REGIONAL ECONOMIC SITUATIONER Western ... - NEDA-RDC VI

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The rising cost of oil prices caused raw materials to increase making the country, in general, less competitive with other furniture manufacturing countries like China and Vietnam. Political instability and the worldwide economic slump were also cited as factors affecting the industry. Iloilo could be as competitive as Cebu in terms of product development and design. It has an advantage over the latter in the availability of local materials for furniture development such as bamboo and rattan. Joining internationally organized furniture shows (especially the rich European Union market) would boost the sales of Iloilo furniture producers. Along this line, government assistance is vital not just for the furniture industry, but also for handicrafts export industry. D. Gamefowl The gamefowl industry contributes around P8-10 billion annually to the national economy. If feeds and veterinary products supporting the gamefowl industry are included, the national economic contribution could reach up to P30- 40 billion per year. This is the significance of gamefowls to the economy according to Mr. Ricardo Palmares, President of the National Federation of Gamefowl Breeders Associations and the Panay-Guimaras Gamefowl Breeders Association. Production of gamefowls from commercial farms (>100 fowls) in Region VI has decreased by half (50%) over the last 2 years. This was mainly due to the proliferation of small and backyard breeders now comprising around 90% of regional and national breeders. Likewise, cockers who are normally buyers of ready-to-fight fowls started to breed their own fowls. Industry-wide, though gamefowl production is increasing every year. As a result there are more cockfights but lesser sales of gamefowls. A commercial farm economically supports 3-4 families on the average. The Federation has now 1,500 individual members representing 12 associations all over the country. The ban of gamefowl breeding in the USA, save for just two states, opens an export potential for local breeders to markets like Malaysia, Indonesia, Macau and Mexico. In order to promote this, the government should lift restrictions on gamefowl exports. On the other hand, the local feeds and veterinary businesses like Thunderbird have already started exporting their products. Gamefowls breeding and cockfighting to remain as a decent and viable industry should be promoted, as being done by the Federation, as a sport and tourist-attracting industry and not as a mere gambling industry. The Federation strives to encourage breeders, big or small, to formally join the associations where teachings of good values and attitudes formation are promoted. E. Handmade Paper There is a pioneering handmade paper industry in the region - Creative Paper, owned by Mr. Davy John Barlin based in San Miguel, Iloilo. The business started operating in 1993 with 40 personnel. Raw materials used are abaca and salago, a weed mostly found in Aklan province. Production peaked to almost 20,000 sheets in 2004, but it produced only half in 2005. Demand for handmade paper declined with the emergence of fancy paper. In order to stay competitive in the industry, a foreign-made 8
machine costing around P150 million is needed by Creative Paper to produce fancy paper which is currently growing in demand. The export potential of handmade or fancy paper is great considering the quality and uniqueness of the product made from locally available materials providing a backward linkage to abaca farming and production of other local fibers. F. Muscovado G. Silk In 1970s Antique is one of the leading producers of muscovado sugar in the Philippines. The muscovado producers formed the Antique Muscovado Sugar Producers Association which was later reorganized into the Antique Livelihood Development, Inc. with assistance from DTI. A grant from DTI-SMED Project made possible the implementation of a two-year Antique Muscovado Sugar Industry Assistance Program. In 2001, the Antique Muscovado Sugar Producers Marketing Cooperative was organized with the installation of a marketing system, again with the help of DTI. The cooperative was strengthened in 2004 with the help of the Provincial Cooperative Development Office. There are eight (8) municipalities that are into muscovado sugar production. The Municipality of Laua-an is the leading producer with the most number of milling facilities that are all village type sugar mills and small processing facilities directly employing the local people. Muscovado production is increasing with 35 MT in 2003, 40 MT in 2004 and more expected in 2005. However, it is still insufficient to meet the growing domestic and foreign market demands. El Maestro is a company in Antique now packaging high quality muscovado for export to California, USA. Only 3 out of 112 mills are producing export grade muscovado for this venture. Alter Trade of Bacolod City buys most of the sugars produced by other millers. There is also a growing demand for organically produced muscovado. The provincial government of Antique provides financial and marketing assistance to the industry, making it the banner project/commodity of Antique. Agencies like the DTI, DOST and SRA continue to assist the industry. However, upgrading of old mills, technology dissemination and insufficient financial assistance to planters and millers remain as priority areas of support for the muscovado industry in Antique. Western Visayas is the largest silk producing region in the country today contributing 80-85% of annual supply according to Mrs. Thelma Watanabe, Manager of the Organization for Industrial, Spiritual and Cultural Advancement (OISCA), a Japanese-assisted NGO based in Bago City, Negros Occidental. OISCA supplied almost all the silk used in the Philippine Pavilion that won in the 2005 World Expo in Aichi, Japan. In 2004, OISCA produced 1.7 MT compared to almost 4 MT in 2003. Two big local cocoon producers laid low when OISCA technicians assisting them transferred to other groups. Coupled with unfavorable weather, it led to low production in 2004. A 5 MT production is expected next year. Silk thread and yarn demands are strong within Region VI itself. About 90% of OISCA silk goes to Aklan and 3% to Iloilo for weaving into textiles in combination with husi, piña, hablon and other materials. Only 7% is sold to Jeanne Goulbourne in Manila. The demand for silk dramatically increased after OISCA participated in the WOW Philippines exposition held in Intramuros, Manila in 2003. 9
Page 1 and 2: I. ECONOMIC PERFORMANCE 1. Prices R
Page 3 and 4: The Department of Labor and Employm
Page 5 and 6: C. Fishery Commercial fishing, allo
Page 7: B. Angel Wings Shellfish (Diwal) Th
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