ABACAVALUECHAINANALYSIS

RegionVBicolRegion

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PHILIPPINERURAL
DEVELOPMENTPROGRAM

(PRDP)

DepartmentofAgriculture
RegionV

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TABLEOFCONTENTS
CONTENT
EXECUTIVESUMMARY
SECTION1INTRODUCTION
A. BackgroundInformationandObjectives
B. ObjectivesoftheVCA
C. Methodology
SECTION2OVERVIEWOFTHEINDUSTRY
A. ProductDescription
B. ProductionTrends
SECTION3NATUREANDSCOPEOFTHEINDUSTRY
A. ValueChainMapping
B. KeyPlayersandFunctions
C. NatureofInterfirmRelationships
D. PriceandCostStructure
SECTION4MARKETSANDMARKETOPPORTUNITIES
A. MarketsandMarketTrends
B. PriceTrends
SECTION5SUPPORTSERVICES
A. FinancialServices
B. NonFinancialServices
SECTION6ENABLINGENVIRONMENT
A. FormalRules,RegulationsandPolicies
SECTION7CONSTRAINTSANDOPPORTUNITIES
SECTION8COMPETITIVENESSDIRECTIONS
A. CompetitivenessVision
B. PriorityConstraintsandInterventions
SECTION9CONCLUSIONANDRECOMMENDATIONS
ANNEXES

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LISTOFTABLESANDFIGURES
TABLENO.
Table1
Table2
Table3
Table4
Table5
Table6
Table7
Table8
Table9
Table10
Table11
Table12
Table13
Table14
Table15
Table16
Table17
Table18
Table19
Table20
Table21
Table22
Table23
Table24
Table25
Table26
Table27
Table28
Table29
Table30
Table31
Table32
Table33

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DESCRIPTION
Recommendedabacavarieties
GradesandUsesofAbacaFiber
ComparativeAbacaProduction(20092013)National
Top10AbacaProducingDistrictofProduction(DOP)2012
ComparativeAbacaProduction(20092013)BicolRegion
AreaPlantedtoAbaca(20092013)
AnnualAverageFiberYield(20092013)
Top10AbacaProducingMunicipalitiesinBicolRegion(ExistingAbacaProductionArea)
Top10AbacaProducingMunicipalitiesinBicolRegion(NumberofFarmers)
Top5AbacaProducingMunicipalitiesPerProvince(ExistingAbacaProductionArea)
BicolRegionAbacaProducingProvinces,DistrictsandMunicipalities
NumberofAbacaFarmersPerProvince
NumberofAbacaNurseriesPerProvince
NumberofAbacaTradersandGBEsPerProvince
NumberofAbacaPulpMill,BuyingStationandCordageManufacturerPerProvince
NumberofFibercraftProcessorsPerProvince
AbacaCostandReturnAnalysis
CostandReturnsforAbacaScrunchProduction
CostandReturnsforSinamayProduction
AnnualExportEarningfromAbacaFiberandManufactures20082012(inFOBUS$)
AnnualAbacaFiberExports20082012(inmetrictons)
AverageAbacaPulpExports/Destinations(20082012)(inmetrictons)
AverageAbacaCordage&AlliedProductsExports(20082012inmetrictons)
AverageAbacaFabricExports/Destinations20082012(insquaremeters)
AnnualDomesticConsumptionofAbacabySector20082012(inmetrictons)
AnnualDomesticConsumptionofAbacabySector20082012(inmetrictons)
WeightedaverageexportpricesofabacafiberbygradeHandstripped(F.O.B.US$/Bale)
WeightedaverageexportpricesofabacafiberbygradeHandstripped(Peso/Bale/Kilo)
WeightedaverageexportpricesofabacafiberbygradeSpindllestripped(F.O.B.US$/Bale)
WeightedaverageexportpricesofabacafiberbygradeSpindllestripped(Peso/Bale/Kilo)
Annualaveragefarmgatepriceperkiloofabacafiber(20082013inPeso)
ConstraintsandOpportunities
SummaryofPriorityConstraints/OpportunitiesandInterventions

FIGURENO.
Figure1
Figure2
Figure3
Figure4
Figure5
Figure6
Figure7
Figure8
Figure9
Figure10
Figure11
Figure12
Figure13
Figure14
Figure15
Figure16
Figure17
Figure18

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DESCRIPTION
GlobalAbacaProduction
PhilippinesAbacaProductionArea
DomesticAbacaProduction
DistributionofAbacaProductionRegion5
BicolRegion,AbacaValueChainMap1
BicolRegion,AbacaLeadFirms
BicolRegion,AbacaSubValueChain(channels)
BicolRegion,AbacaLinkagesandValueChainGovernanceMap
CatanduanesAbacaSustainabilityInitiative(CASI)Model
Distributionofvalue/revenuealongthechain
Abacaproductsexportearnings(20082012)
AbacaFiberExports
BicolRegion,AnnualAbacaFiberExports20082012(inmetrictons)
AbacaFiberExportsbyGrade
AbacaPulpExports
AbacaCordage&alliedproductexports(20082012)
Abacafabricexports(20082012)
Domesticabacaconsumptionbysector

EXECUTIVESUMMARY
ThePhilippinesistheworldsleadingabacaproducer,supplying87%oraround56,000MTofglobal
abacafiberrequirements.Thecountryhasaround172,934hectaresofabaca,beingmanagedby
113,648abacafarmers.Bicolisthetopabacaproducingregion,contributing39%or23,752MTof
Philippineabacaproductionof55,958MT,and52,214hectaresor30%ofthe179,434totalabaca
hectarage in the country in 2013. Abaca production grew by 4.3% in Bicol, compared to the 1%
nationalgrowthrate.
Catanduanes is the top abaca producing province in the Philippines, contributing 92.3% of Bicol
production. The province also reported the highest productivity of 600 kilogram per hectare,
compared to the regional and national yields of 430 kilograms per hectare and 340 kilogram per
hectare, respectively. The high production performance of Cataunduanes is attributed to the
superior Abuab abaca variety planted in the province. The other provinces need to secure the
approvalofthelocalgovernmentofCatanduanestosourcetheirplantingmaterialsfromtheisland
province.
TheabacaindustryofBicoliscomposedof38nurseryoperators,21,922farmers,143abacatraders,
5GBEs,1pulpmill,1cordagemanufacturer,4buyingstationsand65fibercraftprocessors.Mostof
the abaca processors are located in Albay. The industry however, is highly fragmented.Relations
are dominated by arms length transactions, and this hampers the flow of market and technical
information,supportservices,benefitsandincentivesthroughoutthechain.Industrydevelopment
effortsaregovernmentled.ButtheGLATFELTERCatanduanesAbacaSustainabilityInitiative(CASI)
isabrightspotthatcanbereplicatedintheotherprovincestotransformtheindustryintoamore
cohesiveone.
ThePhilippinesearnedUS$108.3Minabacaexportsin2012.Sixtysevenpercent(67%)ofexport
earnings came from abaca pulp, 14% from cordage products, 12% from abaca fiber, 6% from
fibercrafts,and1%fromyarnsandfabrics.Exportearningshowever,wereseverelyaffectedbythe
global financial crises of 2008 2009 and 2011 2012, and prevailing foreign currency exchange
rates.
Domestic processors consumed 50,598 MT or 77% of the countrys average annual production
between20082012.TheBicolRegionaccountsfor30%or15,415MTofthePhilippinesannual
averagedomesticabacaconsumption.
Eighty ninepercent (89%) of the abaca fiber utilized in the Bicol region is processed by pulp mills,
10% is processed by cordage manufacturers, and only 1% is bought by fibercraft processors. The
pulp sector is considered the growth area of the industry because of its growing demand,
particularlyforsustainablyproducedabaca.Thestrongperfromanceofthefibercraftsectorinthe
exportandlocalmarketsisalsoagoodmarketopportunityfortheabacaindustryinBicol.
PhilFIDAisthemaingovernementagencymandatedtopromotethegrowthanddevelopmentofthe
abaca industry. But because of limited resources, the agency has difficulties making their services
accessibletoallplayers.Thecapacityoftheprivatesectortoprovidesustainablesupportservices
hastobedeveloped.

The following priority constraints were identified during the field interviews and the stakeholders
workshop:

Lackofsupplyofgoodqualityplantingmaterials
Lackofsupplyofrawabaca
Lackofmarketingandpromotionalsupportforfibercraftproducts
Poorqualityofabacafiberbecauseofthelackofpostharvestfacilities
Highpestanddiseaseincidence
Lackofindustryleadership
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Thefollowinginterventionswereformulatetoaddressthekeyconstraintsandopportunitiesofthe
abacaindustryofBicol:

TheprivateandpublicstakeholdersoftheabacavaluechaininBicolmustworktogetherto
addressthepriorityconstraints.Thefollowinginterventionsareproposed:
Nurseries must be set up in strategic areas using good quality, HYV planting materials
preferablyfromCatanduanes.
Access to support services must be improved to support the upgrading needs of abaca
farmers,particularlyinimprovingtheirfarmproductivity.
ReplicatetheCASImodeltofosterinterfirmcooperationinotherprovincesofBicolandto
takeadvantageofthegrowingmarketforsustainablyproducedabaca
Setupofpostharvestfacilitiestoimprovethequalityofabacafiber
Providemarketingandpromotionalsupportforabacafibercraftproducts
Orgnizetheindustrytocoordinateaprivateledabacaindustrydevelopmentefforts

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SECTION1:INTRODUCTION

A. BACKGROUNDINFORMATIONANDOBJECTIVES

A. BriefBackgroundonPRDP
The Philippine Rural Development Project (PRDP) is a sixyear program (20132019) designed to
establish an inclusive and marketoriented agrifishery sector through strategic investments in
prioritycommodityvaluechains.

PRDPseekstoaddressthreemajorconstraintsthatlimitsagriculturaldevelopment,theseare:
Inadequateagrirelatedinfrastructureandfacilities
Insufficienttechnologydevelopment
Weaktraining,extensionandinformationdissemination

Theseconstraintsresultedtolowproductionandincomeintheagriculturesectorandcontributedto
theproblemofthewholeeconomy.PRDPswillimplementaninclusiveorbroadbasedruralagro
industrial development. PRDP will partner with LGUs and the private sector in providing key
infrastructure, facilities, technology, and information that will raise incomes, productivity, and
competitivenessinthecountryside.

PRDP, in its program development objectives, commits to a 5% annual increase in real farm and
fisheryincomes.Fortheenterprisedevelopment,theprojectistargetingtoattaina30%increasein
realincomefortargetedbeneficiaries.

PDPtargetstoincreaseby35%annually,theagrifisherycontributiontogrossvalueadded.Itaims
tocontributetothisresultbyincreasingthevalueoffarmersandfishersmarketedoutputthrough
theirengagementincommodityvaluechainssupportedbyappropriateagrifisheryinfrastructure.

A baseline survey is part of the activity of PRDP to track the achievement of these project
developmentobjectives.

ProgramComponents

IPLANInvestmentsinAFMPPlanningattheLocalandNationalLevels
IBUILDIntensifiedBuildingupofInfrastructureandLogisticsforDevelopment
IREAPInvestmentsinRuralEnterprisesandAgricultureandFisheriesProductivity
ISUPPORTImplementationSupporttoPRDP

PRDP is a PhP 27.5 billion program of which a full 92% is designed to deliver goods and services
directlytothepeoplethroughIBUILDandIREAP.

Bysourceoffinancing,75%isproposedtobefundedthroughaloanfromtheWordBank,13%from
the National Government, 11% from the local government partners and 1% is expected from the
GlobalEnvironmentFacilitygrant.

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B. ProfileofBicolRegion
Bicol Region or Region V is composed of six (6) provinces namely:
Albay, Camarines Sur, Camarines Norte, Catanduanes, Masbate and
Sorsogon. Bicol region has one chartered city, six component cities,
107municipalitiesand3,471barangays.

Politically, the region is subdivided into 16 congressional districts.

LegaspiCityisdesignatedastheregionalcenterandthegatewaycity
toBicolregionbecauseofitsstrategiclocationandaccessibilitytoland,
airandseatransportation.

Location

The Bicol peninsula is located at the midsection of the

country. It is situated at the southernmost tip of the
Luzon landmass. The total land area of the region is
18,054.3km2(6,970.8sqmi), which is 5.9% of the total
landareaofthecountry.Around69.3%ofthetotalland
area is alienable and disposable while the remaining
30.7%ispublicforestareas.

The region is bounded byLamon Bayto the

north,Pacific Oceanto the east, andSibuyan
SeaandRagay Gulfto the west. The northernmost
province,Camarines Norte, is bordered to the north by
the province ofQuezon, thereby connecting the region
totherestofLuzon.

Climate

Bicols climate is tropical, with normal average yearround temperature of 27.4C to 29.6C. Two
pronouncedseasons,dryandwet.Theprevailingtypesofclimateintheregionarethesecondand
fourthtypes.Thesecondtypeischaracterizedbyaverypronouncedmaximumrainfall(Novemberto
January) and no dry season. Catanduanes, Sorsogon, Eastern Albay and Eastern and Northern
CamarinesSurandCamarinesNorteexhibitthisweathertype.

Thefourthtypeischaracterizedbyevenlydistributedrainfallthroughouttheyearwithexceptionof
the occurrences of tropical cyclones in the vicinity which can cause rainfall abnormalities. Areas
underthistypeincludetheWesternpartextendingfromCamarinesSurtothesouthwesterntipof
Sorsogon.

Theregionreceivesanaveragerainfallof3,013millimetresandmeansannualtemperatureof27.2
degreesCelsius.

Population

ThepopulationoftheBicolRegionreached5,420,411asofMay1,2010,growingatanaverage
annualrateof1.46percentbetween2000and2010.Theregion'spopulationdensityincreasedto
298.8personspersquarekilometerin2010.

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C. Rationale for selecting the chain/socioeconomic importance of commodity to

region/province

Abaca is the second permanent crop in the Bicol Region next to coconut. Abaca is part of Bicol
regionsrichcultureandhistory.Itisaneconomicpillarinstrumentalinpropellingrobusteconomic
growthanddevelopmentintheregion.

As a major crop in the Philippines, Bicol shares a significant portion of 38% (22,987 mt.) of the
countrysaverageabacaproductionforthelastfive(5)years(20082013).About21,922farmersin
Bicol Region directly or indirectly depend on the crop for livelihood. The industry also provides
employmenttoasizeablenumberoffamilies,women,handicapped,andoutofschoolyouthinthe
region.

Beingregardedasoneoftheimportantcrop,thecollaborativeeffortoftheabacastakeholdersin
Bicolregionhasmadeitthecountrysnumberone(1)abacaproduceroutrankingEasternVisayas.As
of December 2013, Bicol Regions effective area covered 52,214.08 hectares of abaca with 21,922
abacafarmers.

FiberproductionfromJanuarytoDecember2013furtherstrengthenedBicolregionspositionwith
42.4%shareagainstEasternVisayasandDavaoRegions19%and10%respectively.

D. Importanceofundertakingthevaluechainanalysis
Bicolregionplaysaveryimportantroleinthecountrysabacaindustry.Thousandsoffarmersinthe
regiondependonabacafortheirlivelihood.Severalabacaleadfirmsdobusinessintheregionand
thuscontributedtoitseconomicgrowth.

For the region to be able to respond to the recurrent need of the micro, small and medium
enterprises(MSMEs),theconductofabacavaluechainanalysisisveryimportant.Itwouldallowa
better understanding of the market, the nature of interfirm relations and indentify critical
constraints that limit the growth of MSMEs and industry competiveness. By bringing the industry
players together and getting them involved in the process, it would allow identification and
formulationofmarketbasedandcommerciallyviablesolutionsthataresustainable.

B. OBJECTIVESOFVCA
Theconductoftheabacavaluechainstudyaimstoachievethefollowing:

Describethevariousactors,theirfunctions,andnatureofinterfirmrelations
Understandendmarketopportunitiesthatcanspurinclusivegrowth
Identifykeyconstraintstoendmarketopportunities
Formulateinterventionstoaddresskeyconstraintsandopportunities
Identify investment opportunities that will be the basis of the Provincial Commodity
InvestmentPlan(PCIP)
Promotecollaborationbetweenthenationalandlocalgovernments,andtheprivatesector

C. METHODOLOGY
To collect relevant industry information, the value chain analysis employ both primary and
secondary data gathering. This involves desk research to get updates on the global and national
industrystatusincludingreportsandstatisticsproducedbyPhilFIDAandthelocalgovernmentunits.
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Focus Group Discussion and Key Informant Interview were also conducted by the team in the
provinces of Sorsogon, Camarines Sur, Albay and Catanduanes. Respondents includes farmers,
traders,gradingandbalingestablishments(GBEs),pulpmillsandabacaprocessorsandexportersto
getfirsthandinformationonabacaindustry.

To validate information gathered, an industry stakeholders workshop was conducted. The

stakeholders workshop brought key players together to take part in validating the results of the
valuechainanalysisaswellashelpinidentifyingkeyconstraintsandformulatestrategiestoadvance
theregionsabacaindustrydevelopment.Keyrepresentativesfromthelocalgovernmentunitsand
PhilFIDAwerealsopresent.

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SECTION2:OVERVIEWOFTHEINDUSTRY
A. PRODUCTDESCRIPTION
AbacawithscientificnameMusatextilesisindigenousinthePhilippines.Abacaisamemberofthe
Musaceae family to which banana also belongs. Although the resemblance of abaca to banana is
close, there are basic differences. Abaca stalks are more slender, the leaves are smaller, narrower
and more pointed than those of the banana. Abaca is planted mainly for fiber production while
bananaisforfood(fruits).Thefruitsofabacaaresmaller,nonedibleandcontainmanyseeds.

AbacaisgrowninthecountryforcenturiesandhasbeensynonymoustothePhilippinesbecauseitis
knowninternationallyasManilaHemp.Itisthemostimportantcultivatedplantfiberinthecountry
intermsofhectarage,production,andcontributiontothenationseconomy.

AbacareportedlythrivesinEcuador,CostaRica,Panama,GuatemalaandIndonesia.Itsorigincanbe
traced to the Philippines by indexing through finger printing. However, Food and Agriculture
Organization (FAO) records showed that Ecuador is the only commercial producer of abaca fiber
asidefromthePhilippines.

The Philippines is the worlds leading abaca producer as the country supplies about 87% of the
worldsabacafiberrequirementasofyear2012.Ecuadorsuppliestheremaining13%.

