas, lack of capital and access to support services, failure to effectively disseminate technical information and the various government policies that provide incentives to convert abaca farms to other high value or staple crops. lastly, there are the market-related issues at different levels that have a significant impact on the performance of the industry.

The overall assessment of the industry shows that despite the external threats and internal difficulties, there are very good prospects for the abaca industry. Among other possibilities, the following may still be in the offing: abaca pulp as substitute for coniferous pulp in most paper and specialty paper products, the fiber craft sector, abaca fabrics for decor and wrapping purposes, abaca cordage, ropes and twines for oil dredging/exploration, navies and merchant shipping as well as constuction business and intercropping in fragile environments.

To realize these prospects, it is necessary to improve the yields and quality of abaca fiber and exploit the current and new market opportunities. Given limited resources however, it will be important thus to concentrate resources on the development and provision of technical and financial assistance in those areas and farms that have the greatest potential for improving yields and quality. To this end, it will be helpful to undertake an inventory of these areas and farms to determine the specific kinds of support that will be required. Lastly, it will also be necessary to enhance the financial and technical capacity of institutions to provide the necessary assistance to the production sector.

PRICE DISTORTIONS IN THE ABACA FIBER MARKET

PRICE DISTORTIONS IN THE ABACA FIBER MARKET

Prof. Ma Eden S. Piadozo

( Metro Manila Commission Professorial Chair Lecture delivered at theDepartment of Agricultural Economics, College of Economics and Management on June 30, 2005 )

This paper was primarily undertaken to describe the market structure of the abaca industry and its effect on the price distortion in abaca trading. A total of 107 farmers, 21 assembler wholesalers, 18 wholesalers, 13 grading and baling establishments (GBEs) and 33 abaca processors (3 pulp manufacturers, 6 cordage manufacturers and 24 fibercraft processors) from the three major abaca producing regions in the Philippines were interviewed.

The abaca industry is characterized by an oligopolistic and oligopsonistic market at both the farmers' and traders' levels (assembler-wholesaler and wholesaler), respectively. Meanwhile, the GBEs and pulp manufacturers come close to a monopsonistic market where the three largest traders capture 100 percent of the abaca fiber supply in the market. Southern Mindanao has the highest level of concentration with the eight largest producers controlling 93.3 percent of the market. In fact, the largest producer in the region controls 60 percent of the market. On the other hand, there is moderate concentration in Bicol and Eastern Visayas with the eight largest producers gaining control of 43 percent and 45 percent of the abaca fiber market.

At present, there are eight normal grades and two residual grades adopted for both the hand-cleaned and machine-cleaned abaca fiber. In addition to these official grades, grade variations in JK, S-S2, Y and IG are used. The large number of grades creates confusion in the market. Due to farmers' less familiarity with all the different grades there are traders who reclassify the fiber into higher grades.

There are however, barriers to entry and exit from the industry. The traders' and processors' high financial requirement (initial capital investment and maintenance and operating expenses) serves to screen potential entrants into the industry. GBEs from Bicol and Eastern Visayas and Southern Mindanao reported average capital investment of P1.93M and P1.35M, respectively. The cordage company was established with an average initial capital investment of P5M, pulp processor with P37.5M and the fibercraft manufacturers with P0.063M. Secondly, the traders' huge amount of capital loaned out to farmers and lower traders hinder from leaving the industry. Furthermore, FIDA's rules and regulations on accreditation of abaca traders, inspection and certification serve as another barrier to entry. On the other hand, the high sunk costs, production knowhow, patented processes, and forward and backward integration of the abaca fiber processors provide them the absolute cost advantage over potential entrants in the industry.

Generally, there is lack of market information in the abaca marketing system. The farmers' main source of information is the traders while the lower level-traders are mainly dependent on the higher-level traders for information about price. The more distant farms are from the trader's buying areas, the more ignorant were the farmers of the prevailing market price. On the other hand, the abaca traders, especially the GBEs, possess more market knowledge because they can rely on other traders for information on prices and the general demand and supply conditions in the market. Almost half of the processors also relied on their buyers for market information. But they also depend on the internet in their buying and selling decisions. The processors exercise secrecy when it comes to their price, sales and other marketing strategies.

The market imperfection in the industry has affected the prices set in the market. Almost all the higher-level traders have set the price at each level, (i.e., farmers have very weak bargaining power when dealing individually with the traders) while the lower-level traders accept as given the price dictated by their buyers.

