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

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cin/abaca/industry%20status.htm