FormsandUses

Abacaismostlygrownintheuplandareasandinteriorpartsofthecountry.Itistraditionallyplanted
by using suckers or corms. The use of corms and suckers is simple and results in high germination
andsurvival,butthesematerialsarebulkyandcostlyintermsoflaborandtransport.

Abacagrowsinclayloamandsandyclayloamtypesofsoil.Itismoreproductiveinareaswherethe
soilisvolcanicinorigin,richinorganicmatter,loose,friableandwelldrained.SoilpHlevelmustbe
about6.0to7.0andanelevationoflessthan1,000metersabovesealevel.

Abacagrowsinareaswithtemperaturesof20Cduringcoolmonthsand25Cduringwarmmonths.
Arelativehumidityof78%to85%andevenlydistributedrainfallthroughouttheyearareconditions
conducivetogoodabacaplantgrowth.

There are different varieties of abaca grown in the country. For major abaca producing areas, the
Philippines Fiber Industry Development Authority (PhilFIDA) have the following recommended
varieties:

Table1:Recommendedabacavarieties
ForBicol
ForVisayas
ForMindanao:
1. MusaTex51
1. Linawaan
1. Maguindanao
2. Abuab
2. Inosa
2. Bongolanon
3. TinawaganPuti
3. Laylay
3. Tangongon

Theabacafiberisextractedfromthestalkoftheplant.Itisconsideredthestrongestamongplant
fibers.Ithasthebestreputationforstrengthandtenacity.Abacaisthreetimesstrongerthancotton
andtwotimesstrongerthansisalfibers.

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Abacaismoreresistanttosaltwaterdecompositionthanmostofthevegetablefibres.Comparedto
synthetic fibres like rayonand nylon, abaca fibre possesses higher tensile strength and lower
elongationinbothwetanddrystates.

Abaca fibres are extensively used to produce ropes, woven fabrics, tea bags, etc.It is also called a
biodegradableandsustainablefiber.Theprimequalitiesofabacahavemadeitanexcellentchoice
overothernaturalplantfibersintheproductionofhighporosityandstrengththinpapers.

To maintain and ensure quality of fibers produced, quality standards for abaca fiber has been set
andenforced.Abacafibergradesaredividedintothree(3)classesdependingonthemannerthey
areextracted,namely:handstripping,spindlestrippinganddecortications.

Thequalityofabacafiberisdeterminedbystrength,cleaning,color,textureandlengthofthefiber.
Intermsofcleaning(whichisadirectresultofthestrippingapparatusorknifeused),thestandard
gradesforhandandspindlestrippedare:

EXCELLENT
S2,S3

GOOD

I,G,H
FAIR JK,M1

RESIDUAL Y,OT

SpindlestrippedabacafibersareindicatedbytheletterSbeforetheofficialgrade,i.e.,SS2,SI,
andsoon.Fordecorticatedabaca,theofficialgradesareAD1,AD2andAD3.

Abaca has several uses. Shown in the table below are the various uses of abaca and their
correspondingrequirements:

Table2:GradesandUsesofabacafiber
USES
GRADES/TYPES
Cordageproductsropes,twines,marinecordage,binders,cord
Pulpandpapermanufacturesteabags,filterpaper,mimeographstencil,base
tissue,sausageskin,basepaper

Cigarettepaper,currencypaper,chartfilefolders,envelopes,timecards,book
bindersandparchmentpaper

Microglassairfiltersmedia,xraynegative,opticallenswiper,vacuumfilter,oilfilter

Nonwovensmedicalgasmasksandgowns,diapers,hospitallinens,bedsheets

Handmadepaperpapersheets,stationeries,allpurposecards,lampshades,balls,
dividers,placemats,bags,photoframesandalbums,flowers,tableclock
Fibercraftshandbags,hammocks,placemats,rugs,carpets,pursesandwallets,
fishnets,doormats,tableclock
Handwovenfabricssinamay,pinukpok,tinalak,dagmay
Sacks,hotpads,hemp,coasters,
Baskets
Wallpaper
Furniture
Otherswireinsulatorandcable,automobile,automobilecomponents/composites

POTENTIALUSESOFABACA
Fiberboardsroofingtiles,floortiles,hollowblocks,boards,reinforcingfiber
concreteandasphalt
Miscellaneousapplicationswigs,grassskirts
Source:PhilippinesFiberIndustryDevelopmentAuthority(PhilFIDA)

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S2,S3,I,G,JK,M1,Y
S2,I,G

G,JK,M1,Y,OT

S2,I,G,JK

S2,I,G,JK

Allgrades
icludingwastes
S2,G
Highgrades
S3,Hlupisand
bacbac*
S2,G,KJ,Y
S2,bacbac
JK,M1,Y,OT

GRADES/TYPES
OTandotherwaste
Allgrades

AbacaProductsProducedinBicolRegion

As the countrys leading abaca producer, Bicol region is a home to several abaca industry players
engagedinvariousactivitiesfromproductiontoprocessing.

The region has one (1) abaca pulp mill, one (1) cordage manufacturer, 62 fibercraft processors, 2
handmadepaperprocessorand21,957farmersengagedinabacafiberproduction.Theregionalso
has143abacatradersthatsuppliertoprocessorswithinandoutsidetheregion.Italsohas4grading
andbalingestablishments(GBEs)

Abacaproductsproducedfromtheregionincludesabacafiber,abacapulp/paper,abacafibercrafts,
abacacordage/ropes,abacafurniture,handwovenfabricsandhandmadepapersamongothers.

B. PRODUCTIONTRENDS

1. GlobalProduction

Fig.1:GlobalAbacaProduction

The Philippines dominates the global abaca

production. As of year 2012, the country supplies
about87%oftheworldabacarequirement.Thecrop
is also cultivated in other Southeast Asian countries
butnotinacommercialscale.ThePhilippinesclosest
rivalisEcuador,itisthesecondandtheonlycountry
that produces abaca commercially. It supplies the
remaining13%ofworldabacarequirement.

Abaca is grown in Ecuador on large estates and

production is increasingly mechanized. In the
Philippines, abaca is a grown in smallholder farms
usingmanualproductionsystems.

In2013,worldabacaproductionreached64,319.54metrictons.Ofthis,55,958metrictonsisfrom
thePhilippineswhileEcuadorproduced8,362metrictons.

1. DomesticProduction
Industry data revealed that the Philippines has a total of 11
abacaproducingregionswithacombinedareaof172,934.33
hectares as of December 2013. The country has a total of
113,648abacafarmers.

35% of abaca hectarage can be found in Mindanao, while

areaplantedtoabacainVisayasandLuzonaccountfor33%
and32%respectively.

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Fig.2:PhilippinesAbacaProductionArea


Figure3shows,thatamongthevariousDistrictsofProduction
(DOP)ofPhilFIDA,theBicolRegionhasthebiggestvolumeof
abaca production in 2009 2013, contributing 39% of total
abaca production in the country. For the same period,
Eastern Visayas and the Davao Region contributed 24% and
11% of domestic abaca produciton respectively. The
remaining 26% is supplied by other districts of production
(DOPs).

AsshowninTable4,from2009to2013thecountrysaverage
abaca production is 58,781 metric tons. During this period,
the growth rate was only about 1.9%. Bicol, the top abaca
producing region in the Philippines, averaged 22,987 metric
Fig.3:DomesticAbacaProduction
tons of abaca for the same period, with a growth rate of
3.8%. Abaca production in Eastern Visayas, the second largest abaca production region in the
country, averaged 14,694 MT, but production declined by 3.2%. While in Davao Region, abaca
productionbetween20092013averaged6,916MT,withanannualgrowthrateof1.1%.

Table3:ComparativeAbacaProduction(20092013)National

COMPARATIVEABACAPRODUCTION
ByTopAbacaProducingRegions(inmetrictons)20092013
REGION
National
Bicol
EasternVisayas
Davao

AVERAGEFIBERPRODUCTION(mt.)
%Share
%GrowthRate
58,781
100%
1.9%
22,987
39%
3.8%
14,694
24%
(3.2%)
6,916
11%
1.1%

ThehighgrowthrateonproductionoftheBicolregioncanbeattributedtothecombinedeffortsof
the government and the private sector through its abaca industry development support projects.
ThedroponproductionintheVisayasisaresultofdevastatingtyphoonsandthepestanddisease
infestationonabacafarms.

The succeeding table shows the volume of production of PhilFIDAs abaca Districts of Production
(DOP)coveringtheperiod2008to2013.

Table4:Top10AbacaProducingDistrictofProduction(DOP)2012
DISTRICTOFPRODUCTION
NATIONAL
Catanduanes
Leyte
NorthernSamar
DavaoOriental
SurigaodelSur
SouthernLeyte
DavaodelSur
Sulu
Aklan
Bukidnon

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VOLUMEOFPRODUCTION(inMetricTons)
20082012
RANK Jan.Dec.2012 RANK Jan.Dec.2013 RANK
average
63,317.88
64,806.06
55,958
19,567.72
1
19,771
1
21,556
1
6,956.96
2
5,848
3
4,877
2
5,617.36
3
6,268
2
4,349
3
4,111.02
4
5,106
4
2,777
4
3,648.18
5
2,688
7
2,354
7
2,227.00
8
1,485
10
953
10
2,823.48
6
3,086
5
2,358
6
2,683.32
7
2,882
6
2,629
5
1,537.17
10
1,643
9
1,357
9
1,854.771
9
1,839
8
1,781
8

AsseeninTable3,theProvinceofCatanduanesiscalledtheabacacountybeingthebiggestabaca
producingprovinceinthePhilippines.Ithasatotalof11municipalitiesengagedinabacaproduction,
212barangaysandanabacaproductionareaof33,051.25hectarescultivatedby12,734farmersas
ofDecember2013.

Focusing the lens at the regional level, Bicol is the countrys

leading abaca producer. The region has five (5) abaca
producing provinces, 63 abaca producing municipalities and
569 abaca producing barangays. Based on PhilFIDA Region V
statistics,theregionhasacombinedabacaproductionareaof
52,032hectaresandatotalof21,922farmersasofDecember
2013.

AsofDecember2013,Bicolregionsabacaproductionreached
55,958metrictons.Ofthis,92.3%issuppliedbytheprovince
ofCatanduanes.CamarinesSurrankedsecondwhichsupplied
2.89%oftheregionsabacaproduction.Albayrankedthirdas
the province supplied 2.91%. The provinces of Sorsogon and
Fig.4DistributionofVol.ofAbacaProduction
CamarinesNorterankedfourthandfifth,itsupplies1.13%and
0.77%oftheregionsabacaproductionrespectively.

Table5:ComparativeAbacaProduction(20092013)BicolRegion

COMPARATIVEABACAPRODUCTION20092013(inmetrictons)
DOP
PHILIPPINES
BICOLREGION
Catanduanes
Albay
Cam.Norte
Cam.Sur
Sorsogon

2009
54,584
21,169
18,811
1,229
144
745
241

2010
57,215
21,061
18,971
929
83
763
514

2011
61,341
27,109
23,459
798
82
2,101
669

2012
64,806
22,246
19,771
899.9
222
1,020
333

2013
55,958
23,752
21,556
674
180
679
263

AVE.
58,781
23,067
20,514
906
142
1,062
404

%Share
100%
39.2%
34.9%
1.5%
0.2%
1.8%
0.7%

%GR
1
4.26
4.45
12.71
27.11
23.24
18.06

Tables 5 and 6 would highlight the role of the Province of Catanduanes in the countrys abaca
landscape. It is a very important abaca producing province which supplied 35% of the countrys
abacaproduction.

While the countrys growth rate on abaca fiber production increased measly by 1%, the Bicol
regionsfiberproductionincreasedby4.3%fortheperiod20092013.TheprovinceofCamarines
Norte marked the highest increase of 27.1% followed by Camarines Sur and Sorsogon with 23.2%
and18.1%respectively.TheprovinceofAlbayexperiencedanaveragedecreaseof12.7%from1,229
metrictonsin2009toonly906metrictonsis2013.

ThesucceedingtableshowstheareaplantedtoabacainBicolfrom20092013.

Table6:AreaPlantedtoAbaca(20092013)

AREAPLANTEDTOABACA,20092013(inhectares)
DIST.OF
PRODUCTION
PHILIPPINES
BICOLREGION
Catanduanes
Albay
Cam.Norte

15|P a g e

2009

2010

2011

2012

2013

AVE.

170,037
51,353
33,720
5,158
978

175,824
50,232
32,550
5,214
950

167,145
51,884
32,925
5,892
1,019

176,793.31
52,032.39
32,986.82
5,935.70
1,026.11

179,434.33
52,214.08
33,051.25
5,992.79
1,034.11

173,847
51,543
33,047
5,638
1,001

%
Share
100
30
19
3
1

%GR
1.43
0.44
0.48
3.95
1.47

No.Of
Farmers
113,648
21,957
12,734
2,749
865

AREAPLANTEDTOABACA,20092013(inhectares)
DIST.OF
2009
PRODUCTION
Cam.Sur
4,930
Sorsogon
6,587
Ave.Landholding/farmer

2010

2011

4,931
6,587

5,397
6,288

2012

2013

AVE.

5,424.72
6,658.96

5,457.97
6,677.96

5,228
6,560
2.3

%
Share
3
4

No.Of
Farmers
3,031
2,578

%GR
2.65
0.41

As shown in Table 6, 30% of the countrys abaca production area is found in Bicol Region. Of this,
19% is located in Catanduanes and the remaining 11% area spread around the provinces of
Sorsogon, Camarines Sur, Albay and Camarines Norte. The high productivity of abaca farms in
Catanduanesisthemainreasonwhyitisabletocontributeasignificantlyhigherpercentageshareof
volumeofproduction,comparedtoarelativelylowershareofabacahectarage.

Overall,fortheperiod20092013theregionsareaplantedtoabacaincreasedbyonly0.44%.The
provincesofAlbay,CamarinesSur,CamarinesNorteandSorsogonhadanaverageincreaseof3.95%,
2.65%, 1.47% and 0.41% respectively. The abaca production area of Catanduanes on the other
hand, decreased by an average of 0.48%. The lack of any government support or private sector
commitmenttoplantadditionalabacaseedlingsledtothisdecline.

Table7showstheannualaveragefiberyieldinabacabetween20092013.

Table7:AnnualAverageFiberYield(20092013)

ANNUALAVERAGEFIBERYIELD/Ha.20092013(inmetrictons)
DIST.OF
PRODUCTION
PHILIPPINES
BICOLREGION
Catanduanes
Albay
Cam.Norte
Cam.Sur
Sorsogon

2009
.32
.42
.56
.24
.15
.15
.04

2010

2011

.33
.42
.58
.18
.09
.15
.08

.37
.44
.60
.09
.02
.24
.08

2012

2013

.37
.43
.60
.15
.22
.19
.05

.31
.44
.65
.11
.17
.12
.04

AVE.

%Growth

0.34
0.43
0.6
0.15
0.13
0.17
0.06

0.24%
1.20%
3.84%
8.75%
214.87%
0.58%
10.63%

Based on the 2013 data from PhilFIDA, the average fiber yield per hectare in the country is 0.34
metrictonsor340kilos.Attheregionallevel,Bicolregionsaverageabacafiberyieldperhectareis
0.43metrictonsor430kilos.Thisiswaybelowthepotentialof2.5to3tonsperhectareforawell
managedabacafarmbasedonPhilFIDAdata.

The province of Catanduanes posted an impressive fiber yield of 0.60 metric tons or 600 kilos per
hectarewhichishigherthanthenationalandtheregionalaverage.TheprovincesofCamarinesSur,
Albay and Camarines have an average fiber yield per hectare of 0.17, 0.15 and 0.13 metric tons
respectively. The province of Sorosogon has the lowest fiber yield per hectare with an average of
only0.06metrictons.

Table8:Top10AbacaProducingMunicipalitiesinBicolRegion(ExistingAbacaProductionArea)
Province/CongressionalDistrict/
No.OfAbacaProducing
Area
No.OfFarmers
Municipality
Barangays
(inhectares)
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Catanduanes

16|P a g e

Caramoran
SanMiguel
Viga
Baras
Bato
Virac

26
2O
27
24
25
14

1,967
1,741
1,841
1,447
1,437
933

6,314.16
6,173.02
4,627.95
4,045.64
2,690.23
2,311.71

Province/CongressionalDistrict/
Municipality
Catanduanes
Catanduanes
Albay
Catanduanes

Pandan
SanAndres
Malinao
Gigmoto

No.OfAbacaProducing
Barangays
27
21
11
7

No.OfFarmers
1,059
685
757
771

Area
(inhectares)
1,830.57
1,716.47
1,526.16
1,457.92

Nineoutofthetop10abacaproducingmunicipalitiesbasedonareaofproductioninBicolregion,
arefromtheprovinceofCatanduanes.Thisisexpectedas92.29%oftheregionsabacaproductionis
producedbyCatanduanes.Thesituationissimilarfortop10abacaproducingmunicipalitiesbased
onnumberoffarmers.OnlythemunicipalityofMalinaointheprovinceofAlbayenteredthelistand
rankednumber9forbothcriteria.

Table9:Top10AbacaProducingMunicipalitiesinBicolRegion(NumberofFarmers)
Province/CongressionalDistrict No.OfAbacaProducing
Area
No.OfFarmers
/Municipality
Barangays
(inhectares)
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Albay
Catanduanes

Caramoran
Viga
SanMiguel
Baras
Bato
Pandan
Virac
Gigmoto
Malinao
SanAndres

26
27
2O
24
25
27
14
7
11
21

6,314.16
4,627.95
6,173.02
4,045.64
2,690.23
1,830.57
2,311.71
1,457.92
1,526.16
1,716.47

1,967
1,841
1,741
1,447
1,437
1,059
933
771
757
685

For a clearer picture at the provincial level, presented in the table below are the top 5 abaca
producingmunicipalitiesintheprovincesofCatanduanes,Sorsogon,AlbayandCamarinesSur.

