Analysis of the Supply Chain of Abaca Fiber in Toril, Davao City

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Chapter I Introduction 1.1 Background of the Study Philippines is the center of origin of Abaca (Halos, 2008; Lalusin, 2010 as cited by Bande, 2012). The Abaca plant was first described by Don Luis Nee (1801) who gave the earliest confirmation that abaca is indigenous to the Philippines (Bande, 2012). Abaca (Musa textilis), is closely related to edible banana (Musa acuminate and M. balbisiana), that is indigenous to the understory of the Philippines’ tropical lowland evergreen rainforests (Tabora Jr., 1978; Halos, 2008; Sievert, 2009 as cited by Bande, 2012). Abaca, known internationally as Manila hemp, is grown primarily for its fibers. The fiber is extracted from the leaf sheath around the trunk of the abaca plant. Due to its superior tensile strength and proven durability under seawater (Lalusin, 2010 as cited by Bande, 2012), there’s no wonder why it is considered as one ofthe sturdiest of natural fibers. One major factor that makes the commodity highly competitive in the market compared to other natural hard fibers is its quality. The fibers of Abaca are utilized as raw materials in the pulp and paper, cordage and twine, yarns and threads, and fibercraft business. The Philippines provides 83.4% of the world supply of fiber. The Abaca industry contributes US$80.6 million every year to the Philippine economy (Biolife, 2005), making it one of the major source of income for Filipinos. It continues to Page 1 of 26

description

This paper analyzes the abaca industry of the Philippines through the Supply Chain Framework.

Transcript of Analysis of the Supply Chain of Abaca Fiber in Toril, Davao City

Page 1: Analysis of the Supply Chain of Abaca Fiber in Toril, Davao City

Chapter I

Introduction

1.1 Background of the Study

Philippines is the center of origin of Abaca (Halos, 2008; Lalusin, 2010 as cited by

Bande, 2012). The Abaca plant was first described by Don Luis Nee (1801) who gave the

earliest confirmation that abaca is indigenous to the Philippines (Bande, 2012).

Abaca (Musa textilis), is closely related to edible banana (Musa acuminate and M.

balbisiana), that is indigenous to the understory of the Philippines’ tropical lowland evergreen

rainforests (Tabora Jr., 1978; Halos, 2008; Sievert, 2009 as cited by Bande, 2012).

Abaca, known internationally as Manila hemp, is grown primarily for its fibers. The

fiber is extracted from the leaf sheath around the trunk of the abaca plant. Due to its superior

tensile strength and proven durability under seawater (Lalusin, 2010 as cited by Bande,

2012), there’s no wonder why it is considered as one ofthe sturdiest of natural fibers. One

major factor that makes the commodity highly competitive in the market compared to other

natural hard fibers is its quality. The fibers of Abaca are utilized as raw materials in the pulp

and paper, cordage and twine, yarns and threads, and fibercraft business.

The Philippines provides 83.4% of the world supply of fiber. The Abaca industry

contributes US$80.6 million every year to the Philippine economy (Biolife, 2005), making it

one of the major source of income for Filipinos. It continues to be one of the country’s major

pillars in terms of employment generation and foreign exchange earnings.  The industry

sustains more than 1.5 million Filipinos who, directly or indirectly, depend on it for a living.

Direct dependents include abaca farmers, classifiers/sorters, manufacturers, traders, exporters

and hundreds of fibercraft processors who provide employment to thousands of Filipinos.

(Fiber Industry Development Authority )

One of the three major abaca-producing regions in the country is Region XI-Davao

Region, which supplies 14.98% of the total national abaca production for 2008.From 1999 to

2008, the area harvested for abaca in the Philippines grew by an average of 2.49 percent. In

2008, in terms of area harvested, Eastern Visayas Region remains on top with 44,943.2

hectares accounting for 32.68 of the total area harvested in the Philippines. This is followed

closely by Bicol Region with 42,662 hectares or 31.02 percent of the national total. Davao

Region and ARMM harvested 9,912 and 7,914.3 hectares respectively.

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1.2 Objectives of the Study

The objectives of the study are:

1. To map out the supply chain of abaca fiber;

2. To determine the different actors in the chain and understand their functions;

3. To assess the benefits and opportunities in Abaca production; and

4. To identify problems encountered in Abaca production.

1.3 Significance of the Study

The Philippines provides 83.4% of the world supply of fiber. The abaca industry

contributes US$80.6 million every year to the Philippine economy. There are 68, 492 abaca

farmers in the Philippines and 1.5 million Filipinos are sustained by the industry (Biolife,

2005).

