Marketing Abaca Fiber: Insights from Caraga Region Farmers | InformativeBD

Rosalina A. Sagocsoc, from the different institute of the Philippines. wrote a research article about, Marketing Abaca Fiber: Insights from Caraga Region Farmers,entitled, Farmers practices in marketing Abaca fiber in Caraga Region. Farmers practices in marketing Abaca fiber in Caraga Region. This research paper published by the Journal of Biodiversity and Environmental Sciences | JBES. an open access scholarly research journal on Biodiversity, under the affiliation of the International Network For Natural Sciences | INNSpub. an open access multidisciplinary research journal publisher.

 Abstract

The study was conducted to determine the marketing practices and the profitability of establishing Abaca in the Caraga Region. A total of One Thousand Two Hundred Fifty-Six (1256) farmers, Seventy-Seven (77) traders, and three (3) processors were interviewed as the respondents of the study. Their names were obtained from the Philippine Fiber Development Authority (PhilFIDA) and the Municipal Agriculture Office (MAO) of the concerned municipalities of the Region. Data gathering activities included interviews and focus group discussions (FGDs), and stakeholder forums were conducted to validate and gather additional information. The said Focus Group Discussion and Stakeholders’ Forum were attended by the farmers, officers in various cooperatives, traders, representatives from the regional line offices, the Department of Trade and Industry (DTI), Department of Agriculture (DA), Department of Agrarian Reform (DAR) Municipal Agriculture Offices (MAO), Academe, Provincial Agriculture Officer. In the Caraga Region, abaca traders are situated in Agusan del Norte 28 or 36.36%, Agusan del Sur 25 or 32.47%, Surigao del Sur 24 or 31.17% and no traders in the province of Surigao del Norte. The one who sets the price for abaca fiber is the trader/buyer 99.28 % and only 0.71% sets by the farmer. The means of contacting buyers are referrals by the farmers 32.96%; traders will come to the farmers 27.46%, recommended by the Local Government Unit (LGU) 23.88%, and traders who are known by the cooperatives 15.68%. The buyers’ requirements in buying abaca fibers are quality 63.69% and volume 36.30%. Traders engage in buying Abaca for more than 15 years or 38.5%; 1-5 years, 30.12%; 11-15 years, 18.07% and 6-10 years, 13.25%. The means of transporting abaca fiber is through motorcycles 43.37% and hired trucks 56.61%. The estimated monthly volume sold is 1- 5 metric tons or 92.77% and 6 – 10 metric tons. The farmer’s Abaca fibers through Barangay or Municipal Traders, Cooperatives/Consolidators, Baling and Grading Establishment, Processors, and exporters. The issues and concerns for the traders are the following: classification and grading of fiber, cheating abaca bundles where stones inserted to increase weights, abaca fiber not adequately dried, and piles of Abaca are mixed with other fibers. The profitability of abaca farming for 1 hectare /year is the average of P48,000 for a typical farm, while for a good farm is P115,200 – 192,000. 

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Introduction

The "Manila hemp," known internationally for its world-class fiber, continues to be one of the priority agricultural commodities of the Department of Agriculture (DA). The Philippines supplies more than 87.4 percent of the total abaca fiber market and earns more than $111.33 million in global abaca trade annually (PCA, 2017). 

In 2022, as per PhilFIDA data, Caraga ranked third among the top abaca-producing regions in the country with an estimated 10,000 metric tons (MT) of fiber production, next to Bicol Region (1st) and Davao Region (2nd).

Abaca is in great demand in the world market today because of its lucrative value in industries such as making security papers, paper money, ropes, insulators, and other handicrafts. The most important part of the Abaca is the stalk which is the source of the fiber. Abaca fiber is superior to all other natural fibers because of its great strength and its resistance to the action of water. It is three times stronger than cotton, the most potent natural fiber. 

The country’s overall fiber production is estimated at 62,640.63MT, remaining the top abaca-producing country, supplying 85% of the fiber demand in the world.