Computations of the price distortion coefficients reveal a 0.65 distortion coefficient at the farm level. This is because the price differential between farm and export prices for the different grades ranges from 44 to 2446 percent for hand-stripped fiber. The distortion coefficient is 0.86 at the wholesalers' level and almost equal at 0.75 at the AW's and GBE's levels. This means that the price they got covered their marketing costs incurred. It is highest for grades G and I and lowest at OT and S3 grades. This is further confirmed by the marketing margins increasing as one goes higher through the marketing chain.

This proves the earlier analysis regarding assembler-wholesalers controlling the market in villages and GBEs approaching almost a monopsonistic market in the industry.

Thus, efforts to increase the farmer's bargaining power through establishment of market information, review of grades used, and greater support to cooperatives are recommended.

http://www.uplb.edu.ph/academics/schools/cem/dae/
News_and_Publication/Professorial_Chairs.htm#eden

Agri agencies converge for abaca farmers

Agri agencies converge for abaca farmers
MAITUM, Sarangani -- Agricultural agencies recently gathered here to help abaca farmers produce finished products and put up their own trading center. Officials from the Fiber Industry Development Authority (Fida), Land Bank of the Philippines (LBP), and Sarangani Governor Miguel "Migs" Dominguez launched last week a "financial intermediation and abaca trading" project in Barangay Upo.

The Upland Development Programme (UDP) earlier organized the abaca farmers to build the Farmers' Service Center. Barangay Upo yields a monthly average of one-ton raw abaca from its 50 hectares of scattered farms. Fida provided an abaca stripping machine worth P80,000, said Fida agriculturist Crisanto Medel. He said Fida encourages abaca farmers to produce abaca-finished products. Medel urged abaca farmers here to follow the lead of a cooperative in nearby Kiamba town.

The Maligang Farmers' Multi-Purpose Cooperative (MFMPC) has forged a supply deal with Davao Del Sur's Astorga Handum Craft, which manufactures woven abaca into export items -- baskets, "sinamay" or net hats and beads. Dominguez also asked the Department of Trade and Industry to extend technical assistance to Maligang abaca farmers. MFMPC started with Representative Erwin Chiongbian's P300,000 Community Development Fund for a building, equipment, and training.

In Maitum, farmers organized under the Upo Valley Multi-purpose Cooperative (Uvamulco) have a P368,000 fund being used for micro finance and lending to its members. Governor Dominguez, who deposited P2,000 to be an "investor" in Uvamulco, hailed Fida, LBP and UDP for their "convergence of resources and assistance" in Barangay Upo.

"Convergence" was also the governor's rallying call during the provincial foundation anniversary on November 28. "We need partners. We need to find partners to work with to speed up the development and progress of this province," the governor added. (Sarangani Information Officer)

(December 12, 2005 issue)

http://www.sunstar.com.ph/static/gen/2005/12/18/bus/
agri.agencies.converge.for.abaca.farmers.html

Integrating Abaca in a Mixed Forest Culture : A Livelihood Option

Go to this website :

http://eprint.uq.edu.au/archive/00003562/01/
22_Gonzal_integrating_Abaca_FINAL19_Oct.pdf

The Role of Abaca in the Household Economy of a Forest Village

Go to this website :

http://eprint.uq.edu.au/archive/
00003468/01/No7)_Lacuna-Richman.pdf

Roadmap to boost production of abaca fiber-based products

Roadmap to boost production of abaca fiber-based products
By Jenny Molbog-Mendoza

TO BOOST production and marketing of abaca fiber-based products for both the domestic and export markets, the Fiber Industry Development Authority (Fida) drafted recently a Mindanao-wide roadmap for the industry.

Fida office in Butuan City spearheaded the drafting of the roadmap.

"Since the biggest abaca plantations in Mindanao are found in Caraga region, which is still part of Fida-Butuan, sila na ang inatasan na gumawa ng roadmap, but of course with the help of other Fida offices in the region. The biggest plantations are located in Surigao and Agusan," said Fida 11 Regional Director Victorino Agnes.

Based on the roadmap, the island envisions increasing the production of quality abaca fibers from 17,190 metric tons in 2002 to 30,317 metric tons in 2008, and 46,406 metric tons in 2013, thereby increasing the market share from 27.37 percent in 2002 to 33.33 percent in 2008 and 50 percent in 2013.