Abaca fiber production is a good source of livelihood and is one of the pillars in

employment and export earnings. It is important especially for its significant economic value.

The study of supply chain abaca fiber would help trace how the abaca fiber is delivered from

the farm to the local processors. It would eventually show the distribution and allocation of

abaca to the intermediaries and to the local processors. By identifying the weak and strong

links in the chain, the researchers would be able to address issues that the abaca industry is

facing. The recommendations that the researchers derived are helpful especially to the

farmers. The study helps in the decision-making of the players in the major problems and

issues of the abaca industry.

1.4 Scope and Limitations

This study would focus on the supply chain of abaca fiber production from the

farmers up to the abaca processors. This study does not include annual income of members

on the supply chain. This study, however, would be limited to the Abaca production in Davao

City only.

Unfortunately, not all players in the chain are accessible due to their respective

locations and conflict of schedules. The researchers have sent letters to the players from Sasa,

Toril, Ilang and Lanang Davao City. However they have not replied. Consequently, only

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oneof the government units spearheading the development of the Abaca fiber industry was

interviewed, namely the Fiber Industry Development Authority Region XI for it is the most

accessible. Since not all players are accessible, resources and other information of the said

supply chain were provided and gathered through the interview conducted at FIDA Region

XI.

Chapter II

Review of Related Literature

Philippines is the center of origin of Abaca (Halos, 2008; Lalusin, 2010 as cited by

Bande, 2012). The Abaca plant was first described by Don Luis Nee (1801) who gave the

earliest confirmation that abaca is indigenous to the Philippines (Bande, 2012).

Abaca (Musa textilis Nee), is closely related to edible banana (Musa acuminate and

M. balbisiana) that is indigenous to the understory of the Philippines’ tropical lowland

evergreen rainforest (Bande, 2012).

Abaca, known worldwide as Manila hemp, thrives well in some parts of the

Philippines given their good soil types and climatic condition. It provides livelihood to abaca

farmers and manufacturers, generates employment in the abaca manufacturing industry and

contributes foreign exchange earnings to the country’s economy. In 2006, total export

earnings from abaca fibers and manufacturers reached US$90.68 million (Lantican, 2008).

According to Loren Legarda as Tacio noted in his article "We have to push all

commercial uses of abaca. Once fully developed, this industry can be a huge driver of

economic and jobs growth," (Tacio, 2010). Abaca’s economic importance is one of the main

reasons why the government is pushing for abaca’s further development.

The Department of Agriculture through the Fiber Industry Development Authority

(FIDA) supports this initiative as a productivity-enhancing measure to increase the supply of

abaca. Considering these developments, it is important to provide an update of the abaca

industry focusing on the status, market potential, priority issues and suggested directions to

further develop the industry (Lantican,2008).

Due to the importance of abaca industry to the country, the Laguna-based Philippine

Council for Agriculture, Forestry and Natural Resources Research and Development

(PCARRD), one of the five sectorial councils under the Department of Science and

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Technology (DOST), has funded a study entitled “Supply Chain of Abaca Fiber in Selected

Areas in the Philippines: Phase 1.”

The study found that the abaca fiber production has been relatively stagnant.

"Although abaca is indigenous to the Philippines, its production cannot seem to catch up with

local and international consumption," it disclosed (Tacio, 2010).

Abaca is a fibrous crop indigenous to the Philippines and is one of the country's top

export products accounting for 84% of the world's total abaca fiber production. In the last

decade, it contributed an average of $76.8 million annually in export earnings (PACCRD,

2006 as cited by Martin et al, 2010).

Although Abaca is indigenous to the Philippines, its production cannot seem to catch

up with local and international consumption. Data from the National Statistical Coordination

Board (NSCB, 2007) showed that abaca export has declined at the rate of 2.8% per annum

primarily due to its declining average yield. Furthermore, the growth of abaca fiber

production (0.37%) could not keep up with the growth of domestic abaca fiber consumption

(1.32% per year)(Martin et al, 2010).

Low productivity can be attributed to inadequate abaca replanting effort, declining

area planted to abaca, farmer's non-adoption of recommended technologies, limited value-

adding and/or value-creating options at the farm level, and inclement weather. Farm

production practices and disease infestation also add to the diminishing abaca

production(Martin et al, 2010).

