Professional Documents
Culture Documents
I. Introduction
Project Overview
This study on Supply/Value Chain Analyses of Four (4) Commodities (Abaca,
Coco-Coir, Cassava and Queen Pineapple) was commissioned by the
Department of Agriculture RFU-5 and the RP-Spain, "Strengthening of the Agro
Industrial Sector in Bicol and Caraga" (SAIS-BC) Project to come up with updated
and comprehensive S/VCA for Cassava, Pineapple, Abaca and Coco Fiber to
provide basis and reference in assessing the profitability of Coop-beneficiaries
value-adding initiatives in relation to the processing and marketing interventions
provided by the project. The concept of Supply/Value Chain Analysis (S/VCA) for
every commodity is deemed important in the identification of effective
strategies in the production, marketing, processing and supply sourcing aspects.
S/VCA is also expected to be beneficial in crafting future developmental plans
and policy directions specifically in the identified commodity or industry.
The RP-Spain, SAIS-BC Project is a grant assistance from the Spanish Government
through the Agencia Espaola de Cooperacion Internacional para el Desarollo
(AECID). It aims to facilitate technology adoption, resource utilization and to add
value to existing economic activities of the agri stakeholders in the rural areas.
The project components include the establishment and provision of processing
facilities; institutional development and capability building; marketing assistance;
and project management and monitoring.
This S/VCA Study was conducted under the marketing assistance component, to
assist the coop-beneficiaries in assessing the market readiness or competitiveness
of their primary and secondary-processed commodities and linking the
cooperatives to possible markets for their products.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Supply Chain generally means the physical flow of goods that are required for
raw materials to be transformed into finished products and value chain is being
taken to mean a group of companies/entities working together to satisfy market
demands. It involves a chain of activities that are associated with adding value
to a product through the production and distribution processes of each activity.
An organisations competitive advantage is based on their products value
chain. The goal of the company is to deliver maximum value to the end user for
the least possible total cost to the company, thereby maximising profit (Porter
1985).
Input Supply
Farm
Production
Assembly
Processing
Logistics
It is useful to review some of the main activities that occur at each stage of the
value chain to identify key stages where costs can most effectively be reduced,
resources can be most efficiently utilized and profitability be maximized. These
include the following.
Input supply. This stage is concerned with the sourcing of raw materials required
for agriculture production, processing, and trade. Inputs may either be procured
locally or imported. The final value of an input at its place of use includes all
manufacturing costs, transportation costs, customs duty and tax, and unofficial
payments incurred up to that point. The efficiency of a countrys input supply
system therefore has a major bearing on the performance of the entire value
chain.
Farm production. This stage is concerned with primary agriculture production
and ends with the sale of a raw commodity at the farm gate. These transactions
may occur literally at the farm gate or at some other point where the farmer
hands over ownership of the product to the next value chain participant.
Depending on the crop, some type of primary processing (such as the shelling or
bagging of dry grain) may take place at the farm level.
Assembly. This stage involves the collection of agricultural produce from many
farmers by a cooperative-buyer, industrial buyer or licensed assembler and
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
stage of the value chain means that great care is needed to track the
accumulated value across products in a consistent manner.
2. Scope of the Study
The scope of the study is limited to the RP-Spain, SAIS-BC Project cooperativebeneficiaries as the sub-sector in the six (6) provinces of the region covering the
stages of production, processing and marketing. The study identified key
constraints and opportunities as well as the dynamics of the supply/value chain
actors of the four focus commodities and identified the competitive advantage
of the actors to increase their productivity and profitability in terms of production,
value-adding and processing. The data gathering results for this study is annexed
to this report.
3. Objectives
General
This study has the primary purpose of establishing a quantified description and
assessment of the value-adding activities for Cassava, Pineapple, Abaca and
Coco
Fiber
being
undertaken
by
the
project
beneficiaries
using
the
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
QUEEN
PINEAPPLE
COMMODITY PROFILE
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
VARIETY
SHAPE
COLOR OF
FLESH
FLAVOR
Smooth
Cayenne
cylindrical
Light yellow
Sweet
Queen
0.45 to 0.95 kg
(small)
.91 to 1.4 kg
(medium)
8 to 12 in.
Tapering
Deep yellow
Barrel
shaped
cylindrical
Pale yellow
Sweet &
crisp rich
Sweet and
coarse spicy
Red Spanish
Cabezona
TEXTURE
Slightly fibrous
fibrous
Dark green to
bright yellow
Nutritional Facts
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
4
90
21
1
.66
10
165
160
35
6
2
8
2
4
2
Production Volume
Pineapple production posted a 3.87 percent decline in the last quarter of 2009
from its level in 2008.This drop in production as well as that in the previous quarter
resulted in 3.75 percent decrease in 2009 pineapple harvests (Table 1). In
SOCCSKSARGEN, pineapple output dropped by more than 5 percent in 2009 as
farmers shifted to cavendish and corn cultivation. The production gain in
Northern Mindanao, the top producing region did not offset losses in
SOCCSKSARGEN (Figure 4). In Camarines Norte, yield decreased as farmers were
compelled to use less farm inputs due to high costs. Area planted however,
increased by 0.95 percent in 2009 despite the reduced area in Saranggani due
to area expansion of corporate farms in Bukidnon and Misamis Oriental (Table 3)
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
10
Similar to the change in the land area where pineapples where harvested, the
production volume showed erratic changes but similar trend as area harvested.
From 2005 to 2007, there was a steady increase in the volume of production. But
in consecutive years the production decreases in the when the prices of fertilizers
tremendously increased.
11
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Particulars
Region V (Bicol
Region)
Albay
Camarines Norte
*
Camarines Sur
Catanduanes
Masbate
Sorsogon
* Formosa variety
2005
2006
2007
2008
2009
104,995.39
112,210.00
116,815.86
111,529.72
109,967.07
1,099.53
1,006.00
991.88
1,018.16
1,044.88
99,892.32
107,338.00
112,241.09
106,555.00
104,789.00
2,812.26
13.37
.
1,177.91
2,765.00
14.00
.
1,089.00
2,669.22
11.55
.
902.12
2,820.67
12.59
50.00
1,073.30
2,860.24
12.51
91.20
1,169.24
12
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Brushed
Pineapple fibers.
Knotted handscraped pina fiber is being produced by LPMPC, priced at
P5,000/kg is used in weaving pina cloth which is priced at 1,800/cut. In 2009 a
total of20.4071 kgms. Were produced. Decorticated pineapple fibers during the
year reached 4,058.35 kgs. Of which 1,706.95 kgs were sold to the following
buyers at Php 200-250/kg
1. Philippine Textile Research Institute (PTRI)
DOST Gen. Santos Ave. Bicutan, Taguig, MM
PRODUCTION
KNOTTED PINA
Deco Pina Fiber
FIBER (kg)
(kg)
1.616
2.181
None
1.51
1.438
3.46
3.754
3.281
.665
2.110
3
537
20.4071
540
552
587.3
265.35
475.5
210.5
568.7
356.2
106.0
74.0
84.5
247.3
4058.35
SALES (kgs.)
200
605
200
200
100
1.95
150
100
150
1706.95
Asia-Link Craft, a specialty paper processor in Marikina City who shoulders the
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
13
cost of production for the brushed pina fiber produced by the cooperative. Price
of the brushed pineapple fiber is at Php235.00/kg.
Area Harvested
There has been an erratic change in the volume of production among areas
planted with pineapple.For 2005 and 2006, there was an increase in the area
planted. But in the last three years, there was a decreasing area planted with
pineapple. Camarines Norte has the biggest area, followed by Camarines Sur
smallest area planted with pineapple is Catanduanes.
Table 7. Area Planted/Harvested (in hectares), 2005 - 2009, Region/Province
Particulars
2005
2006
2007
3,837.00
100.00
3,847.00
80.00
3,323.00
80.00
Camarines Norte
Camarines Sur
Catanduanes
Masbate
Sorsogon
3,250.00
316.00
3.00
.
168.00
3,255.00
335.00
4.00
5.00
168.00
2,731.00
335.00
4.00
5.00
168.00
2008
3,115.0
0
75.00
2,528.0
0
335.00
4.00
5.00
168.00
2009
3,109.0
0
75.00
2,520.0
0
335.00
4.00
5.00
170.00
MARKET
Local Market
Fresh Pineapple Market
Local traders buy the bulk of the pineapple harvest. The product is in turn
marketed and sold in nearby provinces such as Albay, Camarines Sur, Laguna
and Quezon. Balintawak, Divisoria and Munoz markets of Metro Manila absorb a
big part of the harvest. The growers/retailers cater to the local demand for
pineapple.
They also sell their fresh pineapple at the roadside to travelers and motorists. The
mode of payment for pineapple fruits brought by the traders is either in cash or
installment basis.
Farmgate prices of pineapple are based on the size and supply of the
commodity in the market, size classification ranges from extra/jumbo (Extra
large) to butterball (very small) with bigger sizes commanding higher prices.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
14
Another form of pricing is called escalera where sizes form the extra/jumbo to
tercera have only one price and those from 4th to butterball also have one price.
Factor that affect the price margin are transportation, handling and hauling
expenses.
Retailers in Metro Manila in turn sell their fruits at prices based in weight.
Pineapple prices do not vary much owing to the fact that the fruit is available all
throughout the year.
CLASSIFICATION
Extra large
-----------
above 1,100 g
Large
-----------
800 1,099 g
Medium
-----------
500 799 g
Small
-----------
350 499 g
Butterball
-----------
below 350 g
MATURITY INDEX
MARKET PREPARATION
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
15
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
16
Sales Arrangements
Sales arrangements vary at different marketing levels. Manner of selling is based
on either picked-up or delivered while mode of payment on either cash or
installment. Normally, the wholesaler/retailer picks up the commodity at the
farm. Very seldom does the farmer bring the produce to the buyer's place since
this will involve arranging for transport and incurring additional cost. This usually
occurs during peak harvest time when farmers have to bring their produce to the
buyers to facilitate product disposal.
Among traders, manner of selling is usually based on delivered basis except for
those procurement "viajeros" who pick up their commodity from the suppliers.
The volume of supply also influences manner of selling. In times of over supply,
seller deliver to buyers while in times of scarcity, buyers pick up the products.
Processed Pineapple Market
Processed pineapple products are sold in the local market. The Caayunan MultiPurpose Cooperative in Basud, Camarines Norte is engaged in pineapple
processing. Their operation is still at the micro level scale. Members also engage
in direct selling to different government offices, private enterprises and
educational institutions. Processed pineapple may take the form of dehydrated
pineapple, pineapple tart, empanaditas, pineapple jelly, pineapple juice, and
pineapple jam.
Pineapple Fiber Market
Fiber production from the leaves of pineapple is still at the testing stage. In 1998,
the Department of Trade and Industry, in cooperation with the Provincial
Government of Camarines Norte, conducted a spinning trial. The Manila Bay
Spinning Mills (MBSM) for its initial commercial yarn production bought the one
ton dried fiber produced of these trials. The first produce was bought at P90.00
per kilo with succeeding deliveries bought at P120.00 per kilo.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
17
3. Filspin, Incorporated
Canumay, Valenzuela City
Contact Person: Mr. Lyndon Tan
4. Surya Manufacturing Corporation
Contact Person: Mr. R. K. Vig
5. Filway Development Corporation
Dr. Santos Avenue, Paraaque City
Contact Person: Mr. Benjamin Tan
6. Indophil Textile Mills
Marilao, Bulacan
Contact Person: Mr. V. K. Jain
7. Kewalram Philippines, Incorporated
Calamba, Laguna
Contact Person: Mr. Krishnen Kumar
8. Litton Mills, Incorporated
Edsa cor Ortigas Avenue, Quezon City
Contact Person: Mr. James Go
9. Malayan Textile Mills, Incorporated
Sun Valley Subdivision, Paraaque City
Contact Person: Mr. Tan Ching
10. Manila Bay Spinning Mills, Incorporated
Lopez Jaena Street, Marikina City
Contact Person: Mr. Arsenio Tanco
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
18
The machine decorticated pineapple fiber is also being used in the production
of handmade paper. The target regular buyers for this product are:
1. Mr. Asao Shimura
Kannabis Press
Poking, Capangan, Benguet
2. Mr. Takaaki Okada
Nippi Company, Incorporated
Pio Del Pilar, Makati City
3. Ms. Anna Marie S. de Chaves
Yamamoto-Tomo Menko, Ltd.
Legazpi Village, Makati City
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
19
4. Laguna-based embroiderers:
Aileens Hand Embroidery
Ailyns Embroidery
Amelines Embroidery
Coras Embroidery
De Leons Embroidery
Fels Embroidery
Florencio Mamonong
Gloria Anonuevo
Lolys Embroidery
Mamonongs Embroidery
Marcia Ballesteros
Nemecia Embroideries
Neritas Embroideries
Rondels Embroideries
Valeriana Abederia
PROCESSING
The Formosa pineapple is a versatile fruit that is suited for the production of
quality dehydrated pineapple and pineapple juice. Its leaves are good sources
of fiber, which when decorticated and mixed with polyester, produces a
polypia cloth. The machine decorticated fiber is also an ideal raw material for
handmade paper, while the fiber extracted from the leaves through manual
scraping could be woven into pia cloth.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
20
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
21
The acceptable fineness of fiber is 20 denier and above while the acceptable
tensile strength is 15 kilogram-meter/gram and above. The test results therefore
showed that both the coarse and fine manually scraped Formosa pineapple
fiber surpassed the required standard for fineness and tensile strength for textile
production.
N e w ly H a rv e s te d F o rm o s a P in e a p p le L e a v e s
H a n d S c r a p in g
W a s h in g
D ry in g
D is e n ta n g lin g
K n o ttin g
B o b b in W in d in g
M a c h in e D tic
e c ao tio
r n
B ru s h in g
U n b r u s h e d & W a s te
F ib e r
W a s h in g
S u n d ry in g
C le a n in g /R e m o v a l o f
D is c o lo ra tio n
B o ilin g a n d W a s h in g
C le a n in g
B ru s h e d P i a fib e r
B e a tin g a n d W a s h in g
B le n d in g / C o lo rin g
W e a v in g
M o ld in g / D e s ig n in g
H a n d lo o m P i a C lo th
P re s s in g / C u ttin g /
a n d D ry in g
H an d m ade P ap er
Figure 3. Steps in Processing Pineapple Fiber and Pulp
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
22
The signing of Republic Act No. 9242 last October 2004, prescribing the use of
Philippine Tropical Fabric for uniforms of public officials and employees and for
other purposes, gives future to the proposed project on machine decortication
of Formosa pineapple leaves. With the population of government employees
nationwide said to be already 1.4 million and average per capita textile
consumption for four (4) blouses or polo barong of 1,600 grams, approximately
2,240 MT of textile needs to be produced for a year. Since the polypia fabric
has a fiber blend of 80% polyester and 20% pineapple fiber, there is a total
demand of 448 MT of tropical fiber nationwide in one year.
On the other hand, the demand for handwoven pia cloth from Year 2000 to
Year 2004 registered an average export sale of US$ 0.0077 million or Php 0.418
million peso-equivalent. The top 5 importing countries are France, United State
of America, Great Britain and Northern Ireland, Hong Kong and Japan.
The LPMPC is currently producing the seda type of handwoven pia cloth, which
is made of coarse fiber and silk yarn. However, they also intend to produce the
liniwan, which is made of pure and fine Formosa pineapple fiber.
The pia cloth made of liniwan or pure fiber, as well as pia seda are excellent
materials in making shawls, scarves, bags, cushion covers, placemats, table
runners and window blinds. It has slowly penetrated the foreign markets like
Japan, Hong Kong, United States, Canada, Italy, France, Denmark, Germany,
Switzerland, Netherlands, United Kingdom, China, Malaysia and Thailand.
Fiber produced from pineapple leaves go through five (5) basic processing
operations 1) Harvesting/collection of leaves 2) decortications 3) washing 4)
drying 5) cleaning. Only the decortications process is mechanized while the rest
of the four remaining processes are being done manually. The pineapple subsector study tried to perform cost analysis in each activity related to operation or
production of the fiber, considering the inbound and outbound logistics involved
in fiber production, processing, trading and marketing.
23
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Industry Players
Producers: Farmers engaged in production of queen pineapple and source of
pineapple leaves. They are usually the ones harvesting and gathering fresh
pineapple leaves and sell it to other coop-assemblers/local traders or processors.
Local Trader: Local traders are directly involved in buying and selling pineapple
leaves
from
different
farmer/producers.
They
usually
act
as
the
Processors
are
engaged
in
creating
value
addition
by
processing/converting pineapple leaves into fiber and pulp for commercial uses.
Assemblers can sometimes be the processors at the same time depending on
the manpower and financial resources that can be tapped.
The 40.15 hectares plantation of the coop members who are pineapple growers
yields a total of 541,632 kilos leaves. They are assured therefore of an additional
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
24
annual income of Php 270,816.00 from pineapple leaves, which was long
considered as waste in agricultural production.
Despite the apparent financial benefits that can be derived from pineapple
leaves, majority of large pineapple producers in Camarines Norte is not totally
keen on harvesting pineapple leaves from mature, fruit-bearing stage pineapple
plants for fear that it will adversely affect or decrease the size, quality and
volume of pineapple fruits that may be harvested from the plants. Thus, the
periodic scarcity of supply fresh pineapple leaves for fiber and pulp processing.
Another constraint is the physical assembling of harvested leaves and hauling/
transport of the same from production to pick-up or assembling areas. Since
pineapple plantations are mostly situated along the slopes of the hilly terrain of
barangays covered by the province of Camarines Norte, carrying on-foot or
manual or animal drawn carts is the most reliable mode of transport of the
gathered leaves from point of production to processing centers. Such scenario
posts negative affects both on the timeliness and hauling/transport cost of
pineapple leaves.
