ABACA INDUSTRY SITUATIONER REPORT
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COMMODITY DESCRIPTION
Abaca known worldwide as Manila hemp is the natural fiber for the next millennium. It is indigenous to the Philippines whose favorable climatic condition and volcanic soils are suited to its cultivation. The crop is cultivated in almost all parts of the country.
It has more slender stalk, narrower and pointed leaves and has more pronounced dark line on the right hand side of the upper surface of the blade compared to bananas. Its fruits are smaller, non-edible and contain many seeds.
CURRENT STATUS OF INDUSTRY
A. Production
1. Volume
Philippine production of abaca fiber for the past ten years (1990-1999) has been relatively stable averaging 64,863 metric tons per year. Eastern Visayas supplied the bulk of the product contributing an annual average of 25,239 metric tons or 39% of the total production. The Bicol Region ranked second accounting for 21,243 mt or 33% share. The whole of Mindanao contributed an average of 17, 359 mt per annum or 27% of the total production. The production of abaca fiber increased at the rate of 2.38% per annum (Table 1).
For the same period, the top ten producing provinces namely: Catanduanes, Southern Leyte, Leyte, Sorsogon, Zamboanga del sur, Samar, Davao Oriental, Northern Samar, Camarines Sur and Agusan del Sur contributed almost 81% of the Philippine total abaca production. The remaining 19% was shared by the rest of the provinces.
2. Area
Over a ten year period, area planted to abaca registered an average of 107 hectares. The Bicol Region has the largest area of 47,623 hectares or 44% of the total area devoted to abaca. Eastern Visayas shared 25% or 26,478 hectares. The average annual growth rate of area devoted to abaca is 1.78 percent (Table 2).
At the provincial level, Catanduanes (16
%), Sorsogon (14%) and Leyte (19%), Southern Leyte (8%) and Camarines Sur (7%) registered a combined area of 59,462 hectares or 55.52% of total area. Other abaca producing provinces were Sulu (7%), Albay (6%), Northern Samar (4%), Davao Oriental (3%) and Bukidnon (2%).
3. Local Consumption
The country's processing sector consumed 67.42% of the total abaca fiber produced for the period 1990-1999. An average growth rate of 2.3% in the consumption of abaca fiber was recorded for the same period.
Of the total consumption, the bulk or 58% was accounted for by the pulp sector. This sector registered an annual growth rate of 5.7% attributed to the developments in the world market for its end-products such as meat casings, tea bags, cigarette paper, filter papers, currency notes and other specialty paper products.
The cordage and fiber crafts manufacturers' consum
ption was registered at 30% and 12% of total fiber usage, respectively. The stiff competition from the synthetic cordage has resulted to a decline of 3.5% for cordage while an annual increase of 5.1% was observed for fibercrafts (Table 3).
4. Price
For the hand-stripped, the EF grade abaca fiber registered the highest price at US$192.81/bale in 1999. S2 and I grades command the 2nd and 3rd highest price with US$ 143.05/bale and US$ 142.56/bale, respectively.
In 1999, the I grade of the spindle stripped category cost US$ 142.04/bale while the S2 grade was sold at US$ 141.89/bale. The G2 grade average export price for the same period was recorded at US$ 128.48/bale and 110.27/bale for the JK grade (Table 4).
B. Export/Import
1. Volume
For the period 1990-1999, the country consistently exports abaca fiber, pulp, cordage, rope and twines, yarns and fabrics and fibercrafts.
The Philippine exports of abaca yarns from 1990-1999 registered a growth rate of 93.2%. For the same period, annual increase of abaca fabric's export was recorded at 88% attributed to the growing awareness and interest for décor, fashion and wrapping purposes using this product.
The abaca pulp registered a growth rate of 4.13% per annum. The demand for this product is expected to grow further as the technology used by the specialty paper manufacturers are principally abaca based. The cordage and allied products as well as fiber showed a decline of 3.21 and 1.46%, respectively (Table 5).
In 1999, the United Kingdom (42%), the United States (29%) and Japan (26%) were the Philippines' top three (3) major markets for abaca fiber absorbing 18,735 mt or 97% of total shipments (Table 7).
For abaca pulp, Germany absorbed about 43% (5,600 mt) while 38% (4,906 M.T.) of total exports was shipped to Japan. Other markets were France, the United States and China (Table 8).
The bulk of the Philippines' abaca cordage was exported to the United States with 66.44% share. Other countries of destination were Singapore (4.45%), the United Kingdom (3.77%), Netherlands (3.43%), and Canada (3.37%) (Table 11).
The country's total export of abaca yarn in 1999 was registered at 87.02 m.t. Almost 77% of this product was shipped to the United Kingdom while Japan absorbed 17% and China shared about 7% of the market (Table 10).