Table10Top5AbacaProducingMunicipalitiesPerProvince(ExistingAbacaProductionArea)
No.OfAbacaProducing
Area
Municipality
No.OfFarmers
Barangays
(inhectares)
CATANDUANES
Caramoran
26
6,314.16
1,967
SanMiguel
2O
6,173.02
1,741
Viga
27
4,627.95
1,841
Baras
24
4,045.64
1,447
Bato
25
2,690.23
1,437
SORSOGON
Irosin
10
1,007
262
SorsogonCity
15
780
247
Magallanes
15
628
133
Bulusan
9
517
297
Bulan
11
516
168
ALBAY
Malinao
11
1,526.16
757
Tiwi
12
1,389.22
560
TabacoCity
13
845.61
345

17|P a g e

No.OfAbacaProducing
Area
No.OfFarmers
Barangays
(inhectares)
Malilipot
8
829.87
349
Manito
7
705.01
322
CAMARINESSUR
Goa
5
947
504
Presentacion
14
938
673
Ocampo
3
687
220
Sagnay
7
570
412
Buhi
7
533
303
Presented in Table 11 is the complete list of abaca producing municipalities and barangays in the
Bicol Region based on PhilFIDA Region 5 report. Also presented in the table is the area planted to
abacaandthecorrespondingnumberoffarmers.

BasedonPhilFIDAestimates,the21,922abacafarmersintheregionwouldhaveatotalof131,742
dependents.

Table11:BicolRegionAbacaProducingProvinces,DistrictsandMunicipalities
Province/Congressional
No.OfAbacaProducing
Area
No.Of
District/Municipality
Barangays
(inhectares)
Farmers
Municipality

ALBAY
st
1 District
Tiwi
Malinao
TabacoCity
Malilipot
Bacacay
Sto.Domingo
nd
2 District
LegaspiCity
Manito
Daraga
Camalig
rd
3 District
Guinobatan
Ligao
Oas
Polangui
CAMARINESNORTE
st
1 District
Labo
Capalonga
Paracale
JosePanganiban
nd
2 District
Daet
SanVicente
SanLorenzoRuiz
Basud
Mercedes
CAMARINESSUR
st
1 District

18|P a g e

94
57
12
11
13
8
9
4
19
2
7
3
7
18
11
2
2
3
55
40
23
10
5
2
15
1
3
4
1
6
79
7

5,935.79
4,737.60
1,389.22
1,526.16
845.61
829.87
106.75
40.00
772.89
12.50
705.01
5.45
49.93
425.30
50.15
206.15
19.00
150.00
1,026.11
770.56
523.86
75.70
51.00
120.00
255.55
4.00
140.30
55.00
1.50
54.75
5,424.72
73.50

2,730
2,122
560
757
345
349
75
36
377
6
322
5
44
231
62
75
14
80
865
719
536
61
48
74
146
2
54
50
3
37
3,018
47

Province/Congressional
District/Municipality
Ragay
DelGallego
Libmanan
rd
3 District
NagaCity
Pili
Calabanga
Ocampo
th
4 District
Presentacion
Goa
Tigaon
Sagnay
Tinambak
Garchitorena
Lagonoy
SanJose
Caramoan
th
5 District
Buhi
SORSOGON
st
1 District
Casiguran
Castilla
Magallanes
Pilar
SorsogonCity
nd
2 District
Bulusan
Gubat
Barcelona
Juban
Bulan
Irosin
Matnog
Sta.Magdalena
PrietoDiaz
CATANDUANES
LoneDistrict
SanAndres
Panganiban
Bagamanoc
SanMiguel
Viga
Pandan
Caramoan
Virac
Gigmoto
Baras
Bato
TOTAL

No.OfAbacaProducing
Barangays
7

10
1
2
4
3
55
14
5
9
7
2
6
6
1
5
7
7
129
47
14
2
15
1
15
82
9
12
8
12
11
10
11
8
1
212

21
10
11
2O
27
27
26
14
7
24
25
569

19|P a g e

Area
(inhectares)

No.Of
Farmers

66.25
7.25

1,191.20
134.95
190.50
179.00
686.75
3,626.62
937.50
946.78
179.80
570.28
32.21
480.66
269.89
72.50
137.00
533.40
533.40
6,658.96
2,664.70
480.45
248.75
628.00
7.00
780.20
3,994.26
516.83
476.72
402.15
237.00
515.75
1,007.21
455.20
294.20
89.20
32,986.82

1,716.47
845.50
972.95
6,173.02
4,627.95
1,830.57
6,314.16
2,311.71
1,457.92
4,045.64
2,690.23
52,032.40

41
6

420
51
80
69
220
2,248
673
504
81
412
84
221
193
55
25
303
303
2,575
882
201
86
133
2
247
1,693
297
256
132
257
168
262
120
177
24
12,734

685
394
459
1,741
1,841
1,059
1,967
933
771
1,447
1,437
21,922

SECTION3.NATUREANDSTRUCTUREOFTHEIINDUSTRY
A. VALUECHAINMAPPING
The abaca industry sector is composed of abaca nursery operators and farmers, farmworkers,
traders,traderexporters,gradingandbalingestablishments(GBEs),manufacturers(pulpandpaper,
cordageandropes,textiles),andfibercraftprocessors.Alltheplayers,exceptfarmers,arerequired
tosecureapermitfromFIDA.

Asof2013,theBicolregionhas21,922abacafarmerswithanaveragefarmholdingof2.4hectares
and an estimated dependents of 131,742. The region has 143 abaca traders, 5 grading and baling
establishment (GBEs), 1 pulp mill, 1 cordage manufacturer, 4 buying stations and 65 fibercraft
processors.

Fig.5BicolRegion,AbacaValueChainMap1

Presentedintables12to16arethelistofabacaplayersindifferentprovincesoftheregion.

Table12:NumberofAbacaFarmersPerProvince
AbacaFarmers
Province
No.OfFarmers
Est.No.OfDependents
Albay
25
16,380
CamarinesSur
14
18,186
CamarinesNorte
26
5,190
Catanduanes
55
76,404
Sorsogon
26
15,468
TOTAL
143
131,742
20|P a g e

Table13:NumberofAbacaNurseriesPerProvince
ABACANURSERIES
Location
No.ofNurseries
Area(ha.)
PlantPopulation
Albay
5
6
35,300
CamarinesNorte
2
2
3,100
CamarinesSur
13
34
313,060
Catanduanes
13
9.25
49,296
Sorsogon
5
5
8,700
TOTAL
38
56.25
409,456

There are 38 abaca nurseries spread in strategic areas in Bicol region. Among the agencies that
helpedestablishedabacanurseriesintheregionarethePhilFIDA,localgovernmentunits,national
governmentagenciesandnongovernmentorganizations.

Ofthe38abacanurseries,12areopentypehighdensity(OTHD)abacanurseries.OTHDareabaca
nurserieswithaplantpopulationof10,000perhectare.Ten(10)abacanurseriesaresemiOTHDor
abacanurserieswithplantpopulationof6,500to7,500perhectare.Atotalof11abacanurseries
are plantation type or those with a plant population of 1,000 to 2,000 per hectare. Three abaca
nurseriesareclassifiedasordinarynurseriesorthosewithcapacityof400to800perhectare.There
are2fieldnurseriesestablishedbyPhilFIDAwithcapacityof2,500perhectare.

In summary the region has a total of 38 abaca nurseries planted in 56.25 hectares with a plant
populationof409,456.

Table14:NumberofAbacaTradersandGBEsPerProvince
LOCALTRADERSANDGBEs
Province
No.OfLocalTraders
No.OfGBEs
Albay
25
2
CamarinesSur
14
1
CamarinesNorte
26

Catanduanes
55
1
Sorsogon
26

TOTAL
143
4

Bicolregionishometo143abacatradersand4GBEs.Catanduaneshasthemostnumberofabaca
traderswithatotalof55.Thepresenceofabacatradersinalltheprovincesoftheregionshowsthat
farmershaveaneasyaccesstomarket.Fromthetotalof65abacaproducingmunicipalitiesinthe
region,eachmunicipalityhasanaverageof2abacatraders.Catanduaneshasanaverageof5abaca
traderspermunicipality.

Table15:NumberofAbacaPulpMill,BuyingStationandCordageManufacturerPerProvince
PULPMILLS/BUYINGSTATIONS/CORDAGEMANUFACTURERS
Province
PulpMills
BuyingStation
CordageManufacturers
Albay
1
2
1
CamarinesSur

CamarinesNorte

Catanduanes

Sorsogon

TOTAL
1
4
1

21|P a g e

AbacacordagemanufacturingandpulpprocessingintheregionissituatedintheprovinceofAlbay,
theregionalcapitalofBicol.Theregionhas4abacabuyingstations,2ofwhicharelocatedinAlbay
and2areinCatanduanes.

As shown the table 16, around 97% of the fibercraft processors in the region operates in the
provinceofAlbay.

Table16:NumberofFibercraftProcessorsPerProvince
FIBERCRAFTPROCESSORS
Province
FibercraftProcessors
Albay
61
CamarinesSur

CamarinesNorte

Catanduanes
3
Sorsogon

TOTAL
63

Fig.6BicolRegion,AbacaLeadFirms

As shown in figure 6 above, most of the processing activities are done in the regional center, the
provinceofAlbay.TwoGBEsandbuyingstationsandapulpandcordagemanufactureroperatein
theprovince.Majorityoffibercraftprocessorsarealsosituatedintheprovince.

While there are quite a number of intermediaries in the regions abaca landscape, the market for
abaca is still dominated by big companies who operate pulp mills or who supply to their sister
companies engaged in abaca pulp processing. These big companies set up their network in major
22|P a g e

abaca producing areas in the region. Catanduanes, where 92% of abaca production in the region
comesfromishometoseveralabacatradersandbuyingstations.

Aside from the big buying stations setup by GBEs and pulp processors in areas where abaca
productionvolumeisbig,GBEsalsogethugevolumeoftheirsupplyfromprovincialandmunicipal
traders.Inareaswhicharefarfrombigtradersandbuyingstations,consolidationofabacaisdone
byvillagetradersbeforethesearedeliveredtoprovincialtradersofGBEs.Themaindestinationof
abaca produced in the province is Tabaco City where GBEs set up warehouses. Tabaco City also
servesasashippingpointforabacadeliveredoutsidetheregion.

ThreeofthebigGBEsoperatingintheregionaretheManilaHempInc.,ChingBeeCorp.,andTag
Fiber.

ManilaHempTradingCorp.(MHTC)
MHTC set up GBEs in Sagnay, Camarines Sur and Virac Catanduanes. The companys Virac
GBE is where the companys biggest abaca fiber volume is consolidated. The estimated
volumeofabacafiberboughtbyMHTCinCatanduanesperyearis3,300metrictons.Ofthis,
eightypercent(80%)isdeliveredtoitsbuyerNewtechPulp,Inc.aGlatfeltercompanythat
operates a pulp mill in Iligan City, Lanao del Norte. The remaining 20% is divided and
suppliedtoabacafiberexporterSCTanExportbasedinSamarandtolocalmarket(cordage
manufacturers).MHTCalsohasabuyingstationinSanAndres,Catanduanes.

ChingBeeTradingCorp.
ChingBeepridesitselfasthebiggestabacatraderintheworldandforemostleaderinthe
Philippineabacaindustry.TheCompanyalsomanufacturesandexportsabacapulpthrough
its affiliate company Specialty Pulp Manufacturing, Inc. (SPMI). Ching Bee maintains five
branchesthatarestrategicallylocatedinthemajorabacacentersofthePhilippines:Tabaco,
Albay;DavaoCity;Baybay,Leyte;Virac,Catanduanes;andMeycauyan,Bulacan.Italsohasa
ManilaLiaisonOfficelocatedinQuezonCity,MetroManila.

ThecompanyhasabuyingstationlocatedinViracCity,CatanduanesnamedViracCentral
Logistics Corp. The companys buying station in Catanduanes has an estimated annual
volume of abaca fiber collected of 4,000 metric tons. All abaca fibers collected from its
CatandanuanesbuyingstationaredeliveredtothecompanysGBEinTabacoCity.Chingbee
Corp. delivers abaca fiber to Specialty Pulp Mfg. Inc., (SPMI). SPMI is engaged in the
manufacture,sale,andexportoffoodgradeandnonfoodgradebleachedandunbleached
specialty pulp, mainly from abaca, as well as other natural long fibers such as sisal, kenaf,
andjute.

TagFiber,Inc.
OneofBicolregionsbiggestabacabuyerisTagFiberInc.Thecompanyisengagedintrading
andexportingabacaandothernaturalfibersbothforexportandlocalmarkets.Asasource
network, its grading and baling establishment (GBEs) are located in three (3) major abaca
producingregionsofthePhilippinesDavaoCity,MaasinCity(S.Leyte)andTabaco,Albay.
IthasbuyingstationsinBaybay(So.Leyte)andVirac(Catanduanes).TagFibersInc.isoneof
the few exporters with branches and/or buying stations strategically located in the abaca
producingareasofthecountry.

The companys estimated volume of abaca fiber bought per year in Bicol region is 2,600
metric tons. Seventy percent (70%) of the companys abaca fiber is supplied to its sister
company, the Albay Agricultural Development Corp. (ALINDECO) which operates a pulp
23|P a g e

processing plant in Malinao Albay. Twenty percent (20%) the companys abaca fiber is
supplied to abaca cordage manufacturers and the remaining 10% are exported as baled
abacafiber.

AlbayAgriculturalDevelopmentCorp.(ALINDECO)
Albay Agricultural Development Corp. (ALINDECO) is an ISO 9001:2000 certified company
engaged in the manufacture of abaca pulp sheets. The company operates its pulp mill in
Malinao,Albay.Thecompanysestimatedvolumeofabacafiberprocessedrangefrom500
to 600 metric tons per month. Around 50% of the companys abaca fiber supply is from
Mindanaoandtheremaining50%issuppliedequallybyLeyteandtheBicolregion.

PacificCordageCorp.
The sole abaca cordage manufacturer in Bicol is Pacific Cordage. Their processing plant is
locatedinSanDomingo,Albay.Thecompanyhasacapacityof100metrictonspermonth.
ThecompanygetsitssupplyofabacafiberfromCatanduanes,Albay,SamarandMindanao
through abaca traders and GBEs. Ninety percent (90%) of the companys products are
exportedtoEurope,USA,AsiaandtheMiddleEast.Theremaining10%aresoldinthelocal
market.

Based on PhilFIDA data, 89% of the regions local abaca consumption from abaca pulp mills, 10%
comes from the sole abaca cordage manufacturer and only 1% comes from abaca fibercraft
processors.

Looking at the regional abaca landscape, the province of Catanduanes is the regions abaca
productionareaalongwithSorsogonandCamarinesSur.TheProvinceofAlbayistheregionsabaca
processingcenteraspulpmills,acordagemanufacturer,andfibercraftprocesorsdobusinesshere.

Fig.7BicolRegion,AbacaSubValueChain(channels)

Figure7aboveshowshowtheproductionandcollectionprocessofabacafiberisbeingorganized.
Asthevaluechainmapshows,theregionsabacavaluechainhasroutesleadingtotopabacafiber
users.Thesearetheabacapulpmillswhichconsumes89%oftheregionsabacafiberproduction,
thecordagemanufacturerwhichconsumes10%andfibercraftprocessorswhichconsume1%.

24|P a g e

Abacafarmersintheregionhaveseveralchannelswheretheycanselltheirproductsto.Thereare
abacafarmerswhoselldirectlytoabacafibercraftprocessors.However,mostofthefarmersabaca
producedaresoldviaabacatradersoperatingwithintheirlocalities.

GBEs get their abaca fiber from their regular suppliers, the abaca traders. GBEs limit or only get
supply from their regular/identified trader/supplier from a certain area. This is to protect the
businessoftheirtradersupplierwhileensuringconsistencyandsustainabilityatthesametime.The
cordagemanufactureralsousethesamepractice.

Fibercraft processors on the other hand get their supply of abaca fibers directly from farmers and
abacatraders.Smallfibercraftprocessorsgettheirsupplyfrompreferredfarmersupplierswhoare
abletomeettheirqualityrequirements.

AtthelevelofGBEsandcordagemanufacturers,thefirmsswapcertainabacafibergradestheyneed
fortheiroperations.ThelattercanoperateusinglowergradesofabacafiberwhileGBEsoftenneed
goodqualityfiberstosupplytotheircompanyownedpulpmills.

B. KEYPLAYERSANDFUNCTIONS
The abaca industry is made up of six major groups of industry players: nursery operators and
farmers,farmworkers/strippers,classifiers,traders,fiberexportersandprocessors/manufacturers.

AbacaNurseryOperatorsandAbacaFarmers
Abaca nurseries are mostly established/funded by the government and NGOs to support
abaca industry development. Hence, a lot of these nurseries are not operated as business
butwereputupasasourceoffreeseedlingsforfarmersinterestedinfarmexpansionand
rehabilitation.Withtheongoingabacafarmproductionandrehabilitationactivities,abaca
nurseries especially in Sorsogon and Albay areas cannot supply the demand. As a result,
abaca farmers are forced to use/source abaca planting materials from abaca farms within
theareawhichdoesnotassurethemofqualityandproductivity.

Abacafarmersperformfarmproductionandsemiprocessingactivities.Generally,farmersin
the region are fragmented. There have been efforts in the past in organizing farmers for
collectivemarketingandvalueadding,mostofthemhavenowceasedtooperate.

At the production side, productivity of abaca farms in the region is generally low. The
provinces of Albay, Camarines Sur and Sorsogon have lower productivity as compared to
Catanduanes.Thelackofpostharvestfacilitiesalsocontributedtothelowqualityofabaca
fibersproducedbyfarmers.Inaddition,thelackofwarehousesanddryingfacilitiesduring
the rainy season affected not only the abaca farmers, but also the operations of abaca
processors as well. Farmers avoid harvesting abaca during the rainy season which
consequentlyhamperstheoperationsofabacapulpmillsandcordagemanufacturers.

Strippers
Strippersextractthefibers,eitherbyhandorbymechanicalmeans.Includedinthestripping
workareharvestingofstalks,tuxyinganddryingoffibers.Thestrippersarepaidonapre
determinedsystemwhereintheyreceive50,60or70percentoftheharvest,dependingon
the prevailing practice agreed upon. There is a limited number of skilled strippers in the
region, particularly in Catanduanes. Some abaca farmers get abaca strippers from the
mainland.
25|P a g e


Thelackofskilledabacastrippershasforcedmanyabacafarmers,especiallyinCatanduanes,
to work with those who do not haveenough skills to perform the activity. As a result,the
quality and quantity of abaca fibers produced are also affected. The lack of an organized
system and low levels of trust among farmers and abaca strippers often result to
disagreementsanddissatisfactionbetweenfarmersandabacastrippers.

