ABACA

VALUE CHAIN ANALYSIS

Region V Bicol Region

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PHILIPPINE RURAL
DEVELOPMENT PROGRAM

(PRDP)

Department of Agriculture
Region V

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TABLE OF CONTENTS
CONTENT
EXECUTIVE SUMMARY
SECTION 1 INTRODUCTION
A. Background Information and Objectives
B. Objectives of the VCA
C. Methodology
SECTION 2 OVERVIEW OF THE INDUSTRY
A. Product Description
B. Production Trends
SECTION 3 NATURE AND SCOPE OF THE INDUSTRY
A. Value Chain Mapping
B. Key Players and Functions
C. Nature of Inter-firm Relationships
D. Price and Cost Structure
SECTION 4 MARKETS AND MARKET OPPORTUNITIES
A. Markets and Market Trends
B. Price Trends
SECTION 5 SUPPORT SERVICES
A. Financial Services
B. Non-Financial Services
SECTION 6 ENABLING ENVIRONMENT
A. Formal Rules, Regulations and Policies
SECTION 7 CONSTRAINTS AND OPPORTUNITIES
SECTION 8 COMPETITIVENESS DIRECTIONS
A. Competitiveness Vision
B. Priority Constraints and Interventions
SECTION 9 CONCLUSION AND RECOMMENDATIONS
ANNEXES

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LIST OF TABLES AND FIGURES

TABLE NO.
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Table 13
Table 14
Table 15
Table 16
Table 17
Table 18
Table 19
Table 20
Table 21
Table 22
Table 23
Table 24
Table 25
Table 26
Table 27
Table 28
Table 29
Table 30
Table 31
Table 32
Table 33

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DESCRIPTION
Recommended abaca varieties
Grades and Uses of Abaca Fiber
Comparative Abaca Production (2009- 2013) - National
Top 10 Abaca Producing District of Production (DOP) 2012
Comparative Abaca Production (2009- 2013) - Bicol Region
Area Planted to Abaca (2009- 2013)
Annual Average Fiber Yield (2009- 2013)
Top 10 Abaca Producing Municipalities in Bicol Region (Existing Abaca Production Area)
Top 10 Abaca Producing Municipalities in Bicol Region (Number of Farmers)
Top 5 Abaca Producing Municipalities Per Province (Existing Abaca Production Area)
Bicol Region Abaca Producing Provinces, Districts and Municipalities
Number of Abaca Farmers Per Province
Number of Abaca Nurseries Per Province
Number of Abaca Traders and GBEs Per Province
Number of Abaca Pulp Mill, Buying Station and Cordage Manufacturer Per Province
Number of Fibercraft Processors Per Province
Abaca Cost and Return Analysis
Cost and Returns for Abaca Scrunch Production
Cost and Returns for Sinamay Production
Annual Export Earning from Abaca Fiber and Manufactures 2008 2012 (in FOB US$)
Annual Abaca Fiber Exports 2008 2012 (in metric tons)
Average Abaca Pulp Exports/ Destinations (2008 - 2012) (in metric tons)
Average Abaca Cordage & Allied Products Exports (2008 2012in metric tons)
Average Abaca Fabric Exports/Destinations 2008 - 2012 (in square meters)
Annual Domestic Consumption of Abaca by Sector 2008 - 2012 (in metric tons)
Annual Domestic Consumption of Abaca by Sector 2008 - 2012 (in metric tons)
Weighted average export prices of abaca fiber by grade Handstripped (F.O.B. US$ / Bale)
Weighted average export prices of abaca fiber by grade - Handstripped (Peso/Bale / Kilo)
Weighted average export prices of abaca fiber by grade Spindlle-stripped (F.O.B. US$/Bale)
Weighted average export prices of abaca fiber by grade Spindlle-stripped(Peso/Bale / Kilo)
Annual average farmgate price per kilo of abaca fiber (2008 2013 in Peso)
Constraints and Opportunities
Summary of Priority Constraints/Opportunities and Interventions

FIGURE NO.
Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
Figure 6
Figure 7
Figure 8
Figure 9
Figure 10
Figure 11
Figure 12
Figure 13
Figure 14
Figure 15
Figure 16
Figure 17
Figure 18

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DESCRIPTION
Global Abaca Production
Philippines Abaca Production Area
Domestic Abaca Production
Distribution of Abaca Production Region 5
Bicol Region, Abaca Value Chain Map1
Bicol Region, Abaca Lead Firms
Bicol Region, Abaca Sub-Value Chain (channels)
Bicol Region, Abaca Linkages and Value Chain Governance Map
Catanduanes Abaca Sustainability Initiative (CASI) Model
Distribution of value/revenue along the chain
Abaca products export earnings (2008 2012)
Abaca Fiber Exports
Bicol Region, Annual Abaca Fiber Exports 2008 2012 (in metric tons)
Abaca Fiber Exports by Grade
Abaca Pulp Exports
Abaca Cordage & allied product exports (2008 2012)
Abaca fabric exports (2008 2012)
Domestic abaca consumption by sector

EXECUTIVE SUMMARY
The Philippines is the worlds leading abaca producer, supplying 87% or around 56,000 MT of global
abaca fiber requirements. The country has around 172,934 hectares of abaca, being managed by
113,648 abaca farmers. Bicol is the top abaca producing region, contributing 39% or 23,752 MT of
Philippine abaca production of 55,958 MT, and 52,214 hectares or 30% of the 179,434 total abaca
hectarage in the country in 2013. Abaca production grew by 4.3% in Bicol, compared to the 1%
national growth rate.
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
approval of the local government of Catanduanes to source their planting materials from the island
province.
The abaca industry of Bicol is composed of 38 nursery operators, 21,922 farmers, 143 abaca traders,
5 GBEs, 1 pulp mill, 1 cordage manufacturer, 4 buying stations and 65 fibercraft processors. Most of
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, support services, benefits and incentives throughout the chain. Industry development
efforts are government led. But the GLATFELTER Catanduanes Abaca Sustainability Initiative (CASI)
is a bright spot that can be replicated in the other provinces to transform the industry into a more
cohesive one.
The Philippines earned US$ 108.3 M in abaca exports in 2012. Sixty seven percent (67%) of export
earnings came from abaca pulp, 14% from cordage products, 12% from abaca fiber, 6% from
fibercrafts, and 1% from yarns and fabrics. Export earnings however, were severely affected by the
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
between 2008 2012. The Bicol Region accounts for 30% or 15,415 MT of the Philippines annual
average domestic abaca consumption.
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,
particularly for sustainably produced abaca. The strong perfromance of the fibercraft sector in the
export and local markets is also a good market opportunity for the abaca industry in Bicol.
PhilFIDA is the main governement agency mandated to promote the growth and development of the
abaca industry. But because of limited resources, the agency has difficulties making their services
accessible to all players. The capacity of the private sector to provide sustainable support services
has to be developed.

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

Lack of supply of good quality planting materials
Lack of supply of raw abaca
Lack of marketing and promotional support for fibercraft products
Poor quality of abaca fiberbecause of the lack of post harvest facilities
High pest and disease incidence
Lack of industry leadership
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The following interventions were formulate to address the key constraints and opportunities of the
abaca industry of Bicol:


The private and public stakeholders of the abaca value chain in Bicol must work together to
address the priority constraints. The following interventions are proposed:
Nurseries must be set up in strategic areas using good quality, HYV planting materials
preferably from Catanduanes.
Access to support services must be improved to support the upgrading needs of abaca
farmers, particularly in improving their farm productivity.
Replicate the CASI model to foster interfirm cooperation in other provinces of Bicol and to
take advantage of the growing market for sustainably produced abaca
Set up of postharvest facilities to improve the quality of abaca fiber
Provide marketing and promotional support for abaca fibercraft products
Orgnize the industry to coordinate a private led abaca industry development efforts

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SECTION 1: INTRODUCTION

A. BACKGROUND INFORMATION AND OBJECTIVES

A. Brief Background on PRDP
The Philippine Rural Development Project (PRDP) is a six-year program (2013-2019) designed to
establish an inclusive and market-oriented agri-fishery sector through strategic investments in
priority commodity value chains.

PRDP seeks to address three major constraints that limits agricultural development, these are:
Inadequate agri-related infrastructure and facilities
Insufficient technology development
Weak training, extension and information dissemination

These constraints resulted to low production and income in the agriculture sector and contributed to
the problem of the whole economy. PRDPs will implement an inclusive or broad-based rural agro-
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
competitiveness in the countryside.

PRDP, in its program development objectives, commits to a 5% annual increase in real farm and
fishery incomes. For the enterprise development, the project is targeting to attain a 30% increase in
real income for targeted beneficiaries.

PDP targets to increase by 3-5% annually, the agri-fishery contribution to gross value added. It aims
to contribute to this result by increasing the value of farmers and fishers marketed output through
their engagement in commodity value chains supported by appropriate agri-fishery infrastructure.

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

Program Components

I-PLAN Investments in AFMP Planning at the Local and National Levels
I-BUILD Intensified Building up of Infrastructure and Logistics for Development
I-REAP Investments in Rural Enterprises and Agriculture and Fisheries Productivity
I-SUPPORT Implementation Support to PRDP

PRDP is a PhP 27.5 billion program of which a full 92% is designed to deliver goods and services
directly to the people through I-BUILD and I-REAP.

By source of financing, 75% is proposed to be funded through a loan from the Word Bank, 13% from
the National Government, 11% from the local government partners and 1% is expected from the
Global Environment Facility grant.

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B. Profile of Bicol Region

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,
107 municipalities and 3,471 barangays.

Politically, the region is subdivided into 16 congressional districts.
Legaspi City is designated as the regional center and the gateway city
to Bicol region because of its strategic location and accessibility to land,
air and sea transportation.

Location

The Bicol peninsula is located at the mid-section of the
country. It is situated at the southernmost tip of the
Luzon landmass. The total land area of the region is
18,054.3 km2 (6,970.8 sq mi), which is 5.9% of the total
land area of the country. Around 69.3% of the total land
area is alienable and disposable while the remaining
30.7% is public forest areas.

The region is bounded by Lamon Bay to the
north, Pacific Ocean to the east, and Sibuyan
Sea and Ragay Gulf to the west. The northernmost
province, Camarines Norte, is bordered to the north by
the province of Quezon, thereby connecting the region
to the rest of Luzon.


Climate

Bicols climate is tropical, with normal average year-round temperature of 27.4C to 29.6C. Two
pronounced seasons, dry and wet. The prevailing types of climate in the region are the second and
fourth types. The second type is characterized by a very pronounced maximum rainfall (November to
January) and no dry season. Catanduanes, Sorsogon, Eastern Albay and Eastern and Northern
Camarines Sur and Camarines Norte exhibit this weather type.

The fourth type is characterized by evenly distributed rainfall throughout the year with exception of
the occurrences of tropical cyclones in the vicinity which can cause rainfall abnormalities. Areas
under this type include the Western part extending from Camarines Sur to the south-western tip of
Sorsogon.

The region receives an average rainfall of 3,013 millimetres and means annual temperature of 27.2
degrees Celsius.

Population

The population of the Bicol Region reached 5,420,411 as of May 1, 2010, growing at an average
annual rate of 1.46 percent between 2000 and 2010. The region's population density increased to
298.8 persons per square kilometer in 2010.

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C. Rationale for selecting the chain/socio-economic importance of commodity to

region/province

Abaca is the second permanent crop in the Bicol Region next to coconut. Abaca is part of Bicol
regions rich culture and history. It is an economic pillar instrumental in propelling robust economic
growth and development in the region.

As a major crop in the Philippines, Bicol shares a significant portion of 38% (22,987 mt.) of the
countrys average abaca production for the last five (5) years (2008-2013). About 21,922 farmers in
Bicol Region directly or indirectly depend on the crop for livelihood. The industry also provides
employment to a sizeable number of families, women, handicapped, and out of school youth in the
region.

Being regarded as one of the important crop, the collaborative effort of the abaca stakeholders in
Bicol region has made it the countrys number one (1) abaca producer outranking Eastern Visayas. As
of December 2013, Bicol Regions effective area covered 52,214.08 hectares of abaca with 21,922
abaca farmers.

Fiber production from January to December 2013 further strengthened Bicol regions position with
42.4% share against Eastern Visayas and Davao Regions 19% and 10% respectively.

D. Importance of undertaking the value chain analysis
Bicol region plays a very important role in the countrys abaca industry. Thousands of farmers in the
region depend on abaca for their livelihood. Several abaca lead firms do business in the region and
thus contributed to its economic growth.

For the region to be able to respond to the recurrent need of the micro, small and medium
enterprises (MSMEs), the conduct of abaca value chain analysis is very important. It would allow a
better understanding of the market, the nature of inter-firm 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
formulation of market-based and commercially viable solutions that are sustainable.

B. OBJECTIVES OF VCA
The conduct of the abaca value chain study aims to achieve the following:

Describe the various actors, their functions, and nature of inter-firm relations
Understand end - market opportunities that can spur inclusive growth
Identify key constraints to end - market opportunities
Formulate interventions to address key constraints and opportunities
Identify investment opportunities that will be the basis of the Provincial Commodity
Investment Plan (PCIP)
Promote collaboration between the national and local governments, and the private sector

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
industry status including reports and statistics produced by PhilFIDA and the local government units.
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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, grading and baling establishments (GBEs), pulp mills and abaca processors and exporters to
get first hand information on abaca industry.

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
value chain analysis as well as help in identifying key constraints and formulate strategies to advance
the regions abaca industry development. Key representatives from the local government units and
PhilFIDA were also present.