Processing with regards to processing of pineapple leaves, preliminary
processing steps prior to machine decortication (handscraping, washing,
disentangling, knotting etc.) are being done manually. Thus, variability in terms of
time vs. efficiency, meeting/maintaining purity, quality and technical standards
are all arbitrary depending on the skill, mastery and competence of the workers.
For a specialty product penetrating and competing at the world market arena,
this scenario may post serious problems in the overall competitiveness of the
product.
Market The Office of the President, through the approval of Republic Act 9242
prescribing the use of Philippine Tropical Fabric for uniforms of public officials and
employees, the demand for pineapple fiber eventually increased. However,
since the SNMSA and the LPMPC could not cope up with the increasing demand
due to lack of working capital and machine deficiency, the LPMPC decided to
increase its production capacity by sourcing additional decorticating machines.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
25
be utilized, the more employment would be provided and the more increase in
income will be realized by pineapple growers. With these volumes of local
demand, steady market presence of international buyers, the increasing
variability and nature of use as well as the limited source of quality pineapple
fiber worldwide establishes the need for more pineapple fiber and pulp supply.
The main constraint however in the marketing of pineapple pulp and fiber is the
inadequacy of volume of supply of fiber which is being demanded by export
markets. The coop-processors/assemblers will have to rely on intermediary
assemblers in Metro Manila in order to market their produce because they
cannot enter into an export marketing contract due to limited volume of fiber
available and the inability to satisfy the required frequency of delivery. Thus,
local coop beneficiaries cannot directly demand or haggle for a higher buying
price of their produce.
In terms of trading logistics, the provision of hauling/delivery trucks can
significantly decrease trading cost and therefore increase traders buying price of
fiber from processors.
VALUE CHAIN (The case of LPMPC)
Production Cost
The total cost of pineapple fiber production sums up to P1,102.26 with an
estimated P110.23 cost per kilogram of production. This would yield net income
of P 197.74 or P19.77 per kilogram. This is based on the assumption that
production is 10 kg/day, with 22 days/month operation, thus 2,640 kg per year.
The details of the cost are summarized on the next table.
26
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
(DF)/day)
ITEM
QUANTITY
UNIT
UNIT COST
TOTAL
P/kg
COSTS
Raw material
Leaves (800kgs leaves make 10kls
DF/day)
800
kg fresh leaves
0.10
80.00
8.00
800
kg fresh leaves
0.40
320.00
32.00
Decortication of Leaves
40
kg wet fiber
8.00
320.00
32.00
40
kg wet fiber
4.00
160.00
16.00
Decortication of Leaves
3.50
liters
34.50
120.75
12.08
0.35
liters
34.50
12.18
1.22
Lubricant
0.06
liter
127.00
7.47
0.75
0.09
MD
250.00
22.06
2.21
37.90
3.79
21.90
2.19
1,102.26
110.
23
Labor
Gathering of Leaves
Fuel
Depreciation
Decorticating machine
(50,000/5yrs)
Hauler (86,800/15yrs)
TOTAL COST
RETURNS
Dried Fiber (unbrushed)
10
kg.
130.00
1,300.00
197.7
4
130.
00
19.7
7
ASSUMPTIONS:
production of 10 kg/day, with 22 days/month operation; 2,640 kg per year
Marketing Cost
There is also an additional cost in the marketing of the goods. An amount of
P24,414.00 is added for the marketing of pineapple fibers. For goods marketed in
Manila, an additional P750 is needed for the freight. The marketing costs
subtracted by the selling price of the products yields a net income for
consolidator of about P1,826 or P12.24 per kilo.
Table 10. Marketing Costs for Pineapple Fiber, Camarines Norte, 2010
ITEM
QUANTITY
UNIT
UNIT
TOTAL
P/kg
27
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
COST
MARKETING (150kgs per load)
Buying price
Fuel cost
(Labo-Daet back&forth)
150
kg
130.00
19,500.00
130.
00
liters
34.50
138.00
0.92
Driver (250/day)
hours/load
31.25
62.50
0.42
2
6
hours/load
bag
25.00
15.00
50.00
90.00
0.33
0.60
Packing Tape
(1roll good for 500kls)
roll
45.00
13.50
0.09
load
60.00
60.00
0.40
291.00
1.94
49.50
0.33
4,159.50
27.73
24,414.00
162.76
750.00
5.00
25,164.00
167.76
27,000.00
180.00
1,836.00
12.24
1
depreciation=(87,500/10yrs)/
4,500 DFper yr
depreciation=(7,500/5yrs)/
4,500 DFper yr
Administrative cost
Total
Freight to Manila
150
kg
150
kg/load
5.00
150
kg
180.00
ASSUMPTIONS:
production of 10 kg/day, with 22 days/month operation; 2,640 kg per
year
depreciation = (87,500/10yrs)/4,500 DF/yr
depreciation = (7,500/5yrs)/4,500 DF/yr
* Weighing Scale = 5,787/2,640 kg DF/ yr
Supply Chain
The production of pineapple fiber in Camarines Norte follows a specific supply
chain. From the output supplies or the purchasing of raw materials, the
pineapple fibers are produced, processed and transported to markets. They are
then classified and stocked for trading. The pineapple fibers also will undergo
quality control to ensure top quality before they reach the market.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
28
The above diagram shows the value addition, cost build up and profit margin at different stages
29
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
The table below summarizes the issues in terms of raw material supply,
fiber production, marketing and logistics of pineapple fiber production. As
indicated
in
the
result
of
the
SVC
analysis
It is also
coupled
with
KEY ISSUES
SEGMENT
Raw
material
supply
Fiber
production
Issues
unwillingness of some
farmers to sell their
pineapple leaves
high perishability of
leaves
low production
high maintenance
cost of machinery
and equipment
high risk in machine
operation
inconsistent quality of
fiber
Marketing
Logistics
unsustainable supply
of quality fiber
lack of regular buyers
longer term of
payment by buyers
high freight cost (to
Manila)
Recommended Actions
Information dissemination and technology
transfer on the proper way of harvesting
pineapple leaves and training harvesters or
explore the possibility of cultivating pineapple for
the purpose of fiber production alone.
conduct of processing activities on field and
improvement in handling & transport efficiency
Improve fiber extraction method through
continuous process research & equipment design
improvement
Consider mechanized washing and drying of
fiber, consider the cost vs. benefit of installing
water source and waste water treatment facility
educate operators on proper utilization and
maintenance of machinery and equipment
enhance safety and efficiency of machine
through training of operators and improvement of
the design of machine/equipment
standardize the gathering and processing of fiber
through improved processing technology &
mechanization of the entire fiber extraction
process
Information dissemination, increase in capital to
provide for more MOOE and trading fund
Execute marketing contract with institutional
buyers
Strict stipulation of payment terms in the contract
of marketing
Maximize volume per delivery
30
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Mechanization of fiber
extraction
Value-adding (fibercraft
manufacturing)
LOGISTICS
INPUT
SUPPLY
LOGISTICS
PRODUCTIO
N
PROCESSING
Proper Fertilization
Appropriate culture
and management
strategies
TRADING
MARKET
Collective marketing
Collective marketing
Direct marketing
Direct marketing
Fiber classifying
Fiber classifying
Tumbling
Provision of
hauling vehicles
Suggested interventions along the supply chain system of pineapple fiber, Bicol Region 2010.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
31
On Processing/Value-adding
The provision of processing equipment/machineries by the SAIS-BC Project provided
significant reduction in the processing and marketing/trading cost of the
cooperative-recipient. Foremost in the benefits provided by the project is the
utilization of the pineapple leaves which is otherwise considered waste by pineapple
fruit producers, creating alternative livelihood source and employment for the locals.
Second, on the part of LPMPC being the primary assembler/processor of pineapple
pulp and fiber, the project provided them additional assured supply of raw materials
for their fiber and pulp-based products enabling them to be more aggressive in
looking for more markets locally and internationally. Aside from the realization of the
cooperative to look closer in the stages of the chain in their own area covered in
order to identify areas for further improvement of efficiency and productivity. Lastly,
for the pineapple industry in Camarines Norte, the project presented an alternative
business and livelihood opportunity thereby contributing to the sustainability and
overall profitability of the industry.
POTENTIAL INTERVENTIONS
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
COCONUT
COIR
COCONUT
32
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
33
COMMODITY PROFILE
Coconut is widely grown in the Philippines but is mostly found in 68 out of 79
provinces in the country covering about 1,195 municipalities. Next to Indonesia, the
Philippines is the worlds second largest producer of coconut. Of the countrys total
arable agricultural area of 12 million hectares, the coconut area shares 27 % or
about 3.258 million hectares although based on its 2006 report, the Bureau of
Agricultural Statistics (BAS) has put the total coconut area at about 3.33 million
hectares.
There are more than 300 million bearing coconuts in the country today. The coconut
palms produce about 14 billion nuts/year at an average of 43 nuts/palm/year. From
1998-2007, coconut production increased at a yearly rate of 2.81 percent. In the last
five years, the average production has reached 2.3 million MT in copra terms. An
average coconut plantation produces about 1.0 metric ton of copra/hectare/year.
The coconut farming sector consists of about 3.5 million coconut farmers who are
either owners, owner/tillers, tenant/tillers or farm workers. Each farm family (an
average size of six) cultivates an average farm holding of 3.6 hectares. Based on a
copra price of P 10.00 per kilo, a coconut farmer earns an average gross annual
income of only P 10,000.00 per hectare which is a way below the poverty line.
34
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
per
year
at
P15.00
per
kilo
(www.bicol.da.gov.ph)
With copra as the major source of income of most coconut farmers, the copra
making process uses the coconut meat that makes up only 30% of the fruit. More
often, the remaining 70% of the fruit like husk, shell and water are treated of less value
of as farm wastes. Further, copra drying utilizes only about 50% of the total husk
produced with the excess husks being left in the farm thus creating a problem on
disposal.
snakes.
The economic value of coconut husk has now been realized and people are able to
find its long line of uses and applications. The husk is fully of long coarse fibers, running
in one direction. About 30% of the husk is available for fiber extraction, while 70% is
composed of coir dust. Extractible fibers produce both bristle and mattress types.
These are extensively used as raw material for making ropes, rugs and mattress. As a
by-product, coir dusts are used primarily in agricultural applications because of its
inherent water-holding properties. With global concerns for environment-friendly
products, coco coir and other coir-based products have the potential to be export
winners for the Philippines.
Like in all other coconut-growing areas in the Philippines, coconut husks are
considered as farm waste in Bicol Region. However, the region is host to seven (7)
coconut husk processing plants of which three (3) are in Albay, one (1) in Camarines
Sur and three (3) in Sorsogon. An additional of eight (8) coco husk processing plants
are currently being established in the region funded by a
35
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Investment Area
Farm productivity
Credit and marketing
Post-harvest and processing
Research, development and extension
Infrastructure building and development
Information and technology
Source: www.bicol.da.gov.ph
However, it
recovered in 2000 with a 23% growth. Declines were again registered in 2001 and
2002. A good performance was attained in 2003 at 1,661,993.133 metric tons, the
highest volume during the decade. Its production in 2004 and 2005 were practically
at the same level but lower than 2003.
typhoons like Milenyo that causes drastic change in coconut production reflecting
only 1,279,143.8 metric tons of coconut husks. It recovered again in 2008 with almost
21% growth. Average growth for the whole decade was at only 3% per annum.
36
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Source: BAS data on coconut production volume converted into coconut husk using
conversion: 1 kg copra = 4 whole nuts; 1 kg husk = 3 whole nuts
2000
2001
2002
2003
2004
2005
2006
2007
2008
Region V
(Bicol
Region)
949,170
1,165,456
1,122,499
1,042,786
1,246,495
1,197,506
1,185,327
1,219,374
959,358
1,159,81
0
Albay
156,278
152,043
163,359
179,307
207,158
172,516
183,246
178,852
144,138
149,595
Camarines
Norte
102,982
122,337
145,965
160,998
183,543
205,066
208,889
210,855
214,207
228,772
Camarines
Sur
213,039
326,590
294,854
364,530
423,723
400,468
362,263
383,795
184,116
306,314
Catanduan
es
1,119
1,380
1,308
1,476
2,031
1,854
2,244
2,455
2,449
2,751
Masbate
309,030
360,632
301,413
108,839
194,670
183,430
185,248
221,366
280,716
295,882
Sorsogon
166,722
202,474
215,600
227,636
235,369
234,171
243,436
222,051
133,732
176,496
Coconut
Source: Bureau of Agricultural Statistics (BAS) Copyright: Yes Contact: info@bas.gov.ph Unit: metric tons Matrix: PNVOP101
2000
2001
2002
2003
2004
2005
2006
2007
2008
949,170
1,165,456
1,122,499
1,042,786
1,246,495
1,197,506
1,185,327
1,219,374
959,358
1,159,810
whole nut
3,796,680
4,661,822
4,489,995
4,171,145
4,985,979
4,790,024
4,741,307
4,877,496
3,837,431
4,639,242
Husk
1,265,560
1,553,941
1,496,665
1,390,382
1,661,993
1,596,675
1,580,436
1,625,832
1,279,144
1,546,414
Coconut
Region V (Bicol
Region)
Source: BAS data on coconut production volume converted into coconut husk using
conversion: 1 kg copra = 4 whole nuts; 1 kg husk = 3 whole nuts
37
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Masbate
ranked 2nd with 394, 509 tons, lower by 3.4% with that of Camarines Sur (Figure 2 and
Table 3).
Figure 2. Coconut Husk Production Volume, Bicol Region, per Province, 2008
Table 3. Coconut husk production per Province, 2008
Tons
1,546,414
Region V (Bicol Region)
Albay
199,460
Camarines Norte
305,030
Camarines Sur
Catanduanes
Masbate
Sorsogon
408,419
3,668
394,509
235,328
38
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Source: BAS
2000
2001
2002
2003
2004
2005
2006
2007
2008
364,970
367,245
369,169
389,293
412,504
412,443
415,449
432,620
442,406
447,743
Albay
32,949
34,393
35,321
35,325
41,180
41,180
41,180
41,180
40,180
40,180
Camarines
Norte
89,759
87,500
87,250
84,591
85,146
85,350
85,363
85,365
85,370
85,375
Camarines
Sur
86,038
88,261
89,808
90,200
104,150
104,150
103,726
119,045
119,045
119,045
6,262
6,155
6,126
6,120
8,400
8,135
9,252
11,102
12,500
14,375
Masbate
74,907
75,855
75,930
73,500
75,890
75,890
78,190
78,190
87,573
91,076
Sorsogon
75,055
75,081
74,734
99,557
97,738
97,738
97,738
97,738
97,738
97,692
Coconut
Region V
(Bicol Region)
Catanduanes
Source: BAS
39
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
A. Available Technologies1. Decortication- is the process of extracting and separating the fiber from the
coconut husk. After sprinkling with water or retting the husk, it is fed into a drum
type machine with beater to break the husk. This process of beating is done
twice after which the fibers go to the sifter or rotating wire screen to separate
good fibers. Fibers are then transferred to a turbo cleaner, dried and baled. To a
large extent, sun-drying is used. Decortication yields 30% fiber called coir and 70%
coir dust or coco peat. Coir extracted is of varying lengths. This fiber is classified
as CH3 mattress fiber.
2. Defibering is another fiber extraction process. The process is essentially the
same as decortication. The difference lies in the machine used. A defibering
machine is equipped with spikes that work like combs during the process. Long
fibers are produced and classified as CH1 and CH2.
3. Twining is the process of converting the fibers (CH1/CH2) into yarns or ropes.
The twining process can be done in two (2) ways, to wit:
a)
The fibers to be used for twining should contain 15-20% moisture to produce a
semi-permanent curl. The fibers pass through a cleaning machine or rotating
screen to remove the peat; fibers are then passed through a series of grooved
rollers and are attenuated to form a sliver. The fibers then undergo further twisting
with the use of mechanical yarn making or spinning machines to convert slivers
into tightly coiled ropes. Curled ropes are made into coils of 23 kilos each.
b)
Semi-Manual
The process is
40
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
The resulting rope/yarn is augmented with more fibers while twining progresses or
until the desired length is attained.
Coir Nets/Mats
The coir twines are woven into coir nets/mats with the use of a handloom similar
to the ones used in weaving native cloths.
The coir twines are tied from end to end in vertical lines at the pikes nailed on the
sides of the loom frame.
inserted horizontally and woven in a crisscrossing manner into vertical twines. The
weaving goes on in this manner until the desired size, length and width of the
geo-textile are arrived at.
b)
Fascines/Bio-logs
Coir twines are hand-woven into high strength nets, formed into tubes with
diameters ranging from 10-12 inches and length from 10-20 meters and filled with
coir and coco peat.
5. Fiber Stitching - The fibers are carried by a conveyor belt unto a sheet-forming
machine where they are spread and formed into sheets.
transported by a conveyor unto a stitching machine. The stitched sheet will then
be sprayed with latex and dried, and then cut/trimmed into desired sizes.
6. Rubberizing - The fiber undergoes curling after which it is uncurled by an uncurling
machine. The loosened material is fed by a conveyor belt into a machine where
it is formed into sheet. The sheet then passes onto another conveyor with a spray
head where its top surface will be sprayed with a latex solution. After the latex
has been sprayed, the sheet passes through a drying oven.
It will then be
reversed so that the other side will be sprayed with latex, dried and then cut into
desired lengths.
41
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Specification/s
The highest grade of fiber; with average
length of 5 inches and more; with no pulp or
dust content; color ranges from light brown to
dark brown and perfectly dried and combed.
