Abaca Farming

Abaca in Bicol

2006-09-15T04:44:00.000-07:00

Production Volume

Bicol Region is the second largest producer of abaca in the Philippines behind Eastern Visayas which produces around 42% of the total national abaca production. Bicol Region accounts for 29% and Davao Region 13%. Together, these three regions accounts for 84 % of the total national abaca production for 2003.

Table 7. Abaca Production in Metric Tons by Region, Philippines, 1994-2003*

Catanduanes continues to be the top producer of abaca with 16,384 metric tons of abaca production in 2003 accounting for 73% of the total regional production. The provinces of Sorsogon (12%), Camarines Sur (9%), and Albay (6%) shared the remaining 27 percent.

Table 8. Abaca Production (MT) by Province in Bicol Region, 1994-2003*

Figure 2. Distribution of Abaca Production by Province, 1994-2003*

The volume of abaca production in the Bicol region has been erratic for the past ten (10) years. This could be attributed to the prevalence of typhoon the hit the region, particularly the province of Catanduanes where the bulk of production is found. The average annual abaca production in the region is 21,018 metric tons with the highest yield attained last 1994 with 26,132 metric tons and the lowest during the year 1996 with 17,527 metric tons.

Figure 4. Volume of Production by Province, 1994-2003*

http://bicol.da.gov.ph/Opportunities/abaca%20profile/topic9.html

Utilization of Abaca Fiber as Industrial Raw Material

2006-09-12T02:36:00.000-07:00

Utilization of Abaca Fiber as Industrial Raw Material

presented during theWorkshop „Sustainable Development, natural Fibres for modern Technology, Subsistence and Biodiversity Improvement Projects in the Philippines“March 11 to 17, 2002European Nature Heritage Fundpartners:The Workshop is staged with the kind support of:DaimlerChrysler and Deutsche Lufthansa Airlines
--------------------------------------------------------------------------------Page 2 Workshop „Sustainable Development, natural Fibres for modern Technology, Subsistence and Biodiversity Improvement Projects in the Philippines“Background information2PROBLEMIn between only fourty years the primary forests on the Philippines were reduced to about 30 percent. Many endemic animal species like Tarsius, Flying Lemurs and Horn Bill arethreatened to extinction due to the destruction of their natural habitats. An extremely richnatural heritage of the Philippines is therefore endangered. The deforested areas areprimarily today grasslands or are used as coconut plantations.In the Philippines, a total area of about 2 million hectares was planted with coconut palms within the last century, both in the lowlands and along the hillsides. During this period,coconut became one of the main sources of family income by almost 20 million Filipinos.However, nowadays the income of the farmers derived from coconut trees has reducedsignificantly due to declining yields of the old plantations and the very low prices of copraand coconut oil both in the local and the international markets. Despite the support from the Philippine government and loans from the World Bank, thereplanting program of the government to replace old coconut plantations did not succeedbecause of the low revenue expectations from coconut production, in general. Sincelogging was banned in the Philippines in the mid 1990s, the old coconut trees have beencut down and used as construction materials. The tremendous cutting down of coconut trees has created vast open lands that are either left idle for a longer period of time or planted with cash crops like cassava, sweet potato,corn, or upland rice. This type of farming system causes soil erosion problems especiallyalong the hillsides that result not only in the reduction of soil fertility and water holdingcapacity but also causing sedimentation problems in the coastal areas and even flashfloods during heavy rains. In 1991 for example, more than 8000 people were killed by aflash flood in Ormoc City in the island of Leyte.