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SECTION 2: OVERVIEW OF THE INDUSTRY

A. PRODUCT DESCRIPTION
Abaca with scientific name Musa textiles is indigenous in the Philippines. Abaca is a member of the
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
banana is for food (fruits). The fruits of abaca are smaller, non-edible and contain many seeds.

Abaca is grown in the country for centuries and has been synonymous to the Philippines because it is
known internationally as Manila Hemp. It is the most important cultivated plant fiber in the country
in terms of hectarage, production, and contribution to the nations economy.

Abaca reportedly thrives in Ecuador, Costa Rica, Panama, Guatemala and Indonesia. Its origin can be
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
aside from the Philippines.

The Philippines is the worlds leading abaca producer as the country supplies about 87% of the
worlds abaca fiber requirement as of year 2012. Ecuador supplies the remaining 13%.

Forms and Uses

Abaca is mostly grown in the upland areas and interior parts of the country. It is traditionally planted
by using suckers or corms. The use of corms and suckers is simple and results in high germination
and survival, but these materials are bulky and costly in terms of labor and transport.

Abaca grows in clay loam and sandy clay loam types of soil. It is more productive in areas where the
soil is volcanic in origin, rich in organic matter, loose, friable and well-drained. Soil pH level must be
about 6.0 to 7.0 and an elevation of less than 1,000 meters above sea level.

Abaca grows in areas with temperatures of 20C during cool months and 25C during warm months.
A relative humidity of 78% to 85% and evenly distributed rainfall throughout the year are conditions
conducive to good abaca plant growth.

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:

Table 1 : Recommended abaca varieties
For Bicol
For Visayas
For Mindanao:
1. Musa Tex 51
1. Linawaan
1. Maguindanao
2. Abuab
2. Inosa
2. Bongolanon
3. Tinawagan Puti
3. Laylay
3. Tangongon

The abaca fiber is extracted from the stalk of the plant. It is considered the strongest among plant
fibers. It has the best reputation for strength and tenacity. Abaca is three times stronger than cotton
and two times stronger than sisal fibers.

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Abaca is more resistant to saltwater decomposition than most of the vegetable fibres. Compared to
synthetic fibres like rayon and nylon, abaca fibre possesses higher tensile strength and lower
elongation in both wet and dry states.

Abaca fibres are extensively used to produce ropes, woven fabrics, tea bags, etc. It is also called a
biodegradable and sustainable fiber. The prime qualities of abaca have made it an excellent choice
over other natural plant fibers in the production of high porosity and strength thin papers.

To maintain and ensure quality of fibers produced, quality standards for abaca fiber has been set
and enforced. Abaca fiber grades are divided into three (3) classes depending on the manner they
are extracted, namely: hand-stripping, spindle-stripping and decortications.

The quality of abaca fiber is determined by strength, cleaning, color, texture and length of the fiber.
In terms of cleaning (which is a direct result of the stripping apparatus or knife used), the standard
grades for hand- and spindle-stripped are:

EXCELLENT
- S2, S3

GOOD
-
I, G, H
FAIR - JK, M1

RESIDUAL - Y, OT

Spindle-stripped abaca fibers are indicated by the letter S before the official grade, i.e., S-S2, S-I,
and so on. For decorticated abaca, the official grades are AD-1, AD-2 and AD-3.

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

Table 2 : Grades and Uses of abaca fiber
USES
GRADES/TYPES
Cordage products - ropes, twines, marine cordage, binders, cord
Pulp and paper manufactures - tea bags, filter paper, mimeograph stencil, base
tissue, sausage skin, base paper

Cigarette paper, currency paper, chart file folders, envelopes, time cards, book
binders and parchment paper

Microglass air filters media, x-ray negative, optical lens wiper, vacuum filter, oil filter

Nonwovens - medical gas masks and gowns, diapers, hospital linens, bed sheets

Handmade paper - paper sheets, stationeries, all-purpose cards, lamp shades, balls,
dividers, placemats, bags, photo frames and albums, flowers, table clock
Fibercrafts - handbags, hammocks, placemats, rugs, carpets, purses and wallets,
fishnets, door mats, table clock
Handwoven fabrics - sinamay, pinukpok, tinalak, dagmay
Sacks, hotpads, hemp, coasters,
Baskets
Wallpaper
Furniture
Others - wire insulator and cable, automobile, automobile components/composites

POTENTIAL USES OF ABACA

Fiberboards - roofing tiles, floor tiles, hollow blocks, boards, reinforcing fiber
concrete and asphalt
Miscellaneous applications - wigs, grass skirts
Source: Philippines Fiber Industry Development Authority (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

All grades
icluding wastes
S2, G
High grades
S3, H lupis and
bacbac*
S2, G, KJ, Y
S2, bacbac
JK, M1, Y, OT

GRADES/TYPES
OT and other waste
All grades

Abaca Products Produced in Bicol Region

As the countrys leading abaca producer, Bicol region is a home to several abaca industry players
engaged in various activities from production to processing.

The region has one (1) abaca pulp mill, one (1) cordage manufacturer, 62 fibercraft processors, 2
hand-made paper processor and 21,957 farmers engaged in abaca fiber production. The region also
has 143 abaca traders that supplier to processors within and outside the region. It also has 4 grading
and baling establishments (GBEs)

Abaca products produced from the region includes abaca fiber, abaca pulp/paper, abaca fiber crafts,
abaca cordage / ropes, abaca furniture, handwoven fabrics and hand-made papers among others.

B. PRODUCTION TRENDS

1. Global Production

Fig. 1: Global Abaca Production

The Philippines dominates the global abaca

production. As of year 2012, the country supplies
about 87% of the world abaca requirement. The crop
is also cultivated in other Southeast Asian countries
but not in a commercial scale. The Philippines closest
rival is Ecuador, it is the second and the only country
that produces abaca commercially. It supplies the
remaining 13% of world abaca requirement.


Abaca is grown in Ecuador on large estates and
production is increasingly mechanized. In the
Philippines, abaca is a grown in smallholder farms
using manual production systems.

In 2013, world abaca production reached 64,319.54 metric tons. Of this, 55,958 metric tons is from
the Philippines while Ecuador produced 8,362 metric tons.

1. Domestic Production
Industry data revealed that the Philippines has a total of 11
abaca producing regions with a combined area of 172,934.33
hectares as of December 2013. The country has a total of
113,648 abaca farmers.

35% of abaca hectarage can be found in Mindanao, while
area planted to abaca in Visayas and Luzon account for 33%
and 32% respectively.




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Fig. 2: Philippines Abaca Production Area


Figure 3 shows, that among the various Districts of Production
(DOP) of PhilFIDA, the Bicol Region has the biggest volume of
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).

As shown in Table 4, from 2009 to 2013 the countrys average
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: Domestic Abaca Production
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
production between 2009 - 2013 averaged 6,916 MT, with an annual growth rate of 1.1%.

Table 3 :Comparative Abaca Production (2009- 2013) - National

COMPARATIVE ABACA PRODUCTION

By Top Abaca Producing Regions (in metric tons) - 2009 2013
REGION
National
Bicol
Eastern Visayas
Davao

AVERAGE FIBER PRODUCTION (mt.)

% Share
% Growth Rate
58,781
100%
1.9%
22,987
39%
3.8%
14,694
24%
(3.2%)
6,916
11%
1.1%

The high growth rate on production of the Bicol region can be attributed to the combined efforts of
the government and the private sector through its abaca industry development support projects.
The drop on production in the Visayas is a result of devastating typhoons and the pest and disease
infestation on abaca farms.

The succeeding table shows the volume of production of PhilFIDAs abaca Districts of Production
(DOP) covering the period 2008 to 2013.

Table 4 : Top 10 Abaca Producing District of Production (DOP) - 2012
DISTRICT OF PRODUCTION
NATIONAL
Catanduanes
Leyte
Northern Samar
Davao Oriental
Surigao del Sur
Southern Leyte
Davao del Sur
Sulu
Aklan
Bukidnon

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VOLUME OF PRODUCTION (in Metric Tons)

2008 2012
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

As seen in Table 3, the Province of Catanduanes is called the abaca county being the biggest abaca
producing province in the Philippines. It has a total of 11 municipalities engaged in abaca production,
212 barangays and an abaca production area of 33,051.25 hectares cultivated by 12,734 farmers as
of December 2013.

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, the region has a combined abaca production area of
52,032 hectares and a total of 21,922 farmers as of December
2013.

As of December 2013, Bicol regions abaca production reached
55,958 metric tons. Of this, 92.3% is supplied by the province
of Catanduanes. Camarines Sur ranked second which supplied
2.89% of the regions abaca production. Albay ranked third as
the province supplied 2.91%. The provinces of Sorsogon and
Fig.4- Distribution of Vol. of Abaca Production
Camarines Norte ranked fourth and fifth, it supplies 1.13% and
0.77% of the regions abaca production respectively.

Table 5 : Comparative Abaca Production (2009- 2013) - Bicol Region

COMPARATIVE ABACA PRODUCTION2009 2013(in metric tons)

DOP
PHILIPPINES
BICOL REGION
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
abaca production.

While the countrys growth rate on abaca fiber production increased measly by 1%, the Bicol
regions fiber production increased by 4.3% for the period 2009 - 2013. The province of Camarines
Norte marked the highest increase of 27.1% followed by Camarines Sur and Sorsogon with 23.2%
and 18.1% respectively. The province of Albay experienced an average decrease of 12.7% from 1,229
metric tons in 2009 to only 906 metric tons is 2013.

The succeeding table shows the area planted to abaca in Bicol from 2009 2013.

Table 6 : Area Planted to Abaca (2009- 2013)

AREA PLANTED TO ABACA, 2009 2013(in hectares)

DIST. OF
PRODUCTION
PHILIPPINES
BICOL REGION
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

AREA PLANTED TO ABACA, 2009 2013(in hectares)

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
Catanduanes is the main reason why it is able to contribute a significantly higher percentage share of
volume of production, compared to a relatively lower share of abaca hectarage.

Overall, for the period 2009 - 2013 the regions area planted to abaca increased by only 0.44%. The
provinces of Albay, Camarines Sur, Camarines Norte and Sorsogon had an average increase of 3.95%,
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
commitment to plant additional abaca seedlings led to this decline.

Table 7 shows the annual average fiber yield in abaca between 2009 2013.

Table 7 : Annual Average Fiber Yield (2009- 2013)

ANNUAL AVERAGE FIBER YIELD / Ha. - 2009 2013(in metric tons)

DIST. OF
PRODUCTION
PHILIPPINES
BICOL REGION
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
metric tons or 340 kilos. At the regional level, Bicol regions average abaca fiber yield per hectare is
0.43 metric tons or 430 kilos. This is way below the potential of 2.5 to 3 tons per hectare for a well
managed abaca farm based on PhilFIDA data.

The province of Catanduanes posted an impressive fiber yield of 0.60 metric tons or 600 kilos per
hectare which is higher than the national and the regional average. The provinces of Camarines Sur,
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
only 0.06 metric tons.

Table 8 :Top 10 Abaca Producing Municipalities in Bicol Region (Existing Abaca Production Area)
Province/ Congressional District /
No. Of Abaca Producing
Area
No. Of Farmers
Municipality
Barangays
(in hectares)
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Catanduanes

16 | P a g e

Caramoran
San Miguel
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/ Congressional District /

Municipality
Catanduanes
Catanduanes
Albay
Catanduanes

Pandan
San Andres
Malinao
Gigmoto

No. Of Abaca Producing

Barangays
27
21
11
7

No. Of Farmers
1,059
685
757
771

Area
(in hectares)
1,830.57
1,716.47
1,526.16
1,457.92

Nine out of the top 10 abaca producing municipalities based on area of production in Bicol region,
are from the province of Catanduanes. This is expected as 92.29% of the regions abaca production is
produced by Catanduanes. The situation is similar for top 10 abaca producing municipalities based
on number of farmers. Only the municipality of Malinao in the province of Albay entered the list and
ranked number 9 for both criteria.

Table 9 :Top 10 Abaca Producing Municipalities in Bicol Region (Number of Farmers)
Province/ Congressional District No. Of Abaca Producing
Area
No. Of Farmers
/ Municipality
Barangays
(in hectares)
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Catanduanes
Albay
Catanduanes

Caramoran
Viga
San Miguel
Baras
Bato
Pandan
Virac
Gigmoto
Malinao
San Andres

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
producing municipalities in the provinces of Catanduanes, Sorsogon, Albay and Camarines Sur.

Table 10 - Top 5 Abaca Producing Municipalities Per Province (Existing Abaca Production Area)
No. Of Abaca Producing
Area
Municipality
No. Of Farmers
Barangays
(in hectares)
CATANDUANES
Caramoran
26
6,314.16
1,967
San Miguel
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
Sorsogon City
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
Tabaco City
13
845.61
345
17 | P a g e

No. Of Abaca Producing

Area
No. Of Farmers
Barangays
(in hectares)
Malilipot
8
829.87
349
Manito
7
705.01
322
CAMARINES SUR
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
abaca and the corresponding number of farmers.

Based on PhilFIDA estimates, the 21, 922 abaca farmers in the region would have a total of 131,742
dependents.