The second highest grade of fiber; same
length with that of CH1 but the texture is harsh
with some pulp or dust still present; color is
much darker than CH1 from dull brown to
almost dark brown.
Mixture of bristle and mattress fiber; the length
is 5 inches and below but not shorter than 2.5
inches; color ranges from light brown to dull
brown; texture is medium harsh and generally
crumpled; and with maximum moisture
content of 14%.
Consists mostly of short crumpled
fiber;
average length of not less than 2 inches; same
color as CH3; and it must be free from coir
dust.
Consists of coir dust and reject fibers that
cannot be classified in any of the regular
grades of coir.
MARKET GROWTH
Supply, Demand, Gap
Table 1. World production of coir and coir products (000 MT), 2004-2007
Country
2004
2005
2006
2007
India
362
477
481
486
Indonesia
3
3
8
38
Malaysia
26
23
22
21
Philippines
5
4
8
10
Sri Lanka
177
191
197
231
Thailand
46
50
57
38
Vietnam
0
1
2
3
Total:
620
749
776
827
Source: Road Map of the Philippine Coconut Coir Industry, PCA, March 2009
Table 3. World export of coir and coir products (000 MT), 2004-2007
Country
2004
2005
2006
2007
India
78
81
85
93
Indonesia
1
1
2
8
Malaysia
0
1
4
7
Philippines
5
3
5
5
Sri Lanka
62
55
73
90
Thailand
45
34
34
21
Total:
192
175
204
224
Source: Road Map of the Philippine Coconut Coir Industry, PCA, March 2009
Table 3. World Import of coir and coir products (MT), 2004-2007
Country
2004
2005
2006
2007
42
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
China
84
13
115
144
Netherlands
19
29
34
37
Korea
0
29
0
0
USA
19
22
12
22
Japan
4
20
4
5
Other Countries
71
86
71
88
Total:
197
199
236
296
Source: Road Map of the Philippine Coconut Coir Industry, PCA, March 2009
Table 4. Domestic production of coir (MT), 2004-2008
Region
2004
2005
2006
2007
S. Tagalog
2,755
2,467
2,998
1,540
Bicol
174
62
17
3
W. Visayas
0
0
15
30
C. Visayas
0
0
0
15
E. Visayas
0
41
0
84
W. Mindanao
186
106
132
106
N. Mindanao
0
0
0
221
S. Mindanao
2,002
1,673
4,764
7,963
CARAGA
0
0
0
57
Total:
5,117
4,350
7,926
10,019
Source: Road Map of the Philippine Coconut Coir Industry, PCA, March 2009
2008
2,510
0
0
0
58
0
0
7,415
0
9,983
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
43
Domestic
Fiber:
Geotextile:
P 50.00/sq.m.
Exports
Fiber:
Geotextile:
FOB Mindanao:
$230.00 /MT
FOB Manila:
$240.00 /MT
C & F China:
$280.00 /MT
FOB Manila:
$1,300 / MT
Except for the production of slivers and twines, most coir producers utilize locally
fabricated machines/equipment with indicative prices as follows:
1.
0.750 M x 5
= Ps. 3.750 M
0.060 M x 5
= Ps. 0.300 M
0.350 M x 5
= Ps. 1.750 M
0.700 M x 5
= Ps. 3.750 M
Sub-total
For common service facility to service five (5) deco machines
Ps. 9.550 M
2.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
0.140 M x 18
= 2.520 M
= 9.600 M
= 3.350 M
Ps. 15.47 M
1.300 M
0.700 M
- Output: 12 tons/8hr.-operation
2.b.2.1 Accessories
- Cyclone feeder with rotary 0.200
= 0.200 M
= 0.980 M
= 0.280 M
= 5.000 M
D) Trading Facilities
a. International Ports
Ps. 8.460 M
Ps. 33.480 M
Ps. 1.250 M
____________
Ps. 34.730 M
44
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
45
The Port of Manila is the countrys premier port of origin. It services coir exporters
located in Luzon and to some extent, the eastern Visayas. It has the lowest freight
cost when compared to other ports outside Manila which are levied arbitrary
charges. Thus, freight costs are normally higher there than in Manila. Said out ports
are as follows:
- Port of Cebu, Cebu City (Region VI, VII & VIII)
- Port of Cagayan, Cagayan de Oro City (Region X, Caraga & ARMM)
- Port of Davao, Davao City (Region XI)
- Port of General Santos, General Santos City (Region XII)
- Port of Zamboanga, Zamboanga City (Region IX & ARMM)
Table 5. Comparative Freight Costs to Xiamen, China (As of March, 2009)
Port of Origin
Container Van/Size
a. Port of Manila/
20
Port (US$)
150.00
Xiamen
b. Port of Cebu/
40
20
280.00
380.00
Xiamen
c. Port of Davao/
40
20
680.00
580.00
Xiamen
d. Port of Gen. Santos/
40
20
930.00
580.00
Xiamen
e. Port of Zamboanga/
40
20
980.00
924.00
Xiamen
f. Port of Cagayan De Oro City/
40
20
1,822.00
902.00
40
1,775.00
Xiamen
b. Transport System
Raw coir as an export item is bulky, thus the necessity to bale it when transported.
The authorized weight and size of bale for export are 125 kgs./bale and 100 cm. x 55
cm. x 60 cm. or .33 cu.m./bale, respectively.
A 40 container van can load an average of 20 mt. fiber. The existence of RO-RO
carries now in service makes it possible to establish processing plants in island
provinces with good supply of coconut husks. By industry standard, one peso and
fifty centavos (P1.50) per kilo as transport cost is still competitive. The presence of an
efficient road system in the country further affords mobility of products for exports.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
46
c. Infrastructure
Detailed
infrastructure
information
can
be
obtained
from
concerned
regional/provincial offices of the Philippine Coconut Authority, LGUs and the DPWH.
By way of advice, a coir processing plant should be installed in areas with good
network, especially feeder roads around plantations with high concentration of
coconut trees.
Even the processing plant should not be located far away from
active cooperatives that can be tapped to provide the husk in volumes required by
coir processing plants.
The coir sector is being supported by allied industries such as furniture and bed
industries, organic fertilizer manufacturers, fruits and vegetable plantation farms,
cutflower industry and poultry and livestock raising industries.
e. Job Generation/Farmers Income
A decorticating plant employs six (6) laborers/workers per deco machine. Twining
operation needs an additional 3 workers per twining machine and 2 for geo-textile
weaving.
Investment Cost
A simple decorticating plant needs P 1.910 Million capital, excluding land, shed and
working capital. Other activities, including down streaming operations for geo-textile
net and compacted coco peat production require P 34.730 Million.
g. Return On Investment (for decorticating activity
only)
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
47
Decorticating*
Copra making**
Other use***
TOTAL
ESTIMATED AMT.
OF HUSK NEEDED
(KG)
9,000,000
263,050
26,305
9,289,355
TOTAL AVAILABLE
(KG)
UNUSED
(AVAILABLE
NEEDED, KG)
Unused husks
translates to about
170,156,235 pcs.
26,304,978.50
26,304,978.50
REMARKS
17,015,623.50
Commodity Flow
Coconut husk gathering is still under strong promotion as of now convincing the
farmers to continuously gather it and bring to the identified decorticators who can
be private institution or the capacitated organizations and cooperatives or can go
directly to processors/traders nearby.
The decorticators will bring the fibers to market players such as Juboken Enterprises,
Inc. The trader/processors have arrangements with markets which can be local or
international markets for geo nets, fiber mats and other coco coir by-products.
(Figure 4).
Local
Markets
Farmer/ Gatherers
Decorticators
(Cooperatives,
Organizations,
Private)
Processor/
Trader
Internationa
l Markets
Based on FGD conducted last January 19 to 31, 2010 of S/VCA Coconut Team of SAIS-BC DA RFU 5
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
48
especially in Bicol. There are seven major players in the local coir and peat industry
in the region of which three (3) are in Albay province, one (1) in Camarines Sur and
three (3) in Sorsogon. Any of the six (6) provinces in the region can singlehandedly
supply all raw material requirements of all these manufacturers but transport cost and
accessibility issues are among the limiting factors that may make such option less
profitable (Carba, et.al., 2008).
Definition of Actors in the Chain
Under the SAIS-BC Project, the following cooperatives are being assisted in coco fiber
production through provision of workshed, set of coco husk processing equipments
and coco husk hauler-truck:
Albay
1. Tastas Farmers Producers Cooperative Tastas, Ligao City
Camarines Sur
2.
Iriga City
3.
Camarines Sur
Camarines Norte
4. Basud Coconut & Pineapple Farmers Cooperative
Bgy. Laniton, Basud, Camarines Norte
Sorsogon
5.
49
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Masbate
7. Aroroy Coconut Processors Association
Brgy. Bangon, Aroroy, Masbate
8. P4MP Federation - Uson Chapter, Inc.,
Brgy. Quezon, Uson, Masbate
These organizations/cooperatives have their farmer-members as primary suppliers of
coconut husks. As of now, marketing of coir fiber by the SAIS-BC-assisted plants is
anchored with Juboken Enterprises, Inc. with main plant located in Bgy. Gapo,
Camalig, Albay. The capacity of this plant is 3.0 MT fiber/day with 1 unit each of
decorticating and baling machine, 600 units of twining machine and 50 units
looming machines. This processor/trader is linked with markets such as DPWH local
(for coir mats) as erosion control material and bailed fiber sent to other countries
such as Australia.
Table 7. List of Coco Coir Processors and the Capacity of their plant in the Bicol
Region (PCA Region V 2009)
NAME OF PLANT
LOCATION
CAPACITY
(mt
fiber/day)
No data
EQUIPMENT
QTY/NAME
1 Baling Mach.
___ Twining Mac.
23 Looming/
Weaving Machine
TYPES
Low density
Manual
50
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Ligao City
(Albay)
Lupi, Camarines
Sur
2.0
2 Decort. Mach.
1.0
4. Pacific Coastal
Coco Coir
Manufacturing
5. Gubat Agritech
Ind.Co.
Tinambac,
Camarines Sur
3.0
Gubat,
Sorsogon
1.0
6. CocoBind Inc.
Irosin, Sorsogon
1.0
2 Lupar Decort.
1 Baling Mach.
50 Twining Mach.
5 Looming Mach.
2 Decort. Mach.
1 Baling Mach.
2 Screener/Sieve
1 Decort. Mach.
1 Baling Mach.
60 Twining Mach.
5 Looming Mach.
1 Decort. Mach.
1 Baling Mach.
35 Twining Mach.
20 Looming Mach.
1 Stitching Mach.
1 Willowing Mach.
1-pass High
Density
2-pass
Low density
Manual
Manual
1-pass
High Density
Motorized
2-pass
Low density
Manual
Manual
2-pass
Low density
Manual
Manual
Motorized
Motorized
Unit
Number
Unit Cost
Cost
bags
225.00
1,125.00
pcs
pcs
5
2
100.00
175.00
500.00
350.00
51
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Tingkalan
Carabao
pcs
head
2
1
8.00
1,000.00
16.00
1,000.00
Tapahan
unit
2,500.00
2,500.00
Sled (carriage)
pcs
350.00
700.00
Sacks
pcs
10
10.00
100.00
2,000.00
16,000.00
16
250.00
4,000.00
Labor
Harvesting
Picking/Gathering
Dehusking
contract
Copra Making
Scooping
Hauling to Farm
Tapahan
Resecada cost (20%)
to
10,080.00
Total Expenses
36,371.00
INCOME
Yield per hectare (copra)
NET INCOME (nuts)
Yield per hectare (husks)
Total Income with Husks
kg
pcs
3360
15.00
50,400.00
0.25
4,029.00
1,680.00
5,709.00
6720
Assumptions:
Bolo with P200 purchasing price each with 2 years life span depreciated straight line method
Sudsud with P350 purchasing price each with 2 years life span depreciated straight line method
Tingkalan with P80 purchasing price each with 10 years life span depreciated straight line method
Carabao at P20,000 with 10 years life span depreciated straight line method
Tapahan at P5000 each with 2 years life span depreciated straight line method
Sled (carriage) at P350 each with 6 mos. life span depreciated straight line method
1500 nuts per harvest x 8 times harvest/year (every 45 days) = 420 kg copra per harvest (28% of nuts)
100 trees per ha with ave. of 15 nuts per tree per harvest
Traded product is copra; Only 50% of total husks
will be traded
Source: Output during FGD at Sorsogon Dairy Farm of S/VCA Coconut Team under SAIS-BC
Project last January 27, 2010.
Processors Level
General cost and return analysis based on the Focused Group Discussion (FGD)
conducted by SAIS-BC and during the Training on Supply/Value Chain of the
commodity resulted that coco coir processing in one month would need 198,000
pcs. of coconut husk.
(MADECO), Cost of Production which includes Material Costs, Labor Costs, Marketing
52
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Costs, Overhead Costs, Administrative Costs and Depreciation Costs would result into
a total cost of P157, 882.30. Net income will be P50,017.67 from the gross revenue of
P207, 900 if both coco coir and coco peat will be sold. The value of selling coco coir
is P8.50 per kg and coco peat is 1.00 per kg. (Table 9).
Table 9. Cost and Return Analysis of Coco Coir Processing in One Month, MADECO
Case, CY 2010
1 Month Coco Coir Processing (COST AND RETURN ANALYSIS)
QUANTITY
UNIT
P/UNIT
COST (P)
MATERIALS COSTS
Raw material - Coco husk
198,000
pcs
0.25
49,500.00
132
liters
39.00
5,148.00
1 driver
22
MD
250.00
5,500.00
2 helpers
44
MD
150.00
6,600.00
53
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Decorticating cost
2 machine operators
44
MD
250.00
11,000.00
4 helpers
88
MD
150.00
13,200.00
10.00
1,650.00
0.50
9,900.00
MARKETING COST
Used sack
990
pcs
19800
meter
48
liters
39.00
1,872.00
- 1 driver (4 deliveries)
MD
250.00
1,000.00
- 2 helpers (4 deliveries)
MD
150.00
1,200.00
days
100.00
400.00
378.00
210.00
8,316.00
420.00
1 Plant Supervisor
6,000.00
6,000.00
1 Bookkeeper
3,000.00
3,000.00
1 Cashier
Other expenses
5,000.00
5,000.00
Plastic Straw
transportation cost (diesel)
hired labor
22
2 cu. M.
ADMINISTRATIVE COST
2,526,000.00
4,210.00
Permit/Registration/License
(P 10000/yr)
833.33
DEPRECIATION
1 Truck(P1.2M, useful life of 10 yrs)
10,000.00
10,000.00
826,000.00
6,883.33
6,883.00
1 building
500,000.00
2,083.33
2,083.00
3Phase installation
500,000.00
4,166.67
4,167.00
Total Cost
157,882.33
SALES :
Coco coir
19,800
kg
8.50
168,300.00
Coco peat
39,600
kg
1.00
39,600.00
Gross sales
Net Income/Loss
207,900.00
50,017.67
Source: Output during Training and Workshop of Four Commodities under SAIS-BC Project last
February 16-18, 2010.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
54
farmers are being encouraged to gather husks through the Cooperatives and
Organizations which eventually will decorticate the husks (Rodriguez, 2008).
Production - the main actors in coconut husks production are the farmers. There are
about 290, 204 coconut farmers in Bicol region. For the whole region, 60% of coconut
farmers are farm-workers, 32% are tenants and only 8% are owner-farmers.
The farmers are considered to have poor agronomic practices with the nonapplication of fertilizers and other practices to enhance productivity. These can be
due to the lack of resources to perform the recommended practices for coconut.
They also do not practice replanting of unproductive coconut trees.
Harvesting cycle is 45-60 days at which they can harvest an average of 4,000 nuts
per hectare for the whole year. On the national average nut trees bear 40 nuts per
tree per year.
commonly used, pole method. Labor for harvesting would entail labor for picking,
piling, hauling and husking. Others would just utilize family labor (Rodriguez, 2008).
Part of the farmers role is processing the coconut into copra. It is an inevitable
practice that farmers uses approximately 50% of their husks as fuel during copra
making and the rest goes as wastes.
beginning to realize the benefits of gathering the husks and selling it out though it is
still in a process of encouraging farmers for the said practice.
Processing (Decorticating) as mentioned, there are seven major players in the local
coir and peat industry in the region of which three (3) are in Albay province, one (1)
in Camarines Sur and three (3) in Sorsogon (Table 6).
The identified and arranged market for the SAIS-BC Project is the Juboken Enterprises
Inc., located at Camalig, Albay with a rated capacity of 3.0 metric tons fiber per
day. The plant however is operating below rated capacity due to limited supply of
husks. This problem can be attributed to poor road network where farms are simply
inaccessible to transport and also to the cost of transporting husk up to plant site.
The buying price in Bicol for husks is P0.25 per piece and P8.50 per kg. of baled fiber.
The waste during decortication which is coco peat can still be sold at P1.00 per kg.
The conversion factor of whole nuts to husk is 33% which means that a kilo of husks
would need 3 whole husks. From husk to fiber, 10 pcs. of husks are required to
produce 1 kg. fiber. Juboken have different markets for decorticated fiber, nets and
55
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
peat. It has market all over the Philippines (for nets), 30 companies in China (for raw
fiber) and markets also in 6 companies in Japan (for dust) and Australia (for dust).
Market There are several channels involved in the market of coconut husks which
starts from the Farmers, then Cooperative/Organization (decorticators) which
eventually, the farmers are members, Processor/Trader like Juboken to the local and
international markets (Figure 5).
