Press Release
April 22, 2007

Maximize local abaca production - Recto

Senator Ralph Recto called on the government to take advantage of the Philippines' strong position in the global abaca market to boost the economy and help farmers even as he warned that efforts must be undertaken to maintain the country' status as top producer.

Recto stressed that the abaca enjoys high demand in all countries that need more durable currency notes, better security paper, stronger ropes to rein in warships and better dashboards and other products for cars and fibercraft.

Citing data from the Fiber Industry Development Authority (FIDA), the senator said "the country produces 85 percent of the world's supply of abaca annually, Ecuador is a distant second, and as of late, Indonesia has been trying to expand its own nascent plantations to join the market."

Recto then commended the farmers from the top 10 abaca-producing provinces in the country, namely, Catanduanes, Southern Leyte, Leyte, Davao Oriental, Northern Samar, Davao del Sur, Surigao del Sur, Western Samar, Sulu and Sorsogon.

He asked government to continue helping those who are deeply involved in an industry in which "we can demolish the competition anytime."

"There are 82,450 farmers who depend on abaca cultivation for a living in 135,958 hectares of land in 48 provinces. They do their part for the state's good and it has always been the state's role to do something for their good," he stressed.

Average production from 1996 to 2005 was 69,118 metric tons (MT), with the harvest for 2005 reaching a high of 73,875 MT and earning export revenues of $86,718,656.

The range of annual earnings from abaca from 1996 to 2005 was $79,008,147, with pulp as the main export item at $37,021,186, followed by fibercraft at $15,318,147, raw fibers at $14,979,491and cordage, ropes and twines at $11,289,627, and yarns and fabrics at $399,693.

Raw fibers took the bulk of exports at 16,774 MT, pulp at 16,451 MT and 7,637 MT.

The senator reminded that other countries are fast catching up, and if we are not careful, we might find ourselves knocked from the branch we have long claimed as ours in the abaca industry.

"FIDA says Indonesia is busy working to have a toehold on the market and has been relentlessly pirating our experts to help develop plantations in their country solely for abaca production," Recto said.

The senator said that renewed interest on organic materials, particularly for fabrics, ropes and twines, has caused excitement in the abaca market.

"Add to these the intense demand for security paper, since various countries now use a combination of cotton and abaca for their currency notes along with security paper for manufacturing checks, bonds and other investments documents," explained the legislator.

He then pointed out that FIDA projects increased demand for abaca in the coming years and this is where the country can maximize its earnings, not only expanding production areas but also in engaging in research and development to generate a new class of abaca that is resistant to pests and diseases.

"In 2005, fiber production saw a 33 percent rise, and 95 percent of this came from abaca. The total value of fibers produced in that year was P2.65 billion, which was a third higher than the value of production in 2001, which was P2.01 billion," Recto pointed out.

The senator said that in the future, biotechnological advances will have to be relied upon by the government to cement its position in the global abaca market.

"We must manufacture high-value-added abaca products. Processing the fibers for specialty products now in demand in the global market is also an option that we have to actively pursue," he explained.

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