Table 11 : Bicol Region Abaca Producing Provinces, Districts and Municipalities
Province/ Congressional
No. Of Abaca Producing
Area
No. Of
District / Municipality
Barangays
(in hectares)
Farmers
Municipality

ALBAY
st
1 District
Tiwi
Malinao
Tabaco City
Malilipot
Bacacay
Sto. Domingo
nd
2 District
Legaspi City
Manito
Daraga
Camalig
rd
3 District
Guinobatan
Ligao
Oas
Polangui
CAMARINES NORTE
st
1 District
Labo
Capalonga
Paracale
Jose Panganiban
nd
2 District
Daet
San Vicente
San Lorenzo Ruiz
Basud
Mercedes
CAMARINES SUR
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
Del Gallego
Libmanan
rd
3 District
Naga City
Pili
Calabanga
Ocampo
th
4 District
Presentacion
Goa
Tigaon
Sagnay
Tinambak
Garchitorena
Lagonoy
San Jose
Caramoan
th
5 District
Buhi
SORSOGON
st
1 District
Casiguran
Castilla
Magallanes
Pilar
Sorsogon City
nd
2 District
Bulusan
Gubat
Barcelona
Juban
Bulan
Irosin
Matnog
Sta. Magdalena
Prieto Diaz
CATANDUANES
Lone District
San Andres
Panganiban
Bagamanoc
San Miguel
Viga
Pandan
Caramoan
Virac
Gigmoto
Baras
Bato
TOTAL

No. Of Abaca Producing

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
(in hectares)

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

SECTION 3. NATURE AND STRUCTURE OF THE IINDUSTRY

A. VALUE CHAIN MAPPING
The abaca industry sector is composed of abaca nursery operators and farmers, farmworkers,
traders, trader-exporters, grading and baling establishments (GBEs), manufacturers (pulp and paper,
cordage and ropes, textiles), and fibercraft processors. All the players, except farmers, are required
to secure a permit from FIDA.

As of 2013, the Bicol region has 21,922 abaca farmers with an average farm holding of 2.4 hectares
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. 5 Bicol Region, Abaca Value Chain Map1

Presented in tables 12 to 16 are the list of abaca players in different provinces of the region.

Table 12 : Number of Abaca Farmers Per Province
Abaca Farmers
Province
No. Of Farmers
Est. No. Of Dependents
Albay
25
16,380
Camarines Sur
14
18,186
Camarines Norte
26
5,190
Catanduanes
55
76,404
Sorsogon
26
15,468
TOTAL
143
131,742
20 | P a g e

Table 13 : Number of Abaca Nurseries Per Province

ABACA NURSERIES
Location
No. of Nurseries
Area (ha.)
Plant Population
Albay
5
6
35,300
Camarines Norte
2
2
3,100
Camarines Sur
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
helped established abaca nurseries in the region are the PhilFIDA, local government units, national
government agencies and non-government organizations.

Of the 38 abaca nurseries, 12 are open type high density (OTHD) abaca nurseries. OTHD are abaca
nurseries with a plant population of 10,000 per hectare. Ten (10) abaca nurseries are semi-OTHD or
abaca nurseries with plant population of 6,500 to 7,500 per hectare. A total of 11 abaca nurseries
are plantation type or those with a plant population of 1,000 to 2,000 per hectare. Three abaca
nurseries are classified as ordinary nurseries or those with capacity of 400 to 800 per hectare. There
are 2 field nurseries established by PhilFIDA with capacity of 2,500 per hectare.

In summary the region has a total of 38 abaca nurseries planted in 56.25 hectares with a plant
population of 409,456.

Table 14 : Number of Abaca Traders and GBEs Per Province
LOCAL TRADERS AND GBEs
Province
No. Of Local Traders
No. Of GBEs
Albay
25
2
Camarines Sur
14
1
Camarines Norte
26
-
Catanduanes
55
1
Sorsogon
26
-
TOTAL
143
4

Bicol region is home to 143 abaca traders and 4 GBEs. Catanduanes has the most number of abaca
traders with a total of 55. The presence of abaca traders in all the provinces of the region shows that
farmers have an easy access to market. From the total of 65 abaca-producing municipalities in the
region, each municipality has an average of 2 abaca traders. Catanduanes has an average of 5 abaca
traders per municipality.

Table 15 : Number of Abaca Pulp Mill, Buying Station and Cordage Manufacturer Per Province
PULP MILLS/BUYING STATIONS/CORDAGE MANUFACTURERS
Province
Pulp Mills
Buying Station
Cordage Manufacturers
Albay
1
2
1
Camarines Sur
-
-
-
Camarines Norte
-
-
-
Catanduanes
-
2
-
Sorsogon
-
-
-
TOTAL
1
4
1

21 | P a g e

Abaca cordage manufacturing and pulp processing in the region is situated in the province of Albay,
the regional capital of Bicol. The region has 4 abaca buying stations, 2 of which are located in Albay
and 2 are in Catanduanes.

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

Table 16 : Number of Fibercraft Processors Per Province
FIBERCRAFT PROCESSORS
Province
Fibercraft Processors
Albay
61
Camarines Sur
-
Camarines Norte
-
Catanduanes
3
Sorsogon
-
TOTAL
63

Fig. 6 Bicol Region, Abaca Lead Firms

As shown in figure 6 above, most of the processing activities are done in the regional center, the
province of Albay. Two GBEs and buying stations and a pulp and cordage manufacturer operate in
the province. Majority of fibercraft processors are also situated in the province.

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
comes from is home to several abaca traders and buying stations.

Aside from the big buying stations set-up by GBEs and pulp processors in areas where abaca
production volume is big, GBEs also get huge volume of their supply from provincial and municipal
traders. In areas which are far from big traders and buying stations, consolidation of abaca is done
by village traders before these are delivered to provincial traders of GBEs. The main destination of
abaca produced in the province is Tabaco City where GBEs set up warehouses. Tabaco City also
serves as a shipping point for abaca delivered outside the region.

Three of the big GBEs operating in the region are the Manila Hemp Inc., Ching Bee Corp., and Tag
Fiber.

Manila Hemp Trading Corp. (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
volume of abaca fiber bought by MHTC in Catanduanes per year is 3,300 metric tons. Of this,
eighty percent (80%) is delivered to its buyer Newtech Pulp, Inc. a Glatfelter company that
operates a pulp mill in Iligan City, Lanao del Norte. The remaining 20% is divided and
supplied to abaca fiber exporter SC Tan Export based in Samar and to local market (cordage
manufacturers). MHTC also has a buying station in San Andres, Catanduanes.

Ching Bee Trading Corp.
Ching Bee prides itself as the biggest abaca trader in the world and foremost leader in the
Philippine abaca industry. The Company also manufactures and exports abaca pulp through
its affiliate company Specialty Pulp Manufacturing, Inc. (SPMI). Ching Bee maintains five
branches that are strategically located in the major abaca centers of the Philippines: Tabaco,
Albay; Davao City; Baybay, Leyte; Virac, Catanduanes; and Meycauyan, Bulacan. It also has a
Manila Liaison Office located in Quezon City, Metro Manila.

The company has a buying station located in Virac City, Catanduanes named Virac Central
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
Catandanuanes buying station are delivered to the companys GBE in Tabaco City. Chingbee
Corp. delivers abaca fiber to Specialty Pulp Mfg. Inc., (SPMI). SPMI is engaged in the
manufacture, sale, and export of food grade and non-food grade bleached and unbleached
specialty pulp, mainly from abaca, as well as other natural long fibers such as sisal, kenaf,
and jute.

Tag Fiber, Inc.
One of Bicol regions biggest abaca buyer is Tag Fiber Inc. The company is engaged in trading
and exporting abaca and other natural fibers both for export and local markets. As a source
network, its grading and baling establishment (GBEs) are located in three (3) major abaca
producing regions of the Philippines Davao City, Maasin City (S. Leyte) and Tabaco, Albay.
It has buying stations in Baybay (So. Leyte) and Virac (Catanduanes). Tag Fibers Inc. is one of
the few exporters with branches and/or buying stations strategically located in the abaca
producing areas of the country.

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
abaca fiber.

Albay Agricultural Development Corp. (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. The companys estimated volume of abaca fiber processed range from 500
to 600 metric tons per month. Around 50% of the companys abaca fiber supply is from
Mindanao and the remaining 50% is supplied equally by Leyte and the Bicol region.

Pacific Cordage Corp.
The sole abaca cordage manufacturer in Bicol is Pacific Cordage. Their processing plant is
located in San Domingo, Albay. The company has a capacity of 100 metric tons per month.
The company gets its supply of abaca fiber from Catanduanes, Albay, Samar and Mindanao
through abaca traders and GBEs. Ninety percent (90%) of the companys products are
exported to Europe, USA, Asia and the Middle East. The remaining 10% are sold in the local
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
production area along with Sorsogon and Camarines Sur. The Province of Albay is the regions abaca
processing center as pulp mills, a cordage manufacturer, and fibercraft procesors do business here.

Fig. 7 Bicol Region, Abaca Sub-Value Chain (channels)

Figure 7 above shows how the production and collection process of abaca fiber is being organized.
As the value chain map shows, the regions abaca value chain has routes leading to top abaca fiber
users. These are the abaca pulp mills which consumes 89% of the regions abaca fiber production,
the cordage manufacturer which consumes 10% and fibercraft processors which consume 1%.

24 | P a g e

Abaca farmers in the region have several channels where they can sell their products to. There are
abaca farmers who sell directly to abaca fibercraft processors. However, most of the farmers abaca
produced are sold via abaca traders operating within their localities.

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
business of their trader supplier while ensuring consistency and sustainability at the same time. The
cordage manufacturer also use the same practice.

Fibercraft processors on the other hand get their supply of abaca fibers directly from farmers and
abaca traders. Small fibercraft processors get their supply from preferred farmer suppliers who are
able to meet their quality requirements.

At the level of GBEs and cordage manufacturers, the firms swap certain abaca fiber grades they need
for their operations. The latter can operate using lower grades of abaca fiber while GBEs often need
good quality fibers to supply to their company-owned pulp mills.

B. KEY PLAYERS AND FUNCTIONS

The abaca industry is made up of six major groups of industry players: nursery operators and
farmers, farm workers/strippers, classifiers, traders, fiber exporters and processors/manufacturers.

Abaca Nursery Operators and Abaca Farmers
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
but were put up as a source of free seedlings for farmers interested in farm expansion and
rehabilitation. With the on-going abaca farm production and rehabilitation activities, 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
the area which does not assure them of quality and productivity.

Abaca farmers performfarm production and semi-processing activities. Generally, farmers in
the region are fragmented. There have been efforts in the past in organizing farmers for
collective marketing and value-adding, most of them have now ceased to operate.

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. The lack of post harvest facilities also contributed to the low quality of abaca
fibers produced by farmers. In addition, the lack of warehouses and drying facilities during
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
consequently hampersthe operations of abaca pulp mills and cordage manufacturers.

Strippers
Strippers extract the fibers, either by hand or by mechanical means. Included in the stripping
work are harvesting of stalks, tuxying and drying of fibers. The strippers are paid on a pre-
determined system wherein they receive 50, 60 or 70 percent of the harvest, depending on
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


The lack of skilled abaca strippers has forced many abaca farmers, especially in Catanduanes,
to work with those who do not have enough 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
disagreements and dissatisfaction between farmers and abaca strippers.

Classifiers
Classifiers are usually employed by GBEs and buying stations to sort and grade abaca fibers
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
process of cleaning, sorting, grading up to baling.

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, wood pieces, and sometimes animal manures mixed with the abaca fibers delivered
to them. This is due to the lack of post harvest facilities both at the farmers and traders
level.

Traders
Trading of abaca fibers is done at different levels. There are village traders, municipal traders
and provincial/regional traders. Traders are classified depending on the volume of fibers
graded. Class A trader sells more than 75,000 kilos of fiber per year. Class B trader more
than 50,000 kilos per year, Class C trader more than 25,000 kilos per year and Class D
trader 25,000 kilos and below.

Traders do the consolidation/buying of abaca fibers from farmer to trader mostly in an all-in
basis. Before delivering to buying stations, GBEs and cordage manufacturers, traders do the
abaca fiber grading process. Trader sell/deliver graded abaca fibers to their buyers. In most
cases, traders do the semi-sorting/grading of abaca fiber to avoid losses when grading is not
properly done at their level.

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
from buying sorted/graded abaca fibers from the farmers and opted for the all-in buying
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
lower quality abaca fibers, since they will be getting the same price anyway.

Fiber Exporters
The fiber exporters, also known as grading and baling establishments (GBEs), operate in
major abaca producing regions and usually maintain liaison officers in Metro Manila. It is in
this sector where abaca fibers for local or foreign consumption are graded and baled, using
high density presses, into 125 kgs. of 100 cm x 55cm x 60 cm bundles per specific grades of
fiber. There are 10 licensed GBEs operating in the country and 4 of these are in Bicol region.

The main constraint faced by fiber exporters is the lack of supply of abaca fibers to meet the
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
cleaning and grading abaca fibers delivered to them.

Processors/Manufacturers

Pulp Millers
As of 2013 there 4 pulp milling company operating in the country and one of this is in Bicol
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 well-established market networks for their
pulp products which are principally destined for the world market.

Same with GBEs/abaca fiber exporters, main problem of abaca pulp mills is the lack of supply
of abaca fibers. In Bicol region, ALINDECO has to source supply of abaca fiber from the
Visayas and Mindanao to supply its operation as the volume of abaca fibers they get from
the region is not sufficient. Getting abaca fiber from Mindanao and the Visayas entails huge
cost on hauling and transportation.

Cordage Manufacturers
There are currently six (6) cordage firms operating in the country and one of this is in Bicol
Region, the Pacific Cordage Corp. Cordage manufacturers use abaca fiber as the principal
raw materials for rope, cordage and twine manufacturing. The lack of supply of abaca fiber is
also a problem for cordage manufacturers.