The volume of abaca fabrics exported in 1999 was registered at 80,171 sq. meters. The Philippine major markets for this commodity were Italy (71.10%), the United Kingdom (20.20%), Japan (6.16%) and Netherlands (2.08%) (Table 11).
2. Value
The country generated an average of about US$ 78 million over the last ten years from exports of raw fiber and processed products like pulp, cordage, yarns and fabrics and fibercrafts. For the same period, abaca manufacturers contributed 76% (US$ 59 M) of total export earnings while the remaining 24% (US$ 19 M) was contributed by raw fiber.
Data showed that of the total exports, pulp has generated the highest earnings of 40% followed by raw fiber with 24.3 %share. Fibercrafts ranked 3rd contributing about 21.60%. On the other hand, cordage and yarns contributed 13.5% and 0.6%, respectively.
Over the past ten years (1990-1999), average export earnings registered an annual growth rate of 2.3 percent. The pulp, fibercrafts and fiber export grew at an average rate of 5.6 percent, 4.0 percent and 1.8 percent, respectively. A decline for the exports of yarns and fabrics (3.3%) and cordage (0.6%) was recorded for the same period (Table 6).
C. World Import/Export
1. Volume
The world importation of abaca from 1994-1998 registered an annual decline of 0.55%. Over this period, the average volume of world import of abaca was registered at 32,456 m.t.
The United Kingdom, the United States of America and Japan were the major importers of abaca for the same period with 41%, 27% and 21% share of the market, respectively.
In 1998, abaca's market in the United Kingdom contracted by 0.41 percent and 30% for the United States compared to 1997 level. Spain and Japan' import on the other hand increased by 29% and 11%, respectively (Table 13).
World export of abaca from 1994-1998 was recorded at 511,215 m.t. The Philippines supplied 97% or 497,756 m.t. of the total requirement while Ecuador shared 3% or 13,202 m.t. Annual growth rate for the last five years was recorded at 1773 percent.
2. Value
In value terms, the average world exports amounted to US$43,598 from 1994-1998. The United Kingdom contributed 43%, USA 28% and Japan 18% (Table 15). World imports in 1998 amounted to US$39,863,000.
The average value of the world exports amounted to P34, 060,000. About 61% was supplied by the Philippines, 38% by Ecuador and the remaining 1% by other exporting countries.
D. Product Types and Uses
Depending on the manner of extraction, abaca fiber is categorized into hand-stripped and spindle-stripped. The fibers are classified and graded into: Excellent (AD, EF, S2 and S3), Good (I, G, H), Fair (JK, M1), Coarse (L) and Residual ( Y1, Y2, O, T, WS).
Abaca is processed into cordage, pulp and paper manufacturers and fibercrafts including handwoven fabric. The uses of abaca and the grade requirements are as follows:
Uses of Abaca Grades/Types
Non-wovens - medical gas S2, I, G, JK
masks and gowns, diapers,
hospital linens, bed sheetsHandmade paper - paper sheets, All grades including wastes
stationaries, all-purpose cards,
lamp shades, balls, dividers,
placemats, bags, photo frames
and albums, flowers, table clock
Handwoven fabrics - sinamay, High grades
sinamay, pinukpo, tinalak, dagmaySacks, hotpads, hemp coasters S2, H, lupis and
bacbac *Wall paper, wall cover S2, JK, Y2, G
Potential Uses of Abaca Grades/Types
INDUSTRY STRUCTURE AND KEY PLAYERS
Farming, stripping, trading, fiber exporting and processing are the five major sectors of the abaca industry.
Market Flow
From the producer/farmer/stripper, the abaca fiber was sold at an "all-in" basis to the barangay dealer. At this stage, fibers are sold ungraded due to farmers general lack of knowledge of the grading/classification system. The fiber goes further to the town/city dealers. To some extent the farmers sell directly to exporters/grading and baling establishments (GBEs). In some cases, farmers' cooperatives/associations has a direct link to domestic processors.