As per latest data of Fida, the Philippines remains to enjoy the lead in supplying 84 percent or an average of 66,227 metric tons of the world's requirement for abaca fibers and abaca-based products, of which 18,062 metric tons or an average of 27.2 percent is contributed by Mindanao.

To date, about 30,888 hectares of land throughout Mindanao are being planted to abaca, directly involving some 19,152 farm-families or at an average ratio between abaca farm area and farm-family of 1.45:1.

Agnes said the biggest pulping plant in the world is found in Mindanao, particularly in Iligan, with the rated capacity of 60 metric tons per day. It imports abaca fibers from Ecuador at an annual average of 414.54 metric tons.

To support these, Fida-Mindanao is adopting the following initiatives: acquisition of 967 units of mobile abaca spindle stripping machines before the end of 2013; intercropping other crops with abaca; encouraging local government units (LGUs) to put up their own abaca nurseries; and strengthening existing farmers' cooperatives.

"If wala pang coop, we are organizing them to have one. With the collaborative efforts of all the Fida offices in Mindanao and strong support of LGUs, magagawa natin ang ating targets," Agnes said.

(May 12, 2005 issue)

http://www.sunstar.com.ph/static/dav/2005/05/12/bus/
roadmap.to.boost.production.of.abaca.fiber.based.products.html

Strategic Plan For Abaca - Southern Philippines

Go to this website:

Strategic Plan For Abaca - Southern Philippines

Go to this website :

http://caraga.da.gov.ph/
opportunities/abacaroadmap.pdf

GENETIC ENGINEERING EYED TO SOLVE PROBLEMS OF AILING ABACA INDUSTRY

by Rocel C. Felix

02-April-2006 The Philippine STAR

Agricultural scientists of the Fiber Industry Development Authority (FIDA) are rushing to come up with a genetically-engineered abaca fiber in hopes of saving an ailing industry that is reeling from debilitating diseases.

FIDA experts said creating a genetically modified abaca is the only solution to diseases affecting the endemic crop. For decades, agricultural scientists have been unable to find viable solutions to eradicate three major diseases that perennially plague abaca farms: abaca mosaic, abaca bunchy-top virus and abaca bract mosaic.

"The rapid infection of abaca plantations has become alarming and it is only through modern biotechnology that we hope to come up with a disease-free breed for planting that can resist ABTV. This is needed to maintain high production and keep our share in the world market," said Cecille Gloria Soriano.

While abaca remains as a major dollar earner, with the Philippines accounting for 85 percent of the world supply, the massive infection in at least three abaca-producing regions is threatening the country's export revenues. "We in FIDA believe that the only permanent method to control the disease is by developing GMA (genetically-modified abaca)," said Josephine Regalado, chief of the FIDA crop research division.

She explained that a bio-engineered abaca is a coat-protein mediated which can resist the multiplication of the virus in its system even when bitten by a virus-infected aphid, a major carrier of the virus, particularly the abaca bunchy-top virus. Regalado said FIDA is now experimenting on GMA's resistance to the ABTV at the National Institute of Molecular Biology and Biotechnology in the University of the Philippines in Diliman and in Los Banos, respectively.

She said GMA is crucial in saving the abaca industry since the conventional methods have limitations.

Through biotechnology it will be easier to determine and detect diseases, thus preventing them from infecting and spreading into the open fields, added Regalado. FIDA said that with a disease-resistant abaca fiber, the Philippines would be able to take advantage of the increasing demand for abaca and its products.

The US, United Kingdom, Japan, France, and South Korea are the major markets for abaca fiber.

The Rome-based Food and Agriculture Organization attributed the current strong demand for abaca in the world market to the expanding market for specialty papers for food packaging as in tea bags and meat casings, filter papers, non-wovens and disposables. Another is the surge in demand for handmade paper as art media, photo frames, albums, stationery, flowers, all purpose cards and decoratives.

Another reason is the development of new uses for abaca such as textile materials or as blending material, with silk, piña or polyester, in the production of high-end fabrics.

Abaca is obtained from a banana-like plant, known in the science world as "Musa textiles." It is indigenous to the Philippines but is also found in Borneo, Indonesia and Central America.

Abaca is grown in most parts of the country, but the major producing provinces are Catanduanes, Leyte, Southern Leyte, Davao Oriental, Northern Samar, Sorsogon, Sulu, Davao del Sur, and Surigao del Sur. The fibers from Leyte and Southern Leyte are recognized as having the best quality.