Cordage manufacturers use lower grade of abaca fibers for its cordage/rope production.
Cordage manufacturers often work/ collaborate with GBEs in the swapping of certain grades
of abaca fibers they each need for their operations.

Fibercraft Processors
The fibercraft sector, which includes handmade papermaking, rugs and carpet
manufacturing and handloom weaving, is primarily cottage-based industry. Operating mostly
in the countryside, the sector is a major source of livelihood especially to the womenfolk and
out-of-school youth. Several of these manufacturers have successfully established their
markets abroad especially with their unique, functional and creative designs.

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, and ethnic designs to suit the varying needs of the market. The industry is
mainly found in Bicol, Western Visayas, Eastern Visayas, Central Visayas and in Southern
Mindanao.

In 2012, there were some 111 licensed fibercraft processors in the country who use abaca
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
grade they needed. Abaca fibercraft processors are the biggest buyer of abaca bakbak which
the industry blamed as one of the reasons of abaca pest and disease infestation. The
industry plans to regulate this which would affect bakbak processors operations.

27 | P a g e

C. NATURE OF INTERFIRM RELATIONSHIPS

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
promoting abaca industry development are government led. There have been efforts in the 90s in
forming abaca industry associations represented by private players, but these were not sustained.

The relationship between the farmers and traders is arms length, based on supply and demand. In
areas where there are several abaca traders, farmers switch to any buyer offering a better price.
There are however semblances of long-term relationships through a suki system wherein a
farmer regularly sells their produce to the same buyer, and where their relationships have been built
in years.

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
farmers produce. Pricing of abaca fibers are generally set by GBEs.

Fig. 8 Bicol Region, Abaca Linkages and Value Chain Governance Map

Farmers in the region are generally fragmented. There have been several efforts by the government
and NGOs in the past in organizing farmers for collective marketing and value adding activities.
Farmer groups organized under the SAIS-BC Project were also provided with common service
facilities such as abaca stripping machines. GBEs and buying stations in the region do not buy
machine stripped abaca fibers because quality is not good and recovery is low. As a result, farmers
stopped using the machines they were provided with. Cooperation between and among abaca
farmers is not common. Collective marketing and buying of inputs among farmers is not a common
practice. As a result, farmers have low bargaining power and are not able to access better prices or
more lucrative markets.

28 | P a g e

Trader to trader relationship is informal and any form of cooperation is not present. The same is true
with the lead firms. Cooperation among GBEs and cordage manufacturer only happens through
exchange/swapping of certain grades of abaca fiber they need.

There is no formal cooperation that binds these players together as an industry. The only occasions
where these players come together are during events organized by PhilFIDA and local government
units.

Fig. 9 - Catanduanes Abaca Sustainability Initiative (CASI) Model

A more formalized and binding relationship between farmers, traders, GBEs and pulp mill has now
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
services to farmers.

GLATFELTER CASI represents a group of Abaca farmers, sub-traders and trader in Catanduanes (Bicol,
Philippines) under the coordination of GLATFELTER. CASI stands for Catanduanes Abaca
Sustainability Initiative.

Major goals of GLATFELTER CASI:
Introduce and promote sustainability awareness along the Abaca supply chain
Establish policies, procedures and standards and facilitate certification with GLATFELTER as
group administrator
Become an efficient group of abaca farms that plans, executes and achieves its goals
Build up sustainability certified, regular Abaca supply

CASI VISION

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
future generations to enjoy a life equal to or greater than our own.

29 | P a g e

Learning from the success of CASI, a private-led initiative in organizing abaca farmers is now being
implemented by other GBEs operating in the region. These companies have now started taking steps
towards getting a Rainforest Alliance certification.

D. PRICE AND COST STRUCTURE

1. Income and Profits
Farm Production

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
farmer would be able to start harvesting on the second year of planting abaca. For a start-up capital
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
farmers in the area.

For instance, abaca farmers in the region normally get supply of abaca planting materials from
within their farms of from their neighbours. Depending on the requirement, some farmers can get
planting materials from neighbours and relatives for free. Prices of abaca planting materials in the
region range from Php2.00 to Php5.00 per piece. Most farmers do not apply fertilizers in their abaca
farms.

Presented in the table below is the cost and return analysis for a one (1) hectare abaca farm in the
Bicol Region, as prepared by PhilFIDA Region 5.

Table 17 : Abaca Cost and Return Analysis
PARTICULARS
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
TOTAL






EXPENSES
21,400.00
5,120.00
16,896.00 18,585.60 20,444.16
82,445.76
Supplies and materials
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
Depreciation Cost
500.00
500.00
500.00
500.00
500.00
2,500.00
Land Tax
53,925.00
7,010.00
21,348.00 23,857.80 25.926.08 132,066.88
TOTAL COST
n/a
n/a
n/a
107.99
46.90

Break-even Cost
Fiber Yield Per Hectare
none
750.00
2,250.00
3,000.00
3,000.00
9,000.00
(kilos)
(Equivalent Share: 50%
none
375
1,125
1,500
1,500
4,500
for the owner)
n/a
15,000.00
45,000.00 60,000.00 60,000.00 180,000.00
TOTAL INCOME
(53,925.00) (43,935.00) (22,283.00) 13,859.20 34,073.92
47,933.12
Net Income / Loss
Percent (%) Return on
n/a
n/a
n/a
10.49
25.80
36.29
Investment)
Assumption: Php40.00 Price Per Kilogram
Source: PhilFIDA Region 5

Looking at the income sharing scheme, the abaca farmer and abaca stripper share the income
equally at 50%. In other areas, like Camarines Sur, the sharing scheme is 60:40 where 60% goes to
abaca stripper and 40% goes to abaca farmer.


30 | P a g e

2. Relative Financial Position of Players

Looking at figure 10, farmers gets the biggest share of value in the abaca fiber revenue along the
chain which accounts for 68%. This however will be divided by the abaca farmer and abaca stripper.
At 50:50 ratio, this implies that an abaca farmers gets only 34% of the value and the other 34% goes
to abaca stripper. Around 13% of the value goes to the trader while abaca exporters get 16%.

Fig. 10 - Distribution of value/revenue along the chain

With figures presented above, we could surmise that abaca farmers actually get a good share of
revenue along the chain. However, actual farmers incomes are limited because they are dependent
on size of farm and farm productivity.

With regard to abaca traders and exporters, the share of revenues is lower. However, actual incomes
can be higher because of the firms capacity to increase or expand its operations, through increased
volumes.

By just looking at the firms interconnectivity, focusing interventions to improve income and
efficiency of each firm would actually help the others. As such, helping increase the farmers income
through improving farm productivity will, at the same time, benefit the traders and exporters as
their operations will also increase or expand. In the same manner, increasing traders and exporter
capacity to absorb production through improved processes and facilities will also benefit abaca
farmers as they will be able to sell more abaca.











31 | P a g e

3. Cost and Returns for Abaca Fibercraft Enterprises

a. Abaca Scrunch Production

Abaca scrunch is made from matted fine fibers of abaca bonded by starch solution or glue.
Abaca scrunch is used to produce finished products such as placemats, handbags, photo frames,
among others.

Table 18. Cost and Returns for Abaca Scrunch Production

PARTICULARS
Amount (Php)
Sales (5 meters @ P 45)
225.00
Costs

1 Kilo Raw Fiber (S2)
70.00
Binder (glue, stiffon)
33.00
Labor
37.50
Total Costs
140.50
Net Income
84.50
Source: PhilFIDA 5

Materials needed:
37.5g :
Bleached/dyed abaca S2 fibers cut into at least 15 inches long
1m
:
Plastic, gauge 4, cut horizontally to have 2 pcs. Of 62 cm. X 1 m material
1m
:
Plastic screen, 3/8 in. X 3ft. Mounted on wooded frame with 4 legs 3 ft. High
1m
:
Flat table, 2 ft. Wide, 3ft. high
1 pc. :
Squeegee
1 unit :
Weighing scale, capable of measuring to the nearest gram
1 pc. :
Stirring rod
500ml. :
Glue or starch
18.8g. :
Starch, cooked with 1 liter lukewarm starch solution
1pc. :
Small pail or dipper to hold at least 1.5 liters of liquid
One kilogram of raw fiber can produce 5 meters of abaca scrunch. The product is currently
sold at P 45 per meter or P 225 for the whole 5 meters. Total production costs for labor and
binder is P 28.10 per meter. Net income for abaca scrunch makers is P 16.90 per meter or P
84.50 per kilogram of raw fiber ~ 5 meters abaca scrunch.








32 | P a g e

b. Sinamay Production

Table 19. Cost and Returns for Sinamay Production
PARTICULARS
Amount (Php)
Sinamay (15 meters)
825
Costs

Fiber
140
Labor (Sinamay)
125
Labor (Tinagak)
300
Total Costs
565
Net Income
260
Source: Interviews
Table 19 shows the cost and returns for making sinamay from abaca. A roll of tinagak can
produce 15 meters of sinamay, which takes upto 3 days of weaving. Since this is a labor
intensive enterprise, up to 75% of total costs come from labor. Total cost of labor for
tinagak and sinamay production is P 425. The estimated income from sinamay production is
P 260 per 15 meters.

33 | P a g e

SECTION 4: MARKETS AND MARKET OPPORTUNITIES

A. MARKETS AND MARKET TRENDS
1. Export Markets
Based on PhilFIDA records, for the period 2008 to 2012, the Philippines generated an average of
US$104.2 million per year from the export of abaca products. Sixty seven percent (67%) of the total
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$12.9 million or 12% of the export
earnings. Average abaca fibercraft
exports amounted US$5.9 million or
6% of the export earnings. Export of
abaca yarns and fabrics for the same
period averaged US$.97 million or
Fig.11 - Abaca products export earnings (2008 2012)
1% of the abaca export earnings.

Presented in table 18 below are the amounts of export earnings of abaca products generated for the
period 2008 2012.

Table 18 : Annual Export Earning from Abaca Fiber and Manufactures 2008 2012 (in FOB US$)
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%

For the period 2008 2012, annual export earnings growth rate for abaca fiber and manufactures is
negative four percent (-4%). Having the highest decrease is the abaca fiber export earning with 61%
and an export earning plunging from US$ 22 million in 2008 to only US$ 12 million in 2012.

Abaca pulp exports also has an average drop of 1% over the 5 years period. Export earnings from
abaca pulp exports plunged from S$ 104.1 million in 2011 to only US$ 74.7 million in 2012. Over the
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
fibercrafts increased by 12%.

The overall decrease in export earnings as well as export volumes of abaca products from the
country can be attributed to Peso and Dollar exchange rate which decreased by 1% over the same
34 | P a g e

period. Its highest plunge was for the period 2009 to 2010 from an annual average of Php47.64 to
Php45.11. The decreasing demand from the countrys major markets such as United Kingdom,
Germany, Japan and the USA was also one of the factors that affect the decrease in abaca products
export earnings.

Abaca Fiber

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
abaca fiber exports were shipped to this country. Asia,
particularly Japan, is the second most important
destination of abaca fiber. Abaca fiber exports to Japan
accounts to 37% or 3,327 metric tons.

The table below presents the annual abaca fiber export
volume and country of destination. The huge drop of
export volume of abaca fiber from 2008 to 2009 was a
result of global economic downturn as several
importers reduced their volume of imports.
Fig.12 - Abaca Fiber Exports

Table 19 : Annual Abaca Fiber Exports 2008 2012 (in metric tons)
DESTINATION
2008
2009
2010
2011
2012
AVERAGE
United Kingdom
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
South Korea


12

12

Fig. 13 - Bicol Region, Annual Abaca Fiber Exports 2008 2012 (in metric tons)




35 | P a g e

Fig.14 - Abaca Fiber Exports by Grade

Bicol region contributes a significant

volume of abaca exported from the
country. For the period 2008 to 2012, Bicol
exported an average of 2,674 metric tons of
abaca fiber or 29.11% of the countrys
abaca fiber export.

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.

Based on a PhilFIDA study, of the four major grades of abaca fiber, JK and G were the top exports
with an average of 4,122 mt. and 3,645 mt. per year respectively. The S2 grade of abaca has an
average export of 1,872 mt. while the I grade of abaca grade has an average export of
1,153 mt.


Abaca Pulp

Almost all of the abaca pulp
manufactured in the Philippines are
shipped outside the country.Exports of
abaca pulp averaged 20,920 for the
period 2008 2012 with growth rate of
-1.7%.

Europe is the most important
destination for Philippine abaca as a
number
of
specialty
paper
manufacturers using abaca is situated
in this continent. Around 34% of abaca
pulp exported from the country goes to
Germany with average of 6,795 metric
tons. A total of 23% of abaca pulp
produced from the country is shipped
Fig.15 - Abaca Pulp Exports
to United Kingdom with an average of
4,752 metric tons.

Japan is another important destination which gets 17% of abaca pulp produced in the country, with
a corresponding volume of 17%. USA and France each buy 7% of the countrys abaca pulp
production with corresponding average volume of 1,342 and 1,501 metric tons respectively. 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

Aside from being used as currency paper, abaca is processed into capacitor paper, insulation paper,
teabag, masking tape, stencil paper, filter oil absorbent paper, and other specialty paper products.