A mismatch in gross demand-supply of Abaca fiber production shown in Figure 1 has

a serious implication on the country's export if not promptly augmented.

Source: Martin & Brown

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According to the supply chain study, the key problem of the abaca industry is the

prevailing industry practice, among farmers, of selling 'all-in'. Trading this way means that

farmers do not classify the fibers nd sell them in bulk at very low prices, regardless of its

fiber grade(Martin et al, 2010).

As a result, farmers could not see the benefits of adopting improved production and

stripping technologies since they could not charge the price premium associated with good

quality fiber. Poor quality abaca results from the inadequate technical knowledge of the

farmers in classifying the fibers, non-utilization of abaca stripping device, and lack of

storage/postharvest facility(Martin et al, 2010).

As low quality abaca fiber is traded in the existing supply chain, there occurs a wide

disparity in prices between the farm gate price and that of the grading and baling

establishments (GBE). This is because the traders, who buy "all in" at very low prices,

reclassify the abaca fiber according to its quality and sell these to GBEs at premium prices.

The Fiber Industry Development Authority (FIDA), on the other hand, certifies the

quality/grade of abaca only at the GBE level(Martin et al, 2010).

The government has also allotted PHP4.1 million to rehabilitate and expand abaca

plantation in some provinces.  The rehabilitation—which will be led by the National Abaca

Research Center—includes the mass production of laylay and inosa varieties as well

providing disease-resistant breeds and capability building for farmers to further train,

establish and manage nurseries for tissue-cultured plantlets. Within two years, the NARC is

expecting a 200,000 plantlets of virus-resistant abaca planting materials that will increase

production and be a good source of virus-free planting materials (Delmo, 2012).

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Chapter III

Methodology

4.1 Research Method

The study made use of an interview as its primary method of research. The secondary

source of data was sourced out from some thesis, existing studies, documentary analysis and

impact evaluation studies.

4.2 Research Design

The study will make use of the information gathered from interviews and literature

reviews as its research design.

4.3 Research Locale

The interview of one of the government units spearheading the development of the

Abaca fiber industry was conducted at Magsaysay, Davao City. However, not all actors are

interviewed due to the fact that they are inaccessible in terms of location, due to time

constraint and the risks to the researchers.

4.4 Research Tools

During interview process, a series of question were asked by the researchers regarding

the production of abaca fibers in the locality. The questions are pointed directly at the cost of

production, types of abaca that are best for production, harvest yield, factors that can affect

abaca production and etc.

4.5 Data Analysis

The goal of the study is to analyze the data from the interview. Data are gathered to

know the disadvantages and advantages that are present. With this, the researchers will be

able to analyze the problems that are involved in the study.

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RESULTS AND DISCUSSION

Factors that Affect Abaca Production in the Farm

Abaca production is highly affected by the cultural management practices of farmers.

Onecustom is the suitability of the soil or the land preparation. Abaca is best planted in loam

soil, volcanic soil or sandy loam soil with a distance that must range from 2.5 to 3 meters.

The season or climate is another factor for it should be planted in a temperature ranging from

21 to 27 degrees centigrade. The onset of rainy season in which there is a cool climate is the

preferred time for planting. Another factor is the topography. It should be planted in

modulating topography not more than 1500 meters above sea level. Selection of the variety of

abaca also matters. Tanggongon, Boholanon and Mindanao are the best varieties of abaca to

be planted because they are proven to have greater yield than other varieties. A disease-free

environment is also what an abaca plantation needs. One major problem in management of

farms is that there is the lack of planting materials that are free from diseases.Like any other

crops, it has natural enemies and these are the pests and insects. When pests infest in an abaca

plant, it should be treated right away to avoid transmission of diseases to other plants that are

not infected. Some farmers invest on clean culture weeding in every 2 months or depending

on the owner of the farms.

Compatibility and Marketability of Abaca Fiber

Abaca is environment friendly. It is compatible and can be intercropped with forest

crops, fruit trees and other high value crops. It also does not harm the living of humans

making it a good material for agro forestation. Products that are made from mainly abaca

fibers are biodegradable. The high demand of abaca fibers results from considerable

factors.One is the opening of markets which require teabags, cigarettes, and meat casings in

specialty paper made of abaca. Another are the growing popularity of abaca fabric and the

increasing demand for special paper for stencil paper, currency paper, filters, high-tech

capacitor papers, and other non-woven and disposable products. The automotive industry

demands also for abaca fibers for the production of fillers. Most of these markets develop in

other countries making abaca fiber a product for export, but still the demand is not definite.