Farmer
Cooperative/
Organization
(Decorticator)
Processor/
Trader
Local and
International
Markets
Source: FGD conducted last January 19 to 31, 2010 of S/VCA Coconut Team of SAIS-BC DA RFU 5
They buy
coconut husks from the farmers and eventually process it into balied fiber and twined
fibers. Coco peat (considered as waste during decortication) can still be sold out to
the processor.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
established already.
56
comprised of Coir drying, sieving, bailing, weighing, tagging and storing. In this stage,
coco peat drying, weighing, packaging and storing is taking into account.
Last
Raw
Materials
supply
Coco husk
collection/
Procurement
Typically
performed by
small coco
farmers
Coco coir
Prodn
Primary
processing
husk
spraying
(watering)
husk
feeding
Coir /peat
extraction/
Decorticating
COIR
drying
Sieving
Baling
Weighing
Tagging
storing
PEAT
Drying
Packing
Weighing
storing
Trading/marketing
Loading/ unloading
transporting
/delivery
RECEIVED PAYMENT
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
57
At the MADECOs perspective, being on the trial period and new in the business,
input supply costs P2.50 per kg of coconut husks. Since the husk is picked up by the
coop, it entails logistics costs of P0.87 per kg husk. Production/primary processing
costs P2.62 to produce bailed fiber. Delivery of the products to the trader will entail
P0.81 per kg bailed fiber which totals to P6.80 cost of production. Buying price of
trader is P8.50 per kg bailed fiber. This results to a profit/margin of P1.70 per kg. The
Coop estimates a yield of 19,800 kgs. of fiber from their effective area (Figure 7).
VALUE CHAIN ANALYSIS
INPUT SUPPLY
252.5
LOGISTICS
.87
PRODUCTION/
PRIMARY
PROCESSING
MARKETING
2.62
.81
IPPC
5.99
Yield
19,800
Selling price
8.50
Profit margin
1.7
58
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
PROFIT MARGIN
INPUT SUPPLY
LOGISTICS
252.5
.87
PRODUCTION/
PRIMARY
PROCESSING
.49
3.86
3.373.37
COST BUILD UP
FGP
5.99
DEPRECIATION 1.17
Yield
19,800
ADMIN .71
MARKETING
COST
MARKET
PRICE
.81
8.50
4.67
3.83
Masbate
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
59
KEY ISSUES
SEGMENT
Raw
material
supply
Coco Husk
Production
Issues
Scarcity of coconut
husk supply due to
existing cultural
practices (e.g., husks
are not gathered
used in other purposes
aside from copra
making)
High fuel costs
low production
. Aroroy Coconut
Recommended Actions
Information dissemination on the potential use of
coconut husk to farmers and strengthening the
farmers organization in order for them to create
strategies in collecting husks (e.g., clustering of
areas and selection of drop/collection points).
high maintenance
cost of machinery
and equipment
high risk in machine
operation
inconsistent quality of
fiber
Marketing
Logistics
unsustainable supply
of quality fiber
Marketing price purely
dictated by the buyer
Delayed payment of
buyers
Inventory costs is
higher due to storage
high freight cost (to
Manila)
60
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
1. Scarcity of Input Supply especially coconut husk supply is the main constraint
in the chain leading to unmet volume of its by-products demanded by the trader;
2. Volume transported during delivery is deemed to be not maximized that can
be due to low available supply of bailed fiber or bulky fibers leading to low
efficiency of transportation costs;
3. Other cooperatives like those in island provinces still have problems marketing
strategies especially on logistics aspect for there are matters to be considered
such as water and land transportation which includes additional fees during the
trucking, maximization of facilities and costs during marketing should be wellstudied to avoid great losses;
4. Power supply problems in other areas hindering the full operation of the
project in the area or others would opt to use diesel engine for decortication; and
5. Strengthening
of
beneficiary
cooperatives/associations
should
still
be
volume, they can avail higher price from the trader. The quality of coco fiber in Bicol
versus in other regions is almost the same, they vary only in by-products (aside from
the bailed fiber) and packaging which also entails different marketing prices.
Areas for improvement
1. Strengthening and capability building of coops/assoc beneficiary that will lead to
encouragement of coconut farmer to gather their husks for usage of
cooperatives/associations in order to increase the supply of coconut husks for
decortication;
2. Use of high-density bailing machine creating less bulky bailed fiber leading to
maximized transportation costs;
3. Expansion of storage facilities for a more efficient and safe working area;
4. Strengthening the marketing agreements between the coops/assocs and the
trader for a more efficient and cost-effective marketing transactions; and
5. Continue research and development which includes innovation of new products
out of coco husks and also quality improvement to capture other markets.
Impact of SAIS-BC-Provided Interventions
61
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
1.
Additional
income of around P1,680 from husks aside from the income and benefits they
can have being a member of the coop/assoc beneficiary;
2.
Strengthening
and organizing the coops/assoc started already which means that there will be
channels
established
that
will
serve
as
medium/media
for
further
The
provision
Coconut sector still one of the marginalized group in Bicol; benefits from the
industry never really accrued to the poor stakeholders
Threats
Increasing and persisting number of debilitating diseases in the rural areas that
hamper farming and drain resources of farmers; health care not so efficient
and frequently not available in the countryside
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
62
Upholstery cushion and car seat stuffing, mats, carpets, brush and yarn for
bristle fiber.
Plant pads which are natural substitutes for sphagnum moss, plastic redwood
and other containers for growing various kinds of outdoor plants.
Fuel
Thermal insulation
Packaging material
Ion exchange resin substitute to treat toxic liquid waste from factories
Aside from these applications, coir is now processed into a host of various new
industrial products such as:
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
63
Concrete rooftile being rust-free makes it suitable for houses along coastal
areas
Insulator pads for exports of fire retardant rubberized coir padding from the
Philiippines
Middle East, Africa, Central Asia and South America with desertification
problems
Urban farming and nurturing of marginal areas for crop production (frontiers of
agricultural production has been decreasing)
Reclamations
Sea farming
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
64
POTENTIAL INTERVENTIONS
Capacity Development on Improved Production Process this should be prioritized
as an intervention for all the coops/assoc so that they can learn the strategies to be
cost effective and maximize its resources. This can be done through various series of
knowledge/skills training aside from further improvement of facilities and equipment
and to attain high-quality products and eventually to avail better prices.
Value Addition quality control through delivery of properly dried, bailed and
packaged fiber to the trader aside from attaining the desired volume.
In this
manner, the coop can avail better price and avoid losses during transport of the
products
Backward and Forward Linkage - one of the backward intervention that can be
done is through the coconut/farmer members to intensify coconut husks collection in
their own farm, expansion of coconut areas and planting/replanting program to
maximize the yield. In this way, coconut husks that will be gathered is increased and
supply for decortications is available. Forward integration that can be done is the
further processing of coconut fiber into twined and weaved fiber which can avail
higher price of at least P30/m2 versus the bailed fiber of P8.50/kg.
Strengthening and Developing Effective Marketing Strategies
Infrastructure Development storage facilities improvement and expansion for
effective use and security of the processing area are the needs seen now in the
coops/assocs.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
65
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
66
CASSAVA
CASSAVA
COMMODITY PROFILE
Cassava (Manihot esculenta), locally known as kamoteng kahoy, kawoy or
balinghoy, is the second next to sweet potato, in terms of area harvested
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
67
(hectarage) among the root crops produced in the country. Cassava is grown mostly
in Central Visayas, Bicol, Central Mindanao, Eastern and Western Visayas, Western
and Southern Mindanao, and Southern Tagalog.
A perennial shrub, which sometimes reaches the size of a small tree, is mainly grown
for its tubers which are a rich source of carbohydrates, calcium and ascorbic acid.
The number of roots per plant at harvest varies from 2 to 7 each averaging 27.7 cm.43.3 cm. long and 4.5 cm.-7.4 cm. in diameter are clustered around the base of the
plant and extends about 60 cm on all sides. Under favorable conditions, a single root
may weigh as much as 4 kilograms and contains about 15%-40% starch.
VARIETIES
There are several varieties of cassava grown in the country, but commercially, the
following are recommended: Lakan 1 (fresh root yield: 32 tons per hectare), Sultan 6
(39.1 tons per hectare), Sultan 7 (37.9 tons per hectare), Rajah 3 (37 tons per
hectare), and Sultan 10 (40 tons per hectare). Sultan 6, Sultan 7, and Sultan 10 are
industrial types suitable for starch and feed production while Lakan 1 and Rajah 3 are
both all-purpose types appropriate for food, starch, and feed production.
USES OF CASSAVA
Although it is not the staple of Filipinos, one of major utilization of cassava is for food
which includes confectionaries and native pastries like suman, bibingka and
sago. Another important product is starch which is extracted from the tuber and
known in the world trade as tapioca flour. It is used by different industries for
pharmaceutical products, paper, adhesive, textile, mining, etc...
In the food industry alone, the uses for cassava flour are numerous. Studies have
shown that cassava flour can substitute for wheat flour in baked products, as much
as 10% in bread and can be higher in other baked products. It is utilized as thickener
for soups, baby food, sauces and gravies. Cassava flour is excellent filler that could
supplement the solid contents of ice cream. It is also a good binder for sausages and
other processed meat products to prevent these from drying up during cooking.
The use of cassava as livestock feed in the country have shown that it can be used
as a substitute for feed grains in compounded animal rations. On the other hand,
cassava leaf meal contains 18-20% protein, so that it is a good livestock feed not only
for poultry but also for other livestock.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
68
Cassava can also be a good solution to the problems of climate change and fuel
shortage. In China, Thailand, and Brazil, cassava is becoming an important biofuel
crop. A feasibility study has found that cassava has a very high starch-to-sugar
conversion ratio. This high starch content means that a high percentage of sugar can
be converted from it, and which, in turn, is needed to produce biofuel.
PRODUCTION PROCESS
Growing cassava entails simple farm operations such as land preparation, planting,
replanting, weeding, fertilization, irrigation, and harvesting. Small scale production
requires 51 man-days to operate a hectare of land. The plantation type of
production needs 55 man-days per hectare to undertake all the necessary farm
operations.
Site Selection. Cassava is a tropical and subtropical plant and it grows in areas with
more or less evenly distributed rainfall throughout the year with an ambient
temperature that ranges from 25-30 degrees centigrade. In the Philippines, cassava is
best grown in deep soil with friable structure such as light sandy loams of medium
fertility. Top soil should be 30 centimeters in depth. Successful use of almost all soil
types is possible, provided that they are not waterlogged, shallow or stony. It thrives
at 845 meters above sea level in fertile soil with pH range of 5.5-6.5 and grows best
when planted at the start of the rainy season.
Land Preparation. The field is plowed and harrowed once when using a tractor.
However, when using an animal-drawn implement, the field is harrowed twice.
Ridges are constructed at one meter apart. Fifty bags (good for one hectare) of
compost or dried animal manure are incorporated to the soil during land
preparation.
Planting. Cassava stalks are commonly used as planting materials that are less than
eight months old, and free from insect pests and diseases. These are cut at 20-25
centimeters long and are stored in a cool shaded place that can last up to three
months. But for better germination, the cuttings are planted as soon as possible.
Cuttings from the base of the stalk are better planting materials than those from the
top in terms of germination and starch yield.
These are planted at a distance of one meter between ridges and 0.75 meter
between hills. They can be planted horizontally, vertically (where 3-5 centimeters is
left uncovered), or slightly inclined. Horizontally is recommended in relatively dry field,
vertically in very wet soil or during rainy season, and slightly-inclined in a soil with near
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
69
optimum moisture.During dry season, the cuttings are planted in furrows while on the
ridges during rainy season. Missing hills should be replanted two weeks after planting.
Fertilization. Six bags of complete fertilizer (14-14-14) are applied (basal) before
planting. The fertilizer is covered with a thin layer of soil. Two months after planting,
the crops are side dressed with two bags of urea (46-0-0). The fertilizer is placed in
band 15 centimeters away from the base of each plant.
Irrigation. After doing fertilization, the field is immediately irrigated to dissolve the
fertilizer. Irrigation is highly recommended thereafter, during the first three months
after planting during dry season. During the rainy season, irrigation is needed only
when necessary.
Weeding/Cultivation. During the first two months, weeding is recommended. Offbar cultivation is required 3-4 weeks after planting followed by hill-up 2-4 weeks later.
After the second month of crop establishment, weeding is no longer required.
Uprooting or cutting off tall weeds is all needed.
Harvesting. The tubers are harvested manually if the soil is friable or animal-drawn
plow may be employed passing at the sides of the plant to break the soil. In slightly
hard soil, a bar is used to dig the soil and to serve as lever. Harvesting can be done
eight months after planting, and it is advised that partial sampling is done to
determine if the roots are mature enough to be harvested. If harvesting is done by
hand, the stems are cut first, leaving a portion at the base of the plant to serve as
handle to pull the storage root up. The storage roots are detached from the stem
using a sharp bolo. Soil sticking on the roots is removed using a stick. The harvested
tubers must be sold immediately; if not, they must be stored in a shaded place.
Cassava Processing. About twenty three per cent of total cassava harvest is lost due
to the fast deterioration caused by bruises and cuts inflected during harvesting. At
present, the most feasible solution is the immediate processing of the tubers right
after harvest. There have been efforts to prolong its shelf-life like the use of
appropriate packaging mediums, controlled conditions, etc., but none of them has
been considered completely successful. Producing dried granules or chips from fresh
cassava roots involved the following basic processes: peeling/trimming, washing,
grating, spinning, pulverizing/ finishing, drying, and packing.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
70
For animal feed processing, cassava is traded as dried chips in pellet and granule
forms which is required by industrial buyers. The primary processing of cassava roots
usually involves the use of granulating and chipping machines which are currently
done on the village level. Dried cassava is at present in demand as an important
ingredient for animal feeds and feedmillers and manufacturers buy them in different
forms depending upon their specifications.
When the roots are chipped or granulated , they undergo the drying process.
Sundrying remains the simplest and cheapest way of drying. To prevent browning,
the chips or granules are submerged in boiling water for three to five minutes. These
are then spread on mats or concrete floor and expose for two to three sunny days to
reduce moisture content to 10-20 per cent. When it rains, the use of artificial dryer is
advised. Dried chips or granules can be stored for three to six months before selling to
feed manufacturers. To avoid deterioration producers sell them immediately after
processing.
Animal fed for domestic marketing or for export must have the best quality to pass
standards of buyers and middlemen. Good quality chips should have a moisture
content 12 to 14 per cent and the color should be light. They should also be free from
repulsive odor and foreign matter. Simple processes allowing farmers to convert the
highly perishable cassava roots into dry, easily stored, and freely traded commodities
are available. Improved cassava processing equipment has been designed and
tested by research institutions for use at farm and village levels. The equipment
reduces post harvest losses, increase labour productivity, and improve product
quality.
MARKET GROWTH AND TREND
Production Supply
In 2008, Bicol Region ranks third in terms of cassava production which contributed
about six percent (5.8 %) to the total volume produced in the country (Figure 1).
Regions 10 and ARMM consecutively contributes the largest share. Their combined
production accounts for almost seventy percent (70%) of all total in the same year.
Other regions with significant cassava production in decreasing order are Central
Visayas, Calabarzon, Eastern Visayas and Western Visayas.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
71
Source: BAS
Figure 1. Volume of Cassava Production in Metric Tons by region, January to December 2008
Source: BAS
Figure 2. Volume of Production and Area Harvested in Bicol Region, 1999 to 2009
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
72
Source: BAS
Despite the decline in area harvested, which contributed largely to the reduction in
productivity, Table 5 shows that yield per hectare in four province and as well as for
the whole region performed otherwise considering the same period. Except for
Catanduanes and Camarines Sur all other provinces exhibited an increase in
average yield but the increase of about seven percent (7%) from 2000 to 2009
however, was not very significant to spur-up the overall regional productivity as a
whole. The decline in production can mainly be attributed to the twenty percent
(20%) drop in yield per hectare particularly in Camarines Sur that has the largest area
and contribution to the total volume produced per year.
Source: BAS
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
73
Source: BAS
Figure 5. Average Yield per Hectare of Cassava in Bicol and all provinces, 2000 to 2009
PROVINCE
Allay
Camarines Norte
Camarines Sur
2007
98.30
68.28
216.49
2008
98.46
63.66
224.49
2009
95.44
63.25
227.08
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Catanduanes
Masbate
Sorsogon
BICOL REGION
3.82
3.69
31.91
73.18
3.68
3.74
30.26
74.70
3.45
3.86
29.23
74.87
74
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
75
Figure 8.Feed/Waste Utilization and Total Food Demand in Bicol Region, 2004 to 2009
FOOD
FEEDS
4,000
4,800
5,760
6,912
8,294
BIO-ETHANOL
50
220
440
440
440
STARCH
312
328
344
361
379
TOTAL
5,016
6,132
7,448
8,820
10,447
SECTOR
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
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Commodity Flow
Cassava farmers deal with at least three type of traders; the wholesalers, wholesalerretailers and retailers.
biggest and the medium sizes are sold to traders while the smallest or lowest class,
usually not saleable is normally given away or used as feeds. The all in basis (halohalo) mode of selling is more predominant.
cassava is based on the buyers choice, that is bigger in size, fresh and free from
rotting.
Farmers usually sell cassava by sacks or cans.
equivalent to 4 cans, whether the farmers sell to wholesalers or retailers, the mode of
payment is cash or 2-3 days credit. Consignment basis is sometime mutually agreed
upon but a cash advance is invariably given by the buyer.
Farmer-Producer
WholesalerContract Buyer
Wholesaler/
Retailer
Cake Maker
Retailer
Consumer
Cake Maker
Consumer
Figure 9. The commodity flow from farmer-producer
to consumer
PRICES
Pricing is based on the volume of production as well as the supply and demand in
the market and not on the variety.