primary link
secondary link
| Directory of Philippine Abaca Fiber Processors and Exporters | ||||
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| A. Pulp Processors | ||||
| Albay Agro Industrial Development Corp. | 5/F Sagittarius Bldg. H.V. dela Costa St. Salcedo Village, Makati City | (632) 816-3875 816-3877 816-3878 | (632) 810-5987 | Ms. Orpha Noveno Asst. Treasurer/Comptroller |
| Canlubang Pulp Manufacturing Corp. | Yulo Bldg., Don Bosco cor. Pasong Tamo, Makati City | (632) 810-0116 | (632) 817-1559 | Mr. Jose Ramon Yulo Exec.Vice-President and General Manager |
| Isarog Pulp and Paper Company | 7/F Citibank Center Bldg. 8741 Paseo de Roxas Makati City | (632) 894-5364 894-5602 894-5160 | (632) 841-0634 | Mr. Alfredo Henares Director |
| Newtech Pulp, Inc. | Unit 34 Legaspi Suites 178 Salcedo St. Legaspi Village, Makati City | (632) 893-7642 893-7640 892-1431 | (632) 893-2819 | Dr. Alberto Fenix, Jr. Director |
| B. Cordage Processors | ||||
| Manila Cordage Company | 2372 Osmeña St., Makati City | (632) 895-0481 895-0494 | (632) 897-6532 | Mr. Nestor Eugenio Procurement and Supplies Manager |
| Luzon Synthetic and Multi-Resources, Inc. | Ortigas Ave., Cainta, Rizal | (632) 655-0170 655-1678 | (632) 655-0194 | Mr. Aly Go Chief Executive Officer |
| Oriental Rope Mfg. Company, Inc. | 412- Quirino Highway, Novaliches, Quezon City | (632) 939-1118 939-4306 930-0736 | (632) 939-4396 | Mr. Jimmy Chua General Manager |
| Pacific Continental Company, Inc. | 2753 Park Ave., Pasay City | (632) 831-2729 551-3216 | (632) 831-8314 | Mr. Henry Lim President |
| . | Plant Address: CAA Rd., Pamplona Las Piñas City | (632) 873-0832 873-0844 | (632) 873-0841 | . |
| Interrope Corporation | Plaridel St., Mandaue City Cebu | (6332) 346-0603 | (6332) 346-0602 | Mr. Tam Ngo President and CEO |
| . | Plant Address: Philwood Compound 505 Padilla St., Cebu City | (6332) 261-4157; 261-4158 346-0603 | (6332) 261-3379 346-0602 | . |
| Davao Rope Company | New Salmonan, Agdao Davao City | (6382) 227-3891 227-2972 | (6382) 221-5468 | Mr. George Lu General Manager |
| Hokki Cordage Center | 57 Evangelista St. cor. 21st Ave. Project 4 Quezon City | (632) 438-1506 | (632) 438-1512 | Mr. Roman Sio President |
| C. Carpet Processor | ||||
| A & A Carpet Resources | No. 58 Dr. A. Natividad St., Ibayo, Tipaz, Taguig, M.M. | (632) 641-1348 640-0024 642-4950 | (632) 642-4951 641-4138 | Mr. Ricardo U. Antonio General Manager |
| D. Abaca Wall Covers, Rugs Processors | ||||
| Simor Abaca Products, Inc. | 121 Paseo de Roxas Makati City | (632) 811-3143 811-3080 811-3218 811-3211 | (632) 811-3180 | Ms. Vicky Simon Sales Manager |
| E. Abaca Pads Processors | ||||
| Abatex Manufacturing Company | 165 Kaingin Rd., Balintawak Quezon City | (632) 415-0983 | (632) 363-3659 | Mr. Ching Ka Lee Manager |
| Millian Fiber Industrial Corp. | 123 F. Roxas St., Grace Park Caloocan City | (632) 364-8741 | . | Mr. Kho Ka Ho Officer-in-Charge |
| F. Dart Board Processor | ||||
| Terton Craft and Arts | 514-C Edsa, Pasay City | (632) 833-7241 | (632) 831-4655 | Mr. Ambrocio Mercado Ms. Socorro Mercado |
| G. Abaca Fiber Exporters | ||||
| Ma Fibers, Inc. | Aboitiz Bldg. Archbishop Reyes Ave. Banilad, Cebu City | (6332) 231-2580 | (6332) 231-4037 | Mr. Alberto de Rotaeche General Manager |
| Ching Bee Trading | Rm. 314 Pacific Land Bldg. Q. Paredes cor. Gandara St. Binondo, Manila | (632) 241-1663; 241-1887 | (632) 241-1768 | Mr. Nelson Lim General Manager |
| Oga Hemp Export | Rm. 915 State Ctr. Bldg. 333 J. Luna St., Binondo, M.M. | (632) 242-0833 242-2907 | (632) 242-3101 | Mr. Jose Baritua President and Gen. Manager |
| Peral Enterprises | Unit 8F, 8/F Cypress Gardens Cond., Herrera St., Legaspi Vill. Makati City | (632) 844-4987 892-3367 | (632) 815-4029 | Mr. Antonio Tan-Perez Sr. Marketing Manager |
| S.C. Tan Export Corp. | No. 1 R. Fernandez St. San Juan, M.M. | (632) 724-8924 724-9318 | (632) 722-0307 | Mr. Eddie Tan President & General Manager |
| Tag Fibers, Inc. | 2/F B & M Building Aguirre St., Legaspi Village Makati City | (632) 815-3481 810-4641 810-4643 | (632) 810-7757 | Mr. Reynaldo Z. Manuel Executive Vice-President and General Manager |
http://www.da.gov.ph/agribiz/abaca_new.html
posted by GeorgeM at
7:52 PM
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