ABACA Activities in the Philippines - Unido

Ref. No. CFC/FIGHF/09 CFC/UNIDO/FIDA 2
I. INTRODUCTION
Abaca (Musa textilis Nee), is indigenous to the Philippines and its fiber is known
worldwide as Manila hemp. The fiber is obtained from the leaf sheaths of the abaca plant which is
similar to banana in appearance. At present, there are only two countries commercially producing
abaca fiber, the Philippines and Ecuador. The abaca varieties in Ecuador originally came from the
Philippines, particularly from Mindanao.
Abaca fiber is considered the strongest among natural fibers and is used as raw material for
cordage, fibercrafts and pulp for the production of specialty paper products like security papers, tea
bags, cigarette papers, meat and sausage casings, non-woven and other thin printing papers.
Specialty paper products account for about 80% of global abaca consumption, 14% by cordage
products and the rest, by fibercrafts and other usage.
Abaca is grown practically all over the Philippines, except in the northernmost part of the
country. At present, some 121,400 hectares are planted to abaca in the country involving 76,100
farmers. The abaca areas are mostly located in Bicol, Eastern Visayas, Southern and Western
Mindanao and Caraga.
The Philippines supplies about 84% of the world abaca fiber requirements while Ecuador
supplies about 16%. During the last five years, the Philippines produced an annual average of about
68,000 metric tons of abaca fiber. Of the total, 76% were processed locally into pulp, cordage and
fibercrafts, mostly for export. The remaining 24% were exported in raw form.
Demand for abaca, particularly in pulp form has been increasing due to the growing
concern for environmental protection and forest conservation which provided more opportunities for
natural fibers, like abaca. It is expected that demand for abaca fiber, particularly by local pulp
processors will continue to expand as world demand for abaca pulp continued to grow.
In spite of high demand for abaca and high abaca prices, local production has not kept pace
with demand. Owing to low income derived from abaca farming and the tedious process of
extracting the fiber, farmers especially the younger ones shy away from abaca farming and look for
other jobs in the urban areas. Also, because most of the abaca plantations are already old, typhoondamaged
and infected with viral diseases, productivity is very low. The national average yield is
about 650 kg/ha/year. In Ecuador, the average yield is reportedly about 1,800 kg/ha/year and has
only three abaca varieties – Tangongon, Bongolanon and Maguindanao -- which are Maguindanao
varieties are being cultivated. There are about 200 varieties existing in the Philippines.
II.
PROJECT BACKGROUND
The Project was considered for funding by the Common Fund for Commodities (CFC)
because it initially involved two countries: the Philippines and Ecuador. However, after CFC has
approved the project for funding, Ecuador, then represented by a private company, decided to
withdraw from the project. The case was presented before the meeting of the Intergovernmental
Group on Hard Fibers (IGGHF) in October 1996 held in Manila, Philippines. It was decided to
proceed with the implementation of the project without Ecuador with the condition that if ever that
country would decide to join the project later, it would be accepted to participate in the project
activities.
The project started in July 1998 in the Philippines without the participation of Ecuador.
During the IGGHF meeting in Salvador, Brazil in July 2003, Ecuador through its Ministry of
Agriculture expressed its intention to rejoin the project, which was accepted.
The Intergovernmental Group on Hard Fibers of the Food and Agriculture Organization
(IGHF-FAO) is the Supervisory Body while the United Nations Industrial Development
Organization (UNIDO) is the Project Executing Agency (PEA), with the Fiber Industry
Development Authority (FIDA) as the Implementing Agency.