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Technology Foresight for Pineapple Leather

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 TM 281 GAI-01
Second Semester
Academic Year 2018-2019

Technology Foresight for

Pineapple Leather

Group 2
Daymiel, Mariluz Germaine D.

Dealino, Martha Isabel S.

Harder, Andrew A.

King, Nyker Matthew C.

Ledda, Jerome Gerald S.

Marzan, Renz Joseph B.

Mina, Kenex Carl C.

Noche, Sandy Carina M.

Ong, Jibriel B.

Rosendo, Rene Jane R.

Samodio, Rozan Lauren D.

Valenzuela, Bea Andrea T.

Table of Contents
Preface 3

Step 1 4
Focal Issue Identification 4
Objectives 5
Timeframe 5
Appropriate Participants 6

Step 2 6
Political, Economic, Social, Technological, Environmental Analysis 6
Political 6
Economic 8
Social 8
Technological 8
Environmental 9
POTS Analysis 9
Potential 9
Opportunities 9
Threats 10
Strengths 10

Step 3 11
Identify and characterize key predictable variables 11

Step 4 12

Step 5 13
Clustering Variables 13

Step 6 16

Step 7 18
18
Piñabilities of Fiber2Leather 18
Piñagaling Pinoy Crop2Shop 18
Piñalawak Options2Solutions 19
. 19
Scenario 1: Piñabilities of Fiber2Leather 19
Scenario 2: Piñagaling Pinoy Crop2Shop 22
Scenario 3: Piñalawak Options2Solutions 23

Step 8 25
Scenario 1: Piñabilities of Fiber2Leather 25
Scenario 2: Piñagaling Pinoy Crop2Shop 25

1
 Scenario 3: Piñalawak Options2Solutions 27

Step 9 28
Scenario 1: Piñabilities of Fiber2Leather 28
Scenario 2: Piñagaling Pinoy Crop2Shop 29
Scenario 3: Piñalawak Options2Solutions 30

Step 10 31
Decision Analysis 31
Technology Roadmap 35

References 38

2
Preface

“Pineapple leaves which, along with the pulps are left in the field to rot in the 44,000-hectare
pineapple plantations in the Philippines, will soon become the source of huge additional income
for farmers.”

(Piñol, E., 2016)

This paper aims to provide technology foresight on the pineapple leather industry in the
Philippines by utilising scenario building and scenario planning tools. The authors have formulated
PowerTex, a consulting firm that evaluates the attractiveness and viability of the country's
pineapple leather industry.

3
Step 1

Focal Issue Identification

The chosen technology for this paper is the “Pineapple Leather”, Leather is the most
common animal product used in clothing and accessories, and while many others such as angora
and cashmere receive a bad reputation in the press, leather often gets forgotten about. It could
be due to the widespread nature of its use, or the greater economic value that this animal product
has to those involved in its production and sale.According to www.peta.org, as leather is basically
just skin, the base component (rawhide) is fully biodegradable. Without some form of treatment,
known as tanning, it would simply fall apart or become stiff, rendering it unusable. It would also
be a tasty snack for all sorts of critters.Tannery effluent contains large amounts of pollutants, such
as salt, lime sludge, sulfides, and acids. The process of tanning stabilizes the collagen or protein
fibers in skins so that they actually stop biodegrading. People who work in and live near tanneries
suffer, too. Many die of cancer possibly caused by exposure to toxic chemicals used to process
and dye the leather. Runoff from feedlots and dairy farms also creates a major source of water
pollution. Leather has the greatest impact on eutrophication, a serious ecological problem in which
runoff waste creates an overgrowth of plant life in water systems, which suffocates animals by
depleting oxygen levels in the water and is the leading cause of hypoxic zones, also known as
“dead zones.” Having said this, a solution that we thought of is to find an alternative that is more
economically and environmentally sustainable, which is through the Pineapple leather
technology.

To understand the process of turning pineapple leaves to leather the figure below show
the pineapple leather lifecycle:

Figure 1.1: Pineapple lifecycle process

4
 The process usually starts with pineapple production, upon harvest the leaves are usually
left to rot but through this process the pineapple leaves are decorticated to extract the fibers,
which is subjected to the degumming process to produce a non-woven mesh. Then, coating and
finishing technologies are in place, which produces the pineapple leather fabric that can be used
for clothing, shoes, apparel, furnitures etc. Currently, Ananas Anam Founder Carmen Hijosa, who
is a scientist by profession, developed a technology which processes pineapple leaves into
leather used by shoemakers, furniture designers and car manufacturers.This is now being
available in the market under the Piñatex brand. According to research Ms. Hijosa’s company
buys pineapple leaves from the local farmers at 1 php per kilo but this can go as high as 300 php
per kilo if decorticated. The end product, pineapple leather is worth 3000 php per kilo which is
actually ten(10) times the price of the decorticated leaves. Indeed, The higher you go in the value
chain the price and economic benefits go higher as well. Thus, this Technology Foresight aims to
determine how we can empower people to leverage this technology and to determine what are
the possible applications. For the purpose of this exercise, the company will be called;
“PowerTex: Bringing Power to the People Through Textile” and the Focal issue that this
paper aims to answer is:

Is pineapple leather an attractive new industry for the Philippines?