There is a worldwide preference for environmentally-friendly products as replacement to

synthetic materials which makes abaca fiber more marketable.

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Government Interventions

The government intervenes in the chain by giving funds whenever there are

calamities. In fact, 24 million pesos was given by our administration to recover from the

damages caused by typhoon Pablo. It is forecasted that the abaca industry in Region 11

recovers in 2 years. The government also initiates agencies like FIDA and DENR that

promote abaca.

Supply Chain of Abaca Fiber

Source: Fiber Industry Development Authority Region 11 (FIDA XI)

Market Flow

From the producer/farmer/stripper, the abaca fiber is sold at an "all-in" basis to the

barangay dealer. At this stage, fibers are sold ungraded due to farmers’ general lack of

knowledge of the grading/classification system. The fiber goes further to the town/city

dealers. To some extent the farmers sell directly to exporters/grading and baling

establishments (GBEs). In some cases, farmers' cooperatives/associations have a direct link to

domestic processors.

Actors in the Abaca Industry

Generally, the abaca industry is made up of six major groups of industry players:

farmers, strippers, classifiers, traders, fiber exporters and processors/manufacturers. All the

players, except farmers, are required to secure a permit from FIDA.

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Abaca Farmers

The farmers are the cultivators of abaca. Their primary works are the maintenance of

farm and harvesting of abaca fibers. In the latest report of FIDA, as of 2010, there were about

107,178 abaca farmers cultivating a total area of 167,145 hectares or an average of 1.6

hectares per farmer. Moreover, there were 470 farmers recorded in Toril, Davao City. The

farmers are considered the weakest player in the chain for most of them are poor and they

lackfinancial assistance for trainings and seminars for biological pest control. When the

season is during or near the enrolment of their children, most of the farmers tend to include

the immature abaca in the aim of higher profit. However, it is monitored that there are vast

potential farm areas for abaca development.

Strippers

Strippers extract the fibers, either by manual (hand) or mechanical means. Abaca

extraction is 80 percent manual and only one percent of the fiber is recovered. Mechanical

means involve a stripping machine that costs about P45,000. The expensiveness of the

machine is the reason why most abaca producers retain in the manual way to extract fiber.

Included in the stripping work are harvesting of stalks, tuxying and drying of fibers. Tuxying

refers to the removal of the leafsheaths; distinct grades of the fiber are produced according to

the sequence of the leafsheaths. Farmersdo air dry the fiber in temporary shades. This is one

reason why farms are established in areas with plenty of foliage.The strippers are paid on a

pre-determined system in which they receive 50 to 70 percent of the harvest depending on the

prevailing practice agreed upon. It is observed that the number of abaca strippers is declining

due to more profitable jobs offered in the cities.

Classifiers

Classifiers sort and grade the fibers based on the standards set by the government.

Standards are set according to the texture of abaca fiber and the method used to extract.

Prices of abaca vary on the different grades. FIDA monitors the price of fiber every week and

it is observed that the changes in the prices of abaca are not that substantial. The most

common grades of abaca fiber are:

Excellent: AD,EF, S2, S3

Normal: S2, S3, I, G, H, JK, M1

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Good: I, G, H

Fair: JK, M1

Residual: Y, OT, WS

Decorticated: AD-1, AD-2, AD

Coarse: L

Traders

Trading is done at different levels depending on the location of the farmers and where

the accumulation of fiber is done. Hence, there are traders in the barangay, town, province,

city and region. In each level, the pricing system includes mark-up attributable to the service

provided by the trader.

Traders are classified depending on the volume of fibers traded. A 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. As of 2010, there are 438 licensed abaca traders and 16 licensed abaca trader-

exporters. Local town traders greatly profit in the process because they only increase the

price of fiber and sell. They also tend to have association which results into direct marketing

of produce.

Grading and Baling Establishments or Fiber Exporters

The fiber exporters, also known as grading and baling establishments (GBEs), operate

in major abaca regions and usually maintain liaison offices in Metro Manila. It is in this

sector where abaca fibers, whether for local or foreign consumption, are graded and baled,

using high density presses, into 125 kg of 100 cm.x 55 cm. x 60 cm. bundles per specific

fiber grade. There are 13 licensed grading-baling establishments operating in the country.

Three of these are located at Lanang, Toril, and Ilang, Davao City. Theycompete to acquire a

supplier in the Davao region, that’s why they need to develop their own marketing strategies.