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

Table 20 : Average Abaca Pulp Exports/Destinations (2008 - 2012) (in metric tons)
Country
2008
2009
2010
2011
2012
AVERAGE
United States
846
113
1,498
2,837
1,414
1,342
Germany
7,293
4,564
7,117
9,000
6,001
6,795
United Kingdom
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
South Korea
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, the volume of abaca pulp exported from the country for the period 2008 to 2012 decreased
by an average of 4%. The biggest plunge in export volume happened during the period 2008 to 2009
with a decrease of 51%. This was due to the global economic downturn during that year. From 2009
to 2011, export volume of abaca pulp picked up with a 36% increase during the period. Export
volume once again plunged from 2011 to 2012 but abaca pulp mills are hopeful that the market will
eventually recover.

Abaca Cordage and Allied Products

Foreign trade of abaca cordage and
allied products such as ropes, cables
and twines averaged 6,456 mt. for the
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
239 mt. 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.16 Abaca Cordage & allied product exports (2008 2012)
Complete list of countries and
corresponding volume is presented in table 21.




37 | P a g e

Table 21 : Average Abaca Cordage & Allied Products Exports (2008 2012in metric tons)
Country
2008
2009
2010
2011
2012
AVERAGE
United States
4,916
3321
4657
4662
2935
4,098
United Kingdom
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
United Arab Emirates
111
91
163
177
90
126
Other Countries
1,257
1011
980
813
907
994

Abaca Fabric

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. Around 12% of abaca fiber export was shipped
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.
Nigeria gets 1% of abaca fabric exports with an average
volume of 5,976 sqm.

Other countries getting their supply of abaca fabric
from the Philippines include United States, Japan,
Fig.17 - Abaca fabric exports (2008 2012)
France, Spain and Lebanon. Corresponding volume of
abaca fabric delivered to these countries is presented in the succeeding table.

Table 22 : Average Abaca Fabric Exports/Destinations 2008 - 2012 (in square meters)
DESTINATION
2008
2009
2010
2011
2012
AVERAGE
United States
80
439
-
910
4,477
1,181
Japan
15,044
2,403
684
104
-
3,647
United Kingdom
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
Other Countries

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. Domestic Markets
Domestic processors consumed an average of 50,598 mt or 77% of the countrys average yearly
production of abaca fiber during the period 2008 to 2012. The sectors fiber consumption level was
observed to be increasing fairly at a rate of 2% per year. The abaca fiber is being processed locally
into pulp, cordage and various fibercraft items including furnitures.

Table 23 : Annual Domestic Consumption of Abaca by Sector 2008 - 2012 (in metric tons)
YEAR
2008
2009
2010
2011
2012
AVERAGE
Abaca Pulp
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
average of 38,859 mt. or 77% of the annual average
local consumption. The pulp millers utilization level
is highly dependent on the demand for pulp by the
specialty paper manufacturers abroad as abaca
pulp is the principal raw material used in the
manufacture of meat and sausage casings, tea bags,
cigarette paper, currency paper and other specialty
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
available processing facility in the country.

The cordage sector, on the other hand, consumed
an average of 8,634 mt. of abaca fiber per annum
Fig. 18 - Domestic abaca consumption by sector
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, the fibercraft processors are numerous, not as well-organized and are scattered throughout
the country.

Presented in the table 24 is Bicol regions share of domestic abaca consumption. As home to 1 abaca
pulp mill, 1 cordage manufacturer and 63 abaca fibercraft processors, around 30% of locally
consumed abaca fiber went to Bicol region. Average abaca consumption of the region for the period
2008 to 2012 is 15,415 metric tons.

Of the regions abaca consumption, 89% went to the pulp mill with an average volume of 13,750
metric tons. The abaca cordage sector consumed 10% of the regions abaca production with 1,484
metric tons. Only 1% of domestic abaca consumption of the region went to abaca fibercraft
processors with 181 metric tons.



39 | P a g e

Table 24 : Annual Domestic Consumption of Abaca by Sector 2008 - 2012 (in metric tons)

REGIONAL CONSUMPTION OF ABACA

2008 2012 (in metric tons)
YEAR

PHILIPPINES
2008
2009
2010
2011
2012

AVERAGE
% Share
% Growth Rate

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

BICOL REGION
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

BICOL REGION
CORDAGE
2,601
1,242
1,170
1,410
996
1,484
10
-17

FIBERCRAFT
187
161
178
122
259
181
1
20

Based on the market data presented, the Bicol Region abaca industry can continue taking advantage
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
opened a huge opportunity for the region to serve the increasing demand for sustainably produced
abaca fiber and processed products. The region can position itself well in the market and be known
as a source of a sustainably produced, Rainforest Alliance certified abaca fiber. This is something that
the government can help in collaboration with the private sector. In fact, one GBE in Catanduanes
now tapped the support of PhilFIDA to help the company in getting the farmers organized fro
certification and provide technical assistance.

The region can also continue to serve the cordage manufacturer which takes 10% of its local abaca
consumption. This can be the best channel for the lower abaca fiber grades produced in the region
as this sector is not strict in terms of quality and are in fact using lower grades of abaca fibers for its
abaca cordage manufacturing.

With the highest growth rate of 20% for its local consumption and an impressive 12% growth rate in
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. While the performance of this sector cannot be measured in terms of volume, its export
earnings performance for the period 2008 to 2012 has significantly increase while the other sectors
experienced decreases. This signals a positive market outlook.

Developing the capacity and efficiency, improving product quality and accessing better markets for
the abaca fibercraft products of the region would open windows of opportunities and growth in this
sector. This will subsequently promote trade and tourism in the region which will benefit several
industry players.

B. PRICE TRENDS

1. Export Markets
Like any other agricultural commodities, the buying price of abaca fiber is largely driven by market
forces. Of The four major abaca grades exported by the country, S2 and I command the highest
price. Based on PhilFIDA data for the period 2008 to 2012, average buying price per bale of S2 abaca
grade is US$195.94. At a dollar to peso rate of Php43/US$1.00, this translates to Php67.40 per kilo.
For the I grade, average price is US$196.96 of Php8,469.28 / bale or Php67.75 per kilo.

40 | P a g e

The decrease in buying price for abaca fiber in the world market is driven by the demand of major
abaca importing countries. The huge decrease from 2008 to 2009 was a result of the global
economic downturn which also resulted to decrease of abaca exports from the country during the
same period.

Table 25 : Weighted average export prices of abaca fiber by grade Handstripped (F.O.B. US$ / Bale)
HAND-STRIPPED
FIBER GRADE
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

Table 26 : Weighted average export prices of abaca fiber by grade - Handstripped (Peso/Bale / Kilo)
AVE. BUYING PRICE
AVE. BUYING PRICE /
FIBER GRADE
/ BALE (in Php) @
PRICE / KILO (Php)
BALE (in US$)
43/US$
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

Table 27 : Weighted average export prices of abaca fiber by grade Spindlle-stripped (F.O.B.
US$/Bale)
SPINDLE-STRIPPED
FIBER GRADE
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

Table 28 : Weighted average export prices of abaca fiber by grade Spindlle-stripped(Peso/Bale /
Kilo)
FIBER GRADE

S2
I
G
JK

AVE. BUYING PRICE /

BALE (in US$)

193.88
198.11
176.11

AVE. BUYING PRICE /

BALE (in Php) @ 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 produced manually or with the use of stripping machine. However, findings
during the conduct of the value chain study revealed that most buyers of abaca fiber in Bicol have
refrained from buying abaca fibers produced using stripping machines for the following reasons:
Using machine in stripping abaca fiber results to high waste of 30% to 40% as compared to
manual stripping with only 10% waste
Quality of machine stripped abaca fiber is low
Recovery of machine stripped abaca fiber in pulp mills is only 70% as compared to 80%
recovery for manually stripped abaca fibers
41 | P a g e

One GBE opt to buy machine stripped abaca fiber, but the buying price they offeris Php10.00 lower
than the manually produced fiber. As a result, stripping machines provided to abaca farmers in the
region are no longer used.

2. Abaca Imports

To cover fill up for the deficiency in local supply of the specific abaca grades, pulp processors
resorted to importing abaca fibers from Ecuador. Importation of abaca fibers started in 1991. For the
period 2003 to 2012, the average importation of abaca fiber from Ecuador is 325 metric tons per
year. Average import value is US$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 averageall-in price of abaca fiber
from Ecuador is F.O.B. US$168.80 per bale. Conversely, F. O. B. Manila price of abaca fibers
produced from the Philippines particularly S2, JK and JK are US$211.90, US$192.10 and US$170.20
per bale respectively. Using the average price of the three grades of abaca from the Philippines
would tell that export price for Philippines abaca is higher by US 22.60 per bale than that of Ecuador.

3. Domestic Markets
For the period 2009 to 2013, farmgate price of abaca fiber in the country has increased at a rate of
1%, the same holds true for the Bicol region. Based on data presented in table 28, average buying
price of abaca fiber from Bicol region is Php2.33 higher than national average. This can be attributed
to the presence of pulp mill, cordage manufacturer, GBEs and fibercraft processors in the region.

The farther the distance of abaca production is from the market, the lower the buying price.
Although 92% of abaca production in Bicol is in Catanduanes, abaca famers in Albay are able to get
better buying prices; Php11.00 based on the 2009 to 2013 average. Abaca processing activity in the
region is concentrated in Albay. Conversely, Catanduanes is an island province and getting supply of
abaca fibers to the processors would entail additional cost of transportation by ship and truck.

Camarines Sur which is closer to Albay, ranked second in terms of farmgate price which is around
Php6.00 higher than Catanduanes. The province of Sorsogon although closer to Albay has the lowest
farmgate price of Php29.09 per kilo. This can be attributed to low production of abaca in the area.
Only 2% of the regional abaca production is from Sorsogon.

Presented in the table below is the farmgate buying prices of abaca in the region.

Table 29 : Annual average farmgate price per kilo of abaca fiber (2008 2013 in Peso)
Annual Average Farmfate Price 2008 2013 (Pesos per Kilogram)
AREA
2009
2010
2011
2012
2013
AVERAGE
PHILIPPINES
..BICOL REGION
....Albay
....Camarines Norte
....Camarines Sur
....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: Bureau of Agriculture Statistics (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

SECTION 5. SUPPORT SERVICES

A. FINANCIAL SERVICES
There are several financial institutions such as banks and microfinance institutions (MFIs) operating
in Bicol. However, none of these are providing or developing financial products the support abaca
production.

Provision of cash advances happens at the level of GBEs/buying station and abaca traders. It has
been a usual practice in the region for the GBEs/buying stations to provide cash advances to abaca
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
advances is also limited by buyers to minimize risk.

Among the abaca players in the Bicol region, abaca traders need financial services the most. Based
on interviews with abaca traders, their potential to expand operations, serve more farmers and earn
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, there appears to be a lack of business development service providers to assist
them in completing requirements such as financial data needed by the banks. As a result, traders at
some point are forced to get supply of abaca from farmers on credit. Farmers who cannot be served
by traders are forced to deliver their abaca to other buyers which are often farm from their area.

Jonel Torcilino is one of the biggest abaca traders in Catanduanes that supplie to Manila Hem
Trading Company (MHTC). MHTC provides cash advances woth Php50,000 to Mr. Torcilino. However,
due to the large volume of abaca fiber delivered to him, the amount of Php50,000 is already
consumed in half a day on Mondays, the peak day of deliveries. Mr. Torcilino tried to inquire about
getting a lone from a bank in Virac, Catanduanes, but the interest rate ranges from 16% to 24%.
According to him, this is too high and might be beyond his capacity to pay.

Traders in Albay face the same problem. However, some decided to get loans from banks. Mr.
Bonaobra an abaca trader from Tabaco City, Albay has tried to access bank services for some of the
loan requirements such as the Income Tax Return (ITR) and Financial Statement. Based on his
inquiries, the following are the potential banks and their corresponding interest rates:
Legaspi Savings Bank 18% per annum
Tabaco Producers Bank 18% per annum
Banco de Oro 4.5% per annum
Metrobank 8% per annum

Mr. Torcilino applied for a loan at Metrobank using the title of his house and lot as collateral. When
the bank appraised his house and lot, he was informed that he did not pass. Apparently, a right of
way leading to the house of 2.5 meters is needed, which he was not able to comply.


Agriculture Credit Support Project (ACSP)

The Land Bank of the Philippines (LBP) through the Agriculture Credit Support Project (ACSP) is a
potential facility that can be tapped for the provision of financial service that can be accessed by the
abaca industry.

43 | P a g e

The Agriculture Credit Support Project (ACSP) aims to increase investments, to create new job
opportunities, and to improve agricultural productivity in the rural areas by providing loan funds and
contributing to the National Governments goal of Poverty Reduction.

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
agriculture and agri-related projects using Japanese ODA loan fund secured through loan agreement
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).

Commodities for ACSP support include:
Abaca
Bamboo
Cocoa
Banana
Goat
Aquaculture (seaweeds, pangasius, tilapia)

To be able to develop the right financial product for the abaca industry, a stakeholders workshop
was conducted in Manila which the PhilFIDA, OIC, Executive DirectorEduardo B. Holoyohoy was able
to participate. According to Director Holoyohoy, there has been no subsequent updates from ACSP.

B. NON-FINANCIAL SERVICES
As the countrys leading abaca producer, Bicols achievement can be attributed to the efforts and
support services provided by the government, NGOs and the private sector. There have been several
services provided by these enablers which continue to date. The services provided by these enablers
have helped farmers improve their farming practices and productivity.

In addition, the establishment of abaca nurseries in some areas has helped improved access to abaca
planting materials. The need for more of these nurseries is felt especially by abaca farmers in Albay
and Sorsogon.