CHALLENGE

In order to reduce these destructive impacts on the environment, a sustainable farmingsystem, especially on the hillsides, with appropriate agriculture and forestry strategies isurgently required. The most promising farming system is the rainforestation farming whichis already successfully established in some regions of the island of Leyte, thus, ensuringsoil cover throughout the year as well as providing new habitat structures for plants andanimals. A very suitable plant for incorporation in the rainforestation farming system is abaca orManila hemp which can be successfully used as cover crop especially in formermonoculture palm tree plantations. This banana species originates from the Philippines.Besides erosion prevention, the fiber of the plant could be used as industrial raw material, particularly in the automotive industry. Therefore, it can offer a sustainable source ofincome not only for small farmers, but also for the local fiber processing industry.
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Workshop „Sustainable Development, natural Fibres for modern Technology, Subsistence and Biodiversity Improvement Projects in the Philippines“Background information3Natural fibers such as cotton, sisal, ramie, hemp, and flax are traditionally used for textiles, mats, ropes, and filling material for upholstery. As industrial raw materials, natural fiberscan replace synthetic fibers in composites that recently become increasingly important forexample in the automotive industry due to numerous economic and ecological advantages. DaimlerChrysler as the pioneer in this development implemented e.g. more than 30 components in some of their cars. Nevertheless, in the automotive industry suchcomposites are only utilized in components of low added value in the interior of cars thatare not exposed to strong mechanical impacts. The fiber of abaca or Manila hemp offers great potential for different industrial applications. Due to the extremely high mechanical strength of the fiber as well as long fiber length of 2 –3 meters, application of abaca even in highly stressed components could be feasible. Despite these advantages, the abaca fiber is currently not used in the industry. Amongother requirements its implementation depends also from standardized fiber quality offered in sufficient quantities with guaranteed continuous supply. Currently, abaca is producedmainly by smallholders in the Philippines, who have neither access to high-yielding anddisease resistant varieties nor have the machinery needed for proper processing of the raw material. FEASABILITYIn view of this situation additional investigations on the production and processing of abaca fiber are necessary. These include selection of suitable varieties, improvement ofproduction conditions, and setting-up a small scale fiber-processing center. Objective of a private-public partnership project carried out in an interdisciplinary approach involving experts and scientists from the automotive industry, textile engineering, plantproduction, agricultural engineering, economics, and tropical ecology could be a feasibilitystudy. Participation of experienced companies from the automotive industry and theGerman Agency for Technical Cooperation GTZ, as well as scientific institutions and localexperts like the National Abaca Research Center based at the Leyte State University, would ensure the success of the project. The European Nature Heritage Fund (EURONATURE)would be responsible for the environmental education, sustainable habitat protection andecological evaluation of production and processing of Manila hemp, as well as for localtraining courses. • Scientific InvestigationsAccording to the technical specifications needed by the industry, optimal abaca varieties will be identified with regard to their fiber strength, processing and decomposition behavior, as well as mechanical properties of the corresponding composites. For the mechanical tests,selected fibers could then be embedded into thermoplastic and duroplastic polymers. Thecharacteristics of the abaca fiber as well as glass fiber composites in components will becompared in economic and ecological terms. With regard to the agricultural and ecological aspects, the selection criteria for suitableabaca varieties include disease resistance, yield, and the vegetation period. These factors influence the production costs of the fiber significantly. Moreover, the optimum time forharvesting has to be identified since the strength of the fiber depends on the stage ofmaturity.
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Workshop „Sustainable Development, natural Fibres for modern Technology, Subsistence and Biodiversity Improvement Projects in the Philippines“Background information4• Environmental AspectsThe use of abaca fiber will have numerous ecological advantages. Intercropping of abacawith coconut palms and other tree species on the hillsides will improve the conditions forbiodiversity, prevents erosion, as well as minimize sedimentation problems in coastal areas which are important breeding places for sea fishes. The water holding capacity of the soilwill be improved and floods and landslides will also be prevented. The experiments will be concentrated on areas with mixed cropping of coconut and oilpalm, fruit and rubber trees, as well as hardwood because shading is needed for the abaca plant. In those areas the production of natural fibers does not compete with food production at all. Natural fibers have a high strength in relation to their density. Moreover, the energyrequirements for production of natural fiber composites are considerably lower than forconventional fibers. In addition, the production of natural fibers is CO2neutral. At the end of their lifespan, the composites can either be recycled or decomposed since the fibers.Likewise, the natural fibers can be thermally recycled. • Socio-economic and Sustainability AspectsWithin such a cooperation, a sustainable production and marketing system of abaca fiber or Manila hemp should be developed. Direct utilization of the fiber will increase the income of the farmers due to production of high-quality raw fibers. When organized into cooperatives, the farmers will be able to process those raw fibers as well as produce fleeces, rovings, and other high value products. This will give them the opportunity to market directly theirproducts.For the development of the processing center that is expected to be operated oncooperative level, knowledge gained from the solar processing center established for cocoa and coffee in Indonesia will be applied. In order to obtain high fiber quality, each processing step including preparation of the fiber, drying and production of fleeces and rovings will be optimized. The thermal energy required for the drying process will be generated using solar collectors integrated into the roof of the processing center.In the project area, it is expected that new job opportunities will be created not only in the processing centers but also in the local industry, especially in ancillary companies. Thelocal manufacturers will have access to new technologies for processing and production of abaca fibers. Because of their innovative products, they will be able to enter new markets.• Economic AspectsOne of the expected outcomes of the cooperation is the production of high-quality naturalfibers and composite materials from abaca with high physical properties. These fibers have a high potential to substitute glass fibers in multiple automotive parts. The use of thesenatural fibers might be very beneficial for the car manufacturers because they can besubstantially and thermally recycled.
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Workshop „Sustainable Development, natural Fibres for modern Technology, Subsistence and Biodiversity Improvement Projects in the Philippines“Background information5Utilizing these natural fibers will decrease the cost of the components considerably due to the low costs of the raw material. Moreover, production costs of the natural fibers will bereduced by an increased share of locally manufactured components. The local productioncan have an increasing share in the future. • Transferability AspectsEven though abaca is mainly cultivated in the Philippines today, it can be planted in anytropical and humid location. The knowledge and the experience about production andprocessing gained can easily be transferred to other countries. The optimized fiber qualities available could enhance the share of natural fiber composites in automobiles as well as structural parts in other industries. Moreover, the high-quality fiber could be used in other industrial branches, for example for railway systems and ships aswell as for agricultural machinery. CHANCES AND PERSPECTIVESWithin a feasibility study carried out by an interdisciplinary group of experts, thefundamentals of improving the fiber quality as well the processing technology will beinvestigated. Utilization of abaca fiber in composites for highly stressed parts ofautomobiles would result to numerous ecological as well as economic benefits. Replacingglass fibers by natural fibers could reduce the weight of automotive parts and enablesrecycling of these components. Integration of abaca plants into rainforestation systems or intercropping with coconut trees in former monoculture plantations will have a significant contribution in the prevention of soil erosion, flooding, and sedimentation in coastal areas. In addition, the local biodiversity will be protected and even rehabilitated providing habitat for endangered species. Theproduction of high quality fibers and processing by small scale local industry creates jobopportunities, offers access to new markets, and increase the income of farmers andlaborers. The project will not only contribute to the preservation of nature with thefundamental ecosystems but will also stabilize the farm incomes.
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Workshop „Sustainable Development, natural Fibres for modern Technology, Subsistence and Biodiversity Improvement Projects in the Philippines“Background information6Prof. Dr.-Ing. Dr. h.c. Werner MühlbauerUniversity of HohenheimCenter for Agriculture in the Tropics and SubtropicsGarbenstr. 13, 70593 StuttgartTel.: ++49 (0)711 459 2490Fax: ++49 (0)711 459 3298E-mail: muehlbauer@ats.uni-hohenheim.deInternet: www.uni-hohenheim.deClaus-Peter HutterPresidentEURONATUREEuropean Nature Heritage FundBahnhofstraße 35D – 71638 LudwigsburgTel.: ++49 (0)7141 92 03 21Fax: ++49 (0)7141 90 11 83E-mail: ludwigsburg@euronatur.orgInternet: www.euronatur.orgMarch 2002

source
http://66.102.7.104/search?q=cache:l0ZjC6ROGJQJ:www.euronatur.org/fileadmin/docs/projekte/fibre.PDF+income+from+abaca&hl=en&gl=ph&ct=clnk&cd=4