But while the outlook for abaca appears promising, the industry is being saddled with production, processing, and marketing problems which the government and industry are now trying to address to sustain its growth and make it globally competitive,

Exports of raw abaca fibers and abaca fibers generate average annual earnings of $76 million with an estimated 1.5 million Filipinos dependent on abaca for their livelihood.

FIDA which is tasked to distribute disease-free planting materials is currently using biotech techniques in disease "indexing" to detect and determine diseases that affect planting materials.

"We have to fiercely attack the disease, or else we will lose all our abaca," said Regalado.

http://www.bic.searca.org/news/2006/apr/phi/02b.html

ABACA INDUSTRY DEVELOPMENT AUTHORITY

PRESIDENTIAL DECREE No. 1208 October 8, 1977

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 1208

CREATING THE ABACA INDUSTRY DEVELOPMENT AUTHORITY

WHEREAS, the Philippines is the leading producer and exporter of abaca fiber in the world;

WHEREAS, there exists an unstable world market for abaca fiber subject to volatile price fluctuations;

WHEREAS, abaca farmers are shifting to other crops in view of an unstable market for their products;

WHEREAS, an orderly and stable market is necessary for the maintenance and growth of the abaca industry;

WHEREAS, it is Government policy to provide adequate assistance to the agricultural sector in line with the national objective of increasing agricultural production and boosting exports;

WHEREAS, the foregoing considerations make it desirable to have one agency to regulate abaca production, processing, distribution, sale, transport and storage;

WHEREAS, since the abolition of the Abaca Corporation in 1970 and the abolition of the Abaca and Other Fiber Development Board in 1972, there has been no single government agency in charge of the integrated development of the abaca industry;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order the following:

Section 1. Creation of the Abaca Industry Development Authority. The Abaca Industry Development Authority, hereinafter referred to as the AIDA, is hereby established and attached to the Department of Agriculture for the purpose of promoting the accelerated growth and development of the abaca industry in all its aspects. AIDA shall rationalize the research, production, processing, and marketing of abaca, and provide continued leadership and support for the integrated development of the industry;

Section 2. Transfer of Functions. All functions and all powers of the Bureaus of Fiber Development and Inspection Service (BFDIS) of the Department of Trade pertinent to the abaca industry except for grading and inspection functions are hereby transferred to the AIDA. Such transfer shall include the corresponding balances of appropriations, records, equipment, properties and such personnel as may be necessary, Provided, That the Bureau of Fiber Development and Inspection Service (BFDIS); shall henceforth be renamed Bureau of Fiber and Inspection Service (BFDIS); Provided, further, That the AIDA, through its Board, shall effect the transfer herein provided in a manner that will ensure the least disruption of non-going programs and projects.

The Abaca Production and Development Program (APDP) is hereby transferred from the Department of Agriculture to the AIDA, together with all corresponding balances of appropriations, records, equipment, properties and such personnel as may be necessary; Provided, That the AIDA through its Board, shall effect the transfer herein provided in manner that will ensure the least disruption of ongoing programs and projects.

Section 3. Board of Directors. The powers and functions of the AIDA shall be vested in and exercised by a Board of Directors which shall be composed of the following officials or their representatives:

1.	Secretary of Agriculture	Chairman
2.	Secretary of Trade	Member
3.	Chairman of Board of Investments	Member
4.	Secretary of Local Governments and Community Development	Member
5.	Governor of the Central Bank	Member
6.	Governor, Development Bank of the Philippines	Member
7.	President, Philippine National Bank	Member
8.	A representative of the abaca producers	Member
9.	A representative of the abaca traders	Member

The President shall appoint the representative of the abaca producers and traders upon recommendation of the Secretary of Agriculture and they shall hold office for a term of three (3) years unless sooner removed for cause or until their successors shall have been appointed and qualified.

The members of the Board from the government sector, if unable to attend a Board meeting, may designate their respective alternates whose acts shall be considered the acts of principals.

The members of the Board shall elect a Vice-Chairman who shall act as Chairman in case of the absence, inability or temporary incapacity of the Chairman; Provided, That in the absence of the Chairman and Vice-Chairman, the Board shall elect a temporary presiding officer.

The members of the Board may receive per diems per meeting actually attended at such amount to be fixed by the Board, but not to exceed one thousand pesos per month.