For the last three (3) years, (2001-2003) the price of cassava is stable. Average farm
gate prices showed a decreasing trend from P3.48 per kilo in 2001 to P3.12 per kilo in
2003. The province of Albay registered the highest price per kilo of Ps. 3.19 and the
lowest is Camarines Norte with P2.73 per kilo in 2003.
This is because of the big volume available in the province brought about by the
program of the Provincial Government of Camarines Norte extending financial
assistance to cassava farmers.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
77
Table 3. Costs and Return Analysis, Cassava Farm, Goa, Camarines Sur, CY 2009,
Maymatan Multipurpose Cooperative Farmer-Member
Item
EXPENSES
Materials
Planting Materials
Organic Fertilizer
Sacks
Labor
Production
Clearing
Land Preparation (Tractor)
Plowing/Harrowing
Furrowing, making plots
Preparation of planting materials
(cutting)
Planting
Fertilizer Application
Weeding
Hilling Up
Unit
Number
pcs
Bag
Pcs
2,500
10
300
1.00
80.00
7.00
2,500.00
800.00
2,100.00
md
150.00
900.00
hr
mad
md
2.25
1
2
1,300.00
250.00
150.00
2,925.00
250.00
300.00
md
md
md
mad
4
1
8
2
150.00
150.00
150.00
250.00
600.00
150.00
1,200.00
500.00
Unit Cost
Cost
78
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Spot Weeding
Harvesting
Other expenses
Land Rental (if any)
Logistics
Transport of planting materials (ex. 3-km)
md
md
4
8
150.00
150.00
600.00
1,200.00
ha
2,500.00
2,500.00
250
2.0
0
0.2
500.00
500.00
lump
kgs
15,000
3,000.00
0
20,525.00
kgs
2.7
5
15000
41,250.00
20,725.00
Source: Output during Training and Workshop of Four Commodities under SAIS-BC Project last February 16-18, 2010.
Processors Level
General cost and return analysis based on the Workshop during Training on
Supply/Value Chain of the commodity resulted that cassava processing for 1 hectare
equivalent to 15000 kgs of fresh tubers wherein in the case of Maymatan
Multipurpose Cooperative, Cost of Production which includes Material Costs, Labor
Costs, Marketing Costs, Overhead Costs, Administrative Costs and Depreciation Costs
would result into a total cost of P48,721.00. Net income will be only P3,804.00 from
the gross revenue of P52,525.00 sold as granulated cassava. The value of selling
granulated cassava P9.00 per kg. Marketing costs will further incur expenses of P986
for the 5,000 kgs granulated cassava out of the 15,000 kgs fresh tubers which make
the net income P2,818.00 for the said volume of processed tubers (Table 4).
Table 4. Costs and Return Analysis, Cassava Farm, Goa, Camarines Sur, CY 2009, Maymatan
Multipurpose Cooperative Processor
Item
Unit
Number Unit Cost
Cost
Fresh Tubers
kgs
15,000
2.75
41,250.00
sack
300
2.00
600.00
Loading
sack
300
1.50
450.00
sack
300
1.50
450.00
lit
18
34.00
612.00
md
150.00
900.00
Labor
md
18
150.00
2,700.00
Sacks
pcs
117
7.00
819.00
Driver
trip
90.00
90.00
Fuel
trip
300.00
Logistics
Transport of Fresh Tubers to Processing Area
300.00
48,171.00
kgs
5250
9.00
47,250.00
79
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
kgs
525
9.00
4,725.00
51,975.00
3,804.00
bag
111
1.00
111.00
truck
0.25
200.00
50.00
day
day
day
0.75
0.75
0.75
250.00
150.00
200.00
187.50
112.50
150.00
Trucking Cost
Driver
Helper
Allowance
Fuel
375.00
986.00
NET INCOME
2,818.00
Source: Output during Training and Workshop of Four Commodities under SAIS-BC Project last February
16-18, 2010.
irrigate though it is recommended to use fertilizers to attain higher yield. Farmers are
considered the only supplier of input, the fresh tubers, with their role as land owners
and/or tenants. Labor is always available in the locality.
Production - the main actors in cassava production are the farmers. There are about
22, 697 hectares planted in Bicol region (BAS 2009).
have poor agronomic practices with the non-application of fertilizers and other
practices to enhance farm productivity.
to perform the recommended practices for cassava. Although, other trained coop
applies organic and chemical fertilizers like complete, urea, and amophos.
They
also do not practice crop rotation to improve the soil condition for cassava
production.
Harvesting period is from 8-12 moths at which they can harvest an average of 5.21
tons per hectare per cropping/year, on the national average is 9.46 tons per hectare
per year. Harvesting process is still manual, but it is recommended to use cassava
lifter when the stem is hard to lift. Labor for harvesting would entail labor either by
animal drawn implement or hand lifting, hauling, and cutting of both ends of tubers
ready for processing. Others would just utilize family labor.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
80
Processing
From harvest, the process begins with granulating which tubers cut into small pieces
including its bark, then drying and bagging. In granulating it uses the granulating or
chipping machines.
days.
During rainy season, drying facilities such as solar air-tent type dryer, cocum
dryer, and binafor type dryers are being used. No mechanical dryers efficiently used
in drying due to high energy cost.
Market There are 2 channels involved in the market of dried granules which starts
from the Farmers, to Coop/SMC Assembler, then SMC SMFI with one BMEG Buying
Station in Bicol.
assemblers. Farmers have two options also which is marketing the tubers to Coop
buyer or to the assemblers (Figure 10).
Farmer
Coop. Buyer
Assembler
BMEG SMFi
Source: Personal interview with Farmers Coop, SMC Assembler, SMC Representative
for Bicol, and Regional Cassava Focal Person, March 2010
Farmers cassava tubers are sold by farmers to coop usually for processing into feed
ingredient for hog, poultry, cattle, and fish.
accept prices offered by coop or SMC Assemblers, which dictate the value of fresh
tubers (with deduction in weight of about 10% or depending on the MC). They
produce depending on what they can only harvest from the farm and not on market
demand.
Coop Buyer - The coop buyers, in case of Maymatan Coop who are, at the same
time, the assemblers, either have the tubers delivered to them by farmers or the usual
practice is for them to pick up the tubers at P0.20/kg. in 15-km distance. Most of the
coop buyers have their own granulating/chipping machines availed from DA and
warehouse and drying facilities to attain good quality granules. When the desired
volume is attained, they deliver to BMEG Plants.
SMC Assembler - are buyers accredited by SMFi either buy fresh tubers from farmers
or dried granules from the farmers coop/assoc., the producers. The SMC Assembler
has certain paid-up capital for buying the processed cassava. The acceptable MC
is about 12-14% being determined using the moisture meter.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
81
Logistics farm to market roads in the region are almost established already except
from very far and hilly farms which requires the farmers to have carabaos that will pull
the carts/carriages to carry the tubers. Coop buyers have their transport facilities or
they just hire small trucks in bringing the tubers to the processing areas. Coop buyers
usually have their storage facilities as well as trucks used in the delivery of cassava.
a.1. Value Chain/ Cost Build-up
The Case of Maymatan Multipurpose Cooperative
The value chain activities for cassava includes five (5) major stages. The first is input
supply which includes purchase of planting materials, organic fertilizers and sacks.
Next stage will be the farm production composed of clearing, plowing/harrowing,
furrowing, planting material preparation, planting, fertilizer application, weeding,
hilling-up, spot weeding, harvesting. There are also other expenses under this stage
which are planting materials transportation, loading of fresh tubers, transportation of
fresh tubers from farm to cooperative, food for labor and land rental. Another stage
is primary processing which includes costs for unloading/weighing, loading,
transportation to processing area, unloading of fresh tubers, drying/sacking/piling. At
this stage though there are still costs not assumed which are administrative costs and
repair and maintenance of equipment. Fourth stage incurs costs such as loading to
truck, payment for truckscale, driver, helper, allowance and fuel.
marketing wherein dried granules is sold at P9.00 per kg. (Figure 11).
Last stage is
82
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
VALUE CHAIN M AP
INPUT
SUPPLY
FARM
PRODUCTION
TRADING
MARKET
PLTNG MATLS
CLEARING
UNLOADING/W EIGHING
0.48
ORG FERTLZR
0.15
SACK
0.40
LOADING TO TRUCK
DRIED GRANULE S
0.17
0.11
0.02
9.00
PLOWING/HARRW NG
LOADING
TRUCKSC ALE
0.56
0.09
0.01
FURROWING
DRIVER
0.05
0.07
0.04
UNLOADING OF FT
HELPER
0.06
0.09
0.02
PLANTING
GRANULATION
ALOWANCE
0.11
0.17
0.03
FERTLZR APPLICTN
DRYING/SACKING/PILING
0.03
0.51
WE EDING
DEP
0.23
0.00
HILLING-UP
ADMIN. COST
0.10
0.00
SPOT WEEDING
R&M
0.11
0.00
FUEL
0.08
HARVESTING
0.23
OTHER EXPENSES
PLTNG MAT TRANS
0.10
LOADING OF FT
0.10
FT TRANS TO COOP
0.57
FOOD FOR LABOR (F)
0.00
LAND RE NTAL
0.48
Source: Output during Training and Workshop of Four Commodities under SAIS-BC Project last February
16-18, 2010.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
83
From the farm, the farmer shoulders the cost of transport of planting materials
amounting to P0.10 per kg. The cost build-up at this level reached P2.13 per kg.
Cooperative buyers also incur cost of P0.07 per kg in transporting of fresh tubers to
the processing area, this time cost build-up is P3.32 per kg. The coop which is the
processor process the fresh tubers into dried granules cost to about P1.73 per kg. The
cassava rootcrop granulator is used in processing with their drying facilities such
concrete drying pavements.
transporting the dried granules to the BMEG Plant which is the major buyer of the
finished product, the dried cassava granules.
The total requirement of sacks for 15,000 kgs fresh tubers per hectare is 300
84
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
provision of truck rather than truck rental. The sack used in delivery will not return to
the coop, thus it contributed the amount of P0.40 if imputed in the marketing cost.
Since the requirement of 15,000 kilos if processed is 5,250 kgs considering the 35% dry
matter content of the finished product.
given the 50kg/sack is 105 pcs only the cost of sack is reduced by almost 50%. Thats
why, the amount of sacks required in marketing is more than a half of the sacks
required in production and processing.
Inputs
Logistics
Farm
Production
Logistics
Processing
Logistics
Market
85
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Cost:
P1.03/kg
tubers
Cost:
P0.10/kg
tubers
Cost:
P2.12/ kg
tubers
Farmgate
Cost:
P3.25/kg
Cost:
P0.07/kg
tubers
Yield:
15,000 kg
Farmers
Total
Cost:
P3.32/kg
Cost:
P1.73/kg
granules
Cost:
P0.20/kg
granules
Farmers
Selling
Price:
P6.43/kg
Coop
Total
Cost:
P8.36/kg
Margin:
P3.11/kg
Coop
Selling
Price:
P9.00/kg
SMC
Buying
Price:
P9.00/k
g
Margin:
P0.64/kg
Source: Personal interviews with cassava coop farmers, Bicol, February 2010
Figure 12. CASSAVA (tubers) TYPICAL FARM: Agri Food Supply/Value Chain (Cost
Build-up), Bicol, Philippines, 2010*
Masbate
4. Cataingan Cassava Farmers Association - Stage of Input Supply (production
being intensified as of now for a sustained production and processing)
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
86
especially during rainy season. Discoloration takes place within three (3) days. The
lack of post harvest facilities and equipment like chipper, granulator, mechanical
dryer and drying pavement contributed to high cost of production that usually
discouraged farmers to continue producing cassava on a commercial scale. At
present, majority of cassava farmers produced tubers only for human consumption
wherein harvesting is manageable and dependent on the needs of the farmer.
During harvesting one major consideration is the packaging material to be used to
minimize losses and reduce deterioration of the tubers.
tubers in sack.
Processing:
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
87
To date, only few cassava farmers are aware of these various uses and less ventured
into primary processing like granulation and chipping.
Competitive Analysis
The buying price of fresh tubers of Maymatan Farmers Multipurpose Cooperative
depends on the size of the tubers, e.g., Large P2.50/kg; Medium P2.25/kg; Small
P2.00/kg. The coop sell granulated cassava at a price of P9.00 to SMC. Price is being
dictated by SMC. Farmers can have higher income if they will plant high yielding
varieties of cassava at the same providing inputs to ensure high yield (large tubers)
and eventually attain better market prices.
Areas for improvement
1. Production - the supply of cassava tubers is still not enough to make the
existing coops in full operation.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
88
For
marketing, consolidators play a very important role since SMC does not transact to
those with small volumes, our coops who will be at the same time the consolidators
should be capacitated to be able to consolidate larger volumes, therefore, one of
the assistances could be trading fund for them; and
8. Study better market flows especially in island provinces where they can minimize
logistics/transportation costs (e.g., market in SMC Cebu instead of Manila).
Impact of SAIS-BC-Provided Interventions
1. The existence of coops that needs the supply of cassava tubers gives avenue
for the farmers to plant cassava, a crop considered with low requirements of
inputs, therefore less cost of production;
2. The provision of interventions in value-adding of the commodity capacitated
the farmer-coops to start a feasible source of income for them through the
cooperative. These machines lowered the investment cost of the cooperative
with the provision of the granulators and other machine/equipment and including
trucks for the logistics; and
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
89
beneficiaries are still not on its full operation as of now. The promotion of planting
cassava should be intensified and provide more options for farmers that will still have
income while waiting for the 8 to 9 months waiting time before harvest. There are still
coops that are not operational or operating under rated capacity that should be
given continuing monitoring and assistance from the agency to become fully
operational.
POTENTIAL INTERVENTIONS
Capacity Development on Improved Production Process this should be prioritized
as an intervention for all the coops/assoc so that they can learn the strategies to be
cost effective and maximize its resources. This can be done through various series of
knowledge/skills training aside from further improvement of facilities and equipment
and to attain high-quality products and eventually to avail better prices.
Production and Value Addition quality control right from production focusing on
the variety used, proper cultural management practices, processing techniques (for
the coop), packing and storage strategies (to minimize costs) aside from attaining
the desired volume (to obtain better market price).
Strengthening and Developing Effective Marketing Strategies
Infrastructure Development storage facilities improvement and expansion for
effective use and security of the processing area are the needs seen now in the
coops/assocs.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
90
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
91
ABACA
COMMODITY PROFILE
Abaca (Musa textiles), known internationally as Manila Hemp, is indigenous in the
Philippines. It is similar to banana, canton and pacol. However, It can be
distinguished by the formation and coloration as well as by the size and shape of its
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
92
leaves, heart, trunk and fruit. The roots of the plants are added externally - not
becoming an essential part. It arises from the corm lying between 15 to 25 cm below
the surface of the soil. The leaves are tapering, narrow and glossy-green with pointed
end petioles. The trunk, heart and fruit of the plant are smaller than those of banana
and pacol. It height reaches an average of 2.44 meters.
Abaca fiber is one of the sturdiest natural fiber. In fact, its quality is one major factor
that gives the commodity highly competitive among other natural hard fibers in any
given market. The fibers of abaca are utilized as raw materials in the pulp and paper,
cordage and twine, yarns and threads, and fibercraft business.
This plant is mostly found in upland areas and interior parts of the country.
Recommended varieties include Tinawagan Puti, Tinawagan Pula, Sogmod and
Lausigon for Region V; Laylay, Inosa, Linawaan, Linlay, Putian, Laguis, Linlib and Linino
for Region VIII; and Inosa, Tangongon and Maguindanao for the Mindanao Regions.
Uses
The abaca fiber is extracted from the stalk of the plant, specifically from the outer
covering of the leaf sheath. It is considered the strongest of natural fibers being
three times stronger than cotton and two times stronger than sisal fibers. Abaca is
far more resistant to salt water decomposition than most of the vegetable fibers,
making it suitable for rope and cordage manufacture.
Considering its prime qualities, abaca is also an excellent choice over other natural
fibers for producing thin papers of high porosity and high strength. Abaca can also
substitute for wood pulp in the manufacture of a general line of paper products, a
usage that could contribute immensely to the conservation of the worlds
diminishing forest resources.
Like most commodities, official standards of quality have been set and are being
strictly enforced for abaca. The official standard grades of abaca fiber are divided
into three (3) classes depending on the manner of extraction, namely: handstripping, spindle-stripping and decortication.
Quality is determined by strength, cleaning, color, texture and length of the fiber. In
terms of cleaning (which is a direct result of the stripping apparatus or knife used),
the standard grades for hand- and spindle-stripped are:
EXCELLENT
S2, S3
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
GOOD
FAIR
RESIDUAL
93
I, G, H
JK, M1
Y, OT
Spindle-stripped abaca fibers are indicated by the letter S before the official
grade, i.e., S-S2, S-I, and so on.
For decorticated abaca, the official grades are AD-1, AD-2 and AD-3.
Abaca is processed into cordage, pulp and specialty paper and fibercrafts
including handwoven fabric. Below is a summary table on the uses of abaca and
their corresponding grade requirements:
Uses of Abaca
Grades/Types
S2, I, G
G, JK, M1, Y, OT
S2, I, G, JK
S2, I, G, JK
S2, G
High grades
S3, H
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Baskets, furniture
S2, G, JK, Y
JK, M1, Y, OT
94
Grades/Types
Fuels musafel
Abaca plant
All grades
Production
Bicol Region is the second largest producer of abaca in the Philippines behind
Eastern Visayas which produces 34.77% of the total national abaca production. Bicol
Region accounts for 26.85% and Davao Region 14.98%. Together, these three regions
account for 76.61 % of the total national abaca production for 2008.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
95
Area Harvested
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.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
96
Bicol regions abaca area remained virtually the same from 1999-2008 averaging an
annual increase of 0.05 percent. Abaca production is greatly affected by the
demand from the world market. Considerable drop was observed during the period
2000 to 2001 which coincided with the terrorist attack at the World Trade Center
resulting to a reduction in the demand for abaca products at the world market.