Classifiers
ClassifiersareusuallyemployedbyGBEsandbuyingstationstosortandgradeabacafibers
based on the standards set by the government. Classifiers are paid by GBEs on an output
basis. The total number of abaca fiber baled by workers will be the basis for their fee at
Php70.00 per bale. Fourteen workers can finish an average of 150 bales per day or a daily
fee of Php700.00 to Php900.00 per day, depending on output. That will be for the whole
processofcleaning,sorting,gradinguptobaling.

The main problem abaca classifiers are facing is the quality of abaca fibers they get from
traders. Much of the cleaning work is on the removal of debris and other objects such as
leaves,woodpieces,andsometimesanimalmanuresmixedwiththeabacafibersdelivered
to them. This is due to the lack of post harvest facilities both at the farmers and traders
level.

Traders
Tradingofabacafibersisdoneatdifferentlevels.Therearevillagetraders,municipaltraders
and provincial/regional traders. Traders are classified depending on the volume of fibers
graded.ClassAtradersellsmorethan75,000kilosoffiberperyear.ClassBtradermore
than 50,000 kilos per year, Class C trader more than 25,000 kilos per year and Class D
trader25,000kilosandbelow.

Tradersdotheconsolidation/buyingofabacafibersfromfarmertotradermostlyinanallin
basis.Beforedeliveringtobuyingstations,GBEsandcordagemanufacturers,tradersdothe
abacafibergradingprocess.Tradersell/delivergradedabacafiberstotheirbuyers.Inmost
cases,tradersdothesemisorting/gradingofabacafibertoavoidlosseswhengradingisnot
properlydoneattheirlevel.

The grading system of abaca has been the bone of contention between abaca traders and
GBEs. Traders in all provinces in the region face the same problem of losing money
whenever they buy sorted/graded abaca fibers at their level. As a result, traders refrained
frombuyingsorted/gradedabacafibersfromthefarmersandoptedfortheallinbuying
practice. This according to abaca traders is the best way for them to avoid losses. This
however, affects quality and efficiency in the chain, as this may cause farmers to produce
lowerqualityabacafibers,sincetheywillbegettingthesamepriceanyway.

FiberExporters
The fiber exporters, also known as grading and baling establishments (GBEs), operate in
majorabacaproducingregionsandusuallymaintainliaisonofficersinMetroManila.Itisin
thissectorwhereabacafibersforlocalorforeignconsumptionaregradedandbaled,using
highdensitypresses,into125kgs.of100cmx55cmx60cmbundlesperspecificgradesof
fiber.Thereare10licensedGBEsoperatinginthecountryand4oftheseareinBicolregion.

Themainconstraintfacedbyfiberexportersisthelackofsupplyofabacafiberstomeetthe
demand of the market. In addition, low quality of abaca fiber produced by farmers also
26|P a g e

affects operations of the GBEs/abaca exporters as they have to spend time and money in
cleaningandgradingabacafibersdeliveredtothem.

Processors/Manufacturers

PulpMillers
Asof2013there4pulpmillingcompanyoperatinginthecountryandoneofthisisinBicol
Region, the Albay Agro Industrial Development Corp. (ALINDECO). Pulp mills usually have
affiliate companies engaged in bulk buying or operating GBEs to support abaca fiber
requirement of the pulp mills. Pulp mills have wellestablished market networks for their
pulpproductswhichareprincipallydestinedfortheworldmarket.

SamewithGBEs/abacafiberexporters,mainproblemofabacapulpmillsisthelackofsupply
of abaca fibers. In Bicol region, ALINDECO has to source supply of abaca fiber from the
VisayasandMindanaotosupplyitsoperationasthevolumeofabacafiberstheygetfrom
theregionisnotsufficient.GettingabacafiberfromMindanaoandtheVisayasentailshuge
costonhaulingandtransportation.

CordageManufacturers
Therearecurrentlysix(6)cordagefirmsoperatinginthecountryandoneofthisisinBicol
Region, the Pacific Cordage Corp. Cordage manufacturers use abaca fiber as the principal
rawmaterialsforrope,cordageandtwinemanufacturing.Thelackofsupplyofabacafiberis
alsoaproblemforcordagemanufacturers.

Cordage manufacturers use lower grade of abaca fibers for its cordage/rope production.
Cordagemanufacturersoftenwork/collaboratewithGBEsintheswappingofcertaingrades
ofabacafiberstheyeachneedfortheiroperations.

FibercraftProcessors
The fibercraft sector, which includes handmade papermaking, rugs and carpet
manufacturingandhandloomweaving,isprimarilycottagebasedindustry.Operatingmostly
inthecountryside,thesectorisamajorsourceoflivelihoodespeciallytothewomenfolkand
outofschool youth. Several of these manufacturers have successfully established their
marketsabroadespeciallywiththeirunique,functionalandcreativedesigns.

The handloom weaving sector produces abaca fabrics which are used as raw material for
making novelty and household items, decors, wrapping materials, fashion wear, and
accessories. Some abaca weaves are blended with metallic polyester while others have
printed,striped,andethnicdesignstosuitthevaryingneedsofthemarket.Theindustryis
mainly found in Bicol, Western Visayas, Eastern Visayas, Central Visayas and in Southern
Mindanao.

In2012,thereweresome111licensedfibercraftprocessorsinthecountrywhouseabaca
fiber as the raw material for their processing activities, of these, 63 are from the Bicol
Region.

For certain type of products they produce, fibercraft processors have specific abaca fiber
gradetheyneeded.Abacafibercraftprocessorsarethebiggestbuyerofabacabakbakwhich
the industry blamed as one of the reasons of abaca pest and disease infestation. The
industryplanstoregulatethiswhichwouldaffectbakbakprocessorsoperations.

27|P a g e

C. NATUREOFINTERFIRMRELATIONSHIPS
Generally, abaca players in the Bicol region are fragmented. There have been no industry
associations or industry leaders that push for abaca industry development. Most of the efforts in
promotingabacaindustrydevelopmentaregovernmentled.Therehavebeeneffortsinthe90sin
formingabacaindustryassociationsrepresentedbyprivateplayers,butthesewerenotsustained.

Therelationshipbetweenthefarmersandtradersisarmslength,basedonsupplyanddemand.In
areas where there are several abaca traders, farmers switch to any buyer offering a better price.
There are however semblances of longterm relationships through a suki system wherein a
farmerregularlysellstheirproducetothesamebuyer,andwheretheirrelationshipshavebeenbuilt
inyears.

The flow of market information is generally lacking in the abaca marketing system. The farmers
main source of market information is the abaca traderwhom they sell their product to. Other
farmers learn about information on price from fellow farmers and vehicle drivers who deliver
farmersproduce.PricingofabacafibersaregenerallysetbyGBEs.

Fig.8BicolRegion,AbacaLinkagesandValueChainGovernanceMap

Farmersintheregionaregenerallyfragmented.Therehavebeenseveraleffortsbythegovernment
and NGOs in the past in organizing farmers for collective marketing and value adding activities.
Farmer groups organized under the SAISBC Project were also provided with common service
facilities such as abaca stripping machines. GBEs and buying stations in the region do not buy
machinestrippedabacafibersbecausequalityisnotgoodandrecoveryislow.Asaresult,farmers
stopped using the machines they were provided with. Cooperation between and among abaca
farmersisnotcommon.Collectivemarketingandbuyingofinputsamongfarmersisnotacommon
practice.Asaresult,farmershavelowbargainingpowerandarenotabletoaccessbetterpricesor
morelucrativemarkets.

28|P a g e

Tradertotraderrelationshipisinformalandanyformofcooperationisnotpresent.Thesameistrue
with the lead firms. Cooperation among GBEs and cordage manufacturer only happens through
exchange/swappingofcertaingradesofabacafibertheyneed.

Thereisnoformalcooperationthatbindstheseplayerstogetherasanindustry.Theonlyoccasions
wheretheseplayerscometogetherareduringeventsorganizedbyPhilFIDAandlocalgovernment
units.

Fig.9CatanduanesAbacaSustainabilityInitiative(CASI)Model

Amoreformalizedandbindingrelationshipbetweenfarmers,traders,GBEsandpulpmillhasnow
started to emerge in Catanduanes. This collaboration is the result of the compliance to product
certification requirements of the Rainforest Alliance. Farmers became organized and are provided
with premium buying price of their produce. Traders, GBE and pulp mill also provided technical
servicestofarmers.

GLATFELTERCASIrepresentsagroupofAbacafarmers,subtradersandtraderinCatanduanes(Bicol,
Philippines) under the coordination of GLATFELTER. CASI stands for Catanduanes Abaca
SustainabilityInitiative.

MajorgoalsofGLATFELTERCASI:
IntroduceandpromotesustainabilityawarenessalongtheAbacasupplychain
Establishpolicies,proceduresandstandardsandfacilitatecertificationwithGLATFELTERas
groupadministrator
Becomeanefficientgroupofabacafarmsthatplans,executesandachievesitsgoals
Buildupsustainabilitycertified,regularAbacasupply

CASIVISION

GLATFELTER CASI wants to become a role model of sustainable Abaca farming in the Philippines,
which positively affects the quality of life for its members, related families and communities using
practices that protect and enhance the environmental, social and economic resources needed by
futuregenerationstoenjoyalifeequaltoorgreaterthanourown.

29|P a g e

LearningfromthesuccessofCASI,aprivateledinitiativeinorganizingabacafarmersisnowbeing
implementedbyotherGBEsoperatingintheregion.Thesecompanieshavenowstartedtakingsteps
towardsgettingaRainforestAlliancecertification.

D. PRICEANDCOSTSTRUCTURE

1. IncomeandProfits
FarmProduction

The farmer of a one (1) hectare, productive abaca farm in the Bicol region can earn as much as
Php34,000.00 per year. Based on the cost and return analysis data of PhilFIDA Region 5, an abaca
farmerwouldbeabletostartharvestingonthesecondyearofplantingabaca.Forastartupcapital
of Php53,925.00 a farmer would be able to fully recover his investment on the fourth year. This
figure can be lowered however depending on the practices and culture of cooperation among
farmersinthearea.

For instance, abaca farmers in the region normally get supply of abaca planting materials from
withintheirfarmsoffromtheirneighbours.Dependingontherequirement,somefarmerscanget
plantingmaterialsfromneighboursandrelativesforfree.Pricesofabacaplantingmaterialsinthe
regionrangefromPhp2.00toPhp5.00perpiece.Mostfarmersdonotapplyfertilizersintheirabaca
farms.

Presentedinthetablebelowisthecostandreturnanalysisforaone(1)hectareabacafarminthe
BicolRegion,aspreparedbyPhilFIDARegion5.

Table17:AbacaCostandReturnAnalysis
PARTICULARS
YEAR1
YEAR2
YEAR3
YEAR4
YEAR5
TOTAL

EXPENSES
21,400.00
5,120.00
16,896.00 18,585.60 20,444.16
82,445.76
Suppliesandmaterials
31,850.00
1,215.00
3,777.00
4,597.20
4,806.92
46,246.12
Labor
175.00
175.00
175.00
175.00
175.00
875.00
DepreciationCost
500.00
500.00
500.00
500.00
500.00
2,500.00
LandTax
53,925.00
7,010.00
21,348.00 23,857.80 25.926.08 132,066.88
TOTALCOST
n/a
n/a
n/a
107.99
46.90

BreakevenCost
FiberYieldPerHectare
none
750.00
2,250.00
3,000.00
3,000.00
9,000.00
(kilos)
(EquivalentShare:50%
none
375
1,125
1,500
1,500
4,500
fortheowner)
n/a
15,000.00
45,000.00 60,000.00 60,000.00 180,000.00
TOTALINCOME
(53,925.00) (43,935.00) (22,283.00) 13,859.20 34,073.92
47,933.12
NetIncome/Loss
Percent(%)Returnon
n/a
n/a
n/a
10.49
25.80
36.29
Investment)
Assumption:Php40.00PricePerKilogram
Source:PhilFIDARegion5

Looking at the income sharing scheme, the abaca farmer and abaca stripper share the income
equallyat50%.Inotherareas,likeCamarinesSur,thesharingschemeis60:40where60%goesto
abacastripperand40%goestoabacafarmer.

30|P a g e

2. RelativeFinancialPositionofPlayers
Looking at figure 10, farmers gets the biggest share of value in the abaca fiber revenue along the
chainwhichaccountsfor68%.Thishoweverwillbedividedbytheabacafarmerandabacastripper.
At50:50ratio,thisimpliesthatanabacafarmersgetsonly34%ofthevalueandtheother34%goes
toabacastripper.Around13%ofthevaluegoestothetraderwhileabacaexportersget16%.

Fig.10Distributionofvalue/revenuealongthechain

With figures presented above, we could surmise that abaca farmers actually get a good share of
revenuealongthechain.However,actualfarmersincomesarelimitedbecausetheyaredependent
onsizeoffarmandfarmproductivity.

Withregardtoabacatradersandexporters,theshareofrevenuesislower.However,actualincomes
canbehigherbecauseofthefirmscapacitytoincreaseorexpanditsoperations,throughincreased
volumes.

By just looking at the firms interconnectivity, focusing interventions to improve income and
efficiencyofeachfirmwouldactuallyhelptheothers.Assuch,helpingincreasethefarmersincome
through improving farm productivity will, at the same time, benefit the traders and exporters as
theiroperationswillalsoincreaseorexpand.Inthesamemanner,increasingtradersandexporter
capacity to absorb production through improved processes and facilities will also benefit abaca
farmersastheywillbeabletosellmoreabaca.

31|P a g e

3. CostandReturnsforAbacaFibercraftEnterprises
a.AbacaScrunchProduction

Abacascrunchismadefrommattedfinefibersofabacabondedbystarchsolutionorglue.
Abacascrunchisusedtoproducefinishedproductssuchasplacemats,handbags,photoframes,
amongothers.

Table18.CostandReturnsforAbacaScrunchProduction
PARTICULARS
Amount(Php)
Sales(5meters@P45)
225.00
Costs

1KiloRawFiber(S2)
70.00
Binder(glue,stiffon)
33.00
Labor
37.50
TotalCosts
140.50
NetIncome
84.50
Source:PhilFIDA5

Materialsneeded:
37.5g :
Bleached/dyedabacaS2fiberscutintoatleast15incheslong
1m
:
Plastic,gauge4,cuthorizontallytohave2pcs.Of62cm.X1mmaterial
1m
:
Plasticscreen,3/8in.X3ft.Mountedonwoodedframewith4legs3ft.High
1m
:
Flattable,2ft.Wide,3ft.high
1pc. :
Squeegee
1unit :
Weighingscale,capableofmeasuringtothenearestgram
1pc. :
Stirringrod
500ml. :
Glueorstarch
18.8g. :
Starch,cookedwith1literlukewarmstarchsolution
1pc. :
Smallpailordippertoholdatleast1.5litersofliquid

Onekilogramofrawfibercanproduce5metersofabacascrunch.Theproductiscurrently
soldatP45permeterorP225forthewhole5meters.Totalproductioncostsforlaborand
binderisP28.10permeter.NetincomeforabacascrunchmakersisP16.90permeterorP
84.50perkilogramofrawfiber~5metersabacascrunch.

32|P a g e

b.SinamayProduction

Table19.CostandReturnsforSinamayProduction
PARTICULARS
Amount(Php)
Sinamay(15meters)
825
Costs

Fiber
140
Labor(Sinamay)
125
Labor(Tinagak)
300
TotalCosts
565
NetIncome
260
Source: Interviews
Table19showsthecostandreturnsformakingsinamayfromabaca.Arolloftinagakcan
produce15metersofsinamay,whichtakesupto3daysofweaving.Sincethisisalabor
intensiveenterprise,upto75%oftotalcostscomefromlabor.Totalcostoflaborfor
tinagakandsinamayproductionisP425.Theestimatedincomefromsinamayproductionis
P260per15meters.

33|P a g e

SECTION4:MARKETSANDMARKETOPPORTUNITIES
A. MARKETSANDMARKETTRENDS
1. ExportMarkets
Based on PhilFIDA records, for the period 2008 to 2012, the Philippines generated an average of
US$104.2millionperyearfromtheexportofabacaproducts.Sixtysevenpercent(67%)ofthetotal
average earning is generated from
the export of abaca pulp amounting
to US$69.9 million. Export of abaca
cordage, ropes and twine generated
an average earning of US$14.6
million or 14% of the export
earnings. The countrys earning for
the export of abaca fiber averaged
US$12.9millionor12%oftheexport
earnings. Average abaca fibercraft
exports amounted US$5.9 million or
6%oftheexportearnings.Exportof
abacayarnsandfabricsforthesame
period averaged US$.97 million or
Fig.11Abacaproductsexportearnings(20082012)
1%oftheabacaexportearnings.

Presentedintable18belowaretheamountsofexportearningsofabacaproductsgeneratedforthe
period20082012.

Table18:AnnualExportEarningfromAbacaFiberandManufactures20082012(inFOBUS$)
YEAR

TOTAL

FIBER

PULP

CORDAGE,
ROPES&
TWINE

YARNS&
FABRICS

FIBERCRAFTS

2008
2009
2010
2011
2012
AVERAGE

99,462,995
68,508,909
104,534,310
140,113,595
108,278,294
104,179,621

22,232,835
9,802,084
13,431,420
13,428,641
5,462,185
12,871,433

57,346,582
42,174,835
71,243,330
104,140,707
74,667,343
69,914,559

13,824,592
11,224,537
14,769,942
16,957,861
16,249,598
14,605,306

1,110,558
766,331
816,248
988,925
1,149,872
966,387

4,948,428
4,541,122
4,273,370
4,597,461
10,739,296
5,819,935

% GROWTH
RATE

-4%

-61%

-1%

2%

-2%

12%

Fortheperiod20082012,annualexportearningsgrowthrateforabacafiberandmanufacturesis
negativefourpercent(4%).Havingthehighestdecreaseistheabacafiberexportearningwith61%
andanexportearningplungingfromUS$22millionin2008toonlyUS$12millionin2012.

Abaca pulp exports also has an average drop of 1% over the 5 years period. Export earnings from
abacapulpexportsplungedfromS$104.1millionin2011toonlyUS$74.7millionin2012.Overthe
5 year period, export earnings from abaca cordage, ropes and twines has increased by 2%, while
export earnings from abaca yarns and fabrics decreased by 2%. Export earnings from abaca
fibercraftsincreasedby12%.