Section 4. Organization. The AIDA is empowered to determine and create its organizational structure in order to achieve its objectives, including the number, positions and salaries of its officers and employees. The Board shall create the positions of Administrator, Deputy Administrator or Administrators, and such other subordinate officials as may be required. The Board shall appoint all the officers of the AIDA, establish a compensation scheme including allowances and benefits, working hours and other conditions of employment as it may deem proper, discipline and/or remove for cause employees, and exercise such other powers over its personnel as may be necessary for the efficient operation of the AIDA.

The management of the AIDA shall be vested in an Administrator to be appointed by the Board who shall have the following functions and powers:

(a) To direct and manage the affairs and business of the Authority in accordance with policies enunciated by the Board;

(b) To establish and maintain, upon approval by the Board, an organization with specific functions and responsibilities for each operating unit;

(c) To perform such other duties as may be assigned to him by the Board from time to time.

Managerial and technical personnel shall be specifically exempt from OCPC and Civil Service requirements.

Section 5. To carry out the objectives and purposes mentioned in Section 1 of this Decree, the AIDA, through its Board, shall have the following powers and functions:

(a) Formulate and implement in cooperation with related agencies, integrated programs and comprehensive policy guidelines for the accelerated development of the industry as a whole;

(b) Regulate research, production, processing, and marketing of abaca in both the domestic and the international markets when necessary;

(c) Establish a monitoring system for the assessment of the abaca supply and demand situation, both domestic and worldwide;

(d) Negotiate and enter into contracts for the export of abaca under such terms and conditions as it may deem reasonable when necessary;

(e) Negotiate and enter into contracts for shipping facilities necessary for the export of abaca including the purchase and/or charter of vessels when necessary;

(f) Establish and maintain storage facilities for abaca in the country or in major foreign markets whenever such facilities are deemed necessary;

(g) Establish and administer a price scheme and maintain a stockpile of abaca when necessary to stabilize prices for the benefit of abaca farmers in the country;

(h) Promote and undertake research in abaca in coordination with the Philippine Council for Agriculture and Resources Research and other appropriate agencies with a view to expanding the production, utilization, processing, marketing of abaca for domestic and foreign uses;

(i) Borrow from local and international financing institutions, and issue bonds and other instruments of indebtedness, subject to existing rules and regulations of the Central Bank and the Department of Finance, for the purpose of financing programs and projects deemed vital and necessary for the early attainment of its goals and objectives;

(j) Formulate and recommend for adoption by financial institutions, credit programs to support research, production, processing, and marketing of abaca;

(k) Formulate and recommend for adoption by other agencies and instrumentalities, such programs and projects as may be found necessary to accelerate industry development;

(l) Enter into, make and execute contracts of any kind as may be necessary to achieve the objectives of the AIDA;

(m) Receive and administer funds provided by law and draw, with the approval of the President, funds from existing appropriations as may be necessary in support of its programs, and to accept donations, grants, gifts and assistance from all kinds of international and local private foundations, associations, or entities, and to administer the same in accordance with the instructions or directions of the donor, or in default thereof, in the manner it may, in its discretion determine;

(n) Invest and deal with the funds of the Authority, in order not to make such funds idle and unproductive pending their full utilization for the principal objects and purposes for which the AIDA has been organized;

(o) Obtain complete access to all pertinent information on the operations of the industry.

Section 6. Power to Issue Rules and Regulations to Implement Decree. The AIDA is hereby authorized to issue or to promulgate rules and regulations to implement and carry out the purposes and provisions of this Decree.

Section 7. Appropriations. For the fiscal years 1977 and 1978, all unexpected and unprogrammed appropriations out of funds already stipulated for abaca development from the appropriations of the Bureau of Fiber and Inspection Service of the Department of Trade and all unexpended funds, programmed and unprogrammed, appropriated for the Abaca Production and Development Program of the Department of Agriculture are hereby transferred to the AIDA.

Any provision of existing law to the contrary notwithstanding, AIDA may impose fees or receive grants, subsidies, donations, or contributions from any entity and retain such funds for its operation.

Section 8. Separability Clause. The provisions of this Decree are hereby declared to be separable, and in the event any one or more provisions are held unconstitutional, the validity of other provisions shall not be affected.

Section 9. Repealing Clause. All laws, decrees, acts, executive orders, ordinances, rules and regulations which are inconsistent with the provisions of this Decree are hereby repealed, amended or modified accordingly.

Section 10. Effectivity. This Decree shall take effect upon approval.

Done in the City of Legazpi this 8th day of October in the year of our Lord nineteen hundred and seventy-seven.

The Lawphil Project - Arellano Law Foundation