Among the service providers for the abaca industry in the region are the following:

Philippine Fiber Industry Development Authority (PhilFIDA) Region V

PhilFIDA is mandated to promote the accelerated growth and development of the Philippine fiber
industry in all aspects including research, production, processing, marketing and trade regulation.

PhilFIDA offers the following services:
Production Support Services
Market Development Services
Infrastructure and Post Harvest Development Services
Extension Support, Education and Training Services
Research and Development
Regulatory Services
Information Support
Policy Formulation, Planning and Advocacy
44 | P a g e

While PhilFIDA is mandated to provide these services, the agencys capacity to carry out this
mandate is hampered by the lack of resources (funds) to do so.

Aquinas University of Legaspi Foundation (AULF)

Provides free training services on fibercraft like fiber dyeing, product design and enterprise
management
Set-up of abaca nurseries
Farmers training


SPECIAL PROJECTS

To support the regions abaca industry development, special projects are implemented by the
academe, national government agencies and local government units. These are the following:

ALBAY
ABAKADA Project (1st District of Albay) - Php50 million
Abaca Mo, Piso MO started 2002, supported a total of 843 has. As of 2013

SORSOGON
Abaca Disease Management Project GAA Funded
Abaca Industry Revival Project DA PAMANA (3.5 million, 7 municipalities)
Abaca Rahabilitation (Itachu Corp.) 3 Barangays

CATANDUANES
Abaca Disease Management Project GAA Funded
Abaca Rehabilitation and Disease Eradication PLGU Fund 1.2 million (Municipality of Bato)
Strengthening the Viability of On-going Anduyog Abaca Rehabilitation AQUI Foundation
Funded

CAMARINES SUR
Abaca Nursery Establishment (HVCDP/NAFC-ODA, Japanese Govt.,)
Use of Public Land for Abaca Production (PLGU, DENR)

45 | P a g e

SECTION 6: ENABLING ENVIRONMENT

A. FORMAL RULES, REGULATIONS, AND POLICIES
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
performance and its potential for further development.

In Bicol, a provincial ordinance of Catanduanes prevents farmers from other provinces to get
planting materials from their reknowned Abuababaca variety. To be able to improve the situation, it
is proposed that a dialogue between the government and the affected players will be made to craft
a win win solution for all.

Among the local and national rules and regulations and policies that affects the abaca industry are
the following:

LOCAL LEGISLATIONS

CATANDUANES - Provincial Ordinance approved as a measure to safeguard the local abaca industry.
Prohibits sale and transport of abaca planting materials such as suckers, corms and eyebuds
outside the province
Developed as a preventive measure against the spread of abaca plant diseases in the light of
findings that the dreaded abaca bunchy-top, abaca mosaic and bract mosaic diseases have been
infecting abaca farms in the province's
Violators of the ban would be fined P3,000 or three-month imprisonment for the first offense,
P4,000 or six-month imprisonment for the second offense, and P5,000 fine or one-year
imprisonment for the third offense

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
sale and transport of abaca planting materials outside the Catanduanes. Some industry players in the
region consider the ordinance as an impediment against the regions abaca industry development.
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
the same time.


NATIONAL LEGISLATIONS

1. FIDA Administrative Order 1, series 2001 (Abaca Grading and Classification)
2. FIDA Revised Adaministrative Order No. 1, series 1999 Revised Rules and Regulations to
Govern Licensing, Baling, Tagging, Marking,
3. Inspection, Certification and Shipment of Philippine Commercial Fibers
4. Republic Act 9242 An Act Prescribing the Use of the Philippine Tropical Fabrics for Uniform of
Public Officials and Employees and for Other Purposes. While Republic Act 9242 looked good, its
implementation has been limited as budget needed due to lack of budget by the government
agencies

46 | P a g e

5. BPI Special Quarantine Administrative Order No. 01 series of 2012 Declaring Panama Disease of
Banana (Fusarium Wilt) caused by Fusarium oxysporum, f.sp. Cubense) a Dangerous and
Injurous Banana and Abaca Disease; Providing its Control and Placing Under Quarantine all the
Provinces where the Disease already exists to prevent further spread from infected areas to non-
infected areas
6. Presidential Decree No. 216 Prohibiting the Exportation of Abaca Seedlings issued on June 16,
1973
7. Republic Act No. 925 An Act amending Act No. 3251. entitled and Act to Prohibit the
Exportation to Foreign Countries of Seeds of Abaca and its Derivatives issued on June 20, 1953
8. Republic Act No. 3251 An Act to Prohibit the Exportation to Foreign Countries of abaca seeds
and its derivatives issued on December 1, 1925

47 | P a g e

SECTION 7: CONSTRAINTS AND OPPORTUNITIES

There are several industry constraints facing the abaca industry of Bicol. The industrys failure to
address these has limited its potential to improve and take full advantage of opportunities available.
Several key constraints are interlinked. As such, addressing one key constraint will actually solve
many others.

A list of industry constraints were presented during the stakeholders workshop conducted in Legaspi
City, Albay. The workshop was attended by various abaca industry players within the region from
farmer, traders, buying stations, GBEs, cordage manufacturer and fibercraft processors.

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
that are systemic and significantly affecting the competitiveness of the regions abaca industry.

Addressing the identified problems and constraints would lead to taking full advantage of
opportunities available for the industry. These are presented in the table below.

Table 30 : Constraints and Opportunities
Opportunities

Constraints

Province

INPUT PROVISION
There is a huge demand for abaca
planting materials in the regions
mainland especially for Abuab
variety of abaca

Lack of supply of quality abaca

planting materials.
Limited capacity of existing plant
material suppliers to supply the
demand
Absence / lack of access to abaca
nursery and high yielding variety

Sorsogon, Albay

FARM PRODUCTION
Huge demand for local and export
market for abaca fiber

Available technologies to increase
production by increasing farm
productivity

Lack of supply of raw abaca fiber

Disease infestation
Limited/lack of effort on abaca
replanting
Low frequency of harvest
Proliferation of abaca bakbak

Sorsogon, Albay,
Camarines Sur,
Catanduanes

FARM PRODUCTION
Availability of technology
Policies/ordinances are in place to
combat/ control spread of abaca
pest and diseases

Pest and disease infestation of

abaca farms

PROCESSING

48 | P a g e

Lack of access to agricultural

extension services
Lack of resources to implement
proper farming practices

Sorsogon, Albay,
Camarines Sur,
Catanduanes

Opportunities
Huge demand and better buying
prices for quality abaca fiber

Availability of technology to
improve abaca fiber quality

Availability of human resources /
skilled abaca strippers in the region

Increasing demand for abaca
fibercraft products (local and
export)

Availability of skilled craftsmen in
the region

Constraints

Province

Poor quality of abaca fiber

No drying facility
No warehouse facility
Poor transport facility
Lack of finances

Lack of marketing / promotional
support

Sorsogon, Albay,
Camarines Sur,
Catanduanes

High cost of joining trade exhibits

Lack of quality promotional
materials (brochures, leaflets, etc)

INTERFIRM RELATIONSHIP/VC GOVERNANCE

Industry issues/problems may
cause / unite abaca industry
players for common goals

















49 | P a g e

Lack of industry leadership

Industry players are
fragmented

Sorsogon, Albay,
Camarines Sur,
Catanduanes

SECTION 8: COMPETITIVENESS DIRECTIONS

A. COMPETITIVENESS VISION
During the value chain stakeholders workshop, the Bicol regions abaca stakeholders participated in
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
development thrusts:
To be known as asource of a huge volume of
good quality and Rainforest certified abaca
fibers
Highly productive, pest and disease free
abaca farms
Strong abaca industry with players working
together for a shared vision
Progressive community of farmers and other
abaca industry players who are earning
better incomes from abaca business and
contributing to improvement of regional
economy

Using the information presented above, in the next five (5) years Bicol Region abaca industry have
this vision for the industry:

A socially and economically progressive abaca industry, offering quality and certified abaca fiber
and processed products to the world.


B. PRIORITY CONSTRAINTS AND INTERVENTIONS
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
industry of the Bicol Region.

In the participatory validation and planning workshop, the regions abaca industry players including
the government were also able to take part and have provided commitment of support to achieve
the industrys vision. Result of the activity is presented in the table below.

Table 31 : Summary of Priority Constraints/Opportunities and Interventions
Constraints/
Opportunities

Intervention Strategy and

Approach

Province

Who can do it and Potential Roles

Public

Private

INPUT PROVISION
Lack of supply of
quality abaca
planting materials

50 | P a g e

Albay

Sorsogon

Establishment of abaca
nurseries in strategic locations
within the province

The government will

provide technical
support and inputs

Private sector to
provide land
where the abaca

Constraints/
Opportunities

Intervention Strategy and

Approach

Province

Who can do it and Potential Roles

Public
especially planting
materials.

Private
nursery will be
set-up and to
provide
management and
maintenance of
the farm

Coordinate with PhilFIDA and

the provincial government unit
of Catanduanes (lobbying) to
allow shipment of quality
abaca planting material
(Abuab variety) outside the
island province and delivery /
propagation of the same to
other provinces within the
region

The government will

help in processing
and filing of request
to provide access to
other province of
quality planting
materials available in
Catanduanes

Representative
from the private
sector will work
with PhilFIDA in
filing / lobbying
for the approval of
transport and sale
of abaca Abuab
variety from
Catanduanes to
the regions
mainland

Conduct of trainings on abaca

package of technology

Provide technical
support (Training of
Trainers)

Identification of
potential trainers
to be developed

Establishment of abaca
demonstration farms

Provide technical
support in the
establishment of
abaca nurseries

Provide site for

nursery, tools and
materials for
abaca nursery

Provide technical
support (Training of
Trainers)

Facilitate in
organizing abaca
strippers and
develop package of
services

Accredit service
providers

Identify potential
candidates

Hire/patronize
services of the
trained abaca
strippers

Provide technical
and policy support

Partner with the

government in
formulating /
lobbying for
policies
/ordinances that
would foster
industry
development

Improve delivery of agricultural

extension services and develop
pool of experts / service providers
from the privates sector through
Training of Trainers (ToT)

Provide
technical/skills
training and accredit
service providers

Patronize services
of accredited
service providers /
provide payment

Develop incentives and schemes to

attract/encourage farmers to

Provide technical
support services to

Develop and
Provide incentive

FARM PRODUCTION

Lack of supply of
raw abaca fiber

Training of potential abaca

strippers

Organizing abaca stripper

group into service provider

Albay,
Sorsogon

Developing ordinances among

LGUs regulating gathering of
abaca bakbak

FARM PRODUCTION

Pest and disease

infestation of abaca
farmers

51 | P a g e

Albay,
Sorsogon,
Camarines
Sur,
Catanduanes

Constraints/
Opportunities

Province

Intervention Strategy and

Approach

Who can do it and Potential Roles

Public

Private

industry players in
developing
incentives schemes

Conduct competition
for best abaca farms

Provide technical
support for
certification
(Rainforest Alliance)

schemes for abaca

farmers

Provide prizes for
farmers (best farm
competitions)

Encourage /
support for
Rainforest Alliance
Certification

Provision of drying facility

Construction of warehouse facility

Concreting of farm to market roads

Provide support
through PRDP
Project

Support the conduct
of feasibility study

Design facility and
train farmers

Provision of land
for the facility

Develop feasiblity
studies and
business plans

Operation and
maintenance of
the PHF facilities

Provide marketing agreement with

buyers and sellers (premium of
quality fiber / certification)

Facilitate linkages /
monitoring and
evaluation support

Policy support /
impose standards

Financial support
(buying of
products)

Provide marketing
agreement

Provide marketing / promotional

support through sponsoring
fibercraft operators in regional,
national and international trade
exhibits

Develop branding for Bicol region
quality abaca fibercrafts and
related products

Support in the design and
development of product
catalogues, brochures and leaflets

Support marketing through the use
of social media (internet websites,
facebook, etc.,)

Upgrading / improving product
designs and packaging

Sponsor trade
exhibits

Develop protocol
and design Bicol
Region product
quality seal

Provide training on
marketing and
promotion

Provide technical
support in design of
product catalogues
and brochures

Provide skills training
to fibercraft
processors

Production of
quality products

Implement
branding and
adoption of good
practices

Use of quality seal

Provide funds in
printing of
product
catalogues

Support conduct
of training
activities

Provide payment
for webhosting

improve their abaca farms and

provide training to farmers

PROCESSING

Poor quality of
abaca fiber

Lack of marketing /
promotional
support

Albay

Sorsogon,

Camarines
Sur

Catanduanes

Albay,
Sorsogon,
Camarines
Sur,
Catanduanes

Interfirm Relationship/Horizontal and Vertical Linkages/Supply Chain Governance

Lack of industry
leadership

52 | P a g e

Albay

Sorsogon
Camarines
Sur

Creation of a private sector led

abaca industry organization that
would promote regions abaca
industry development

Facilitate
organization of
abaca industry
organization in Bicol
region

Financial support

Technical support

Representation

Constraints/
Opportunities

Province
Catanduanes

Intervention Strategy and

Approach

Who can do it and Potential Roles

Public
Conduct of abaca
stakeholders forum

Private
Support conduct
of abaca
stakeholders
forum

Manage the
association

As the table above present, there are six (6) key constraints that hinder the regions abaca industry
from fully taking advantage of opportunities available. These are the following:

1. Lack of supply of quality planting materials
2. Lack of supply of raw abaca fiber
3. Lack of marketing/promotional support
4. Pest and disease infestation of abaca farms
5. Poor quality of abaca fiber
6. Lack of industry leadership

Lack of supply of quality planting materials

These constraints will be addressed using intervention strategies presented in Table 31. To be able
to increase the volume of abaca fiber production in the region, replanting and rehabilitation
activities must be carried out. This entails a huge need for supply of quality abaca planting materials.
However, supply of planting materials is very limited. In addition, seedling supply of high yielding
abaca variety preferred by farmers cannot be easily accessed by other farmers outside the province
of Catanduanes. This is because of a local government ordinance that ban the selling and
transportation of abaca planting materials outside the island province.