The drop in the area harvested in 2004 could be attributed to the effects of typhoons
and other natural calamities that hit the region during the said period.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
97
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
98
Propagation
Materials for propagation should be chosen carefully. The source of seedpieces must
be from healthy or pest and disease free high yielding varieties. The sucker or whole
plant and the corm or rootstocks are the two types of planting material.
Time of Planting
Planting is best done during the onset of the rainy season since dry periods can stunt
the normal growth and development of young plants.
Methods of Planting
The square method is commonly used in the Bicol region. In the square method, hills
are set apart in equal distances. If the farm is fully planted, plants should be spaced
at 2.5 x 2.5 meters apart with 1,600 hills accommodated in a hectare.
In the double row or avenue method, abaca are planted in two rows at about 1.5 x
1.5 meters apart with a distance of 2.5 meters from each set. Cash crops like peanut,
soybeans and others can be intercropped in this method.
In the Quincunx or triangle method, 1852 hills are planted in a hectare with hills set at
a distance of 2 x 2 meters.
Shade Establishment
Abaca plantations should be provided with shade trees to prevent excessive heat
from damaging the plants and serve as windbreaks since typhoons in the Bicol
Region are frequent. Permanent shade trees such as anii, dapdap, ipil-ipil and
temporary shade trees like katuray and madre de cacao are recommended. Shade
trees provide and maintain a favorable temperature for abaca. They also conserve
soil moisture and prevent weed growth to a certain degree.
Fertilization
Abaca, like other perennial crops, occupies the same land for several cropping
years. The same crop is harvested year after year resulting to the gradual removal of
99
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
the essential nutrients from the soil. When the supply of these nutrient elements are
not replenished, the soil gradually looses its fertility.
Abaca requires large amounts of nitrogen (N) and potassium (K) but less of
phosphorus (P). About 40 % of the ash from abaca fiber is potassium.
Nitrogen greatly improves its growth and suckering ability while Potassium increases
the tensile strength of its fiber.
Type of Fertilizer
Grams per
plant (grams)
No. of bags
per hectare
62.5
125
187.5
375
6
12
For established plantations, annual application of 187.5 grams per hill or 12 bags per
hectare of complete fertilizer (14-14-14) every year is recommended. Fertilizer is
applied in split of equal doses annually. Fertilizer is applied in a ring one foot away
from the base of the pseudostems, the area where the roots are shallow.
Cleaning and Mulching
The removal of dried leaves is necessary because they are fire hazards in the
plantation, they serve as favorable media for fungal, bacterial and insect growth
and they impede the growth of suckers by limiting sunlight penetration thus, making
regular inspections and indexing difficult.
Dried or yellowing leaves must be severed from the stalks with the use of a doublebladed scythe attached to a long pole. Old and yellowing leaves are cut at the
petiole further from the stalk so that the leaf sheaths are kept fresh. The cut leaves
are laid on the space between hills and used as mulching materials to preserve soil
moisture and inhibit the growth of weeds.
Weed Control
Weeds are not much of a problem in a well-established and maintained abaca
plantation. The tall plants shade the grounds such that weed growth is effectively
checked or minimized. However, if weeds are abundant, they can be easily
controlled manually or mechanically by handweeding, plowing or underbrushing at
2 to 3 months interval or as necessary.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
100
Harvesting
Stalks are harvested three to five months before the flagleaf appears. Abaca growth
has been observed to slow down a few months before flagleaf appearance. The
practice in the region is to harvest abaca twice a year. A longer interval may result in
overmatured stalks which consequently yields fibers of low quantity and poor quality.
Three steps are involved in the harvesting of abaca, the cleaning, topping and
tumbling.
Cleaning
In cleaning, the area surrounding the base of the stalk is cleared of dried leaves,
grasses and other weeds. Thinning of floaters and spindly suckers and cutting
afflicted plants and dead stalks are also done during cleaning
Topping
Topping is done by cutting the leaves of the stalk to be harvested. Topping is done
with the use of a curved knife fastened at the tip of a long pole and then cutting the
leaves. Topping is done to avoid inconvenience to the harvester and minimize
damage to the young and immature plants when the stalk is toppled down.
Tumbling
Tumbling, on the otherhand, is done using a sharp tumbling bolo. A smooth and
slanting cut is made on the stalk about 5 cm from the last leaf scar to prevent the
accumulation of sap. The topped stalks are then tumbled by cutting them close to
the ground with the direction of the cut portion inclined towards the base.
Post harvest Operations
Tuxying
Tuxying is the process of separating the primary fiber layer from the secondary fiver
layer of leafsheath. The tuxying knife is inserted between the layers and the entire
length of the leafsheath is pulled off to completely separate the layers.
Distinct grade of fibers are produced from the different groups of tuxies. It is
necessary to group the tuxies according to the sequence of the leafsheaths to
facilitate the classification of fiber.
Stripping
This is the process of fiber extraction and is one of the most laborious phase in the
production of fiber.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
101
The traditional methods of stripping are by hand (hagotan) and spindle stripping. A
spindle stripped fiber tends to be whiter and more lustrous than a corresponding
grade of hand stripped fiber. In terms of physical properties, the spindle stripped fiber
is superior to a hand stripped fiber. Another method is by defibering scheme. This
method is designed specifically for pulp and paper production.
All stripped fibers are dried before storage. Storage is done in the open and air drying
in temporary shades. Contact of fresh fibers with soil and dirty matters should be
avoided because these affect their classification and grade. These fibers must be
thoroughly dried to prevent attack of molds or weevils which cause rapid
deterioration and subsequently the reduction in the quality of the fibers.
Storing
Dried fiber should be stored at least in room temperature and free from foreign
matters or plastic materials.
Grading
There are basically two categories of abaca fibers depending on the manner of
extraction, namely hand stripped and spindle-stripped. The former method of fiber
extraction is being widely practiced in Bicol Region.
The fiber are either graded or classified as NORMAL (S2, S3, I, G, H, JK, M1) and
RESIDUAL (Y, OT) or EXCELLENT (AD, EF, S2, S3) GOOD (I, G, H), Fair (JK, M1) and
COARSE (L).
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
102
improvement in yield per hectare. However, the series of strong typhoons in the
second half of 2006, disease infestation and the intensified production of bacbac
seriously affected fiber output and further aggravated in 2007 when production level
was at its lowest at 60,723 MT.
103
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
GRAD
E
%
Shar
e
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Ave.
55,78
7
46,54
1
47,92
7
56,54
3
60,47
6
61,82
1
58,16
0
50,93
7
67,63
6
48,03
3
55,38
6
108
113
11,79
1
10,31
9
8,866
75
10,90
8
9,374
128
10,46
8
S2
142
11,05
6
7,924
9,826
9,588
57
10,01
2
S3
3,509
2,955
3,264
3,736
3,692
3,593
2,950
2,322
2,601
2,629
3,125
5.6
5,485
10,18
7
6,272
12,66
0
7,225
15,50
5
8,200
13,85
5
8,442
13,92
3
7,177
13,70
9
6,935
11,43
0
9,166
15,84
1
9,900
12,68
4
7,661
13,18
1
13.8
7,811
12,01
2
2,013
1,964
2,316
2,403
7,620
6,873
8,930
2,034
13,32
4
1,701
11,34
2
2,585
17,38
3
6,932
2,108
10,63
7
3.8
7,832
2,113
13,06
8
1,672
JK
2,282
13,06
4
19.2
M1
1,277
1,357
1,169
1,645
1,541
1,796
1,744
1,722
2,449
655
1,535
2.8
7,589
5,379
4,088
4,652
5,107
4,859
4,981
3,938
5,372
1,689
4,765
8.6
OT
2,546
2,089
2,306
1,850
1,714
2,103
1,697
3,404
1,975
1,372
2,106
3.8
WS
0.1
24
0.5
0.0
223
207
414
828
184
0.3
TOTAL
EF
AD-1
AD-2
AD-3
1
36
127
nil
10
2
19
82
100.0
0.1
18.1
23.8
12
0.0
Foreign
Since 1991, Ecuador had been supplying abaca fiber particularly to local pulp
manufacturers except in 2005 when there was no importation made.
The pulp
Quantity
259
484
68
56
196
965
252
639
104
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
DEMAND
Domestic Consumption
Domestic processors consumed an average of 51,575 MT or 74.8% of the countrys
average yearly production of abaca fiber during the past ten years. This sectors fiber
consumption level was observed to be increasing although at a minimal rate of 0.9%
per year. Abaca fiber is being processed locally into pulp, cordage and various
fibercraft items.
The pulp sector consistently remained as the growth area of the abaca industry
utilizing an average of 35,481 MT or 68.8% of the annual average local consumption
and increasing moderately at 2.9% per annum. The pulp millers utilization level is
highly dependent on the demand for pulp by the specialty paper manufacturers
abroad as abaca pulp is the principal raw material used in the manufacture of meat
and sausage casings, tea bags, cigarette paper, currency paper and other specialty
papers. Processing of abaca pulp into specialty papers is done in Europe, the United
States and Japan instead of in the Philippines as there is no available processing
facility in the country.
TOTAL
PULP
CORDAGE
YARNS & TWINES
FIBERCRAFTS
2000
50,077
30,960
12,227
6,890
2001
52,012
32,818
11,615
7,579
2002
48,230
33,610
10,600
4,020
2003
52,560
36,095
12,105
4,360
2004
50,900
37,600
9,250
4,050
2005
59,170
44,470
9,840
4,860
2006
56,175
40,200
10,625
5,350
2007
47,362
30,312
12,950
4,100
2008
51,722
38,702
10,120
2,900
Source: FIDA 5
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
105
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
106
Figure 8. Annual World Supply and Demand of Abaca (in MT), 2000-2008
For the past ten years, the Philippines generated an average of US$80.8 million per
year from the exports of abaca fiber and manufactures, 82.6% or an average of
US$66.6 million of which came from abaca manufactures such as pulp, cordage,
yarns and fabrics and fibercrafts.
exports with average earnings of US$14.0 million yearly. From among the abaca
manufactures, pulp led the growth in export with shipments worth an annual
average of US$40.6 million or a 50.3% share to the annual average income.
Meanwhile, export earnings from fibercrafts and cordage/allied products averaged
US$13.9 million (17.1%) and US$11.7 million (14.5%) per annum, respectively, while
those from
yarns and fabrics accounted for US$0.4 million (0.5%) of the annual
average.
Abaca Fiber
Exports of abaca fiber averaged 15,474 MT, decreasing at a rate 3.5% per annum
during the years under study. The demand of the countrys major trading partners
contracted substantially, particularly in 2001, which was not offset by the surge in the
demand for the fiber in the succeeding years. Some specialty papermakers likewise
shifted to the importation of abaca pulp instead of the usual raw fiber due to the
strict anti-pollution laws in their respective countries.
107
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
new
designs
and
sophisticated
security
features
as
protection
from
India,
South Korea and Indonesia have consistently been buying abaca fiber although the
quantities were very minimal with combined aggregate share of 2.0% to the annual
average foreign trade. Abaca fiber is used as raw material in the manufacture of
cordage and fibercrafts in these countries. China showed great promise that its
imports accelerated, averaging 913 MT in the last five years and is presently the
second biggest Asian market for Philippine abaca fiber. It is now using the fiber in the
manufacture of tea bag, capacitor paper and fibercrafts.
108
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
2000
19,38
3
1
0
2,89
2
4
6
3,83
3
5,69
3
21
3
4,56
0
3
1
2001
2002
2003
2004
2005
2006
2007
2008
2009
12,392
14,008
16,251
19,310
13,684
12,887
13,731
13,385
7,228
18
26
18
30
28
1,754
1,849
1,776
2,154
1,471
1,518
1,803
1,359
1,381
111
117
188
192
292
297
457
345
190
1,932
2,249
2,596
2,952
1,757
1,393
1,049
817
373
3,565
4,777
5,535
6,156
3,735
4,168
3,823
2,887
2,303
304
289
259
163
175
101
126
156
14
3,358
3,096
4,161
5,902
5,038
4,366
5,403
6,745
2,395
367
193
389
207
124
122
141
99
97
109
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Y*
1,102
977
781
766
774
917
244
Y1
1,381
Y2
6
2,07
9
991
173
296
189
47
OT*
28
104
32
125
60
226
2
0
39
19
285
47
Source: FIDA 5
Abaca Pulp
Practically all the abaca pulp manufactured in the Philippines are shipped outside
the country, especially when its use as raw material for cigarette paper by a local
cigarette manufacturing company ceased in the latter part of 2002. An average of
18,176 MT of abaca pulp was exported every year over the ten-year period
beginning 1998 with shipments expanding at an annual rate of 3.7%. Some specialty
paper manufacturers prefer using abaca pulp instead of raw fiber because pulping
is highly polluting that it harms the environment. The stringent anti-pollution control
laws in their countries require them to put up anti-pollution control mechanisms which
they consider costly.
Europe was the most important destination for Philippine abaca pulp as five specialty
paper manufacturers using abaca pulp are situated in this continent. Exports to
Europe averaged 12,327 MT per year or 67.8% of the average annual with 7,002 MT or
38.5% being absorbed by Germany. While Germany had the biggest market share,
the United Kingdom was the fastest growing market with an impressive annual
growth rate of 49.9%. This was due to the transfer of the pulp operation of a USbased abaca pulp mill to the United Kingdom. France has likewise been an
important export market for abaca pulp with imports averaging 1,768 MT per year or
a 9.7% share to the total annual average exports to Europe.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
110
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
111
Figure 13. Destination of abaca cordage and allied products exports, Philippines,
2000-2009.
The United States absorbed the bulk of the exports contributing 65.9% or 5,144 MT to
the annual average.
112
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Jan
18.78
28.23
16.88
20.17
22.31
22.41
36.40
36.02
29.40
38.36
Feb
18.17
19.63
16.62
18.74
22.08
22.88
36.61
36.98
27.15
39.08
Mar
17.89
22.59
17.24
15.64
21.55
24.42
34.54
36.01
26.69
44.08
Apr
19.72
24.18
16.42
18.25
22.83
26.32
34.59
36.16
26.36
43.33
May
19.68
21.17
16.42
18.87
22.52
26.33
34.40
35.77
26.22
46.40
Jun
24.91
19.71
16.91
19.37
22.61
28.13
34.83
35.34
26.71
49.13
Jul
23.11
15.46
17.64
19.06
22.81
28.44
34.88
34.05
27.35
49.55
Aug
20.87
19.58
16.84
19.81
22.60
28.53
36.58
34.21
27.92
56.48
Sep
20.76
18.86
17.69
20.49
21.18
29.10
34.62
34.09
37.15
51.84
Oct
22.35
16.61
17.66
20.40
24.43
27.93
33.85
34.69
38.23
51.17
Nov
22.62
16.49
17.05
21.32
22.29
30.86
34.73
34.82
38.40
51.22
Dec
21.16
16.24
18.32
22.06
23.07
32.22
35.84
34.40
38.53
52.49
113
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
In terms of average annual price of abaca fiber in the region, ten year data from
BAS showed a generally increasing trend except for a decline in prices during the
2000-2001 and 2006-2007 periods. The drop in farmgate prices in 2000-2001 could be
attributed to the terrorist attacks at the World Trade Center resulting to a reduction in
demand for abaca fibers. For the 2006-2007 period, the decline in the farmgate
prices could be attributed to the decline in the demand for abaca products in the
world market. On the average, the annual average farmgate prices of abaca grew
by 11.15% annually.
Figure 15. Average annual farmgate price of abaca fiber, Bicol Region, 1999-2008.
farmers,
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
114
Strippers
Strippers extract the fibers, either by hand or mechanical means. Included in the
stripping work are harvesting of stalks, tuxying and drying of fibers. The strippers are
paid on a pre-determined system wherein they receive 50 or 70 per cent of the
harvest depending on the prevailing practice agreed upon.
Classifiers
Classifiers sort and grade the fibers based on the standards set by the government.
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 2008, there are 147 licensed traders and 5 licensed trader-exporters in the
region.
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 kgs of 100 cm. x 55 cm. x 60 cm.
bundles per specific fiber grade. There are 4 licensed grading-baling establishments
operating in the region.
Processors
Pulp Millers
As of 2008, there is one (1) abaca pulp company operating in the region. The
company have well-established market networks for their pulp which are principally
destined for the world market.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
115
Cordage Manufacturers
There is currently one (1) cordage firms operating in the region. 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.
Fibercraft 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.
Several of these
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
116
There are about 25,875 abaca farmers in Bicol. They are considered to have poor
agronomic practices with the no or limited application of fertilizers and practices to
enhance productivity.
117
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
For the regions end users, the local pulp industry, cordage and fibercraft sectors
contracted. Operations of these sectors were on and off during the period due to
lack of orders. In 2009, the small volume of fibers purchased by the pulp
manufacturers pulled down the quantity of the local fiber trade. Domestic
consumption deflated by 18.26% compared to 2008 consumption.
The cordage sector suffered the same predicament, posting a reduction of 52.24% in
its consumption.
The handicraft industry in the region felt most of the impact of the financial crisis in
2009. The fibercraft processors/exporters are in a slump. The stiff competition from
ASEAN neighbours and the lack of orders has caused at least fifty percent of
handicraft exporters to close their operation.