The overall decrease in export earnings as well as export volumes of abaca products from the
countrycanbeattributedtoPesoandDollarexchangeratewhichdecreasedby1%overthesame
34|P a g e

period.Itshighestplungewasfortheperiod2009to2010fromanannualaverageofPhp47.64to
Php45.11. The decreasing demand from the countrys major markets such as United Kingdom,
Germany,JapanandtheUSAwasalsooneofthefactorsthataffectthedecreaseinabacaproducts
exportearnings.

AbacaFiber

Europe, particularly the United Kingdom (UK), is the

premier destination of countrys abaca fiber. Around
44% or3,985 metric tons of the 2008 2012 average
abacafiberexportswereshippedtothiscountry.Asia,
particularly Japan, is the second most important
destinationofabacafiber.AbacafiberexportstoJapan
accountsto37%or3,327metrictons.

Thetablebelowpresentstheannualabacafiberexport
volume and country of destination. The huge drop of
exportvolumeofabacafiberfrom2008to2009wasa
result of global economic downturn as several
importersreducedtheirvolumeofimports.
Fig.12AbacaFiberExports

Table19:AnnualAbacaFiberExports20082012(inmetrictons)
DESTINATION
2008
2009
2010
2011
2012
AVERAGE
UnitedKingdom
6,326
3,329
4,216
3,579
2,477
3,985.40
Japan
5,287
1,502
4,680
3,867
1,297
3,326.60
China
1,384
1,770
2,068
2,094
406
1,544.40
India
79
146
175
90
56
109.20
Indonesia
75
78
21
0
83
51.40
SouthKorea

12

12

Fig.13BicolRegion,AnnualAbacaFiberExports20082012(inmetrictons)

35|P a g e

Fig.14AbacaFiberExportsbyGrade

Bicol region contributes a significant

volume of abaca exported from the
country.Fortheperiod2008to2012,Bicol
exportedanaverageof2,674metrictonsof
abaca fiber or 29.11% of the countrys
abacafiberexport.

The decrease in volume of abaca fiber

exported from the region goes along with
the national abaca fiber export
performance on the same period. The
decrease in demand of abaca fiber
importing countries as a result of global
economic downturn did not spare the
region.

BasedonaPhilFIDAstudy,ofthefourmajorgradesofabacafiber,JKandGwerethetopexports
with an average of 4,122 mt. and 3,645 mt. per year respectively. The S2 grade of abaca has an
averageexportof1,872mt.whiletheIgradeofabacagradehasanaverageexportof
1,153mt.

AbacaPulp

Almost all of the abaca pulp

manufactured in the Philippines are
shippedoutsidethecountry.Exportsof
abaca pulp averaged 20,920 for the
period20082012withgrowthrateof
1.7%.

Europe is the most important

destination for Philippine abaca as a
number
of
specialty
paper
manufacturers using abaca is situated
inthiscontinent.Around34%ofabaca
pulpexportedfromthecountrygoesto
Germany with average of 6,795 metric
tons. A total of 23% of abaca pulp
produced from the country is shipped
Fig.15AbacaPulpExports
toUnitedKingdomwithanaverageof
4,752metrictons.

Japanisanotherimportantdestinationwhichgets17%ofabacapulpproducedinthecountry,with
a corresponding volume of 17%. USA and France each buy 7% of the countrys abaca pulp
productionwithcorrespondingaveragevolumeof1,342and1,501metrictonsrespectively.China
gets 5% with a corresponding volume of 1,100 metric tons. The remaining 7% of abaca pulp
produced by the Philippines goes to other countries which include Singapore, Taiwan and South
Korea.

36|P a g e

Asidefrombeingusedascurrencypaper,abacaisprocessedintocapacitorpaper,insulationpaper,
teabag,maskingtape,stencilpaper,filteroilabsorbentpaper,andotherspecialtypaperproducts.

Presented in the table below are the abaca pulp exports from 2008 to 2012 and the country of
destination.

Table20:AverageAbacaPulpExports/Destinations(20082012)(inmetrictons)
Country
2008
2009
2010
2011
2012
AVERAGE
UnitedStates
846
113
1,498
2,837
1,414
1,342
Germany
7,293
4,564
7,117
9,000
6,001
6,795
UnitedKingdom
2,680
2,113
5,176
7,797
5,992
4,752
France
1,478
1,318
1,543
1,945
1,222
1,501
Japan
3,595
2,665
4,025
4,003
3,179
3,493
Taiwan
141
69
95
122
52
96
SouthKorea
1
22
16
38
37
23
China
352
154
1,045
2,265
1,686
1,100
Singapore

0
0
0
1,720
344
Others
1,859
1,098
475
1,926
2,013
1,474

Overall,thevolumeofabacapulpexportedfromthecountryfortheperiod2008to2012decreased
byanaverageof4%.Thebiggestplungeinexportvolumehappenedduringtheperiod2008to2009
withadecreaseof51%.Thiswasduetotheglobaleconomicdownturnduringthatyear.From2009
to 2011, export volume of abaca pulp picked up with a 36% increase during the period. Export
volumeonceagainplungedfrom2011to2012butabacapulpmillsarehopefulthatthemarketwill
eventuallyrecover.

AbacaCordageandAlliedProducts

Foreign trade of abaca cordage and

allied products such as ropes, cables
andtwinesaveraged6,456mt.forthe
period 2008to 2012. USA absorbed
bulk of the countrys abaca cordage
and allied product exports accounting
to 63% or an average of 4,098 mt.
Singapore and Malaysia followed with
9% and 4% respectively or a
corresponding volume of 558 mt. and
239mt.respectively.

Other countrys getting their supply of

abaca cordage and allied products
from the Philippines include United
Ara Emirates, Germany, Canada,
United Kingdom, and Australia.
Fig.16AbacaCordage&alliedproductexports(20082012)
Complete list of countries and
correspondingvolumeispresentedintable21.

37|P a g e

Table21:AverageAbacaCordage&AlliedProductsExports(20082012inmetrictons)
Country
2008
2009
2010
2011
2012
AVERAGE
UnitedStates
4,916
3321
4657
4662
2935
4,098
UnitedKingdom
159
48
143
109
134
119
Canada
155
146
143
185
171
160
Germany
160
105
113
160
110
130
Australia
43
34
26
28
35
33
Singapore
523
446
589
731
501
558
Malaysia
151
139
141
659
104
239
UnitedArabEmirates
111
91
163
177
90
126
OtherCountries
1,257
1011
980
813
907
994

AbacaFabric

Hong Kong is the biggest market for Philippine abaca

fabric, importing an average of 287,434sqm. for the
period 2008 to 2012 equivalent to 58% of the annual
average abaca fabric exports. Italy is the second
biggest importer of Philippine abaca fabric with an
average of 111,180 sq. m. or 22% of the annual
average.Around12%ofabacafiberexportwasshipped
to China with an average volume of 57,803sqm. Two
percent (2%) of abaca fiber exports went to United
Kingdome with an average volume of 10,696 sqm.
Nigeriagets1%ofabacafabricexportswithanaverage
volumeof5,976sqm.

Other countries getting their supply of abaca fabric

from the Philippines include United States, Japan,
Fig.17Abacafabricexports(20082012)
France, Spain and Lebanon. Corresponding volume of
abacafabricdeliveredtothesecountriesispresentedinthesucceedingtable.

Table22:AverageAbacaFabricExports/Destinations20082012(insquaremeters)
DESTINATION
2008
2009
2010
2011
2012
AVERAGE
UnitedStates
80
439

910
4,477
1,181
Japan
15,044
2,403
684
104

3,647
UnitedKingdom
7,203
2,269
11,732
8,274
24,003
10,696
France
3,554
5,442
3,226
3,127
3,321
3,734
Hongkong
455,051
361,033
270,643
181,228
169,217
287,434
Spain

15,837

2,992

5,094

503

4,885

Italy
Lebanon
China
Nigeria
OtherCountries

160,872

27,019
13,675

136,496

57,207
5,960
1,427

111,839

114,671
4,981
27,337

112,657

69,461
4,374
8,245

34,035

20,658
890
9,528

111,180
151
57,803
5,976
9,307

38|P a g e

2. DomesticMarkets
Domestic processors consumed an average of 50,598 mt or 77% of the countrys average yearly
productionofabacafiberduringtheperiod2008to2012.Thesectorsfiberconsumptionlevelwas
observedtobeincreasingfairlyatarateof2%peryear.Theabacafiberisbeingprocessedlocally
intopulp,cordageandvariousfibercraftitemsincludingfurnitures.

Table23:AnnualDomesticConsumptionofAbacabySector20082012(inmetrictons)
YEAR
2008
2009
2010
2011
2012
AVERAGE
AbacaPulp
38,702
31,074
35,306
51,779
37,435
38,859
Cordage,Yarn&Twine 10,120
7,435
9,151
9,900
6,562
8,634
Fibercrafts
2,900
2,175
2,650
2,293
5,506
3,105
TOTAL
51,722
40,684
47,107
63,972
49,503
50,598

The pulp sector consistently remained as the

growth area of the abaca industry utilizing an
averageof38,859mt.or77%oftheannualaverage
localconsumption.Thepulpmillersutilizationlevel
ishighlydependentonthedemandforpulpbythe
specialty paper manufacturers abroad as abaca
pulp is the principal raw material used in the
manufactureofmeatandsausagecasings,teabags,
cigarettepaper,currencypaperandotherspecialty
papers. Processing of abaca pulp into specialty
papers is done in Europe, the United States and
Japan instead of in the Philippines as there is no
availableprocessingfacilityinthecountry.

The cordage sector, on the other hand, consumed

an average of 8,634 mt. of abaca fiber per annum
Fig.18Domesticabacaconsumptionbysector
or about 17% of the yearly average fiber usage of
the domestic manufacturers. Fiber utilization of the fibercraft processors who are mostly cottage
based is 3,105 mt. or 6% of domestic fiber consumption. According to PhilFIDA, figures on abaca
consumption by fibercraft processors may not have reflected the actual situationas purchases of
other fibercraft makers were in loose form and therefore difficult to monitor. Unlike the other
sectors,thefibercraftprocessorsarenumerous,notaswellorganizedandarescatteredthroughout
thecountry.

Presentedinthetable24isBicolregionsshareofdomesticabacaconsumption.Ashometo1abaca
pulp mill, 1 cordage manufacturer and 63 abaca fibercraft processors, around 30% of locally
consumedabacafiberwenttoBicolregion.Averageabacaconsumptionoftheregionfortheperiod
2008to2012is15,415metrictons.

Of the regions abaca consumption, 89% went to the pulp mill with an average volume of 13,750
metrictons.Theabacacordagesectorconsumed10%oftheregionsabacaproductionwith1,484
metric tons. Only 1% of domestic abaca consumption of the region went to abaca fibercraft
processorswith181metrictons.

39|P a g e

Table24:AnnualDomesticConsumptionofAbacabySector20082012(inmetrictons)

REGIONALCONSUMPTIONOFABACA
20082012(inmetrictons)
YEAR

PHILIPPINES
2008
2009
2010
2011
2012

AVERAGE
%Share
%GrowthRate

51,722
40,684
47,107
63,972
49,503
50,598
100
2

BICOLREGION
15,179
12,070
16,868
17,366
15,589
15,415
30
3

PULP
12,392
10,670
15,521
15,835
14,334
13,750
89
6

BICOLREGION
CORDAGE
2,601
1,242
1,170
1,410
996
1,484
10
17

FIBERCRAFT
187
161
178
122
259
181
1
20

Basedonthemarketdatapresented,theBicolRegionabacaindustrycancontinuetakingadvantage
of opportunities available for its biggest market, which is the abaca pulp sector. The increased
awareness and desire of the market to conserve biodiversity and support sustainable livelihoods
openedahugeopportunityfortheregiontoservetheincreasingdemandforsustainablyproduced
abacafiberandprocessedproducts.Theregioncanpositionitselfwellinthemarketandbeknown
asasourceofasustainablyproduced,RainforestAlliancecertifiedabacafiber.Thisissomethingthat
thegovernmentcanhelpincollaborationwiththeprivatesector.Infact,oneGBEinCatanduanes
now tapped the support of PhilFIDA to help the company in getting the farmers organized fro
certificationandprovidetechnicalassistance.

Theregioncanalsocontinuetoservethecordagemanufacturerwhichtakes10%ofitslocalabaca
consumption.Thiscanbethebestchannelforthelowerabacafibergradesproducedintheregion
asthissectorisnotstrictintermsofqualityandareinfactusinglowergradesofabacafibersforits
abacacordagemanufacturing.

Withthehighestgrowthrateof20%foritslocalconsumptionandanimpressive12%growthratein
terms of export earnings, the abaca fibercraft sector offers one of best opportunities the regions
abaca sector needs to look at. The fibercraft has the most number of operators at the processing
level of the chain. This sector offers huge economic and employment opportunities for the
Bicolanos.Whiletheperformanceofthissectorcannotbemeasuredintermsofvolume,itsexport
earningsperformancefortheperiod2008to2012hassignificantlyincreasewhiletheothersectors
experienceddecreases.Thissignalsapositivemarketoutlook.

Developingthecapacityandefficiency,improvingproductqualityandaccessingbettermarketsfor
theabacafibercraftproductsoftheregionwouldopenwindowsofopportunitiesandgrowthinthis
sector. This will subsequently promote trade and tourism in the region which will benefit several
industryplayers.

B. PRICETRENDS

1. ExportMarkets
Likeanyotheragriculturalcommodities,thebuyingpriceofabacafiberislargelydrivenbymarket
forces. Of The four major abaca grades exported by the country, S2 and I command the highest
price.BasedonPhilFIDAdatafortheperiod2008to2012,averagebuyingpriceperbaleofS2abaca
gradeisUS$195.94.AtadollartopesorateofPhp43/US$1.00,thistranslatestoPhp67.40perkilo.
FortheIgrade,averagepriceisUS$196.96ofPhp8,469.28/baleorPhp67.75perkilo.

40|P a g e

Thedecreaseinbuyingpriceforabacafiberintheworldmarketisdrivenbythedemandofmajor
abaca importing countries. The huge decrease from 2008 to 2009 was a result of the global
economicdownturnwhichalsoresultedtodecreaseofabacaexportsfromthecountryduringthe
sameperiod.

Table25:WeightedaverageexportpricesofabacafiberbygradeHandstripped(F.O.B.US$/Bale)
HANDSTRIPPED
FIBERGRADE
2008
2009
2010
2011
2012
AVE.
S2
239.08
183.16
172.73
188.02
196.69
195.936
I
235.17
205.3
159.53
189.7
195.1
196.96
G
221.93
160.93
153.87
170.55
173.98
176.252
JK
202.22
165.37
134.29
157.43
117.62
155.386

Table26:WeightedaverageexportpricesofabacafiberbygradeHandstripped(Peso/Bale/Kilo)
AVE.BUYINGPRICE
AVE.BUYINGPRICE/
FIBERGRADE
/BALE(inPhp)@
PRICE/KILO(Php)
BALE(inUS$)
43/US$
S2
195.94
8,425.25
67.40
I
196.96
8,469.28
67.75
G
176.25
7,578.84
60.63
JK
155.39
6,681.60
53.45

Table27:WeightedaverageexportpricesofabacafiberbygradeSpindllestripped(F.O.B.
US$/Bale)
SPINDLESTRIPPED
FIBERGRADE
2008
2009
2010
2011
2012
AVE.
S2
238.94
183.77
164.56
189.87
192.25
193.878
I
227.28
193.07
170.06
202.04

198.1125
G
211.05
160
154
181.5
174
176.11

Table28:WeightedaverageexportpricesofabacafiberbygradeSpindllestripped(Peso/Bale/
Kilo)
FIBERGRADE

S2
I
G
JK

AVE.BUYINGPRICE/
BALE(inUS$)

193.88
198.11
176.11

AVE.BUYINGPRICE/
BALE(inPhp)@43/US$

8,336.75
8,518.84
7,572.73

PRICE/KILO(Php)

66.69
68.15
60.58

A simple look at the figures presented in tables 25 to 28 does not tell the difference in terms of
pricing for abaca fiber producedmanually or with the use of stripping machine. However, findings
duringtheconductofthevaluechainstudyrevealedthatmostbuyersofabacafiberinBicolhave
refrainedfrombuyingabacafibersproducedusingstrippingmachinesforthefollowingreasons:
Usingmachineinstrippingabacafiberresultstohighwasteof30%to40%ascomparedto
manualstrippingwithonly10%waste
Qualityofmachinestrippedabacafiberislow
Recovery of machine stripped abaca fiber in pulp mills is only 70% as compared to 80%
recoveryformanuallystrippedabacafibers
41|P a g e

OneGBEopttobuymachinestrippedabacafiber,butthebuyingpricetheyofferisPhp10.00lower
thanthemanuallyproducedfiber.Asaresult,strippingmachinesprovidedtoabacafarmersinthe
regionarenolongerused.

2. AbacaImports

To cover fill up for the deficiency in local supply of the specific abaca grades, pulp processors
resortedtoimportingabacafibersfromEcuador.Importationofabacafibersstartedin1991.Forthe
period 2003 to 2012, the average importation of abaca fiber from Ecuador is 325 metric tons per
year.AverageimportvalueisUS$390,481.00

Ecuador is the only country aside from the Philippines, that produce abaca fiber commercially.
However, based of Food and Agriculture Organization (FAO) 2012 data, abaca fiber from the
Philippines get a better price compared to Ecuador. In 2011, the averageallin price of abaca fiber
from Ecuador is F.O.B. US$168.80 per bale. Conversely, F. O. B. Manila price of abaca fibers
producedfromthePhilippinesparticularlyS2,JKandJKareUS$211.90,US$192.10andUS$170.20
per bale respectively. Using the average price of the three grades of abaca from the Philippines
wouldtellthatexportpriceforPhilippinesabacaishigherbyUS22.60perbalethanthatofEcuador.

3. DomesticMarkets
Fortheperiod2009to2013,farmgatepriceofabacafiberinthecountryhasincreasedatarateof
1%,thesameholdstruefortheBicolregion.Basedondatapresentedintable28,averagebuying
priceofabacafiberfromBicolregionisPhp2.33higherthannationalaverage.Thiscanbeattributed
tothepresenceofpulpmill,cordagemanufacturer,GBEsandfibercraftprocessorsintheregion.