Processors

1. Pulp Millers

As of 2010, there are six abaca pulp companies operating in the Philippines, one in

Laguna, two in Bicol, two in Leyte and one in Mindanao. The companies have well-

established market networks for their pulp which are principally destined for the world

market.

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2. Cordage Manufacturers

There are currently six cordage firms operating in the various parts of the country:

two in Metro Manila, one each in Albay, Cebu and Davao. Davao Rope Company is situated

at Sasa, Davao City.They use abaca fiber as the principal raw material for rope, cordage and

twine manufacturing. Blending with other natural fibers like maguey is done depending on

the specifications of the buyers.

3. Fibercrafts Manufacturers

The fibercraft sector, which includes handmade papermaking, rugs and carpet

manufacturing and handloom weaving, is primarily a 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. However, some fibercraft products are of low quality.

Several of these manufacturers have successfully established their markets abroad especially

through 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, as décor and wrapping material as well as for high

fashion wear and accessories. Some abaca weaves are blended with metallic thread or

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,

CentralVisayas and in Southern Mindanao where particularly in the latter, indigenous people

from the upland areas are actively engaged in “tinalak” and “dagmay” weaving. Production

of new product lines for fashion wear and accessories and specialty/novelty items is mostly

based in Metro Manila.

4. Other Processors

Other processors include manufacturers of machine-woven carpet, dartboard pads as

well as the makers of furniture who are now using abaca fiber and “bacbac.” One is the

TADECO Livelihood Handicrafts which is located at Panabo City.

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FIDA Region 11

Fiber Industry Development Authority (FIDA) is a government agency that promotes

the accelerated growth and development of the Philippine fiber industry in all its aspects

including research, production, processing, marketing and trade regulation. The abaca fiber

does not go to FIDA but the agency is still somehow considered as part of the chain because

it interacts with the players especially the farmers, strippers and grading and baling

establishments to have quality control and to address issues in the supply of abaca fiber. The

institution conducts meetings, fairs, and exhibits for the promotion of abaca. The agency also

collaborates with the Department of Environment and Natural Resources to promote abaca

fiber because it can help in climate mitigation.

STEEP Analysis

Social The abaca fiber production provides employment to the people within the community. It gives them opportunity to earn and support their families through the stable income they receive in working. Thus, this promotes a stable community and socio-habitation that rely on a legal and good source of livelihood.

Technological Business and production involves processes, which includes the use of machineries like the portable stripping machine to hasten abaca fiber production. In this way, there is a reduction in the risk of using the manual production methods. Still most of the farmers opt to manual production due to high cost of machineries.

Environmental Abaca fiber is environmental friendly. The finished products it provides are biodegradable. Abaca plantations also promote ecological balance because it gives no harm to humans and animals.

Economical It is easy for local farmers to enter abaca fiber production businesses because there is the availability of high yielding abaca varieties and the vast potential areas for abaca development. Income is productively generated from farmers to the municipal or the city, and even to exporters.

Political The government develops researches and the quality control standards. Business organizations, cooperatives and corporations pay higher taxes to the government. Consequently, more money is contributed in the community projects, which promote welfare of the people.

SWOT Analysis

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The strengths, weaknesses, opportunities and threats were also gathered from FIDA XI.

There are three aspects of the supply chain which requires different strategies. These are the

production, processing and marketing. The researchers formulated some strategies from the

abaca industry’s strengths, weaknesses, opportunities and threats.

SWOT Matrix

Strengths1. Abaca is compatible with

forest crops, fruit trees and other high value crop

2. Availability of high yielding abaca varieties

3. Vast potential farm areas for abaca development

4. Available design of abaca stripping machine/fiber extraction equipment

5. Available trainers for fiber craft production/handicraft

6. Government support and FIDA

Weaknesses1. Lack of disease free

abaca planting materials2. Low adoption of

improved abaca technology by farmers

3. Lack of financial assistance to abaca farmers

4. Low quality of fiber craft products

5. No definite demand volume

Opportunities1. Production of high

grades of abaca fiber (S2 & 1) which are highly demanded in pulp sector

2. Source of income to many Filipinos in upland areas

3. Abaca is environment friendly and good material for agro forestation

S-O Strategies Produce more of the high

grades of abaca fiber by using the high yielding abaca varieties (S2,O1)

Train people from poor areas to enter the fiber craft production (S5, O2)