To address this, abaca nurseries in strategic areas in the region will be established. This is to improve
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
technical support as well as supply of good quality planting materials. Lobbying efforts will be made
by key government offices and the industry representatives requesting the province to Catanduanes
to allow transport and sale of Abuab variety of abaca for other provinces within the region.

Lack of supply of raw abaca fiber

The local and export markets for abaca fiber has been very bullish. However, supply of abaca fiber in
the country is still very low. To fill-up for its supply needs, some pulp mills operating in the country
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
abaca fiber by the industry. There is however a potential for the industry, particularly the farmers to
take advantage of these opportunities by increasing farm production. The regions abaca industry
stakeholders plan to do this through the following interventions:

Establishment of abaca demonstration farms
Conduct of trainings on abaca package of technology
Training of potential abaca strippers
53 | P a g e

Organizing abaca stripper group into service provider

Developing ordinances among LGUs regulating gathering of abaca bakbak

To demonstrate best practices in abaca production, an abaca demonstration farm will be set-up in
strategic locations around the region. The facility will be set-up and managed by the private sector.
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.

To balance the expected growth or increase in abaca production, the supply of skilled labor needed
to perform semi-processing activity, particularly abaca stripping, will also be addressed. More abaca
strippers are uregently neededwithin the abaca producing provinces in the region. Training on abaca
stripping and post-harvest handling will be conducted. To formalize this service sector, abaca
stripping service providers will be organized. This is to ensure quality standards are followed as well
as the welfare of the affected players are protected.

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.

Lack of marketing / promotional support

The fibercraft sector of Bicol regions abaca industry offers vast economic and employment
opportunities if further developed. Market for abaca fibercraft products for both local export market
has been increasing. In fact, the fibercraft sector has the highest growth rate of 12%in terms of
export earning.

In terms of local consumption, the fibercraft sector has the highest growth rate of 20%. It also has
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
regions fibercraft industry to grow.

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
marketing and promotion efforts.

While there are several trade shows at the regional, national and international level, cost associated
in joining these types of events are high and thus overwhelms small processors. In addition, several
small processors do not have promotional materials such as product catalogues, brochures and
leaftets.

A branding strategy and development of a quality seal for Bicol abaca fibercraft and related products
will also be developed. The presence of quality standards and good practices for players to follow
before use of the quality seal is granted will also ensure adherence to product quality and adoption
of sustainable practices.

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
employement generation and income earning capacity among players.

Pest and disease infestation of abaca farms

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
improve the delivery of agricultural extension services. The industry will develop schemes to ensure
that the delivery of services will be self-sustaining and viable. In the same manner, schemes will also
be developed to encourage farmers to improve production volume and product quality. This can be
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
production but will also be able to access better markets and premium prices for their produce.

Poor quality of abaca fiber

The lack of post-harvest facilities for abaca production has affected fiber quality produced by
farmers. During rainy season, farmers are forced not to harvest abaca which severely affects
operations of the processors. Abaca fiber quality rapidly deteriorates in the absence of proper post
harvest facilities. The industry has the following strategies to address this problem:

Provision of drying facility
Construction of warehouse facility
Concreting of farm to market roads
Provide marketing agreement with buyers and sellers (premium of quality fiber /
certification)
Provide support through PRDP Project

Improving infrastructure such as road networks and post-harvest facilities is seen to improve not
only product quality but volume of production as well. As the farmers will be encouraged to produce
more abaca because they now have access to postharvest services that they need. Provision of a
marketing agreement linked to certification will subsequently ensure facilities will be fully utilized for
its purpose.

Lack of industry leadership

The lack of a shared vision/common objective among abaca players in the region has kept abaca
industry stakeholders fragmented. There is no private-led abaca industry organization that leads
abaca industry development efforts in the region. To address this, the creation of an abaca industry
organization from within the region is proposed. The organization can function both for advocacy as
well as provision of missing support services that the industry needs.

55 | P a g e

SECTION 9: CONCLUSIONS AND RECOMMENDATIONS

The Bicol region is well positioned in the countrys abaca landscape. The role that the region plays is
very significant such that whatever happens here will consequently affect the abaca industry in the
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.

The Philippines Fiber Industry Development Authority (PhilFIDA) plays a vital role in abaca industry
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
industry today can be attributed to the collaboration efforts of PhilFIDA, the local government units
and the private sector in the past.

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/budget of the agency to perform its duties. Extension services are now limited because of
lack of human and financial resources. In the provincial PhilFIDA offices, vital equipments such as
office computers and air-conditions for the laboratories are lacking. According to the regions abaca
industry players, promoting abaca industry developmenthas to start with supporting PhilFIDA.

On the other hand, while PhilFIDA plays a very significant role in the regions abaca industry
development, the same level of effort must come from the private sector. The industry just needs to
get its act together. The industry has to be organized. This approach has worked well with other
industries such as the banana and the cacao industries of Southern Mindanao.

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
Mindanao that resulted to a significant increase in the islands volume of cacao production. In fact,
to accommodate the huge demand for cacao planting materials, the number of cacao nursery
operators in the Davao Region has increased from less than twenty to over a hundred by now.

The Bicol Region is not far from achieving its vision for the abaca industry. To be able to achieve this,
the following interventions are recommended:

Organization of an abaca industry association
Development of the regional abaca industry development plan which will provide detailson
the following:
o Setting up of abaca nurseries
o Establishment of abaca demonstration farms
o Development of target areas for expansion
o Development of target areas for rehabilitation
o Improvement of post harvest facilities
o Abaca industry development and investment promotion
o Research and development activities

56 | P a g e

Facilities such as abaca nurseries and demo farms and post harvest facilities can be developed and
operated as a collective enterprise.
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: Abaca fibercrafts and abaca furniture products of Natural Carpet Industries operating in
Camalig, Albay Province

















57 | P a g e

SECTION 10: ANNEXES

INVENTORY OF EXISTING ABACA PRODUCTION FACILITIES PhilFIDA BICOL REGION
TYPE OF FACILITY
ADDRESS
Albay Abaca Tissue Culture Laboratory
Bicol University Compound, Legaspi City, Albay
Catanduanes Abaca Tissue Culture Laboratory
Moonwalk Subdivision, Virac, Catanduanes
Abaca Diagnostic Laboratory
Bicol University Compound, Legaspi City, Albay
Abaca Fiber Seedbank and Experiment Station
Sorsogon
Abaca Fiber Seedbank and Experiment Station
Camarines Sur
Abaca Farmers Training Center
Virac, Catanduanes


COST AND RETURN ANALYSIS (2 Hectare Abaca Farm)
PARTICULARS
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
TOTAL






EXPENSES
21,400.00
5,120.00
16,896.00 18,585.60 20,444.16
82,445.76
Supplies and materials
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
Depreciation Cost
500.00
500.00
500.00
500.00
500.00
2,500.00
Land Tax
53,925.00
7,010.00
21,348.00 23,857.80 25.926.08 132,066.88
TOTAL COST
n/a
n/a
n/a
107.99
46.90

Break-even Cost
Fiber Yield Per Hectare
none
750.00
2,250.00
3,000.00
3,000.00
9,000.00
(kilos)
(Equivalent Share: 50%
none
375
1,125
1,500
1,500
4,500
for the owner)
n/a
15,000.00
45,000.00 60,000.00 60,000.00 180,000.00
TOTAL INCOME
(53,925.00) (43,935.00) (22,283.00) 13,859.20 34,073.92
47,933.12
Net Income / Loss
Percent (%) Return on
n/a
n/a
n/a
10.49
25.80
36.29
Investment)
Assumption: Php40.00 Price Per Kilogram
Source: PhilFIDA Region 5

ABACA FARM REHABILITATION COST (50% of One Hectare)
COST ITEMS
1,600 hills/hectare @50% (missing hills) needed for replanting @Php5.00 per
sucker : 800 plants x Php5.00
Fertilizer: 2 bags Ammonium Sulfate @Php1,000.00 per bag
Chemical: One (1) liter insecticide and herbicide @ Php400.00 per liter
Cost for Shade: Trees (Anonang, Dapdap, and/or Ani) @ Php20.00 per post
good for 50
Labor: 14 Man Days (MD) @ Php250.00 per day
Estimated Total Rehabilitation Cost (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

LIST OF BICOL REGION ABACA INDUSTRY STAKEHOLDERS (2012 2013) PhilFIDA

Licensed Abaca Grading and Baling Establishments (GBEs)
NAME
ADDRESS
CONTACT INFORMATION
Ms. Socorro L. Calleja
Ching Bee Trading Corp.
Rizal St., Tabaco City, Albay
Tel. # (052) 487-5186
Manila Hemp Trading Corp. Capilihan, Virac, Catanduanes
Mr. Peter Chua, President
Manila Hemp Trading Corp. Mabca, Sagnay, Camarines Sur
Mr. Jesus Yao Chua, Manager
Mr. Rodel A. Valiente, Manager
Tag Fibers Inc.
Brgy. Salvacion, Taba City, Albay
Tel. # (052) 487-6098


Licensed AbacaBuying Stations
NAME
ADDRESS
CONTACT INFORMATION
Manila Hemp Trading Corp. Pob. San Andres, Catanduanes
Mr. Peter Cua, President
Specialty Pulp Mfg. Co. Inc. A. U. Betts. Tabaco City, Albay
Mr. Victor B. Parilla, President
Tag Fibers Inc.
Ibong Sapa, Virac, Catanduanes
Mr. Rodel A. Valiente, Manager
Mr. Jessy B. Leno, Manager
Pulp Specialties Phils., Inc.
Kilikao, Daraga, Albay
Tel. # (052) 435-0161


Licensed Abaca Processors
NAME
ADDRESS
CONTACT INFORMATION
Albay Agro-Industrial Development
Balading, Malinao, Albay
Corp. (ALINDECO)

Products: Pulp sheets

PACIFIC CORDAGE CORP.

Products: ropes

CCCP Industries
Products: baskets, boxes

JM Handicraft

Products: bags

Lidong, Sto. Domingo, Albay

Bagumbayan, Daraga, Albay
# 165 Bagumbayan, Daraga, Albay

RODIMA MARKETING

Products: bags, sinamay, scrunch, Lakandula Drive, Legaspi City

boxes

SIMOR ABACA PRODUCTS INC.

Products: wall carpets

A. BINAS ENTERPRIES

Products: bags, novelty items

Ms. Hazel B. Ravago, Finance &

Admin Head
Tel. # (052) 488-4588
Mr. Noli L. Budy, Plant Manager
Tel # (052) 487-1571
Mr. Carlos Conda Sr., President
Tel. # (052) 483-1505
Ms. Mira Macandog, Proprietor
Tel. # (052) 824-3545
Ms. Aimee Penaflor, Proprietor

Cabangan, Camalig, Albay

Ms. Emelite G. Vibar, Proprietor

San Jose, Malilipot, Albay

Mr. Aldrin B. Binas, Proprietor

BIKOL ABACA CRAFTS

Products: baskets, bags, novelty items, Tabon-tabon, Daraga, Albay

scrunch

Ms. Loma V. Mier, Proprietor

CRAFTSITE EXPORT ENTERPRISES

Mr. Renato N. Nidea, Proprietor

Tel. # (052) 483-1489

Products: scrunch, rolls

GLOBE ASIA NATURE IND., INC.,

Parisan, Camalig, Albay

Gernarine Bldg., Annex Alt. Road,

Products: scrunch, sinamay, tray,

Legaspi City, Albay
boxes

GSG INDUSTRIAL CORP.

Products:handmade paper, rolls, boxes

KAFTIKA FILIPINA

Cale, Tiwi, Albay

Mr. Jeofrrey Gonzales, Proprietor

Purok 8, Tagas, Daraga,

Mr. Reynaldo T. Paulino, Proprietor

Tel. # (052) 483-2148

Products:bags Albay

NATURAL CARPET IND.

256 Zone 5, Sumlang, Camalig,

Products:table runners, mats, rugs Albay

PRIME LAGACY

59 | P a g e

Products: bags

Engr. Gerson S. Escaro, Manager

Tagas, Daraga, Albay

Mr. Filipe Noe Napa Jr., Proprietor

Ms. Jocelyn Antonio, Proprietor

RAN BROS. CO. INC.,

Products: bags, baskets

ROYAL WEAVERS PRODUCTS

280 Pag-asa St., Daraga, Albay

Ms. Vivian R. Ranola, Manager

Anson Subdivision, Cabangan,

Ms. Jocelyn N. Valenciano,

Proprietor

Products: scrunch, boxes Camalig, Albay

RYGAN PAMAR ENTERPRISES

Products: bag, mats, twine

SHIRLS AND LARS HANDICRAFTS

Products: sinamay, scrunch

STARCREST ASIA CORP.