Landbank grants P13.8-M loan for Bicol’s abaca industry rehab

2006-09-12T02:27:00.000-07:00

PIA Press Release10/06/2003
By Mario S. Arguelles, PIA Albay
Legazpi City (6 Oct.) -- The Land Bank of the Philippines (LBP) has approved recently a P13.8 million loan facility to a school foundation in Legazpi City for the rehabilitation of the moribund abaca industry in Bicol.
Leo G. Llana, executive director of the Aquinas University Foundation Inc. (AQFI), the loan recipient, said the foundation will utilize the loan to revitalize the abaca industry in the region. “We intend to make it sustainable and disease free industry and thereby increase the income of abaca farmers, through the introduction of new technologies and marketing approaches.”
Llana said that the abaca industry in Bicol though considered moribund still remains a principal source of income of a significant portion of the region’s population. “The project would help revitalize the abaca industry which was once a principal foreign currency earner and a major livelihood source among Bicolano farmers.”
LBP president and chief executive officer Margarito B. Teves who came over for the project presentation was confident that the foundation through its network of cooperative associations has the capability to lead in re-establishing and reinvigorating the abaca industry in Bicol.
Teves expressed interest in this project because “it has the rudiments that will make it a very viable project. Among others, it has the component of management through Aquinas Foundation that would take a lead role in re-establishing and reinvigorating the abaca industry in the region.”
With the given financing plus technical and linkages support the project would develop and rehabilitate some 300 hectares of abaca plantations within five years,” Llana said and adding that the AQFI had so far identified 150 hectares of abaca plantation to be rehabilitated and be planted with hybrid abaca seedlings.
It may be recalled that the abaca industry has been hard hit by the bunchy-top and mosaic diseases which has wiped out thousands of hectares of plantations in the region and continues to affect existing ones.
For past decades, before the advent of synthetics, abaca was the principal raw material for the manufacture of the world-renowned Manila rope.
Presently the abaca industry remains as one of the top dollar earners of the country. From 1990 to 1999, the country generated an average of about US$78 million from exports of raw fiber and processed products like pulp, cordage, yarns, fabrics and fibercraft.
The Bicol region remains as one of the top abaca producer of the country together with Eastern Visayas, Southern Mindanao. Bicol has the largest area of land planted to abaca with 47,623 hectares or 44 per cent of the country’s total with 24,374 Bicolano families or 3 per cent of the region’s total population directly and indirectly dependent on abaca production.
However, the industry is beset not only with problems of low production owing largely to the bunchy-top and mosaic diseases but other factors that contribute to the slump of the industry like the very low earnings for farmers due to the existence of several layers of traders who pulls down prices at the farm gate.
Studies conducted by the AQFI indicates that there is no system of grading and pricing policy to determine the current prices of abaca materials at the farm level as it falls to take the higher prices of higher grade fibers due to the “pojada system” of harvesting and marketing which in effect pulls down the prices of abaca produced by farmers.
AQFI, a non-government organization (NGO) was established last year. Among the impact project being undertaken by the foundation is the abaca rehabilitation designed to assist its network of cooperatives and associations under the Anduyog Bikol program of the Aquinas University of Legazpi.
Anduyog (to be totally united with) aims to increase the income of abaca farmers and weavers to enhance their economic well-being.
http://www.pia.gov.ph/news.asp?fi=p031006.htm&no=2

Wetlands

2006-08-30T07:10:00.000-07:00

http://www.mrcmekong.org/MRC_news/press04/19-jul-04.htm
http://www.iwmi.cgiar.org/press/coverage/pdf/FAO_IUCN_IWMI_wr30_eng.pdf#search=%22Stoeng%20Treng%20cambodia%20wetlands%20management%20iucn%22

Abaca exports keeps rising

2006-08-16T22:22:00.000-07:00

May.04.06 6:00PM Philippine abaca exports grew by 21% to %80m last year from $66m posted in 2004, Fiber Industry Development Authority (FIDA) reported.
Boosted abaca export volume to 22m metric tons, 18% better than the previous year.
The Philippines is the world's only exporter and main supllier of abaca pulp that has been used to manufacture security and currency papers, cigarette filters, meat and tea casings, medical materials, and high-grade non-woven materials.
FIDA said the discovery of new applications for the product would further improve the country's abaca exports. The Philippine abaca pulp is now being used for composite panels of luxury cars - other than as filter and food casings.
The combined demand in two of the world's biggest consumers, Japan and China, surged by 38%. The volume of export to Japan increased to 5.3m metric tons, while shipment to China rose to 464,000 metric tons.
"There is growing demand especially for our abaca pulp," said Alberto Fenix Jr., president of NewTech Pulp Inc., "but the local supply has not been sufficient."
The government has drawn plans to support abaca companies' upgrading of their production facilities in order to raise value-added in the use of the indigenous product which the Philippines has been exporting in raw form.