Total purchases as recorded was lower by 13.86 percent from 2008.
2008 (bales)
2009 (bales)
Difference
PULP
99,136
81,035
(18,101)
Rate of Inc/Dec
(%)
(18.26)
CORDAGE
20,806
9,936
(10,870)
(52.24)
FIBERCRAFT
TOTAL
Source: FIDA 5
1,493
121,435
1,286
92,257
(207)
(29,178)
(13.86)
(24.03)
Export
The United Kingdom remained as the top destination for Bicol abaca fibers, cornering
56.35% of the total regional fiber exports but its purchases deflated by 39.28% from a
year ago. In the same manner, shipments to Japan also fell by 59.6%. Spain slashed
down its orders to 3.33% and trading to China shrank to 30.65% share of the total
exports. Establishing its mark as a constant importer of abaca fiber in the region for
the past two years, Bangladesh post the only increase in the regions export sales
Table 8. Abaca export, Bicol Region 2008-2009
COUNTRY
UK
JAPAN
2008
(bales)
2009
(bales)
Percent
Share
Rate of
Inc/Dec
Percentage
Inc/Dec
19,980
1,812
12,130
732
56.35
3.40
(7,850)
(1,080)
(39.28)
(59.60)
118
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
CHINA
KUWAIT
BANGLADESH
THAILAND
INDIA
INDONESIA
SPAIN
TOTAL
7,920
72
150
29,934
6,600
30.65
(1,320)
(16.67)
900
180
180
90
720
21,532
4.18
0.84
0.84
0.42
3.33
100
750
500
(8,402)
(28.06)
Source: FIDA 5
Marketing Flow
Marketing is done at different levels depending on the location of the farmers and
where the accumulation of fiber is done. In Bicol area, more particularly in the
Province of Albay, fiber trading starts at the village level, the pricing system includes
mark-up attributable to the service provided by the traders.
From the farm, abaca fibers could either be sold to multi-purpose cooperatives or
barangay buyers stationed in the area. Barangay buyers are usually buying stations
of established town buyers which in turn sell abaca fibers either to exporters,
processors or fibercraft manufacturers.
Farmers
Farmers usually sell their fibers to barangay buyers, to multipurpose cooperative or
directly to town buyers regardless of the grades or what they term as all in basis.
Farmers are price-takers.
buyers, which dictate the value of the fiber depending on the prevailing price. They
produce depending on what they can only harvest from the farm and not on the
market demand
ABACA
ABACA FARMERS
FARMERS
Barangay Buyers or Multipurpose Cooperatives
The barangay buyers and multipurpose cooperatives, at the same time assemblers,
COOPERATIVE
COOPERATIVE
BARANGAY
BARANGAY TRADER
TRADER
offers benefits to its farmer-members since they usually make efforts of proposing
TOWN
TOWN TRADER
TRADER
LOCAL
LOCAL
BUYERS
BUYERS
PROCESSING
PROCESSING
CORDAGE
CORDAGE
FOREIGN
FOREIGN
BUYERS
BUYERS
LOCAL
LOCAL
BUYERS
BUYERS
FOREIGN
FOREIGN
BUYERS
BUYERS
GBE
GBE
PULP
PULP
FOREIGN
FOREIGN
BUYERS
BUYERS
LOCAL
LOCAL
BUYERS
BUYERS
FOREIGN
FOREIGN
BUYERS
BUYERS
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
119
120
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Pulp Mills
There is only one abaca pulp Company operating in the region especially in the
province of Albay - the Albay Agro-Industrial Corporation (ALINDECO). The company
have well established market networks for their pulp which are principally destined
for export.
Cordage Manufacturers
Cordage manufacturers use abaca fiber as the principal raw material for rope,
cordage and twine manufacturing.
Fertilizer and
Chemical Suppliers
Logistics*
Export market
(US, United Kingdom,
Europe, China, and
Japan)
Logistics*
Logistics*
INPUT
SUPPLY
PRODUCTION
Farmers
PROCESSIN
G
Pulp Mill
Cordage and Twine
Fibercrafts
- Handicrafts (bags, etc)
MARKE
T
Local Market
(Bicol, Manila,
Cebu &
Cagayan de
Oro)
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Source: Interviews with FIDA 5 focal person, farners processors and industry experts.
121
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
122
PRODUCTI
ON
INPUT
SUPPLY
Procurement
Procurement
and
and delivery
delivery of
of
planting
planting
materials
materials
Weeding
Weeding
Underbrushing
Underbrushing
Replanting
Replanting
activities
activities
Tumbling
Tumbling
LOGISTICS
Transport
Transport of
of
planting
planting
materials
materials
PROCESSIN
G
TRADING
Tuxying
Tuxying
MARKET
Weighing
Weighing
Classifying
Classifying
Buying
Buying
Bundling
Bundling
Selling
Selling
Stripping
Stripping
Drying
Drying
Bundling
Bundling
LOGISTICS
Transport
Transport from
from
farm
farm to
to
roadside
roadside
Transport
Transport from
from
roadside
roadside to
to
buyer
buyer
LOGISTICS
Storage
Storage
Transport
Transport to
to
exporters/
exporters/
processors
processors
Figure 18. Abaca value chain map of activities, Bicol Region, 2009.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
123
Table 9. Cost and return analysis for 1 hectare abaca plantation, Bicol Region, 2009
ITEM
UNIT
COST
UNIT
QNTY.
no
500
2.50
no
500
0.50
TOTAL
COST
P/kg
Material inputs:
sub-total
1,250.00
2.08
250.00
0.42
1,500.00
2.50
Labor cost:
weeding
md
200.00
1,000.00
1.67
underbrushing
md
200.00
1,000.00
1.67
tumbling
md
200.00
1,000.00
1.67
3,000.00
5.00
sub-total
Harvest/Extraction activities:
tuxying
md
200.00
800.00
1.33
stripping
md
200.00
1,800.00
3.00
drying
md
200.00
800.00
1.33
bundling
md
200.00
800.00
1.33
md
200.00
200.00
0.33
kg
600
0.25
150.00
4,550.0
0
0.25
7.58
sub-total
Depreciation cost:
bolo
pc
150.00
56.25
0.09
stripping knife
pc
300.00
37.50
0.06
tuxying knife
pc
150.00
sub-total
TOTAL COST
TOTAL RETURNS**
kg
600
30.00
56.25
0.09
150.00
0.25
9,200.00
15.33
17,100.00
28.50
7,900.00
13.17
ASSUMPTIONS:
600 Kg of S-2 grade fiber a hectare/harvest
P30.00/kg prevailing price
1,800 stalks/ha at 23kg/stalk
1.4% fiber recovery
Sharing arrangement is 30% to farmer owner and 70% to harvesters/strippers
** 5% reseko deducted from total return (1.50/kg)
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
124
Farm Production.
Farm production cost of P5.00 per kilogram dried fiber which is attributed to weeding,
underbrushing and tumbling labor costs is incurred by the harvesters/strippers. All in all,
farm production incurred a total of P7.50 per kilogram of dried fiber. P2.50 per kilogram
is incurred by the farmers and P5.00 per kilogram by the harvesters/strippers.
Primary Processing.
After harvesting (tumbling), primary processing is undertaken to produce abaca fiber.
This entails additional cost of P7.00 per kilogram fiber attributed to tuxying, stripping,
drying and bundling. This is commonly incurred by the harvesters/strippers
From the farm, the harvesters/strippers shoulder the cost of handling from the farm to
the roadside (P0.33 per kilogram), fifty percent of the transport cost from the roadside
to trader (P0.25 per kilogram) and the cost attributed to reseko P1.50 per kilo which is
5% of the total weight of dried fiber.
All in all, the harvesters/strippers incurred P2.08 logistics cost and together with the
depreciation cost of farm implements/tools (P0.25 per kilogram), harvesters/strippers
incur an average cost of P16.58 per kilogram dried fiber.
Marketing.
The traders, on the otherhand, shouldered the remaining fifty percent of the transport
cost from the roadside to the trader (P0.25 per kilogram). In addition, additional cost
related to payment for the driver and fuel (P0.02 and P0.06, respectively) and labor
costs in reclassifying, bundling and handling (P0.56 per kilogram) brings the total cost
incurred by the trader to P0.81 per kilogram).
Overall, including the cost of buying a kilogram of dried fiber at P30.00 per kilogram, the
trader incurred P30.81 per kilogram of dried abaca fiber. At an average selling price of
P39.00 per kilogram, the traders profit margin is P8.19 per kilogram of dried fiber.
The logistics cost of P0.08 per kilogram dried fiber, (delivery cost from trader to exporter)
is reimbursed by the exporter.
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
INPUT
SUPPLY
LOGISTICS
2.08
2.08
FARM
PRODUCTION
PRIMARY
PROCESSING
LOGISTICS
TRADER
LOGISTICS
125
EXPORTER
0.42
0.42
a
5.00
5.00a
Farm
Farm Cost
Cost
7.50
7.50
b
7.00
7.00b
Farm
Farm Yield
Yield
600
600 kgs.
kgs.
c
2.08
2.08c
c
0.25
0.25c
Harvesters/Str
Harvesters/Str
ippers
ippers Total
Total
Cost
Cost
16.58
16.58
d
Selling
Selling Price
Priced
30.00
30.00
e
0.08
0.08e
0.56
0.56
Traders
Traders
Total
Total
f
Cost
Costf
30.81
30.81
Traders
Traders
Selling
Selling
Price
Price
39.00
39.00
Exporters
Exporters
Buying
Buying
Price
Price
39.00
39.00
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
126
Cost Drivers
Input Supply. At the farm level, the only cost incurred by the farmers/owners are
those related to the purchase of planting materials and the labor cost in the
delivery and actual replanting activities. Of the P2.50 incurred by the
farmer/owner 83% (P2.08 per kilogram of dried fiber) went to the acquisition of
abaca suckers. The remaining 17% (P0.42 per kilogram) was spent on labor for
the delivery and replanting activities. The P2.50 per kilogram represents 12% of
the total cost incurred in farm production and processing
Farm Production. The rest of the cost related to care and maintenance of the
plants, harvesting, post-production processing and transport to traders are
attributed to the harvesters/strippers. Under this arrangement, the farmer/owner
gets 30% of the gross sales while the harvesters/strippers get 70%. In some cases, if
the owner/farmer pays for the care and maintenance of the plants (weeding
and underbrushing), the sharing arrangement becomes 50:50.
Primary Processing. The harvesters/strippers incur the cost at the farm production
and primary processing. The bulk of the cost is attributed to labor cost in
maintenance of plants (weeding, underbrushing), harvesting (topping and
tumbling) and primary processing activities (tuxying, stripping, drying and
bundling). This is approximately P12.00 per kilogram dried abaca fiber or 72% of
the total cost incurred by the harvesters/strippers. Other costs were attributed to
logistics (transport of dried fiber from farm to roadside and fifty percent of the
cost from roadside to the traders/buyers).
Market. For the traders, 70% of the cost incurred could be attributed to labor in
reclassifying, bundling and handling (P0.56 per kilogram). The rest is spent on
marketing and logistics costs.
Of the P13.17 per kilogram dried fiber net income derived, P 3.95 went to the
farmer/owner and the remaining 9.22 per went to the harvesters/strippers. On
the otherhand, the trader, after deducting all his/her expenses gets P8.19 per
kilogram net income.
Logistics. All in all, the total cost involved in logistics (transportation and storage is
P 2.83 per kilogram dried fiber. Majority (73.5%) of this is incurred by the
harvesters/ strippers (P 2.08). This includes transport from farm to roadside and
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
127
50% of the cost from the roadside to the buyers warehouse and the 5% reseko
or shrinkage from the final weight.
The cost incurred by farmers/owners is 14.84% of the total logistics cost (P 0.42 per
kilogram) in the transport of planting materials, the trader on the otherhand,
pays 8.83% of the total logistics cost (P 0.25 per kilogram) while the exporter
shoulders 2.83%
Competitive Analysis
Abaca fiber is one of the sturdiest natural fiber. Its quality is one major factor that
gives the commodity highly competitive among other natural hard fibers in any
given market. The fibers of abaca are utilized as raw materials in the pulp and
paper, cordage and twine, yarns and threads, and fibercraft business.
It is considered the strongest of natural fibers being three times stronger than
cotton and two times stronger than sisal fibers. Abaca is far more resistant to
salt water decomposition than most of the vegetable fibers, making it suitable
for rope and cordage manufacture.
Considering its prime qualities, abaca is also an excellent choice over other
natural fibers for producing thin papers of high porosity and high strength.
Abaca can also substitute for wood pulp in the manufacture of a general line of
paper products, a usage that could contribute immensely to the conservation
of the worlds diminishing forest resources.
New end-use for abaca fiber in composite applications for the automotive
industry has been developed in Europe. Abaca has very good ecological
balance combined with its excellent technical properties similar to those of glass
fiber, the material previously used in the underbody protection of the car. The
use of abaca fiber, instead of glass fiber, will bring about primary energy savings
of 60%, thus significantly reducing carbon dioxide emission.
As composite material, abaca fiber has potentials in boat/ship building industries,
aeronautics as well as in construction business especially for high-rise building
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
128
129
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
The said
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
130
Abaca Pulp. The expanding demand for specialty papers for tea bag, meat and
sausage casings, currency papers, metallized papers, cigarette papers, filters, hitech capacitor papers and other non-wovens and disposables also mean high
demand for abaca pulp.
excellent tear, bursting and tensile strength which characterize abaca fiber.
Compared to synthetics, abaca is preferred especially in the production of meat
and sausage casings and tea bags because they do not dissolve when in
contact with boiling water and pose no danger to health when pieces of fibers
are mistakenly eaten.
This
pulp in Japan include capacitor and insulation papers, tea bag, masking tape,
paper cloth, stencil paper, filter oil absorbent paper, casings and other specialty
paper products.
Abaca pulp remains a good substitute for coniferous pulp in most paper
products on the ratio of 4:1.
manufacturing companies use wood pulp, including more than 20 pulp and
paper mills in the Philippines. The market, however, has still remained untapped
due to the relatively high price of abaca pulp compared to wood pulp.
China as New Market for Abaca Pulp. China is expanding its imports of abaca
pulp from the Philippines for the manufacture of tea bags. With the opening of
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
131
the Chinese economy following Chinas membership to the WTO in 2001, the
influence of the western world to the community has become apparent.
The Chinese especially the younger generation are now changing their lifestyle,
one of which is the use of tea bags instead of the traditional way of preparing
tea prompting business establishments in China to serve tea in tea bags. China
has one of the biggest tea-drinking populations in the world.
Abaca in Fibercrafts. Innovative and functional fibercrafts from abaca have
continued to evolve and introduced in both the local and international markets
with the Filipino intrinsic artistry, ingenuity and world-class craftsmanship coupled
with the versatility of abaca fiber.
The Gifts, toys and Housewares (GTH) sector has made wider use for abaca
especially for home furnishings, house decors and accessories and fashion as
well.
For the local fibercraft and weaving industries, high grades abaca fiber and
knotted abaca are the most highly valued commodities as demand for such
materials has been on the rise not only in the local market but also in China, now
considered as the biggest competitor for the supply of semi-processed fiber.
Abaca as Wellness Product. The cosmetic industry also makes use of abaca
enzymes in the production of natural, organic, hand-crafted skin care products
like abaca soap and lotion which reportedly have anti-aging and therapeutic
properties and are now exported abroad.
Abaca for Fashion. The use of abaca, in pure or in blends with other natural fibers
like pia fiber and pineapple silk, for textile is another opportunity.
The recently-concluded Philippine Fashion Week presented contemporary and
wearable collection fashioned from these fibers, veering away from the
traditional cultural ensemble, appealing and acceptable to both the young
and old generations.
Other New Uses. Researches on product development could further open up
more opportunities for abaca fiber especially as cement laminas which can be
132
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
used for making wall panels most suitable in the construction of high-rise
buildings. In addition, abaca fiber can be utilized as composite material (abaca
fiber blended with cement) for the construction of boats and as raw material
component for apparels like organic denims
CONCLUSIONS AND RECOMMENDATIONS
The following are the areas that need improvement in the supply/value chain
system of abaca in Bicol region:
Input Supply. Majority of the abaca planted in the region is the Lausigon
variety with an average yield of 600 to 700 kilograms dried fiber per year.
However, there are available high yielding and disease resistant varieties of
abaca with a potential yield of 1,600 kilograms of dried fiber per year.
Farmers/owners
should
consider
investing
in
the
replacement
of
old,
unproductive and disease infected plants with these high yielding varieties to
improve yield.
Provision of delivery
vehicles
Storage/ classifying
buildings
Use of disease
resistant and high
yielding varieties
Mechanization of
fiber extraction
Value-adding
(fibercraft
manufacturing)
INPUT
SUPPLY
PRODUCTION
LOGISTICS
Proper Fertilization
Appropriate culture
and management
strategies
PROCESSING
LOGISTICS
TRADING
MARKET
Collective marketing
Direct marketing
Fiber classifying
Tumbling
Provision of hauling
vehicles
Figure 20. Suggested interventions along the supply chain system of abaca, Bicol Region, 2010.
Production. The abaca industry in the region suffers from low productivity, thus,
improvement in the productivity of the abaca farms should be considered. The
average yield in the region is only 600 kilograms dried fiber which is lower than
the national annual average of 700 kilograms and the potential yield of 1,600
kilograms per year. Increase in the productivity could be attained thru use of
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
133
high yielding varieties, proper fertilization (12 bags per year), pest management
strategies and appropriate culture and management practices (i.e. proper
population density, organic-inorganic fertilization, etc.).