The farther the distance of abaca production is from the market, the lower the buying price.
Although92%ofabacaproductioninBicolisinCatanduanes,abacafamersinAlbayareabletoget
betterbuyingprices;Php11.00basedonthe2009to2013average.Abacaprocessingactivityinthe
regionisconcentratedinAlbay.Conversely,Catanduanesisanislandprovinceandgettingsupplyof
abacafiberstotheprocessorswouldentailadditionalcostoftransportationbyshipandtruck.

Camarines Sur which is closer to Albay, ranked second in terms of farmgate price which is around
Php6.00higherthanCatanduanes.TheprovinceofSorsogonalthoughclosertoAlbayhasthelowest
farmgatepriceofPhp29.09perkilo.Thiscanbeattributedtolowproductionofabacainthearea.
Only2%oftheregionalabacaproductionisfromSorsogon.

Presentedinthetablebelowisthefarmgatebuyingpricesofabacaintheregion.

Table29:Annualaveragefarmgatepriceperkiloofabacafiber(20082013inPeso)
AnnualAverageFarmfatePrice20082013(PesosperKilogram)
AREA
2009
2010
2011
2012
2013
AVERAGE
PHILIPPINES
..BICOLREGION
....Albay
....CamarinesNorte
....CamarinesSur
....Catanduanes
....Masbate
....Sorsogon

35.77
35.79
56.24
..
40.60
34.86
..
27.45

34.57
33.79
56.33
..
42.80
32.79
..
22.95

Source:BureauofAgricultureStatistics(BAS)
42|P a g e

39.40
45.89
60.47
..
44.97
45.83
..
36.21

39.60
43.42
58.77
..
48.91
43.08
..
29.82

37.84
39.92
49.97
..
49.95
39.38
..
29.02

37.44
39.76
56.36

45.45
39.19

29.09

SECTION5.SUPPORTSERVICES
A. FINANCIALSERVICES
Thereareseveralfinancialinstitutionssuchasbanksandmicrofinanceinstitutions(MFIs)operating
in Bicol. However, none of these are providing or developing financial productsthe support abaca
production.

Provision of cash advances happens at the level of GBEs/buying station and abaca traders. It has
beenausualpracticeintheregionfortheGBEs/buyingstationstoprovidecashadvancestoabaca
traders for their operations. The amount is limited however as GBEs/buying stations also has to
provide cash advances to other traders operating in other areas. In addition, the amount of cash
advancesisalsolimitedbybuyerstominimizerisk.

AmongtheabacaplayersintheBicolregion,abacatradersneedfinancialservicesthemost.Based
oninterviewswithabacatraders,theirpotentialtoexpandoperations,servemorefarmersandearn
more income is limited because of lack of funds to do so. While some wanted to try getting loans
from banks, they are often overwhelmed with the difficulty in complying with the banks
requirements.Also,thereappearstobealackofbusinessdevelopmentserviceproviderstoassist
themincompletingrequirementssuchasfinancialdataneededbythebanks.Asaresult,tradersat
somepointareforcedtogetsupplyofabacafromfarmersoncredit.Farmerswhocannotbeserved
bytradersareforcedtodelivertheirabacatootherbuyerswhichareoftenfarmfromtheirarea.

Jonel Torcilino is one of the biggest abaca traders in Catanduanes that supplie to Manila Hem
TradingCompany(MHTC).MHTCprovidescashadvanceswothPhp50,000toMr.Torcilino.However,
due to the large volume of abaca fiber delivered to him, the amount of Php50,000 is already
consumedinhalfadayonMondays,thepeakdayofdeliveries.Mr.Torcilinotriedtoinquireabout
getting a lone from a bank in Virac, Catanduanes, but the interest rate ranges from 16% to 24%.
Accordingtohim,thisistoohighandmightbebeyondhiscapacitytopay.

Traders in Albay face the same problem. However, some decided to get loans from banks. Mr.
BonaobraanabacatraderfromTabacoCity,Albayhastriedtoaccessbankservicesforsomeofthe
loan requirements such as the Income Tax Return (ITR) and Financial Statement. Based on his
inquiries,thefollowingarethepotentialbanksandtheircorrespondinginterestrates:
LegaspiSavingsBank18%perannum
TabacoProducersBank18%perannum
BancodeOro4.5%perannum
Metrobank8%perannum

Mr.TorcilinoappliedforaloanatMetrobankusingthetitleofhishouseandlotascollateral.When
thebankappraisedhishouseandlot,hewasinformedthathedidnotpass.Apparently,arightof
wayleadingtothehouseof2.5metersisneeded,whichhewasnotabletocomply.

AgricultureCreditSupportProject(ACSP)

The Land Bank of the Philippines (LBP) through the Agriculture Credit Support Project (ACSP) is a
potentialfacilitythatcanbetappedfortheprovisionoffinancialservicethatcanbeaccessedbythe
abacaindustry.

43|P a g e

The Agriculture Credit Support Project (ACSP) aims to increase investments, to create new job
opportunities,andtoimproveagriculturalproductivityintheruralareasbyprovidingloanfundsand
contributingtotheNationalGovernmentsgoalofPovertyReduction.

Land Bank of the Philippines (LBP) is the executing agency responsible for the overall
implementation of ACSP throughout the Philippines. ACSP will provide financing support for
agricultureandagrirelatedprojectsusingJapaneseODAloanfundsecuredthroughloanagreement
between Japan International Cooperation Agency (JICA) and LBP. The loan funds can be provided
directly from LBP or through its conduits to the agricultural clientele; i.e. small farmers and fisher
folks (SFF) individuals/groups, small or medium enterprises (SMEs), and large agribusiness
enterprises(LAEs).

CommoditiesforACSPsupportinclude:
Abaca
Bamboo
Cocoa
Banana
Goat
Aquaculture(seaweeds,pangasius,tilapia)

Tobeabletodeveloptherightfinancialproductfortheabacaindustry,astakeholdersworkshop
wasconductedinManilawhichthePhilFIDA,OIC,ExecutiveDirectorEduardoB.Holoyohoywasable
toparticipate.AccordingtoDirectorHoloyohoy,therehasbeennosubsequentupdatesfromACSP.

B. NONFINANCIALSERVICES
As the countrys leading abaca producer, Bicols achievement can be attributed to the efforts and
supportservicesprovidedbythegovernment,NGOsandtheprivatesector.Therehavebeenseveral
servicesprovidedbytheseenablerswhichcontinuetodate.Theservicesprovidedbytheseenablers
havehelpedfarmersimprovetheirfarmingpracticesandproductivity.

Inaddition,theestablishmentofabacanurseriesinsomeareashashelpedimprovedaccesstoabaca
plantingmaterials.TheneedformoreofthesenurseriesisfeltespeciallybyabacafarmersinAlbay
andSorsogon.

Amongtheserviceprovidersfortheabacaindustryintheregionarethefollowing:

PhilippineFiberIndustryDevelopmentAuthority(PhilFIDA)RegionV

PhilFIDA is mandated to promote the accelerated growth and development of the Philippine fiber
industryinallaspectsincludingresearch,production,processing,marketingandtraderegulation.

PhilFIDAoffersthefollowingservices:
ProductionSupportServices
MarketDevelopmentServices
InfrastructureandPostHarvestDevelopmentServices
ExtensionSupport,EducationandTrainingServices
ResearchandDevelopment
RegulatoryServices
InformationSupport
PolicyFormulation,PlanningandAdvocacy
44|P a g e

While PhilFIDA is mandated to provide these services, the agencys capacity to carry out this
mandateishamperedbythelackofresources(funds)todoso.

AquinasUniversityofLegaspiFoundation(AULF)

Providesfreetrainingservicesonfibercraftlikefiberdyeing,productdesignandenterprise
management
Setupofabacanurseries
Farmerstraining

SPECIALPROJECTS

To support the regions abaca industry development, special projects are implemented by the
academe,nationalgovernmentagenciesandlocalgovernmentunits.Thesearethefollowing:

ALBAY
ABAKADAProject(1stDistrictofAlbay)Php50million
AbacaMo,PisoMOstarted2002,supportedatotalof843has.Asof2013

SORSOGON
AbacaDiseaseManagementProjectGAAFunded
AbacaIndustryRevivalProjectDAPAMANA(3.5million,7municipalities)
AbacaRahabilitation(ItachuCorp.)3Barangays

CATANDUANES
AbacaDiseaseManagementProjectGAAFunded
AbacaRehabilitationandDiseaseEradicationPLGUFund1.2million(MunicipalityofBato)
Strengthening the Viability of Ongoing Anduyog Abaca Rehabilitation AQUI Foundation
Funded

CAMARINESSUR
AbacaNurseryEstablishment(HVCDP/NAFCODA,JapaneseGovt.,)
UseofPublicLandforAbacaProduction(PLGU,DENR)

45|P a g e

SECTION6:ENABLINGENVIRONMENT
A. FORMALRULES,REGULATIONS,ANDPOLICIES
There are existing rules, regulation and policies in place that foster development in the abaca
industry. However, there are some policies/ordinances that also negatively affect industrys
performanceanditspotentialforfurtherdevelopment.

In Bicol, a provincial ordinance of Catanduanes prevents farmers from other provinces to get
plantingmaterialsfromtheirreknownedAbuababacavariety.Tobeabletoimprovethesituation,it
isproposedthatadialoguebetweenthegovernmentandtheaffectedplayerswillbemadetocraft
awinwinsolutionforall.

Amongthelocalandnationalrulesandregulationsandpoliciesthataffectstheabacaindustryare
thefollowing:

LOCALLEGISLATIONS

CATANDUANESProvincialOrdinanceapprovedasameasuretosafeguardthelocalabacaindustry.
Prohibits sale and transport of abaca planting materials such as suckers, corms and eyebuds
outsidetheprovince
Developed as a preventive measure against the spread of abaca plant diseases in the light of
findingsthatthedreadedabacabunchytop,abacamosaicandbractmosaicdiseaseshavebeen
infectingabacafarmsintheprovince's
ViolatorsofthebanwouldbefinedP3,000orthreemonthimprisonmentforthefirstoffense,
P4,000 or sixmonth imprisonment for the second offense, and P5,000 fine or oneyear
imprisonmentforthethirdoffense

Catanduanesis the countrys number one abaca producing province in the Philippines. Abaca
industry stakeholders attribute this to the Abuab abaca which is very abundant in the island
province. As such, abaca farmers from the mainland have wanted to get planting materials from
Catanduanes to improve their production. However, there is a provincial ordinance that penalizes
saleandtransportofabacaplantingmaterialsoutsidetheCatanduanes.Someindustryplayersinthe
regionconsidertheordinanceasanimpedimentagainsttheregionsabacaindustrydevelopment.
Industry players are proposing to lobby the provincial government of Catanduanes to develop a
compromise on how this can be addressed while not threatening the provinces abaca industry at
thesametime.

NATIONALLEGISLATIONS

1. FIDAAdministrativeOrder1,series2001(AbacaGradingandClassification)
2. FIDA Revised Adaministrative Order No. 1, series 1999 Revised Rules and Regulations to
GovernLicensing,Baling,Tagging,Marking,
3. Inspection,CertificationandShipmentofPhilippineCommercialFibers
4. RepublicAct9242AnActPrescribingtheUseofthePhilippineTropicalFabricsforUniformof
PublicOfficialsandEmployeesandforOtherPurposes.WhileRepublicAct9242lookedgood,its
implementation has been limited as budget needed due to lack of budget by the government
agencies

46|P a g e

5. BPISpecialQuarantineAdministrativeOrderNo.01seriesof2012DeclaringPanamaDiseaseof
Banana (Fusarium Wilt) caused by Fusarium oxysporum, f.sp. Cubense) a Dangerous and
InjurousBananaandAbacaDisease;ProvidingitsControlandPlacingUnderQuarantineallthe
ProvinceswheretheDiseasealreadyexiststopreventfurtherspreadfrominfectedareastonon
infectedareas
6. PresidentialDecreeNo.216ProhibitingtheExportationofAbacaSeedlingsissuedonJune16,
1973
7. Republic Act No. 925 An Act amending Act No. 3251. entitled and Act to Prohibit the
ExportationtoForeignCountriesofSeedsofAbacaanditsDerivativesissuedonJune20,1953
8. RepublicActNo.3251AnActtoProhibittheExportationtoForeignCountriesofabacaseeds
anditsderivativesissuedonDecember1,1925

47|P a g e

SECTION7:CONSTRAINTSANDOPPORTUNITIES

There are several industry constraints facing the abaca industry of Bicol. The industrys failure to
addressthesehaslimiteditspotentialtoimproveandtakefulladvantageofopportunitiesavailable.
Several key constraints are interlinked. As such, addressing one key constraint will actually solve
manyothers.

AlistofindustryconstraintswerepresentedduringthestakeholdersworkshopconductedinLegaspi
City, Albay. The workshop was attended by various abaca industry players within the region from
farmer,traders,buyingstations,GBEs,cordagemanufacturerandfibercraftprocessors.

Through a deliberate process of planning, discussion, exchange of information and analysis, the
industry stakeholders were able to narrow down the list. The group has identified key constraints
thataresystemicandsignificantlyaffectingthecompetitivenessoftheregionsabacaindustry.

Addressing the identified problems and constraints would lead to taking full advantage of
opportunitiesavailablefortheindustry.Thesearepresentedinthetablebelow.

Table30:ConstraintsandOpportunities
Opportunities

Constraints

Province

INPUTPROVISION
Thereisahugedemandforabaca
plantingmaterialsintheregions
mainlandespeciallyforAbuab
varietyofabaca

Lackofsupplyofqualityabaca
plantingmaterials.
Limitedcapacityofexistingplant
materialsupplierstosupplythe
demand
Absence/lackofaccesstoabaca
nurseryandhighyieldingvariety

Sorsogon,Albay

FARMPRODUCTION
Hugedemandforlocalandexport
marketforabacafiber

Availabletechnologiestoincrease
productionbyincreasingfarm
productivity

Lackofsupplyofrawabacafiber

Diseaseinfestation
Limited/lackofeffortonabaca
replanting
Lowfrequencyofharvest
Proliferationofabacabakbak

Sorsogon,Albay,
CamarinesSur,
Catanduanes

FARMPRODUCTION
Availabilityoftechnology
Policies/ordinancesareinplaceto
combat/controlspreadofabaca
pestanddiseases

Pestanddiseaseinfestationof
abacafarms

PROCESSING

48|P a g e

Lackofaccesstoagricultural
extensionservices
Lackofresourcestoimplement
properfarmingpractices

Sorsogon,Albay,
CamarinesSur,
Catanduanes

Opportunities
Hugedemandandbetterbuying
pricesforqualityabacafiber

Availabilityoftechnologyto
improveabacafiberquality

Availabilityofhumanresources/
skilledabacastrippersintheregion

Increasingdemandforabaca
fibercraftproducts(localand
export)

Availabilityofskilledcraftsmenin
theregion

Constraints

Province

Poorqualityofabacafiber

Nodryingfacility
Nowarehousefacility
Poortransportfacility
Lackoffinances

Lackofmarketing/promotional
support

Sorsogon,Albay,
CamarinesSur,
Catanduanes

Highcostofjoiningtradeexhibits
Lackofqualitypromotional
materials(brochures,leaflets,etc)

INTERFIRMRELATIONSHIP/VCGOVERNANCE
Industryissues/problemsmay
cause/uniteabacaindustry
playersforcommongoals

49|P a g e

Lackofindustryleadership
Industryplayersare
fragmented

Sorsogon,Albay,
CamarinesSur,
Catanduanes

SECTION8:COMPETITIVENESSDIRECTIONS
A. COMPETITIVENESSVISION
Duringthevaluechainstakeholdersworkshop,theBicolregionsabacastakeholdersparticipatedin
the development/crafting of a vision and strategy
for value chain upgrading. Using a framework of
strong collaboration among industry stakeholders
and the government, the industry wanted to
position itself well with the following priority
developmentthrusts:
Tobeknownasasourceofahugevolumeof
good quality and Rainforest certified abaca
fibers
Highly productive, pest and disease free
abacafarms
Strong abaca industry with players working
togetherforasharedvision
Progressivecommunityoffarmersandother
abaca industry players who are earning
better incomes from abaca business and
contributing to improvement of regional
economy

Usingtheinformationpresentedabove,inthenextfive(5)yearsBicolRegionabacaindustryhave
thisvisionfortheindustry:

A socially and economically progressive abaca industry, offering quality and certified abaca fiber
andprocessedproductstotheworld.

B. PRIORITYCONSTRAINTSANDINTERVENTIONS
To be able to achieve the vision set by the industry, key constraints and opportunities were
identified by the regions abaca industry stakeholders. Similarly, interventions were developed to
take advantage of opportunities available and consequently advance the development of abaca
industryoftheBicolRegion.

Intheparticipatoryvalidationandplanningworkshop,theregionsabacaindustryplayersincluding
thegovernmentwerealsoabletotakepartandhaveprovidedcommitmentofsupporttoachieve
theindustrysvision.Resultoftheactivityispresentedinthetablebelow.

Table31:SummaryofPriorityConstraints/OpportunitiesandInterventions
Constraints/
Opportunities

InterventionStrategyand
Approach

Province

WhocandoitandPotentialRoles
Public

Private

INPUTPROVISION
Lackofsupplyof
qualityabaca
plantingmaterials

50|P a g e

Albay

Sorsogon

Establishmentofabaca
nurseriesinstrategiclocations
withintheprovince

Thegovernmentwill
providetechnical
supportandinputs

Privatesectorto
provideland
wheretheabaca

Constraints/
Opportunities

InterventionStrategyand
Approach

Province

WhocandoitandPotentialRoles
Public
especiallyplanting
materials.