*Source: DTI - Philippine Business Report
http://www.sme.com.ph/sme-news/news.php?newsid=162

Investment Opportunities in Mindanao

2006-08-15T02:18:00.000-07:00

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http://202.137.113.51:1091/northern%20mindanao.pdf

Roadmap to boost production of abaca fiber-based products

2006-08-15T02:12:00.000-07:00

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.

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

Iligan develops abaca industry under 'one town, one product' project

2006-08-15T01:58:00.000-07:00

by Nerisa C. Koppin

Cagayan de Oro City (20 January) -- THE development of the abaca industry has been identified as Iligan City's focus project under the One Town, One Product Project of President Gloria Macapagal-Arroyo.

According to the Department of Trade and Industry, different agencies have already extended support to the development of the abaca industry in the city.

Some 600 hectares of land in five barangays in the city are already planted to abaca with the support of the city government and Land Bank of the Philippines under the LGU-LBP shared financing program.

To ensure its growth, the DTI has started developing the downstream industries through value-adding activities, such as basic training on weaving and dyeing to selected women representing the different barangays in the city, which is funded by Rep. Alipio Cirilo V. Badelles of the 1st district of Lanao del Norte.

These women are now members of the Community Organizing Development Workers Association (COCD-WA).

Recently, the COCD-WA members participated in a study mission cum technology training in Leyte, Bicol, and Bicutan with DTI personnel to further develop their products and include the garment industry as one of their prospective markets.

The group visited the National Abaca Research Center in Visca, Baybay, Leyte and attended the briefing on abaca production and testing of available equipment for weaving, as well as benchmarking of products exported by companies the visited at the Bicol Exporters.

The last stop was in Bicutan to observe the technology demonstration on fabric softening, attend a lecture on dyeing, testing of stripping machine, and briefing on available machines for abaca processing.

Leonor Tianco, DTI senior specialist and point person on abaca industry, said abaca product production not oly help augment the income of Iliganons, but create more jobs, as well as boost the economic status of manufacturers. (PIA 10) [top]

http://www.pia.gov.ph/news.asp?fi=p060120.htm&no=51

Fiber Crops Program Area Research Planning and Prioritization

2006-06-29T02:45:00.000-07:00

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Industry Status

2006-06-29T02:26:00.000-07:00

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

2006-06-29T02:22:00.000-07:00

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

2006-06-29T02:19:00.000-07:00

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

Cam. Sur gov’t to revitalize abaca industry

2006-06-29T02:18:00.000-07:00

Cam. Sur gov’t to revitalize abaca industry
By Ulyses E. Israel

THE Provincial Government of Camarines Sur is set to position the province of Camarines Sur as one of the top producers of abaca in the country.

The goal of revitalizing the abaca industry in Camarines Sur is in line with the Upland Development Plan of the provincial government that aims to develop about 93,000 hectares of barren and unproductive land in the province to become source of livelihood for upland dwellers.

Lovenia Tolosa, acting head of the provincial planning and development office of Camarines Sur, disclosed to the Bicol Mail that Governor Lray Villafuerte has tapped funding from international sources for the purpose of revitalizing the abaca industry in the province, on top of the P1 million already alloted by the Fiber Industry and Development Authority (FIDA) for the project.
Aquinas University Foundation Inc. (AQFI) archive photo of abaca export products.

Tolosa said that as part of the components to rehabilitate the ailing abaca industry, the different government agencies have collaborated in eradicating the diseases infecting the abaca plants, namely: mosaic and bunchy top.

Joel Talay, project development officer for Camarines Sur, said that a nursery covering about four hectares has been established in Presentacion for the production of disease-free abaca planting materials. Another four-hectare-nurseries, each for Del Gallego and Caramoan will soon be set up, he said.

Tolosa said the provincial government recognizes the significant contribution of the local abaca industry to the country’s export earnings as well as to the poverty alleviation program of the government.

The abaca industry in the Bicol region remains one of the top abaca producers of the country together with Eastern Visayas and Southern Mindanao.

Data from the Department of Agriculture (DA) showed that in 1999, the Bicol region has the largest area of land planted to abaca (47,623 hectares or 44% of the country’s total). The country generated an average of about US$78 million over the last ten years (1990-1999) from exports of raw fiber and processed products like pulp, cordage, yarns and fabric and fibercrafts.

Based on the DA report, the production of abaca fiber in the country for the past ten years (1990-1999) averaged 64,863 metric tons (mt) per year. Eastern Visayas supplied an annual average of 25,239 mt or 39 percent of the total production while Bicol region ranked second accounting for 21,243 mt or 33 percent share. While Camarines Sur accounted for 7 percent of the total area planted to abaca but only accounted for 4 percent of the country’s total abaca production, in the same period.
Earlier, the Aquinas University Foundation, Inc. (AQFI) received a P13.8 million loan facility from the Land Bank of the Philippines for the rehabilitation of the abaca industry in Bicol. The project would develop and rehabilitate some 300 hectares of abaca plantations within five years.

The abaca industry has been hard hit by the bunchy-top and mosaic diseases that have wiped out thousands of hectares of plantations in the region and continue to affect existing ones. Also, the low production is attributed to the very low earnings of farmers due to the existence of several layers of traders who pull down the prices at the farm gate. While the government has been criticized for failing to undertake the rehabilitation of the industry due to lack of funding, which consequently, has crippled the industry.

On the other hand, Governor Villafuerte has been successful in sourcing out the funds outside the government coffers, and is set to rehabilitate the abaca industry in the province and to position as one of the country’s top producers of abaca fiber, Tolosa said.

The provincial government, she said, will undertake the development of abaca plantations together with other government agencies like the Department of Environment and Natural Resources (DENR), the Department of Agrarian Reform (DAR) and the FIDA and, in partnership with the private sector either non-government organizations (NGOs) or cooperatives and with local government units(LGUs).