Promotion of environment friendly products to firms and processors (S1, O3)

W-O Strategies Conduct trainings in

shifting to improved abaca technology (W2, O2)

Forecasting demand based on the season and behavior of markets (W5, O3)

Threats1. Uncontrolled viral

diseases2. Shortage of disease free

planting materials3. Mixture of spurious

fibers with true abaca fiber

4. Natural calamities/bad weather will affect production

5. Limited number of “next generation” abaca strippers

S-T Strategies Constant monitoring of

plantation (S1, T1, T2) Immediate hiring of youth

and introduction of the stripping machine as the new technology for extraction (S4, T3)

Preparedness in calamities and proper utilization of government funds (S6, T4)

W-T Strategies Weeding on a regular

basis & studying mechanisms and other alternatives to minimize diseases (W1, T1)

Abaca plant protection by the use of technology (W2, T1)

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SUMMARY, CONCLUSION AND RECOMMENDATION

The study aims to map the supply chain of abaca fibers from Toril, Davao City. It is

found out that the chain consists of farmers, strippers, classifiers, grading and baling

establishments and processors. Local farmers produce the abaca by following the correct

cultural management practices. Then upon harvesting, abaca fibers are then extracted by

method of mechanical spindle stripping (use of machine) or hand stripping (manual). After it

is extracted, local farmers will sell them to the local town traders. Then, local town traders

will sell it to the GBEs (Grading and Bailing Establishments). They buy the abaca fiber in a

graded/classified fiber pricing. They also classify the fiber according to grade specified by

FIDA. Then, they will sell the graded fibers to processors which are pulp millers, cordage

manufacturers and fibercrafts manufacturers.

Abaca industry is an important business in the country because it supplies more than

80% of the world’s natural abaca fiber. The modern markets demand for environment

friendly making it a sector that must be further developed. With its high demand and wide

range of products, it is easy to enter the abaca industry due to availability of high yielding

varieties, vast areas for development and assistance of the government. Farmers get the

lowest margin of profit while traders get the largest. Farmers’ major disadvantage is the lack

of knowledge to grow. On the other hand, direct marketing is the traders’ advantage.

It is recommended for farmers to plant the recommended high yielding varieties in

order to produce high grades of fiber. Farmers must also be encouraged to involve on

trainings for biological pest control to minimize pest infestation and losses. Weeding on a

regular basis is also recommended. Investment in the stripping machine must be considered

to produce more of the high grades of abaca which is largely in demand. T/here must be

immediate hiring of strippers to counter the declining number of abaca strippers.

Manufacturers need to forecast demand based on the season and behavior of markets. Lastly,

the government agencies like FIDA must continue and improve the support systems and the

research development for abaca.

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Lantican, F. A. (2008). The Philippine Abaca Industry: Status, Market Potential, Priority Issues and Directions. Agricultural & Applied Economics Research Bulletin, 7. Retrivied on January 25, 2013, from http://journals.uplb.edu.ph/index.php/AAERB/article/viewFile/46/44

Martin, A. J.,et al (2010, January-March). Untangling the worried weave of the Philippine abaca industry. The PCARRD Monitor, 10. Retrieved on January 25, 2013, from http://publications.pcaarrd.dost.gov.ph/pcarrd/downloads/Jan-Mar_2010-Monitor_beta.pdf

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Page 16: Analysis of the Supply Chain of Abaca Fiber in Toril, Davao City

Tacio, H. (2010, July 18). Abaca: The country’s premier natural fiber. Retrieved on January 25, 2013, from http://www.sunstar.com.ph/davao/abaca-countrys-premier-natural-fiber

Appendix

Questionaire for the interview:

Name:

Age:

Position in the company/ industry/ organization:

Government unit:

Questions:

1.) What are the methods in planting Abaca?

2.) What are the factors that can affect Abaca production/plantation?

3.) What are the methods in making Abaca fiber?

4.) How can Abaca fiber production affect the lives of Abaca farmers?

5.) What are the strengths and weaknesses of the industry?

6.) What are the threats and opportunities of the industry?

7.) What are the socio-cultural, technological, environmental, ecconomical and polical

factors of the industry?

8.) What are the different players in the industry?

9.) What are the different practices of farmers and the technologies involved?

10.) Does the supply of the Abaca fiber meet the demands of manufacturers and

consumers?

11.) What is the market flow of Abaca fiber and who benefits the most and the least?

12.) What is the functions of FIDA XI in abaca fiber industry?

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