Private
nurserywillbe
setupandto
provide
managementand
maintenanceof
thefarm

CoordinatewithPhilFIDAand
theprovincialgovernmentunit
ofCatanduanes(lobbying)to
allowshipmentofquality
abacaplantingmaterial
(Abuabvariety)outsidethe
islandprovinceanddelivery/
propagationofthesameto
otherprovinceswithinthe
region

Thegovernmentwill
helpinprocessing
andfilingofrequest
toprovideaccessto
otherprovinceof
qualityplanting
materialsavailablein
Catanduanes

Representative
fromtheprivate
sectorwillwork
withPhilFIDAin
filing/lobbying
fortheapprovalof
transportandsale
ofabacaAbuab
varietyfrom
Catanduanesto
theregions
mainland

Conductoftrainingsonabaca
packageoftechnology

Providetechnical
support(Trainingof
Trainers)

Identificationof
potentialtrainers
tobedeveloped

Establishmentofabaca
demonstrationfarms

Providetechnical
supportinthe
establishmentof
abacanurseries

Providesitefor
nursery,toolsand
materialsfor
abacanursery

Providetechnical
support(Trainingof
Trainers)

Facilitatein
organizingabaca
strippersand
developpackageof
services

Accreditservice
providers

Identifypotential
candidates

Hire/patronize
servicesofthe
trainedabaca
strippers

Providetechnical
andpolicysupport

Partnerwiththe
governmentin
formulating/
lobbyingfor
policies
/ordinancesthat
wouldfoster
industry
development

Improvedeliveryofagricultural
extensionservicesanddevelop
poolofexperts/serviceproviders
fromtheprivatessectorthrough
TrainingofTrainers(ToT)

Provide
technical/skills
trainingandaccredit
serviceproviders

Patronizeservices
ofaccredited
serviceproviders/
providepayment

Developincentivesandschemesto
attract/encouragefarmersto

Providetechnical
supportservicesto

Developand
Provideincentive

FARMPRODUCTION

Lackofsupplyof
rawabacafiber

Trainingofpotentialabaca
strippers

Organizingabacastripper
groupintoserviceprovider

Albay,
Sorsogon

Developingordinancesamong
LGUsregulatinggatheringof
abacabakbak

FARMPRODUCTION

Pestanddisease
infestationofabaca
farmers

51|P a g e

Albay,
Sorsogon,
Camarines
Sur,
Catanduanes

Constraints/
Opportunities

Province

InterventionStrategyand
Approach

WhocandoitandPotentialRoles
Public

Private

industryplayersin
developing
incentivesschemes

Conductcompetition
forbestabacafarms

Providetechnical
supportfor
certification
(RainforestAlliance)

schemesforabaca
farmers

Provideprizesfor
farmers(bestfarm
competitions)

Encourage/
supportfor
RainforestAlliance
Certification

Provisionofdryingfacility

Constructionofwarehousefacility

Concretingoffarmtomarketroads

Providesupport
throughPRDP
Project

Supporttheconduct
offeasibilitystudy

Designfacilityand
trainfarmers

Provisionofland
forthefacility

Developfeasiblity
studiesand
businessplans

Operationand
maintenanceof
thePHFfacilities

Providemarketingagreementwith
buyersandsellers(premiumof
qualityfiber/certification)

Facilitatelinkages/
monitoringand
evaluationsupport

Policysupport/
imposestandards

Financialsupport
(buyingof
products)

Providemarketing
agreement

Providemarketing/promotional
supportthroughsponsoring
fibercraftoperatorsinregional,
nationalandinternationaltrade
exhibits

DevelopbrandingforBicolregion
qualityabacafibercraftsand
relatedproducts

Supportinthedesignand
developmentofproduct
catalogues,brochuresandleaflets

Supportmarketingthroughtheuse
ofsocialmedia(internetwebsites,
facebook,etc.,)

Upgrading/improvingproduct
designsandpackaging

Sponsortrade
exhibits

Developprotocol
anddesignBicol
Regionproduct
qualityseal

Providetrainingon
marketingand
promotion

Providetechnical
supportindesignof
productcatalogues
andbrochures

Provideskillstraining
tofibercraft
processors

Productionof
qualityproducts

Implement
brandingand
adoptionofgood
practices

Useofqualityseal

Providefundsin
printingof
product
catalogues

Supportconduct
oftraining
activities

Providepayment
forwebhosting

improvetheirabacafarmsand
providetrainingtofarmers

PROCESSING

Poorqualityof
abacafiber

Lackofmarketing/
promotional
support

Albay

Sorsogon,

Camarines
Sur

Catanduanes

Albay,
Sorsogon,
Camarines
Sur,
Catanduanes

InterfirmRelationship/HorizontalandVerticalLinkages/SupplyChainGovernance
Lackofindustry
leadership

52|P a g e

Albay

Sorsogon
Camarines
Sur

Creationofaprivatesectorled
abacaindustryorganizationthat
wouldpromoteregionsabaca
industrydevelopment

Facilitate
organizationof
abacaindustry
organizationinBicol
region

Financialsupport

Technicalsupport

Representation

Constraints/
Opportunities

Province
Catanduanes

InterventionStrategyand
Approach

WhocandoitandPotentialRoles
Public
Conductofabaca
stakeholdersforum

Private
Supportconduct
ofabaca
stakeholders
forum

Managethe
association

Asthetableabovepresent,therearesix(6)keyconstraintsthathindertheregionsabacaindustry
fromfullytakingadvantageofopportunitiesavailable.Thesearethefollowing:

1. Lackofsupplyofqualityplantingmaterials
2. Lackofsupplyofrawabacafiber
3. Lackofmarketing/promotionalsupport
4. Pestanddiseaseinfestationofabacafarms
5. Poorqualityofabacafiber
6. Lackofindustryleadership

Lackofsupplyofqualityplantingmaterials

TheseconstraintswillbeaddressedusinginterventionstrategiespresentedinTable31.Tobeable
to increase the volume of abaca fiber production in the region, replanting and rehabilitation
activitiesmustbecarriedout.Thisentailsahugeneedforsupplyofqualityabacaplantingmaterials.
However, supply of planting materials is very limited. In addition, seedling supply of high yielding
abacavarietypreferredbyfarmerscannotbeeasilyaccessedbyotherfarmersoutsidetheprovince
of Catanduanes. This is because of a local government ordinance that ban the selling and
transportationofabacaplantingmaterialsoutsidetheislandprovince.

Toaddressthis,abacanurseriesinstrategicareasintheregionwillbeestablished.Thisistoimprove
access to quality planting materials for farmer. These abaca nurseries will be selling high yielding
abaca varieties proven to thrive in the region. The private sector will take the lead in identifying
potential sites and will operate and manage the farm. The government for its part will provide
technicalsupportaswellassupplyofgoodqualityplantingmaterials.Lobbyingeffortswillbemade
bykeygovernmentofficesandtheindustryrepresentativesrequestingtheprovincetoCatanduanes
toallowtransportandsaleofAbuabvarietyofabacaforotherprovinceswithintheregion.

Lackofsupplyofrawabacafiber

Thelocalandexportmarketsforabacafiberhasbeenverybullish.However,supplyofabacafiberin
thecountryisstillverylow.Tofillupforitssupplyneeds,somepulpmillsoperatinginthecountry
has to resort to importing abaca fiber as far as Ecuador. The Bicol regions abaca production is
shared by several GBEs, pulp mills, cordage manufacturers and fibercraft processors from all over
the country. The regional abaca production is low and cannot supply the much needed volume of
abacafiberbytheindustry.Thereishoweverapotentialfortheindustry,particularlythefarmersto
take advantage of these opportunities by increasing farm production. The regions abaca industry
stakeholdersplantodothisthroughthefollowinginterventions:

Establishmentofabacademonstrationfarms
Conductoftrainingsonabacapackageoftechnology
Trainingofpotentialabacastrippers
53|P a g e

Organizingabacastrippergroupintoserviceprovider
DevelopingordinancesamongLGUsregulatinggatheringofabacabakbak

Todemonstratebestpracticesinabacaproduction,anabacademonstrationfarmwillbesetupin
strategiclocationsaroundtheregion.Thefacilitywillbesetupandmanagedbytheprivatesector.
Technical support and planting materials will be provided by the government. It will function as a
showcase and a training site for abaca farmers who will be trained on abaca production
technologies.

Tobalancetheexpectedgrowthorincreaseinabacaproduction,thesupplyofskilledlaborneeded
toperformsemiprocessingactivity,particularlyabacastripping,willalsobeaddressed.Moreabaca
strippersareuregentlyneededwithintheabacaproducingprovincesintheregion.Trainingonabaca
stripping and postharvest handling will be conducted. To formalize this service sector, abaca
strippingserviceproviderswillbeorganized.Thisistoensurequalitystandardsarefollowedaswell
asthewelfareoftheaffectedplayersareprotected.

To be able to gain access to the high yielding abaca variety found in Catanduanes, the industry in
collaboration with concerned government agencies, will petition for the approval or sourcing of
planting materials from the island province for distribution to other provinces within the Bicol
region.

Lackofmarketing/promotionalsupport

The fibercraft sector of Bicol regions abaca industry offers vast economic and employment
opportunitiesiffurtherdeveloped.Marketforabacafibercraftproductsforbothlocalexportmarket
has been increasing. In fact, the fibercraft sector has the highest growth rate of 12%in terms of
exportearning.

Intermsoflocalconsumption,thefibercraftsectorhasthehighestgrowthrateof20%.Italsohas
the most number of operators at the processing level of the chain. The availability of skilled
craftsmen in the region and the innate artistic gifts of the Bicolanos offers huge potential for the
regionsfibercraftindustrytogrow.

Several abaca fibercraft products have been produced in the region. Existing abaca fibercraft
processsors have huge potential to expand operations. However, opportunities available for the
fibercraft sector are fully taken advantage of due to lack of capacity of players to maximize
marketingandpromotionefforts.

Whilethereareseveraltradeshowsattheregional,nationalandinternationallevel,costassociated
injoiningthesetypesofeventsarehighandthusoverwhelmssmallprocessors.Inaddition,several
small processors do not have promotional materials such as product catalogues, brochures and
leaftets.

AbrandingstrategyanddevelopmentofaqualitysealforBicolabacafibercraftandrelatedproducts
will also be developed. The presence of quality standards and good practices for players to follow
beforeuseofthequalitysealisgrantedwillalsoensureadherencetoproductqualityandadoption
ofsustainablepractices.

Intervention to address constraints described herein through maketing and promotional support
including technical trainings and product branding strategies is seen to improve access among

54|P a g e

players to more lucrative markets. This will result to expansion in production, increased
employementgenerationandincomeearningcapacityamongplayers.

Pestanddiseaseinfestationofabacafarms

The pest and disease infestation of abaca farms in the region has significantly affected fiber
production. To address this problem, the industry will work with service providers (enablers) to
improvethedeliveryofagriculturalextensionservices.Theindustrywilldevelopschemestoensure
thatthedeliveryofserviceswillbeselfsustainingandviable.Inthesamemanner,schemeswillalso
bedevelopedtoencouragefarmerstoimproveproductionvolumeandproductquality.Thiscanbe
done through collaboration among growers, traders and exporters through a certification system.
Taking from the CASI model, farmers will be trained and organized for group certification such as
Rainforest Alliance. By doing so, farmers will not only be improving farm practices and increase
productionbutwillalsobeabletoaccessbettermarketsandpremiumpricesfortheirproduce.

Poorqualityofabacafiber

The lack of postharvest facilities for abaca production has affected fiber quality produced by
farmers. During rainy season, farmers are forced not to harvest abaca which severely affects
operationsoftheprocessors.Abacafiberqualityrapidlydeterioratesintheabsenceofproperpost
harvestfacilities.Theindustryhasthefollowingstrategiestoaddressthisproblem:

Provisionofdryingfacility
Constructionofwarehousefacility
Concretingoffarmtomarketroads
Provide marketing agreement with buyers and sellers (premium of quality fiber /
certification)
ProvidesupportthroughPRDPProject

Improving infrastructure such as road networks and postharvest facilities is seen to improve not
onlyproductqualitybutvolumeofproductionaswell.Asthefarmerswillbeencouragedtoproduce
more abaca because they now have access to postharvest services that they need. Provision of a
marketingagreementlinkedtocertificationwillsubsequentlyensurefacilitieswillbefullyutilizedfor
itspurpose.

Lackofindustryleadership

The lack of a shared vision/common objective among abaca players in the region has kept abaca
industry stakeholders fragmented. There is no privateled abaca industry organization that leads
abacaindustrydevelopmenteffortsintheregion.Toaddressthis,thecreationofanabacaindustry
organizationfromwithintheregionisproposed.Theorganizationcanfunctionbothforadvocacyas
wellasprovisionofmissingsupportservicesthattheindustryneeds.

55|P a g e

SECTION9:CONCLUSIONSANDRECOMMENDATIONS

TheBicolregioniswellpositionedinthecountrysabacalandscape.Therolethattheregionplaysis
verysignificantsuchthatwhateverhappensherewillconsequentlyaffecttheabacaindustryinthe
entire country. In consonance with the countrys fiber industry roadmap, the Bicol regions abaca
industry need to clearly set its targets/goal, develop clear strategies on how and when to achieve
this. Most especially, a clear definition of roles and needed resources to carry out plans has to be
elaborated.

ThePhilippinesFiberIndustryDevelopmentAuthority(PhilFIDA)playsavitalroleinabacaindustry
development. Abaca industry stakeholders in the Bicol region have recognized the expertise and
capabilities of the agency to perform its mandate. In fact, the achievement of the regions abaca
industrytodaycanbeattributedtothecollaborationeffortsofPhilFIDA,thelocalgovernmentunits
andtheprivatesectorinthepast.

On the interviews conducted with several abaca industry players in the region, there has been a
glaring observation on PhilFIDAs lack of capacity to carry out its mandate because of the lack of
resources/budgetoftheagencytoperformitsduties.Extensionservicesarenowlimitedbecauseof
lack of human and financial resources. In the provincial PhilFIDA offices, vital equipments such as
officecomputersandairconditionsforthelaboratoriesarelacking.Accordingtotheregionsabaca
industryplayers,promotingabacaindustrydevelopmenthastostartwithsupportingPhilFIDA.

On the other hand, while PhilFIDA plays a very significant role in the regions abaca industry
development,thesamelevelofeffortmustcomefromtheprivatesector.Theindustryjustneedsto
get its act together. The industry has to be organized. This approach has worked well with other
industriessuchasthebananaandthecacaoindustriesofSouthernMindanao.

The Philippine Banana Growers and Exporters Association (PBGEA) and the Cacao Industry
Development Association of Mindanao Inc. (CIDAMi) are two good examples of private sector led
associations that promote industry development. CIDAMi is only a three yeas old cacao industry
association, but it is responsible for implementing expansion and rehabilitation activities in
Mindanaothatresultedtoasignificantincreaseintheislandsvolumeofcacaoproduction.Infact,
to accommodate the huge demand for cacao planting materials, the number of cacao nursery
operatorsintheDavaoRegionhasincreasedfromlessthantwentytooverahundredbynow.

TheBicolRegionisnotfarfromachievingitsvisionfortheabacaindustry.Tobeabletoachievethis,
thefollowinginterventionsarerecommended:

Organizationofanabacaindustryassociation
Developmentoftheregionalabacaindustrydevelopmentplanwhichwillprovidedetailson
thefollowing:
o Settingupofabacanurseries
o Establishmentofabacademonstrationfarms
o Developmentoftargetareasforexpansion
o Developmentoftargetareasforrehabilitation
o Improvementofpostharvestfacilities
o Abacaindustrydevelopmentandinvestmentpromotion
o Researchanddevelopmentactivities

56|P a g e

Facilitiessuchasabacanurseriesanddemofarmsandpostharvestfacilitiescanbedevelopedand
operatedasacollectiveenterprise.
The region has a large number of micro and small enterprises engaged in abaca fibercraft. This
sector can be a potential area for expansion and/or upgrading through improved processes,
technologies, markets and business operations. Developing this sector will result inadditional job
generation and increase in incomesfor the micro, small and medium enterprises involved in the
segment.

Photo:AbacafibercraftsandabacafurnitureproductsofNaturalCarpetIndustriesoperatingin
Camalig,AlbayProvince

57|P a g e

SECTION10:ANNEXES

INVENTORYOFEXISTINGABACAPRODUCTIONFACILITIESPhilFIDABICOLREGION
TYPEOFFACILITY
ADDRESS
AlbayAbacaTissueCultureLaboratory
BicolUniversityCompound,LegaspiCity,Albay
CatanduanesAbacaTissueCultureLaboratory
MoonwalkSubdivision,Virac,Catanduanes
AbacaDiagnosticLaboratory
BicolUniversityCompound,LegaspiCity,Albay
AbacaFiberSeedbankandExperimentStation
Sorsogon
AbacaFiberSeedbankandExperimentStation
CamarinesSur
AbacaFarmersTrainingCenter
Virac,Catanduanes

COSTANDRETURNANALYSIS(2HectareAbacaFarm)
PARTICULARS
YEAR1
YEAR2
YEAR3
YEAR4
YEAR5
TOTAL

EXPENSES
21,400.00
5,120.00
16,896.00 18,585.60 20,444.16
82,445.76
Suppliesandmaterials
31,850.00
1,215.00
3,777.00
4,597.20
4,806.92
46,246.12
Labor
175.00
175.00
175.00
175.00
175.00
875.00
DepreciationCost
500.00
500.00
500.00
500.00
500.00
2,500.00
LandTax
53,925.00
7,010.00
21,348.00 23,857.80 25.926.08 132,066.88
TOTALCOST
n/a
n/a
n/a
107.99
46.90

BreakevenCost
FiberYieldPerHectare
none
750.00
2,250.00
3,000.00
3,000.00
9,000.00
(kilos)
(EquivalentShare:50%
none
375
1,125
1,500
1,500
4,500
fortheowner)
n/a
15,000.00
45,000.00 60,000.00 60,000.00 180,000.00
TOTALINCOME
(53,925.00) (43,935.00) (22,283.00) 13,859.20 34,073.92
47,933.12
NetIncome/Loss
Percent(%)Returnon
n/a
n/a
n/a
10.49
25.80
36.29
Investment)
Assumption:Php40.00PricePerKilogram
Source:PhilFIDARegion5

ABACAFARMREHABILITATIONCOST(50%ofOneHectare)
COSTITEMS
1,600hills/hectare@50%(missinghills)neededforreplanting@Php5.00per
sucker:800plantsxPhp5.00
Fertilizer:2bagsAmmoniumSulfate@Php1,000.00perbag
Chemical:One(1)literinsecticideandherbicide@Php400.00perliter
CostforShade:Trees(Anonang,Dapdap,and/orAni)@Php20.00perpost
goodfor50
Labor:14ManDays(MD)@Php250.00perday
EstimatedTotalRehabilitationCost(50%)