Support services will be provided like access roads and spillways. Dissemination of information materials on various abaca-based technologies will also be pursued, and abaca fiber trade promotion will be conducted.

Right now, she said, the establishment of pilot production sites and model farms is underway. She said the Lray provincial administration is confident that it can tackle the problems confronting the abaca industry as it advances its solutions in four fronts: eradication of diseases; propagation of disease-free abaca planting materials; provision of basic infrastructures; adoption of suitable technologies; and aggressive marketing and trade promotions. However, all these strategies will come to naught if the abaca farmers plight will not be addressed. As a safeguard, in protecting the interests of the farmers, their participation in the implementation of the project will be solicited and encouraged.

The AQFI, in its study of the abaca industry, has revealed that the potentials of the abaca industry “could never be underestimated”. Demand for abaca products both in the domestic and foreign markets continue to rise, products using abaca fiber also continue to expand. “This trend will further intensify as more and more countries shift to natural, biodegradable and recyclable materials and products”, it said.

http://www.bicolmail.com/issue/2005/oct13/camsur.html

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

2006-06-29T02:14:00.000-07:00

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

2006-06-29T00:44:00.000-07:00

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

2006-06-29T00:12:00.000-07:00

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

2006-06-29T00:09:00.000-07:00

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

2006-06-28T23:59:00.000-07:00

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

2006-06-28T18:41:00.000-07:00

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

2006-06-26T20:26:00.000-07:00

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

2006-06-26T20:03:00.000-07:00

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

2006-06-26T06:55:00.000-07:00

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

2006-06-26T03:32:00.000-07:00

Go to this website:

Strategic Plan For Abaca - Southern Philippines

2006-06-26T03:29:00.000-07:00

Go to this website :

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

GENETIC ENGINEERING EYED TO SOLVE PROBLEMS OF AILING ABACA INDUSTRY

2006-06-25T23:27:00.000-07:00

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

2006-06-25T23:26:00.000-07:00

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;

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

ABACA INDUSTRY DEVELOPMENT AUTHORITY

2006-06-25T23:23:00.000-07:00

The Lawphil Project - Arellano Law Foundation
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;

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:

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 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 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.

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;

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;

(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;

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

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 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

ABACA INDUSTRY SITUATIONER REPORT b

2006-06-25T23:19:00.000-07:00

THE FIBER

known worldwide as Manila Hemp

from leafsheath of plant Musa textilis nee

indigenous to the Philippines; similar to banana plant

strongest among natural fibers, with fiber length from 3 to 9 feet or more

USES / APPLICATIONS

Cordage, ropes and twines

Pulp and specialty paper

•S2 grade - electrolytic (condenser) paper, high grade decorative paper, Bible paper, dissolving pulp
•JK grade - tea bag, coffee, filter, meat and sausage casings, special art paper, cable insulation paper, adhesive tape paper, lens tissue, mimeograph stencil base tissue, carbonizing tissue
•Y2 grade - currency paper, checks, cigarette paper, vacuum cleaner bag, abrasive base paper, weather-proof Bristol, map, chart, diploma paper
•All grades - handmade paper
• S2, I, G, JK grades - nonwovens

Fibercrafts

Textiles.fabrics

INDUSTRY SECTORS (1998)

Farmers 63,030

Traders 739

GBE/exporters 8

Cordage firms 7

Pulp manufacturers 4

Fibercraft processors (FIDA-licensed) 94

MARKET PROSPECTS & OPPORTUNITIES

Despite global economic problems, demand for abaca is expected to remain strong and stable with a conservative growth rate of 3% per year indicated by major foreign buyers support this observation/projection

The Japanese market which has not been so active due to recession is expected to improve in the latter part of 1999

CELESA, a pulpmaking company is Spain is now developing tie-ups with local suppliers of abaca; the company is buying from Ecuador but wants to expand usage of Philippine abaca

As reported by a local abaca pulp mill, a European buyer is seeking supply of 50,000 m.t. of abaca pulp per year (current industry capacity: 13,000 m.t.)

Central Bank has advised manufacturers of base paper for the Philippine peso to use abaca pulp as component material; if approved by the Monetary Board, printing is expected to materialize by CY 2001 (projected additional demand: 200-250 m.t. abaca pulp per year)

Abaca pulp can substitute for coniferous pulp in most paper products on the ratio of 4 to 1; majority of the world's pulp and paper companies uses wood pulp with global demand estimated to be 200 million m.t. in the year 2000; this is equivalent to about 50 million m.t. of abaca pulp

THREATS

Serious and aggressive moves by Indonesia to massively produce abaca under the government's reforestation program

Available cheaper substitutes (e.g., sisal, Ecuadorian abaca)

Cheaper sources of similar materials (e.g., China, India)

Technological advances and breakthroughs which make possible production of cheaper substitutes, whether from natural or synthetic-based materials

INDUSTRY STRUCTURE / SECTORS

The abaca industry is made up of five major sectors: farming, stripping, trading, fiber exporting and processing.

Farming Sector
The country has a total abaca area of 106,146 hectares cultivated by 63,030 abaca farmers. The abaca farmer has small landholdings of two hectares, on the average. The national average production is 850 kgs./hectare, which is low compared with the potential annual production of 2,000 kgs./hectare. The low production is due to the prevalence of diseases, typhoons and drought, the existence of plantations planted to low-yielding varieties and low or lack of entrepreneurial skills of farmers in the efficient management of farms.