Processing. In the farm level, only primary processing (fiber extraction) is
undertaken. Improvement in the processing subsector could be attained thru
mechanization in fiber extraction to improve fiber recovery from the existing 1.4%
to 1.5%. In addition, mechanization will lessen labor cost and improve the quality
of fibers recovered resulting to higher fiber prices.
To increase income thru processing, cooperatives should diversify their business
(forward and backward integration) and venture into processing machinery
rental business, providing short term loans to members (agricultural inputs) and
value-adding (fibercraft manufacturing) activities
Marketing. The marketing of abaca fiber in the region is multi-layered, complex
and costly. Community-based buyers such as multi-purpose cooperatives should
intensify their effort for collective marketing in order to command a better price
for the farmers products.
In addition, the cooperatives, if they met the required volume, could deal
directly with the exporters and processors and avail of the higher price and
additional incentives offered by the exporters. Multi-purpose cooperatives could
venture into fiber classifying to be able to avail of the higher price of different
fiber grades.
Logistics. The distance of the farms to the town traders, exporters and processors
drives logistics costs up. This is in addition to the poor state of farm to market
roads in the countryside particularly in Bicol region. Reduction in transportation
and delivery costs could be attained thru the provision of hauling/delivery
vehicles and storage/classifying buildings to cooperatives. In addition, the
existing arrangement with the buyers to shoulder majority of the logistics
(transportation) costs incurred should be maintained.
134
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
2000
2001
2002
2003
2004
2005
2006
2007
2008
66,437.23 68,385.77
6.98
14.00
14.05
13.07
15.00
3.56
3.35
9.90
6.22
12.75
30.62
48.00
52.50
79.50
51.85
24.37
51.00
43.39
40.79
37.30
35.15
37.61
55.11
67.00
69.47
71.79
17,144.52 18,363.17
620.07
462.95
530.63
447.25
851.27
789.80
1,130.68
1,579.00
1,337.87
1,679.24
207.47
216.12
161.93
163.96
190.90
310.64
605.50
390.00
470.17
731.30
24,752.39 23,779.44
241.62
187.41
168.46
110.72
123.30
113.43
148.35
113.00
221.16
177.10
2,003.47
2,037.19
2,094.40
1,184.68
1,139.82
1,267.46
1,765.85
1,553.00
1,569.48
1,614.85
10,622.71 10,781.98
8,644.85
8,031.86
8,901.00
9,554.47 10,247.15
553.70
411.18
1,317.95
535.89
985.14
816.11
866.02
709.00
726.81
740.99
4,909.29
6,480.77
3,669.84
3,548.72
3,784.64
4,842.78
5,578.07
5,674.00
5,834.96
6,084.38
5,251.70
4,948.96
6,189.98
4,003.32
3,947.65
4,891.76
4,479.61
4,602.00
4,637.53
4,779.42
135
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
2003
2004
2005
2006
2007
2008
20,243.00 21,946.60 19,933.61 20,328.00 17,144.52 18,363.17
1,297.87 1,496.70 1,533.04 1,482.00 1,377.54 1,404.64
67.36
46.75 137.03 127.00 155.21
188.00
1,464.01 921.84 661.00 446.00 273.35
390.39
Catanduan
11,073.10 12,406.05 11,307.06 14,766.25 15,201.76 17,246.47 15,160.04 16,136.00 13,615.41 14,506.40
es
Masbate
Sorsogon
.
.
.
.
.
.
.
.
.
.
4,923.80 4,841.25 5,337.85 1,763.65 2,212.00 2,234.84 2,442.50 2,136.00 1,723.01 1,873.74
Source: BAS
2000
41,593.0
2,950.0
850.0
7,436.0
20,307.0
.
10,050.0
2001
41,593.0
2,950.0
850.0
7,436.0
20,307.0
.
10,050.0
2002
44,606.1
4,914.4
988.5
6,715.9
21,812.0
.
10,175.3
2003
43,317.8
4,823.6
993.9
6,705.0
21,877.3
.
8,918.0
2004
42,180.8
5,135.9
1,013.0
6,563.4
22,184.3
.
7,284.3
2005
42,832.0
5,369.5
1,024.2
6,679.1
22,384.0
.
7,375.2
2006
42,832.0
5,369.0
1,025.0
6,679.0
22,384.0
.
7,375.0
2007
42,663.0
5,300.0
1,024.0
6,679.0
22,384.0
.
7,276.0
2008
42,662.0
5,300.0
1,023.0
6,679.0
22,384.0
.
7,276.0
136
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
1999
Philippines
2000
2001
2002
2003
2004
2005
121,476.0 127,461.0
2006
2007
135,965.7
135,883.0
2008
136,048.7 137,519.7
CAR (Cordillera
Administrative
Region)
800.0
800.0
600.0
870.0
Region I (Ilocos
Region)
0.5
0.5
Region II (Cagayan
Valley)
85.0
85.0
85.0
120.2
191.4
183.9
233.9
434.0
480.0
508.0
Region IV-A
(CALABARZON)
22.0
22.0
22.0
26.3
26.0
26.0
26.3
109.0
199.1
294.2
Region IV-B
(MIMAROPA)
80.0
176.0
176.0
406.0
608.4
850.0
1,119.1
1,134.0
1,122.0
1,127.0
42,628.0
41,593.0
41,593.0
44,606.1
43,317.8
42,180.8
42,832.0
42,832.0
42,663.0
42,662.0
Region VI (Western
Visayas)
7,154.0
4,832.0
4,834.0
3,485.5
3,515.3
3,823.6
4,260.2
4,151.0
4,020.0
4,001.0
2,734.0
2,648.0
2,645.0
2,469.8
2,560.8
2,707.1
3,083.9
3,084.0
3,087.0
3,097.0
29,560.0
28,503.0
28,498.0
38,078.7
38,665.0
42,069.4
44,952.5
44,777.0
45,068.2
44,943.2
942.0
898.0
920.0
907.1
1,065.1
1,645.2
1,728.4
1,874.0
1,885.0
1,869.0
Region X (Northern
Mindanao)
3,487.0
2,917.0
2,955.0
4,139.2
4,402.9
4,822.1
4,970.8
4,988.0
4,993.0
4,990.0
Region XI (Davao
Region)
7,596.0
7,799.0
7,810.0
9,301.4
9,775.6
10,476.5
10,952.7
10,088.0
10,120.2
10,777.0
Region XII
(SOCCSKSARGEN)
1,572.0
1,471.0
1,448.0
2,668.6
2,827.3
3,331.6
3,893.9
3,949.0
4,018.0
4,555.0
CARAGA
Administrative
Region
5,803.0
6,151.0
6,348.0
6,121.8
6,301.0
7,746.0
9,181.2
9,735.0
9,891.0
9,912.0
ARMM (Autonomous
Reg. of Muslim Mind.)
9,721.0
9,721.0
9,811.0
9,610.2
8,219.4
7,598.7
7,930.1
7,927.0
7,902.2
7,914.3
Region V (Bicol
Region)
Region IX
(Zamboanga
Peninsula)
137
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
1999
0.47
0.42
0.01
0.29
0.58
2000
0.52
0.59
0.01
0.33
0.61
2001
0.48
0.40
0.01
0.30
0.56
2002
0.40
0.12
0.04
0.12
0.68
2003
0.47
0.27
0.07
0.22
0.69
2004
0.52
0.29
0.05
0.14
0.78
2005
0.47
0.29
0.13
0.10
0.68
2006
0.47
0.28
0.12
0.07
0.72
2007
0.40
0.26
0.15
0.04
0.61
2008
0.43
0.27
0.18
0.06
0.65
0.44
0.48
0.53
0.17
0.25
0.31
0.33
0.29
0.24
0.26
Source: BAS
TOTAL
50,077
PULP
30,960
2001
52,012
2002
CORDAGE
12,227
FIBERCRAFTS
6,890
32,818
11,615
7,579
48,230
33,610
10,600
4,020
2003
52,560
36,095
12,105
4,360
2004
50,900
37,600
9,250
4,050
2005
59,170
44,470
9,840
4,860
2006
56,175
40,200
10,625
5,350
2007
47,362
30,312
12,950
4,100
51,722
38,702
10,120
2,900
2008
Source: FIDA 5
Year
World
Demand
2000
81,981
2001
76,259
2002
74,989
2003
81,054
2004
84,375
2005
82,708
2006
79,312
2007
71,169
2008
77,066
Source: FIDA 5
Export
19,383
12,392
14,008
16,251
19,310
13,684
12,887
13,731
13,386
PHILIPPINES
Local
Total
Consumption
50,077
69,460
52,012
64,404
48,230
62,238
52,560
68,811
50,900
70,210
59,170
72,854
56,175
69,062
47,362
61,093
51,722
65,108
% Share
84.7
84.5
83.0
84.9
83.2
88.1
87.1
85.8
85.7
ECUADOR
Exports
% Share
12,521
11,855
12,751
12,243
14,165
9,854
10,350
10,075
11,958
15.3
15.5
17.0
15.1
16.8
11.9
12.9
14.2
14.3
138
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Table 8. Annual Export Earnings from Abaca and Manufactures (in FOB US$), Philippines
2000-2009
Year
Total
Fiber
86,792,00
2000
2001
2002
2003
2004
2005
2006
2007
2008
Pulp
18,099,23
0
71,450,75
8,900,71
68,582,49
9,190,82
78,171,27
10,692,63
73,513,56
14,147,43
86,718,65
12,084,71
90,681,10
12,820,69
79,349,91
13,489,01
99,462,99
12,648,884
219,988
15,713,046
439,034
9,064,184
317,865
10,241,644
289,263
11,454,093
480,102
11,478,758
429,417
1,110,55
21,485,46
15,155,64
15,105,63
9,570,63
11,714,91
13,386,36
39,083,93
7
22,232,83
5
217,756
52,539,85
0
11,295,220
52,388,12
4
40,413,44
7
545,114
36,220,92
4
20,744,26
11,454,331
31,367,14
6
Fibercrafts
29,551,59
8
Yarns &
Fabrics
35,949,06
9
Cordage
Ropes &
Twines
13,950,79
57,346,58
2
13,824,592
4,948,42
8
Source: FIDA 5
Table 9. Annual exports of abaca fiber by country of destination (in metric tons), 20002009
139
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Averag
e
%
Shar
e
19,38
3
12,39
2
14,00
8
16,25
1
19,31
1
13,68
4
12,88
8
13,73
1
13,88
5
7,223
14,276
100.0
5,021
2,851
1,168
29
20
26
50
22
919
6.4
5,021
2,851
1,168
29
20
26
50
22
919
6.4
EUROPE
United
Kingdom
7,871
4,409
7,655
9,686
6,650
6,731
6,328
6,326
3,238
7,019
49.2
7,871
4,409
7,655
9,686
11,29
7
11,29
7
6,650
6,731
6,328
6,326
3,238
7,019
49.2
ASIA
Japan
India
China
Indonesi
a
South
Korea
6,301
6,192
34
-
5,031
4,634
114
13
4,966
4,470
123
69
6,057
5,261
102
222
7,636
6,697
147
585
6,882
6,163
139
405
6,021
5,172
209
563
7,179
5,277
136
1,627
6,936
5,288
79
1,384
3,467
1,502
125
1,770
6,048
5,066
121
664
42.4
35.5
0.8
4.6
44
270
293
451
169
132
68
139
75
70
171
1.2
31
11
21
38
43
15
0.1
190
101
221
479
378
132
110
523
250
1.8
Destinatio
n
TOTAL
NORTH
AMERICA
United
States
OTHER
COUNTRIES
174
192
Source: FIDA 5
Table 10. Annual exports of abaca pulp by country of destination (in metric tons), 20002008
Destination
TOTAL
NORTH
AMERICA
United States
EUROPE
Germany
United
Kingdom
France
ASIA
Japan
Taiwan
South Korea
China
OTHER
COUNTRIES
Source: FIDA 5
2000
2001
2002
2003
2004
2005
2006
15,
664
15,
142
16,3
06
18,
934
20,4
70
23,2
88
22,5
26
7
28
7
28
6
15
6
15
36
3
36
3
3
71
3
71
47
7
47
7
83
7
83
7
95
7
95
7
9,
426
5,
955
2,
078
1,
393
9,
941
5,
431
2,
961
1,
549
11,5
40
5,4
79
4,3
71
1,6
90
13,
193
6,
760
4,
376
2,
057
15,0
96
7,9
45
4,9
88
2,1
63
15,8
36
8,5
33
5,5
00
1,8
04
16,7
57
9,3
49
5,5
23
1,8
85
5,
366
4,
918
1
10
4,
497
4,
129
1
48
5,
290
4,
649
2
20
98
2
41
78
1
42
4,2
87
3,8
10
19
8
7
9
20
1
28
3
94
4,7
18
4,2
49
11
8
1
5
33
6
6,4
82
5,6
80
30
2
3
6
46
4
4,1
29
3,6
11
22
4
4
7
24
7
1
43
89
11
5
80
17
9
13
3
68
3
2007
2008
18,26
0
18,10
3
Average
%
Share
16,869
100.0
593
3.5
593
3.5
779
8
04
8
04
12,68
7
11,53
2
11,601
68.8
7,673
7,293
6,442
38.2
2,941
2,680
3,542
21.0
2,073
1,478
1,609
9.5
4,505
5,746
4,502
26.7
3,931
3,595
1
41
3,857
22.9
166
1.0
39
0.2
484
1
3
52
286
1.7
170
21
161
1.0
779
203
7
Table 11. Annual exports of abaca cordage and allied products (in metric tons) by
country of destination, 2000-2008
140
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Destinatio
n
2000
2001
2002
2003
2004
2005
2006
2007
2008
TOTAL
8,257
7,464
7,329
8,834
6,365
7,196
8,300
9,481
United States
5,533
4,892
5,059
5,896
4,073
4,595
5,095
Canada
234
213
182
280
240
373
Germany
136
119
116
197
182
150
Australia
96
59
156
104
126
484
363
370
466
156
124
82
1,618
1,694
1,364
Singapore
Malaysia
Other
Countries
Averag
e
%
Share
7,475
7,856
100.0
6,471
4,916
5,170
65.8
251
237
155
241
3.1
224
201
160
162
2.1
89
172
56
43
100
1.3
392
369
537
781
523
476
6.1
310
105
109
217
241
151
166
2.1
1,581
1,247
1,511
1,803
1,495
5,203
1,946
24.8
Source: FIDA 5
Table 12. Annual exports of abaca fiber (in square meters) by country of destination,
2000-2008
Destina
tion
TOTAL
2000
2001
2002
2003
2004
99,420
19,699
120,261
113,614
110,970
2005
2006
2007
2008
185,450
350,078
629,656
698,335
Averag
e
%
Shar
e
232,748
100.0
United
States
4,405
1,524
3,808
277
226
29,706
80
4,003
1.7
Japan
United
Kingdom
2,256
27,56
8
3,224
476
2,542
10,012
182
2,226
2,984
15,044
3,895
1.7
3,408
7,731
11,516
10,653
5,687
49
1,179
7,203
7,499
3.2
France
110
292
366
1,627
495
1,467
3,554
Korea
113
Australia
Hong
Kong
Spain
Italy
Netherlan
ds
3,536
-
4,034
1,195
0.5
667
67
0.0
365
0.2
1,872
14,284
145,249
406,514
455,051
102,297
44.0
4,111
15,390
15,837
4,054
1.7
160,872
87,657
37.7
1,485
60,53
1
884
2,019
810
11,665
87,192
81,070
88,760
133,445
156,169
96,869
857
656
151
0.1
Lebanon
638
737
773
215
0.1
China
16,002
Nigeria
Other
Countries
226
121
2,095
Source: FIDA 5
5,715
68,656
27,019
11,739
5.0
9,347
19,892
25,089
13,716
13,675
8,172
3.5
285
1,646
10,441
1,481
0.6
141
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
2000
18.69
2001
15.16
2002
17.24
Annual
2003
2004
19.75 25.41
2005
32.82
2006
34.78
2007
34.17
2008
44.06
21.56
20.36
17.23
19.94
22.60
27.30
35.16
35.21
30.84
47.76
Albay
16.94
17.03
17.11
17.08
17.55
18.46
22.22
26.51
62.83
Camarines Norte
18.91
21.13
18.64
15.76
15.53
Camarines Sur
33.61
32.93
27.84
26.58
27.36
30.75
35.65
36.82
41.08
45.37
Catanduanes
25.29
25.32
19.31
21.60
24.82
30.03
37.54
36.46
30.51
47.15
Masbate
Sorsogon
17.61
15.18
12.57
12.70
15.24
22.23
25.25
31.58
32.67
44.69
Philippines
Region V (Bicol
Region)
Source: BAS
142
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
REFERENCES:
ABEJERO, RAMESES, SR. Mauswagon Credit Cooperative.
February 1, 2010
Palanas, Masbate.
Cataingan,
Ragay,
Ragay,
Ragay,
Ragay,
143
Supply/Value Chain Analyses of Four (4) Commodities (Abaca, Coco-Coir, Cassava and Queen Pineapple)
Under the RP-SPAIN, SAIS-BC Project
Maharlika Development
MARTINEZ, IIGO. LGU Focal Person. Iriga Farmers Development Coop. Iriga
City. January 21, 2010.
OCTA, FIDEL. LGU Focal Person. Basud, Camarines Norte
PHILIPPINE COCONUT AUTHORITY Mr. E. Allorde and Engr. A. Trespeces. Legazpi
City
YEE, MELINDA. LGU Focal Person. Maharlika Development Cooperative Sorsogon
City. January 7, 2010
www.bicolda.gov.ph
ATTACHMENTS:
Coco Roadmap
Costs and Return Analysis of the Cooperatives
8.00
130.00
180.00