Pulp, which accounts for 69.2 percent market share of the abaca exports, has reported earnings of $ 79.4 million or an increase of 11.7 percent. Abaca cordage, which grabbed a market share of 10 percent, fell to $ 11.4 million. Fiber crafts exports also fell 67.3% to $3.7 million (The Philippine Star, 2016). The pulp manufacturing industry is the leading end-user of abaca fiber, followed by cordage manufacturing and fiber craft industry. It was reported that due to the increasing use of abaca fiber in specialty paper manufacturing, the demand for fiber among pulp manufacturers is constantly surging, and the trend is expected to prevail in 2014-2019. Among the leading abaca fiber suppliers, Ching Bee Trading Corporation dominates the market in the Philippines, followed by Tag Fibers, Inc. and Selinrail International. 

For the past half-decade, the Abaca industry helped boost the country’s economy from its export earnings with an annual average of P4.7 billion, mainly in the Visayas and Mindanao Islands. Abaca fibers are cultivated across 176,549 hectares of farmlands by over 122,758 farmers. Moreover, in recent years, it has been perceived that aside from the substantial contributions of Abaca to the economy, its utilization can also provide numerous ecological advantages (www.philfida.da.gov.ph, 2019).

With the continuing development of the fiber craft industry in the Philippines, the abaca fiber market has been witnessing a boost due to the growing demand for gifts, toys, and housewares. Moreover, increasing consumer inclination for lifestyle products is further expected to strengthen the growth trend for abaca crafts in the coming years. There are only two significant exporters of abaca fiber in the world – the Philippines and Ecuador, with the Philippines accounting for over 80% of the global production of abaca fiber. In the Philippines, the abaca plant is cultivated across 130 thousand hectares of land by over 90 thousand farmers. 

Asia Pacific was the largest market for abaca fiber in terms of production and consumption over the past few years, and the trend is expected to continue over the forecast period. The Philippines, the world's largest abaca producer, hold a significant market share in Asia Pacific. A considerable portion of produced abaca fiber in the Philippines is internally consumed, while a substantial amount is exported to various countries, including U.S., Japan, and other European countries. The Philippine government supports initiatives to increase high-quality abaca fiber production levels for domestic consumption and export. This is expected to strengthen its market positioning further and open market opportunities for new players over the next seven years (Erie News, 2019).

Thus, this undertaking is critical to fill the data gaps of the recently conducted Value Chain Analysis of the Commodity in the Region. Profiling tells us the actual scenario of how many abaca farmers engaged in this commodity, what support programs they availed in our present administration, what they need, and what other issues and concerns so that our government can also make some intervention programs for our abaca industry.

Major end-user industries of abaca fiber include paper and pulp, fibercraft, and cordage. The paper and pulp industry is the largest end-user industry for abaca fiber, followed by cordage manufacturing and fiber craft industry. Increasing the application scope of abaca fiber in specialty paper manufacturing is likely a critical factor driving demand for abaca fibers in the paper & pulp industry. The rising market for cordage in industrial applications, including the production of ropes for ships, is expected to boost its demand over the next seven years.

Reference

Abaca Sustainability Manual Published by Philippine Fiber Industry Development Authority, 2016

Department of Agriculture, Philippine Fiber Industry Development Authority. 2016-2019, www.philfida.da.gov.ph

Edwin R. Celestino, Gregorio O. Sarmiento, Jinky T. Benicio, 2016. Value Chain Analysis of Abaca (Musa textiles) Fiber in Northern Samar, Philippines, IJISET- International Journal of Innovative Science & Technology, Vol.3, Issue 8.

Enhanced Provincial Commodity Investment Plan, Province of Agusan del Norte. http://www.philstar.com/agriculture/2016

Philippine Abaca helps in global environment conservation. 2016-2019. Department of Agriculture, Philippine Fiber Industry Development Authority. www.philfida.da.gov.ph.

Philippine Rural Development Project (PRDP). 2014. I-PLAN Component Mindanao Cluster, Value Chain Analysis and Competitiveness Strategy: Abaca fiber Mindanao, Department of Agriculture Mindanao Regions.

The Philippine Star, 2016, Louise Maureen Simeon  www.philfida.da.gov.ph2016.

Source : Farmers practices in marketing Abaca fiber in Caraga Region