Stripping Sector
Stripping is done either by hand or mechanical means. About 80% of the abaca fiber in the country are hand stripped. This type of stripping is practiced mainly in Bicol and some parts of Leyte and Samar provinces. The rest of 20% of the fiber is produced through spindle stripping and is employed principally in Mindanao and the Leyte provinces. Included in the stripping work are harvesting of stalks, tuxying and drying of fibers. The strippers are paid either in cash or by share. Under the sharing system, strippers receive 50, 60 or 70% of the harvest depending on the prevailing practice agreed upon.

Trading Sector
Trading is done at different levels depending on the location of the farmers and where the accumulation of fiber is done. Hence, there are traders in the barrio, town, province, city and region. In each level, the pricing system includes mark-up attributable to the service provided by the trader. There are a total of 739 traders at various levels of trading.

Fiber Exporting Sector
The fiber exporters, also known as grading and baling establishments (GBEs), operate in major abaca regions and usually maintain liaison offices in Metro Manila. The establishments employ classifiers who ensure that the classified fibers are in accordance with government standards. They likewise operate pressing machines for baling of fibers intended for trading in both domestic and international markets. The standard bale of fiber is equivalent to 125 kgs. And measures about 100 cm. X 55 cm. X 60 cm.
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PROCESSING SECTOR

A. Pulp Mills
There are four abaca pulp companies operating in the Philippines, one in Laguna, two in Bicol and one in Mindanao which have combined rated capacities of 16,180 mt per year. The companies have well-established market networks for their pulp which are principally destined for the world market.

B. Cordage Manufacturers
There are eight cordage firms operating in Metro Manila, Cebu and Davao. They use abaca as the principal raw material for rope, cordage and twine manufacture. Belnding with other natural fibers like maguey is done depending on the specifications of the buyers. The combined rated capacities of these companies are approximately 21,350 mt per year.

C. Fibercraft Manufacturers
The fibercraft sector, including handmade papermaking and carpet manufacturing, is primarily characterized as cottage-based. Operating mostly in the countryside, especially in Bicol and the Visayas, the sector is a major source of livelihood especially to the womenfolk and out-of-school youth. Several of these manufacturers have successfully established their markets abroad especially through their unique, functional and creative designs.

D. Textile/Fabrics
The textile/fabric sector produces handwoven abaca fabrics which are used as raw material for making novelty and household items, as décor and wrapping material as well as for high fashionwear and accessories. Some abaca weaves are blended with metallic thread or polyester while others have striped and ethnic designs to suit the varying needs of the market. The industry is confined in Western Visayas, the Bicol Region and in Souther Mindanao where indigenous people are actively engaged in tinalak weaving. Production of new product lines for fashionwear and accessories and specialty/novelty items are based in Metro Manila.

PRODUCTION AND MARKET SCENARIO

A. Supply Situation
Supply of abaca fiber is mainly provided by Eastern Visayas, the number one abaca producing region, contributing an annual average of 24,952 mt or 39% of the total. The Bicol region ranks second with an annual average of 21,225 mt or 33% while the whole of Mindanao supplies an average of 16,985 mt per annum or 27% of the total production.

Production has been relatively stable during the past ten years, averaging 64,205 mt per year.
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B. Demand Situation

1. Local Consumption
Domestic processors consumed about 66% of the country's total production of abaca fiber during the period 1989-1998. A steady increase of 3.2% per year in the consumption of abaca fiber by local processors during the period resulted to more income through production of high value products and employment opportunities for the nation.

The pulp sector is considered the growth are of the abaca industry due to the favorable development in the world market for its end-products such as meat casings, tea bags, cigarette papers and other specialty paper products. The pulp sector accounted for about 57% of the total local consumption for the past ten years. Consumption by this sector grew by 6.9% annually.

The cordage sector, on the other hand, accounted for about 31% of the total fiber usage by the domestic manufacturers. During the ten-year period, a decreasing rate of 1.4% per year was observed largely due to stiff competition posed by synthetic cordage.

2. Export Performance
Most of the processed products like pulp, cordage and fibercrafts are exported to various countries all over the world and from which, with raw fiber exports included, an average of US$77 million a year are generated. About 75% of export earnings or an average of US$57.7 million during the period 1989-1998 came from abaca manufacturers. The rest (25%) was contributed by raw fiber exports with annual average earnings of US$18.8 million.

Among the abaca manufacturers, pulp contributed the highest export earnings at 39% of the annual total followed by fibercrafts at 22%. Exports of cordage and allied products contributed 14% and yarns and fabrics, 0.7%.

The United States remains as the biggest market for Philippine abaca cordage while Japan and Germany absorbed the bulk of abaca pulp exports during the past ten years. Increasing quantities of pulp are also being marketed to the United States as well as the European and Asian countries like France, Taiwan, Korea and China.

The major markets for fibercrafts include the United States, Germany, Japan, and Australia.

An average of 18,981 MT of raw fibers were exported every year during the past ten years with 91% of the total going to the United States, the United Kingdom, and Japan. For the Past ten years, raw fiver export have been declining at the rate of 2.3% but this is offset by an increasing trend in the domestic consumption and export manufactured abaca in the forms of pulp, cordage, and fibercraft.
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PROBLEMS

Although abaca has long been an established industry, it is still plagued with problems. Areas that continue to be addressed are (1) farm productivity, and (2) fiber quality.
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OPPORTUNITIES / PROSPECTS AND DEVELOPMENT

The abaca industry is expected to continue making a stronghold in both the domestic and international markets. The growing concern for environmental protection and forest conservation the world over have further provided limitless opportunities to natural raw materials like abaca. Being natural and considering its superior qualities over other materials, the utilization of abaca especially for industrial applications is expected to strengthen.