Products: bags, boxes

AIM HANDICRAFT

Products: boxes

ALEMANA WEAVING CENTER

Products: twine, sinamay

San Isidro, Ilawod, Malilipot, Albay Ms. Mary Jean V.Muni, Proprietor
Bonga, Legaspi City

Ms. Shirly P. Alaurin

Tagas, Daraga, Albay

Ms. Gloria P. Baldo, Treasurer

Tel. # (052) 483-2296

Malabog, Daraga, Albay

Ms. Imelda D. Moratillo, Proprietor

San Roque, Malilipot, Albay

Ms. Salvacion Alemana

Mabini St., Toytoy, Malilipot,

BINALLA, LENNY B.

Products: fibercraft Albay

BROSO, FE

San Isidro, Iraya, Malilipot, Albay

Toytoy, Malilipot, Albay

CARMELA ERNESTINE CRAFT IND.

Teachers Vill., Phase 1,

Ms. Juana L. Erquiaga, Proprietor

Te. # (052) 487-1506

CONTIGNO, CAMILO A.

Bitantes St., San Isidro, Ilawod,

Products: twine

BUENO, ELMA

Products: fibercraft

Products:fibercraft Washington Drive, Legaspi City

Products: twine Malilipot, Albay

DE VERA, TITA P.

Products: novelty items

Bonag, Daraga, Albay

DOMS HANDMADE OPTIONS

Products: handmade paper, novelty San Juan St., Sto. Domingo, Albay
items

EDELS HANDICRAFT STORE

Products: fibercraft

FUJI DAISEN INC.

Products: bags, boxes

Bonafe, Malilipot, Albay

Purok 8, Tagas, Daraga, Albay

HANDY WIRE FRAME HANDICRAFT

Products: tray, novelty items, lamp Travesia, Guinobatan, Albay

shades

IMPERIAL RODOLFO

Mabini St., Toytoy, Malilipot,

Products: fibercraft Albay

JANMHAYUES HANDICRAFT

Products: fibercraft

JEANELS HANDICRAFT

Products: placemats, novelty items

JHO AND BETH HANDICRAFT

Products:bag, sinamay, novelty items

Marketsite, Daraga, Albay

Ms. Lilibet Banal, Proprietor

MORIN CRAFTS

Products: mats, table runner, novelty Cabangan, Camalig, Albay

items

NUNEZ, ELSIE M.

60 | P a g e

Ms. Jeannette A. Biton, Proprietor

Products: novelty items, sinamay, Marketsite, Daraga, Albay

scrunch

Products: fibercraft

Ms. Luzviminda Domera,

Proprietor

Gabawan, Daraga, Albay

MINA, NENA A.

NGC DECOR CRAFTERS

Mr. Domingo B. Barrios Jr.,

Proprietor
Tel. # (052) 487-1506
Ms. Maria Francia Babasa,
Proprietor
Mr. Julian P. Lizano, Corporate
Secretary

Ms. Pascualita Bigornia

Products: table cloth, table runner, P-3, Salvacion, Daraga, Albay

wallmat

Products: bags, novelty items

P-4, San Jose, Malilipot, Albay

MENDIONES, NOEMI

NESSCRAFTS PHIL. IND.,

Zone 2, Tagas, Tabaco City, Albay

Ms. Maria Neressa Araojo,

Proprietor

Avila Subd., Daraga, Albay

Ms. Ixara Ainez L. Vibar, Proprietor

Purok 4, Travesia, Guinobatan,,

Products: fibercraft Albay

PHIL ABA CARPET CORP.

Products: rugs

POCILLO, IMELDA S.

Cabangan, Camalig, Albay

P-2, Home Vill., Travesia,

Products:fibercraft Guinobatan, Albay

RCB Crafts and Designs

Products: bags, novelty items

SIBAY, RITA N.

Products: novelty items

SOLAS HANDICRAFT CENTER

Products: fibercraft

TEANO, FLORO

Products: fibercraft

ZMW COCO AND ABACA ENT.

Products: fibercraft

SHELMED COTTAGE TREASURES

P-1, San Lorenzo, Tabaco City

Ms. Rachelle Briones, Proprietor

Travesia, Guinobatan,, Albay

Mabini St., Malilipot, Albay

Ms. Felicitas B. Sola, Proprietor

Buenavista, Bato, Catanduanes

Ms. Raquel Antevola, Proprietor

Montana Bldg., F. Lotivio, Daraga,

Products: fibercraft Albay

Licensed Abaca Traders (Local)
NAME
Camu Marketing
John Luke Sari-sari Store
Publico, Emily
Rojas, Richard
Virac Central Logistics Corp.
Bonaobra, Eduardo
Bornilla, Robita
Cao, Dante B.
Candaza, Merly
Cid, Patrick B.
Idanan, Johnson E.
J. R. Comprada
Merga Trading
Penaflor, Domingo
Relleta, Fred
Sabio, Teodorico
SAS Enterprises and Gen. Merchandise
Arcilla, Aileen S.
Barroso, Joselito B.
Bendal, Salvador Sr.,
Bringuela Enterprises
Capino, Ruth C.
Cimanes, Bonifacion
Co, Benjamin D.
Ercon, Trading
Esmeria, Isabel
JB Borlagan Enterprises
Legson, Joseph
61 | P a g e

Mr. Rene Morin, Proprietor

Mr. Sheldon Villanueva, Proprietor

ADDRESS
Tigbi, Tiwi, Albay
Paraputo, San Antonio, Tabaco City, Albay
Sabangan, Caramoran, Catanduanes
Pob. Viga, Catanduanes
Sta. Cruz, Virac, Catanduanes
Zone 1 Fatima, Tabaco, Albay
Banntayan, Tabaco City, Albay
Bacacay, Albay
San Isidro, Iraya, Malilipot, Albay
Ongob, Malinao, Albay
Datag, Caramoran, Catanduanes
San Juan Bautista, Goa, Camarines Sur
Irosin, Sorsogon
Camalig, Albay
Catagbacan, Goa, Camarines Sur
Sta. Elena, Buhi, Camarines Sur
Sipi, Bato, Catanduanes
Salvacion St., Manambrag, San Andres, Catanduanes
Mabini, Caramoran, Catanduanes
Misibis, Tiwi, Albay
Irosin, Sorsogon
Tanawan, Malinao, Albay
Marketsite, Daraga, Albay
Manook St., Gubat, Sorsogon
Daraga Public Market, Daraga, Albay
Mapapac, Barcelona, Sorsogon
San Lorenzo, Tabaco City
San Isidro West, Sorsogon City

Lim, Ricardo
Llaguno, Mariano B.
MRLG Trading
Pahuyo, Manuel T.
Rodinnah Enterprises
Ubana, Noel O.
Abion, Rogelia
Alcazar, Edna
Alex Enterprises
Antonettes Enterprises
Asis, Joel
Asis, Rodrigo Jr.
Banaag, Segundo Jr.
Bercasio Store
Blue Lace Trading
Bombita, Romeo
Bonina, Cesar
Bredes, Aldin B.
Bryan, Elpidio
Brillante, Lionisa
Brofas, Delfin
Cabais, Romulo
Camacho, Helen
Camano, Justino Jr.
Casiao, Jesus P.
Casungcad, Generosa E.
CBJ Tradring
Chan, Maritess A.
Chavenia, Myrna
Chavez, Marcelito
Chavez, Rogelio
Chua, Laurence B.
Co, Maria
Conda, Remedios
Coderis, Antonio
Crispino, Amparo
De Leon, Salvador C.
Diaz, Maria Gazel E.
Docot, Manuela
Endionela, Jose Arnel A.
Francisco, Cornelio
Garcia, Amelia S.
Germina, Joel
Gregorio, Molito
Guiriba, Regina
Hercer, Arnolfo
Jose Copra Dealer and Sari-sari Store
Labayuga, Domingo D.
Laceda, Armando
Lee, Rogelio
62 | P a g e

San Juan Bautista St., Goa, Camarines Sur

Tigaon, Camarines Sur
Delgado St., Goa, Camarines Sur
Ocampo, Camarines Sur
San Pedro, Irosin, Sorsogon
Pangpang, Sorsogon City
Buyo, Manito, Albay
Basud, Bacon, Sorsogon
Sta. Maria, Lagunoy, Camarines Sur
0078 Luna St., Gubat, Sorsogon
Malatop, Labo, Camarines Norte
B. Silang, Labo, CAmarines Norte
Juban, Sorsogon
Bacon Dist., Sorsogon City
267 Gen. Luna St., Daraga, Albay
Sibacungan, Bato, Catanduanes
Zone 7, Labnig, Malinao, Albay
San Roque, Tabaco City, Albay
Cavinitan, Virac, Catanduanes
Siocon, Gigmoto, Catanduanes
Panicuason, Naga City
Sta. Elena, Buhi, Camarines Sur
Paraiso, San Miguel, Catanduanes
Mayanao, Tigaon, Camarines Sur
San Rafael, J. Panganiban, Camarines Norte
Colasi, Mercedes, Camarines Sur
Guinlajon, Sorsogon City
Almendras St., Sorsogon City
Ogob, Malinao, Albay
Biong, Gigmoto, Catanduanes
Biong, Gigmoto, Catanduanes
Brgy. South Poblacion, Juban, Sorsogon
Manook St., Gubat, Sorsogon
Sagpon, Daraga, Albay
Moyong, Tiwi, Albay
Sicmil, Gigmoto, Catanduanes
Colasi, Mercedes, Camarines Norte
Bancal, San Bacon Dist., Sorsogon
Basud, Sorsogon City
Guisican, Labo, Camarines Norte
San Isidro, San Lorenzo Ruiz, Camarines Norte
Tilod, Baras, Catanduanes
Guisican, Labo, Camarines Norte
Siocon, Gigmoto, Catanduanes
Camalig, Albay
Almojuela, Viga, Catanduanes
Juban, Sorsogon
Basud, Sorsogon City
Panlayaan, Sorsogon City
Casiguran, Sorsogon City

Limpangog, Elsie O.
M. Andes Commercial
Mabburang, Domingo
Magno, Azer M.
Magno, Eden
Magtangob, Noel
Marino, Esteban
Melchor Felicidad
Merciales, Elizabeth
Nunez, Rowenna C.
Ogalesco, Jesus
Ogalesco, Jose O.
Olesco, Garry T.
Olesco, Winefreda
Ortua, Freddie
Palmes, Antonio
Pan, Nena
Pardo, Dionisio
Peconcillo, Eddie
Pellejera, Domingo
Perena, Antonio
Primavera, May Fuentebella,
Rivera, Reny
Rodriguez, Nancy
Rojas, Mary Jane
Sallan, Armando M.
Salvador, Celedonio
Samonte, Agapito
Santelices, Arulfo
Solmirano, Nicanor
Sualibio, Jesus
Tabinas, Leonor
Tan Enterprises
Tapia, Armando
Tating, Arturo T.
Tating, Jose
Tawat, Salvador
Tibar, Dante M.
Teano, Amelita S.
Templonuevo, Ariel P.
Templonuevo, Joey
Tolledo, Rolando
Tortillos, Pedro
Traquena, Nicolas
Tresvalles, Leticia
Tribiana, Domingo
Tud, Antonio
Tuplano, Edgar
Tura, Domiciano Jr.
Turbolencia, Fe Z.
63 | P a g e

San Miguel, Panganiban, Catanduanes

Cumadcad, Castilla, Sorsogon
Almojuela,Viga, Catanduanes
Datag, San Andres, Catanduanes
Datag, San Andres, Catanduanes
P-2, itok, Capalunga, Camarines Norte
Sagrada, Viga, Catanduanes
Tigaon, Camarines Sur
Salvacion, Ragay, Camarines Sur
Misibis, Tiwi, Albay
Burgos, Viga, Catanduanes
Sagrada, Viga, Catanduanes
Burgos, Viga, Catanduanes
Sagrada, Viga, Catanduanes
Goa, Camarines Sur
Catagbacan, Goa, Camarines Sur
Buyo, Goa, Camarines Sur
Talubateb, Labo, Camarines Norte
Panicuason, Naga City
Juban, Sorsogon
P-6, Mayong, Tiwi, Albay
Hanawan, Ocampo, Camarines Sur
Sitio Cabunturan, Sagnay, Camarines Sur
Summit P. Vera, Viga, Catanduanes
Exciban, Labo, Camarines Norte
Buyo, Manito, Albay
Tulay na Pula, Labo, Camarines Norte
Tilod, Baras, Catanduanes
Timbaan, San Andres, Catanduanes
Batong Paluay, San Andres, Catanduanes
Cabcab, San Andres, Catanduanes
Timbaan, San Andres, Catanduanes
Bentuco, Gubat, Sorsogon
Exciban, Labo, Camarines Norte
Tinago, Viga, Catanduanes
Villa Aurora, Viga, Catanduanes
Villa Aurora, Viga, Catanduanes
Sta. Maria, Baras, Catanduanes
Sta. Maria, Baras, Catanduanes
San Juan, San Miguel, Catanduanes
Arroyao, San Miguel, Catanduanes
Sta. Maria, Baras, Catanduanes
Siocon, Gigmoto, Catanduanes
Cabugao, Bato, Catanduanes
Bartolinao, Baras, Catanduanes
Arroyao Grande, San Miguel, Catanduanes
Sicmil, Gigmoto, Catanduanes
Rizal, Viga, Catanduanes
Almojuela, Viga, Catanduanes
Obi, Caramoran, Catanduanes

Villaflores, Danilo D.
Yangs General Merchandising
Yu, Nestor
Velasco, Jeffrey
Zafe, Bailon Jr., V

64 | P a g e

Baay, Labo, Camarines Norte

Manook St., Gubat, Sorsogon
Irosin, Sorsogon
San Miguel, Panganiban, Catanduanes
Del Rosario St., Sto. Domingo, Albay