58|P a g e

AMOUNT(Php)
4,000.00
2,000.00
800.00
1,000.00
3,500.00
11,300.00

LISTOFBICOLREGIONABACAINDUSTRYSTAKEHOLDERS(20122013)PhilFIDA
LicensedAbacaGradingandBalingEstablishments(GBEs)
NAME
ADDRESS
CONTACTINFORMATION
Ms.SocorroL.Calleja
ChingBeeTradingCorp.
RizalSt.,TabacoCity,Albay
Tel.#(052)4875186
ManilaHempTradingCorp. Capilihan,Virac,Catanduanes
Mr.PeterChua,President
ManilaHempTradingCorp. Mabca,Sagnay,CamarinesSur
Mr.JesusYaoChua,Manager
Mr.RodelA.Valiente,Manager
TagFibersInc.
Brgy.Salvacion,TabaCity,Albay
Tel.#(052)4876098

LicensedAbacaBuyingStations
NAME
ADDRESS
CONTACTINFORMATION
ManilaHempTradingCorp. Pob.SanAndres,Catanduanes
Mr.PeterCua,President
SpecialtyPulpMfg.Co.Inc. A.U.Betts.TabacoCity,Albay
Mr.VictorB.Parilla,President
TagFibersInc.
IbongSapa,Virac,Catanduanes
Mr.RodelA.Valiente,Manager
Mr.JessyB.Leno,Manager
PulpSpecialtiesPhils.,Inc.
Kilikao,Daraga,Albay
Tel.#(052)4350161

LicensedAbacaProcessors
NAME
ADDRESS
CONTACTINFORMATION
AlbayAgroIndustrialDevelopment
Balading,Malinao,Albay
Corp.(ALINDECO)

Products:Pulpsheets

PACIFICCORDAGECORP.
Products:ropes

CCCPIndustries
Products:baskets,boxes

JMHandicraft
Products:bags

Lidong,Sto.Domingo,Albay
Bagumbayan,Daraga,Albay
#165Bagumbayan,Daraga,Albay

Ms.HazelB.Ravago,Finance&
AdminHead
Tel.#(052)4884588
Mr.NoliL.Budy,PlantManager
Tel#(052)4871571
Mr.CarlosCondaSr.,President
Tel.#(052)4831505
Ms.MiraMacandog,Proprietor
Tel.#(052)8243545

RODIMAMARKETING
Products:bags,sinamay,scrunch, LakandulaDrive,LegaspiCity
boxes

SIMORABACAPRODUCTSINC.
Products:wallcarpets

A.BINASENTERPRIES
Products:bags,noveltyitems

Ms.AimeePenaflor,Proprietor

Cabangan,Camalig,Albay

Ms.EmeliteG.Vibar,Proprietor

SanJose,Malilipot,Albay

Mr.AldrinB.Binas,Proprietor

BIKOLABACACRAFTS
Products:baskets,bags,noveltyitems, Tabontabon,Daraga,Albay
scrunch

Ms.LomaV.Mier,Proprietor

CRAFTSITEEXPORTENTERPRISES

Mr.RenatoN.Nidea,Proprietor
Tel.#(052)4831489

Products:scrunch,rolls

GLOBEASIANATUREIND.,INC.,

Parisan,Camalig,Albay
GernarineBldg.,AnnexAlt.Road,

Products:scrunch,sinamay,tray,
LegaspiCity,Albay
boxes

GSGINDUSTRIALCORP.
Products:handmadepaper,rolls,boxes

KAFTIKAFILIPINA

Cale,Tiwi,Albay

Mr.JeofrreyGonzales,Proprietor

Purok8,Tagas,Daraga,

Mr.ReynaldoT.Paulino,Proprietor
Tel.#(052)4832148

Products:bags Albay

NATURALCARPETIND.

256Zone5,Sumlang,Camalig,

Products:tablerunners,mats,rugs Albay

PRIMELAGACY
Products:bags

59|P a g e

Engr.GersonS.Escaro,Manager

Tagas,Daraga,Albay

Mr.FilipeNoeNapaJr.,Proprietor
Ms.JocelynAntonio,Proprietor

RANBROS.CO.INC.,
Products:bags,baskets

ROYALWEAVERSPRODUCTS

280PagasaSt.,Daraga,Albay

Ms.VivianR.Ranola,Manager

AnsonSubdivision,Cabangan,

Ms.JocelynN.Valenciano,
Proprietor

Products:scrunch,boxes Camalig,Albay

RYGANPAMARENTERPRISES
Products:bag,mats,twine

SHIRLSANDLARSHANDICRAFTS
Products:sinamay,scrunch

STARCRESTASIACORP.
Products:bags,boxes

AIMHANDICRAFT
Products:boxes

ALEMANAWEAVINGCENTER
Products:twine,sinamay

SanIsidro,Ilawod,Malilipot,Albay Ms.MaryJeanV.Muni,Proprietor
Bonga,LegaspiCity

Ms.ShirlyP.Alaurin

Tagas,Daraga,Albay

Ms.GloriaP.Baldo,Treasurer
Tel.#(052)4832296

Malabog,Daraga,Albay

Ms.ImeldaD.Moratillo,Proprietor

SanRoque,Malilipot,Albay

Ms.SalvacionAlemana

MabiniSt.,Toytoy,Malilipot,

BINALLA,LENNYB.

Products:fibercraft Albay

BROSO,FE
Products:twine

BUENO,ELMA
Products:fibercraft

CARMELAERNESTINECRAFTIND.

SanIsidro,Iraya,Malilipot,Albay

Toytoy,Malilipot,Albay

TeachersVill.,Phase1,

Ms.JuanaL.Erquiaga,Proprietor
Te.#(052)4871506

Products:fibercraft WashingtonDrive,LegaspiCity

CONTIGNO,CAMILOA.

BitantesSt.,SanIsidro,Ilawod,

Products:twine Malilipot,Albay

DEVERA,TITAP.
Products:noveltyitems

Bonag,Daraga,Albay

DOMSHANDMADEOPTIONS
Products:handmadepaper,novelty SanJuanSt.,Sto.Domingo,Albay
items

EDELSHANDICRAFTSTORE
Products:fibercraft

FUJIDAISENINC.
Products:bags,boxes

Bonafe,Malilipot,Albay
Purok8,Tagas,Daraga,Albay

HANDYWIREFRAMEHANDICRAFT
Products:tray,noveltyitems,lamp Travesia,Guinobatan,Albay
shades

IMPERIALRODOLFO

MabiniSt.,Toytoy,Malilipot,

Products:fibercraft Albay

JANMHAYUESHANDICRAFT
Products:fibercraft

JEANELSHANDICRAFT
Products:placemats,noveltyitems

JHOANDBETHHANDICRAFT
Products:bag,sinamay,noveltyitems

Mr.DomingoB.BarriosJr.,
Proprietor
Tel.#(052)4871506
Ms.MariaFranciaBabasa,
Proprietor
Mr.JulianP.Lizano,Corporate
Secretary
Ms.LuzvimindaDomera,
Proprietor

P4,SanJose,Malilipot,Albay

Ms.PascualitaBigornia

Gabawan,Daraga,Albay

Ms.JeannetteA.Biton,Proprietor

Marketsite,Daraga,Albay

Ms.LilibetBanal,Proprietor

MENDIONES,NOEMI
Products:tablecloth,tablerunner, P3,Salvacion,Daraga,Albay
wallmat

MINA,NENAA.
Products:noveltyitems,sinamay, Marketsite,Daraga,Albay
scrunch

MORINCRAFTS
Products:mats,tablerunner,novelty Cabangan,Camalig,Albay
items

NESSCRAFTSPHIL.IND.,
Products:bags,noveltyitems

NGCDECORCRAFTERS
Products:fibercraft

NUNEZ,ELSIEM.

60|P a g e

Zone2,Tagas,TabacoCity,Albay

Ms.MariaNeressaAraojo,
Proprietor

AvilaSubd.,Daraga,Albay

Ms.IxaraAinezL.Vibar,Proprietor

Purok4,Travesia,Guinobatan,,

Products:fibercraft Albay

PHILABACARPETCORP.
Products:rugs

POCILLO,IMELDAS.

Cabangan,Camalig,Albay
P2,HomeVill.,Travesia,

Products:fibercraft Guinobatan,Albay

RCBCraftsandDesigns
Products:bags,noveltyitems

SIBAY,RITAN.
Products:noveltyitems

SOLASHANDICRAFTCENTER
Products:fibercraft

TEANO,FLORO
Products:fibercraft

ZMWCOCOANDABACAENT.
Products:fibercraft

SHELMEDCOTTAGETREASURES

P1,SanLorenzo,TabacoCity

Ms.RachelleBriones,Proprietor

Travesia,Guinobatan,,Albay

MabiniSt.,Malilipot,Albay

Ms.FelicitasB.Sola,Proprietor

Buenavista,Bato,Catanduanes

Ms.RaquelAntevola,Proprietor

MontanaBldg.,F.Lotivio,Daraga,

Products:fibercraft Albay

LicensedAbacaTraders(Local)
NAME
CamuMarketing
JohnLukeSarisariStore
Publico,Emily
Rojas,Richard
ViracCentralLogisticsCorp.
Bonaobra,Eduardo
Bornilla,Robita
Cao,DanteB.
Candaza,Merly
Cid,PatrickB.
Idanan,JohnsonE.
J.R.Comprada
MergaTrading
Penaflor,Domingo
Relleta,Fred
Sabio,Teodorico
SASEnterprisesandGen.Merchandise
Arcilla,AileenS.
Barroso,JoselitoB.
Bendal,SalvadorSr.,
BringuelaEnterprises
Capino,RuthC.
Cimanes,Bonifacion
Co,BenjaminD.
Ercon,Trading
Esmeria,Isabel
JBBorlaganEnterprises
Legson,Joseph
61|P a g e

Mr.ReneMorin,Proprietor

Mr.SheldonVillanueva,Proprietor

ADDRESS
Tigbi,Tiwi,Albay
Paraputo,SanAntonio,TabacoCity,Albay
Sabangan,Caramoran,Catanduanes
Pob.Viga,Catanduanes
Sta.Cruz,Virac,Catanduanes
Zone1Fatima,Tabaco,Albay
Banntayan,TabacoCity,Albay
Bacacay,Albay
SanIsidro,Iraya,Malilipot,Albay
Ongob,Malinao,Albay
Datag,Caramoran,Catanduanes
SanJuanBautista,Goa,CamarinesSur
Irosin,Sorsogon
Camalig,Albay
Catagbacan,Goa,CamarinesSur
Sta.Elena,Buhi,CamarinesSur
Sipi,Bato,Catanduanes
SalvacionSt.,Manambrag,SanAndres,Catanduanes
Mabini,Caramoran,Catanduanes
Misibis,Tiwi,Albay
Irosin,Sorsogon
Tanawan,Malinao,Albay
Marketsite,Daraga,Albay
ManookSt.,Gubat,Sorsogon
DaragaPublicMarket,Daraga,Albay
Mapapac,Barcelona,Sorsogon
SanLorenzo,TabacoCity
SanIsidroWest,SorsogonCity

Lim,Ricardo
Llaguno,MarianoB.
MRLGTrading
Pahuyo,ManuelT.
RodinnahEnterprises
Ubana,NoelO.
Abion,Rogelia
Alcazar,Edna
AlexEnterprises
AntonettesEnterprises
Asis,Joel
Asis,RodrigoJr.
Banaag,SegundoJr.
BercasioStore
BlueLaceTrading
Bombita,Romeo
Bonina,Cesar
Bredes,AldinB.
Bryan,Elpidio
Brillante,Lionisa
Brofas,Delfin
Cabais,Romulo
Camacho,Helen
Camano,JustinoJr.
Casiao,JesusP.
Casungcad,GenerosaE.
CBJTradring
Chan,MaritessA.
Chavenia,Myrna
Chavez,Marcelito
Chavez,Rogelio
Chua,LaurenceB.
Co,Maria
Conda,Remedios
Coderis,Antonio
Crispino,Amparo
DeLeon,SalvadorC.
Diaz,MariaGazelE.
Docot,Manuela
Endionela,JoseArnelA.
Francisco,Cornelio
Garcia,AmeliaS.
Germina,Joel
Gregorio,Molito
Guiriba,Regina
Hercer,Arnolfo
JoseCopraDealerandSarisariStore
Labayuga,DomingoD.
Laceda,Armando
Lee,Rogelio
62|P a g e

SanJuanBautistaSt.,Goa,CamarinesSur
Tigaon,CamarinesSur
DelgadoSt.,Goa,CamarinesSur
Ocampo,CamarinesSur
SanPedro,Irosin,Sorsogon
Pangpang,SorsogonCity
Buyo,Manito,Albay
Basud,Bacon,Sorsogon
Sta.Maria,Lagunoy,CamarinesSur
0078LunaSt.,Gubat,Sorsogon
Malatop,Labo,CamarinesNorte
B.Silang,Labo,CAmarinesNorte
Juban,Sorsogon
BaconDist.,SorsogonCity
267Gen.LunaSt.,Daraga,Albay
Sibacungan,Bato,Catanduanes
Zone7,Labnig,Malinao,Albay
SanRoque,TabacoCity,Albay
Cavinitan,Virac,Catanduanes
Siocon,Gigmoto,Catanduanes
Panicuason,NagaCity
Sta.Elena,Buhi,CamarinesSur
Paraiso,SanMiguel,Catanduanes
Mayanao,Tigaon,CamarinesSur
SanRafael,J.Panganiban,CamarinesNorte
Colasi,Mercedes,CamarinesSur
Guinlajon,SorsogonCity
AlmendrasSt.,SorsogonCity
Ogob,Malinao,Albay
Biong,Gigmoto,Catanduanes
Biong,Gigmoto,Catanduanes
Brgy.SouthPoblacion,Juban,Sorsogon
ManookSt.,Gubat,Sorsogon
Sagpon,Daraga,Albay
Moyong,Tiwi,Albay
Sicmil,Gigmoto,Catanduanes
Colasi,Mercedes,CamarinesNorte
Bancal,SanBaconDist.,Sorsogon
Basud,SorsogonCity
Guisican,Labo,CamarinesNorte
SanIsidro,SanLorenzoRuiz,CamarinesNorte
Tilod,Baras,Catanduanes
Guisican,Labo,CamarinesNorte
Siocon,Gigmoto,Catanduanes
Camalig,Albay
Almojuela,Viga,Catanduanes
Juban,Sorsogon
Basud,SorsogonCity
Panlayaan,SorsogonCity
Casiguran,SorsogonCity

Limpangog,ElsieO.
M.AndesCommercial
Mabburang,Domingo
Magno,AzerM.
Magno,Eden
Magtangob,Noel
Marino,Esteban
MelchorFelicidad
Merciales,Elizabeth
Nunez,RowennaC.
Ogalesco,Jesus
Ogalesco,JoseO.
Olesco,GarryT.
Olesco,Winefreda
Ortua,Freddie
Palmes,Antonio
Pan,Nena
Pardo,Dionisio
Peconcillo,Eddie
Pellejera,Domingo
Perena,Antonio
Primavera,MayFuentebella,
Rivera,Reny
Rodriguez,Nancy
Rojas,MaryJane
Sallan,ArmandoM.
Salvador,Celedonio
Samonte,Agapito
Santelices,Arulfo
Solmirano,Nicanor
Sualibio,Jesus
Tabinas,Leonor
TanEnterprises
Tapia,Armando
Tating,ArturoT.
Tating,Jose
Tawat,Salvador
Tibar,DanteM.
Teano,AmelitaS.
Templonuevo,ArielP.
Templonuevo,Joey
Tolledo,Rolando
Tortillos,Pedro
Traquena,Nicolas
Tresvalles,Leticia
Tribiana,Domingo
Tud,Antonio
Tuplano,Edgar
Tura,DomicianoJr.
Turbolencia,FeZ.
63|P a g e

SanMiguel,Panganiban,Catanduanes
Cumadcad,Castilla,Sorsogon
Almojuela,Viga,Catanduanes
Datag,SanAndres,Catanduanes
Datag,SanAndres,Catanduanes
P2,itok,Capalunga,CamarinesNorte
Sagrada,Viga,Catanduanes
Tigaon,CamarinesSur
Salvacion,Ragay,CamarinesSur
Misibis,Tiwi,Albay
Burgos,Viga,Catanduanes
Sagrada,Viga,Catanduanes
Burgos,Viga,Catanduanes
Sagrada,Viga,Catanduanes
Goa,CamarinesSur
Catagbacan,Goa,CamarinesSur
Buyo,Goa,CamarinesSur
Talubateb,Labo,CamarinesNorte
Panicuason,NagaCity
Juban,Sorsogon
P6,Mayong,Tiwi,Albay
Hanawan,Ocampo,CamarinesSur
SitioCabunturan,Sagnay,CamarinesSur
SummitP.Vera,Viga,Catanduanes
Exciban,Labo,CamarinesNorte
Buyo,Manito,Albay
TulaynaPula,Labo,CamarinesNorte
Tilod,Baras,Catanduanes
Timbaan,SanAndres,Catanduanes
BatongPaluay,SanAndres,Catanduanes
Cabcab,SanAndres,Catanduanes
Timbaan,SanAndres,Catanduanes
Bentuco,Gubat,Sorsogon
Exciban,Labo,CamarinesNorte
Tinago,Viga,Catanduanes
VillaAurora,Viga,Catanduanes
VillaAurora,Viga,Catanduanes
Sta.Maria,Baras,Catanduanes
Sta.Maria,Baras,Catanduanes
SanJuan,SanMiguel,Catanduanes
Arroyao,SanMiguel,Catanduanes
Sta.Maria,Baras,Catanduanes
Siocon,Gigmoto,Catanduanes
Cabugao,Bato,Catanduanes
Bartolinao,Baras,Catanduanes
ArroyaoGrande,SanMiguel,Catanduanes
Sicmil,Gigmoto,Catanduanes
Rizal,Viga,Catanduanes
Almojuela,Viga,Catanduanes
Obi,Caramoran,Catanduanes

Villaflores,DaniloD.
YangsGeneralMerchandising
Yu,Nestor
Velasco,Jeffrey
Zafe,BailonJr.,V

64|P a g e

Baay,Labo,CamarinesNorte
ManookSt.,Gubat,Sorsogon
Irosin,Sorsogon
SanMiguel,Panganiban,Catanduanes
DelRosarioSt.,Sto.Domingo,Albay