From 1991 to 1998, total world demand averaged 73,917 MT per year, 84% of which was supplied by the Philippines. The Food and Agriculture Organization (FAO) of the United Nations projects that global consumption of abaca will increase further to about 85,000 MT by the year 2005. This translates to total global demand of at least 71,000 MT for Philippine abaca, including domestic consumption as the country is the major producer.

Since 1989, the abaca pulp sector, which in terms of export volume and earnings registered a growth rate of 6.6% and 7.9 per annum, respectively, will remain strong and is expected to grow further as the technology and formulations developed and used by the specialty paper manufacturers are principally abaca based. Likewise, demand for specialty papers such as currency notes, tea bags, meat and sausage casings, cigarette papers and the like will continue to grow as economies of the major consuming countries improve and new markets open up.

Abaca pulp can likewise substitute for coniferous pulp in most paper products on the ration of 4 to 1. Majority of the world's pulp and paper companies uses wood pulp with global demand estimated to be at 200 million MT in the year 2000. This is equivalent to about 50 million MT of abaca pulp.

The fibercraft sector is another growth area registering a 4.4% improvement in earnings per annum from 1989 to 1998. TO sustain the increasing demand for Philippine fibercrafts, however, functional and innovative designs should continuously be introduced in the market.

Growing awareness and interest on abaca fabrics for décor and wrapping purposes as well as for fashion have likewise increased demand for this product. Since 1989 until the present, export volume registered a remarkable growth rate of 121.4% per year. It is expected that demand would be long-term due to growing popularity of environment friendly materials especially in developed countries.

While the market of abaca cordage, ropes, and twines would not be as promising compared with other sectors of the industry, demand will remain stable as it has specific markets to serve. Abaca cordage is highly preferred in oil dredging/exploration, navies, and merchant shipping as well as in the construction business because of its non –slippage characteristics.

Abaca production is expected to improve in response to encouraging developments in both the local and world markets. The government, through the Fiber Industry Development Authority (FIDA) of the Department of Agriculture (DA) has been implementing various projects/programs geared toward affirming and strengthening further the country's position as the top producer and supplier of quality abaca worldwide.

EXPORTS OF ABACA FIBER BY COUNTRY OF DESTINATION, 1994-1998 (in metric tons)
Destination	1994	1995	1996	1997	1998	Average	% Share
TOTAL	18,139	19,337	17,947	17,792	17,765	18,196	100.0
NORTH AMERICA	5,359	5,541	5,519	4,431	4,146	5,000	27.5
United States	5,310	5,394	5,445	4,357	4,072	4,916	27.0
Canada	49	147	74	74	74	84	0.5
EUROPE	7,789	9,263	7,935	6,820	6,651	7,691	42.3
United Kingdom	6,643	8,072	7,890	6,759	6,492	7,171	39.4
France	1,102	1,135	-	45	45	465	2.6
Germany	3	-	-	-	-	1	0
Belgium	-	-	-	-	1	-	0
Italy	11	-	-	-	-	2	0
Portugal	30	56	-	-	-	17	0.1
Spain	-	-	45	16	113	35	0.2
Netherlands	-	-	-	-	-	-	-
ASIA	4,912	4,431	4,313	6,282	6,687	5,325	29.3
Japan	4,842	4,110	4,195	5,980	6,570	5,139	28.2
Korea	59	-	38	20	20	27	0.2
India	11	22	28	101	34	39	0.2
Hongkong	-	76	30	14	14	27	0.1
Taiwan	-	-	3	-	-	1	0
New Zealand	-	20	-	-	-	4	0
China	-	203	12	21	-	47	0.3
Indonesia	-	-	7	146	15	34	0.2
Bangladesh	-	-	-	-	23	5	0
Pakistan	-	-	-	-	11	2	0
OTHER COUNTRIES	79	102	180	259	281	180	1.0
Mozambique	11	-	-	-	-	2	0
Egypt	-	56	45	45	135	56	0.3
South Africa	68	46	135	214	146	122	0.7


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EXPORTS OF ABACA PULP BY COUNTRY OF DESTINATION, 1994-1998 (in metric tons)
Destination	1994	1995	1996	1997	1998	Average	% Share
TOTAL	11,948	11,508	13,228	13,459	14,987	13,025	100.00
ASIA	5,378	6,057	5,359	5,858	6,372	5,804	44.56
Japan	4,959	5,503	5,018	5,394	5,725	5,320	40.84
Taiwan	117	237	56	108	178	139	1.07
South Korea	38	81	102	91	59	74	0.57
China	264	216	183	265	408	267	2.05
Israel	-	-	-	-	-	0	0
Malaysia	-	-	-	-	-	0	0
Singapore	-	20	-	-	-	4	0.03
Thailand	-	-	-	-	2	0	0
EUROPE	6,028	5,033	7,121	7,151	8,064	6,679	51.3
Germany	5,942	4,744	6,191	5,967	6,610	5,891	45.2
Belgium	-	16	-	-	-	3	0.0
Denmark	16	67	101	33	48	53	0.4
France	33	85	680	1,089	1,255	628	4.8
United Kingdom	37	118	149	61	151	103	0.8
Italy	-	-	-	-	-	0	0
Poland	-	3	-	-	-	1	0.0
Spain	-	-	-	1	-	0	0.0
OTHER COUNTRIES	542	418	748	450	551	542	4.2
United States	537	418	748	450	550	541	4.2
Brazil	5	-	-	-	-	1	0.0
Israel	-	-	-	-	1	0	0.0

http://www.philonline.com.ph/~webdev/da-amas/abaca.html

ABACA INDUSTRY SITUATIONER REPORT

2006-06-25T19:52:00.000-07:00

ABACA INDUSTRY SITUATIONER REPORT

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' consumption 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

Cordage products - ropes, twines, I, S3, JK, G, S2, M1, Y2
marine cordage, binders, cord

Pulp and paper manufactures - tea I, S2, G
bags, filter paper, mimeograph stencil,
base tissue, sausage skin, base paper

Cigarette paper, currency paper, JK, Y2, Tow, G, M1
file folders, envelopes, time
cards, book binders and
parchment paper
Microglass airfilters media, S2, I, G, JK
x-ray negative, optical lens
wiper, vacuum filter, oil filter

Non-wovens - medical gas S2, I, G, JK
masks and gowns, diapers,
hospital linens, bed sheets

Handmade paper - paper sheets, All grades including wastes
stationaries, all-purpose cards,
lamp shades, balls, dividers,
placemats, bags, photo frames
and albums, flowers, table clock

Fibercraft - handbags, hammocks AD, EF, S2, G
placemats, rugs, carpets, purses
and wallets, fishnets, door mats

Handwoven fabrics - sinamay, High grades
sinamay, pinukpo, tinalak, dagmay

Sacks, hotpads, hemp coasters S2, H, lupis and
bacbac *

Wall paper, wall cover S2, JK, Y2, G

Others - wire insulator and cable JK, M1, Y2, Tow

Potential Uses of Abaca Grades/Types

Fiberboards - roofing tiles, Tow and other waste
Floor tiles, hollow blocks, fiber
boards , reinforcing concrete
and asphalt

Fuels - musafel Abaca plant

Miscellaneous application - All grades
Wigs, grass skirts

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
.
Company	Address	Tel.No(s).	Fax No.	Contact
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

P800M dev't program to revive abaca industry

2006-06-25T19:46:00.000-07:00

PRESIDENT Gloria Macapagal-Arroyo is set to revive the abaca industry by strengthening "Oplan Sagip Abaca" program and putting a stop to the dreaded abaca disease, which caused the decline of abaca production.

The Fiber Industry Development Authority (Fida) has drafted a 10-year National Abaca Development program slated to start with a set of components worth P800 million.

Arroyo said Philippine abaca, which accounts for 85 percent of the world supply, brings jobs and foreign exchange averaging $80 million a year.

Last year, the United States and China planned to use abaca pulp as a component in their current notes, a report disclosed by one of the Philippines' largest abaca exporting firms.

Fida technical regional director Romulo Palcon said the demand for abaca remains strong in the world and more farmers are needed to supply raw abaca fiber.

"The problem of the abaca industry is not only on the demand side, but on the supply side. The government is encouraging farmers to grow more abaca to meet the demand," he said.

The 10-year National Abaca Development program's components include: the development of Genetically Modified Abaca; development of virus-resistant abaca (Musa Textiles Nee Cultivar Using Modern Biotechnology); abaca disease mapping, eradication, control and prevention; alternative livelihood (Ang Abaca mo, Neneng) project; "Gulayan sa Abakahan" project, "Hayop sa Ganda" project; production and distribution of disease-free abaca planting materials (abaca disease indexing, production of abaca tissue culture plantlets, maintenance of abaca seed banks); abaca replanting and expansion; community-based abaca techno demo farm; commercialization of mechanized fiber extraction process in abaca (establishment of model abaca spindle stripping centers, marketing support services, farmer trainings); abaca insurance; production and distribution of information and promotional materials; and program organization, management and monitoring.

(December 16, 2005 issue)

http://www.sunstar.com.ph/static/dav/2005/12/16/bus/
p800m.dev.t.program.to.revive.abaca.industry.html

Mindanao's abaca industry booming

2006-06-25T19:34:00.000-07:00

Mindanao's abaca industry booming
By Jenny Molbog-Mendoza

TRIGGERED by stable buying prices, the abaca industry in Mindanao is booming, the Fiber Industry Development Authority (Fida) XI, said Tuesday.

"Right now, we have this so-called 'price war', the demand is high kaya mahal ang buying price," Milagros Laborada, fiber development officer of Fida XI said.

To date, abaca's buying price reaches P41 per kilo for the highest-grade abaca fibers.

Laborada said it was only late last year when abaca industry started to stabilize.

"Mataas ang demand ng abaca ngayon kasi may itatayo raw na pabrika somewhere in Leyte, na gagawa ng mga panels at upuan para sa Mercedez Benz," Laborada said.

Among the products of abaca are fibercrafts, cordage, textile/fabrics, pulp, and specialty papers like currency notes (e.g. Philippine money), cigarette paper, meat and sausage casings, teabags, stencil paper, capacitor paper, and other specialty papers that require high-porosity, excellent tear, bursting and tensile strength.

"Kaya rin mataas ang demand kasi marami ngang gamit ang abaca at matibay din 'to," Laborada said.

To date, the major buyers of abaca fiber are the local processors and manufacturers of pulp, cordage, and fibercrafts, who buy 60 percent of the total volume produced in the Philippines.

Raw abaca fiber is also exported to United States, United Kingdom, and Japan.

Processed abaca, on the other hand, are exported to Japan, Germany, United States, France, Singapore, Netherlands, Italy, and Korea, among others.

Laborada said that one of their major concerns right now is to control abaca diseases.

"Recently, we launched our Sagip Abaca program, which aims to control abaca diseases sa Davao Oriental," Laborada said.

Among the abaca-producing areas in Mindanao are Bukidnon, Agusan del Sur, Davao del Norte, Davao del Sur, Davao Oriental, South Cotabato, North Cotabato, Maguindanao, Surigao del Sur, Surigao del Norte, Lanao del Sur, Lanao del Norte, and Zamboanga del Sur.

(August 18, 2004 issue)
http://www.sunstar.com.ph/static/dav/2004/08/18/bus/mindanao.s.abaca.industry.booming.html