Objectives
In relation to the focal issue, this paper has two (2) main objectives:
1. To identify variables and scenarios that would enable adoption of Pineapple
Leather
2. To recommend effective strategies to relevant stakeholders

Timeframe
For this exercise, the technology foresight timeframe that will be used is a Five (5) year
plan. As follows is the graphical representation of the time frame of this study:

Figure 1.2: Timeframe for Product licensing

5
 Figure 1.3: Timeframe for Product Development

Appropriate Participants
The Appropriate participants of this study are as follows
● Pinya Farmers- as the main producers of the raw material
● Cooperatives (Eg. Labo Progressive Multi-purpose cooperative)
● Tanners’ Association of the Philippines - As the main group who would
potentially be displaced by this Pineapple Leather technology
● Manufacturers- as potential adopters of this pineapple leather for consumer
use
● Government(Eg.DTI, PhilFIDA, DOST-PTRI)-As the primary arms that could
push and give strategic direction for this technology.

Step 2

Political, Economic, Social, Technological, Environmental

Analysis

Political
P.D. No. 652: (February 1, 1975), or the amending Republic Act No. 3099,
creating the Bureau of Fiber Inspection Service under Department of Trade to
maximize the returns of fiber producers' investments, establish a more equitable
distribution of income and wealth; and impose stricter qualitative and quantitative
control by the government of fibers both for export and for local consumption.

Further, planters and cooperatives falling under P.D. 175 and Letter of
Implementation 23 exempt from payment of such fee* for grading permits to
persons or entities engaged in the grading and baling of fibers intended for local

6
consumption or for export, after they shall have proven that they possess the
necessary qualifications to carry on the work for 10 years from the fate of their
organization.

*Such entities shall pay in advance to the Bureau of Fiber Development and
Inspection Service an annual fee as follows:

First Class Php 5, 000.00

Second Class Php 4, 000.00

Third Class Php 3, 000.00

Fourth Class Php 1, 000.00

Executive Order No. 116, s. 1987

Reorganization of Act of the Ministry of Agriculture and Food that accelerates

agricultural development by encouraging private initiative in agri-business.

Other government agencies that help local growers, planters, farmers, &
cooperatives:

● Bureau of Agricultural Research (January 1987) is an agency of the

Philippine government under the Department of Agriculture responsible for
ensuring that all agricultural research is coordinated and undertaken for
maximum utility to agriculture.

● Agricultural Training Institute is the extension and training arm of the

Philippine Department of Agriculture, mandated to train agricultural
extension workers and their beneficiaries and lead in the delivery of e-
extension services for agriculture and fisheries.

● Bureau of Agricultural Cooperatives Development is a Department of

Agriculture sub-agency responsible for training agricultural extension workers
and their clientele; conducting multi-level training programs to promote and
accelerate rural development; and ensuring that research results are
communicated to the farmers through appropriate training and extension
activities.

R.A. No. 9178, or the “Barangay Micro Business Enterprises (BMBE's) Act of
2002” that grants exemption from taxes and fees, exemption from the coverage of
the Minimum Wage Law, credit delivery (financing needs), fund for technology
transfer, production and management training, and marketing assistance.

In a nutshell, local growers, planters, and those into agri-business enjoy

import/export tax incentives, ease of access to government funds and grants or
financial capacity building, knowledge capacity building and technology transfer
programs from the government.

7
Economic

● Population Growth (unpredictable and variable)

-The increase in population may affect the demand of leather in the country.

●Demand and Supply (predictable)

-Philippines top Pineapple growers in Asia, 3rd worldwide (1 Costa Rica, 2 Brazil)

●GDP (predictable)
-Manufacturing of leather goods contribute to the GDP of the Philippines

●Employment Rate (predictable)

-Jobs for Farmers & Processing
-LPMC increase, displaced farmers from rice tariffication, skilled workers, etc.

Social

●Market Demand:

The global leather goods market is USD 95.4 billion in 2018 and will reach USD
128.61 billion by 2022 at a growth rate of 4.36% during the forecasted period.

●Market Awareness:

Nowadays, customers are now more aware and wish for designer leather products
which are pushing this industry.

Technological

●Decorticating
- Supported by PhilFIDA who provided 30 machines to LMPC & Plantation.

●Degumming
- A service offered by PTRI in different regions.

●Non-Woven Mesh
- Currently few manufacturers are mostly Manila but might increase with the
ecobag movement.

8
 ●Finishing
- Not located in the Philippines

●Competencies
- Unfortunately, deprioritized education on agriculture and the next of kins of the
people in the agriculture industry (namely, farmers, planters, etc.) opts to deviate
from their sector.

●DTI Marikina
- Shared service facilities for high value custom-made (small businesses).

Environmental

● Beat plastic pollution.

● Animal Exploitation.
● Manufacturing becomes air pollutants.
● Promotes circular economy.
● Typhoons & earthquakes.
● Insect & other pestilence.
● Tropical country: conducive for fruit farming.

POTS Analysis

Potential
The Pineapple leather may face some compatibility issues in integrating
the said leather in other material. The leather does not allow a strong bond with
the polymer matrix since it has low surface tension (Asim, Abdan, Jawaid, Nasir,
Dashtizadeh, Ishak, & Hoque, 2015). Furthermore, a study has shown that
degradation of finished pineapple fiber-applied products was observed upon
contact with water because of pineapple fiber's hydroscopic nature (Asim et al.,
2015).

Opportunities
Studies have shown that pineapple leather can be a good alternative to
genuine leather. Moreover, unlike genuine leather, pineapple leather can be
treated to be used as an effective anti-bacterial wound bandage—as the pineapple
leather allows air to circulate to an injury. The said material is also being eyed to
be used as residential insulation.
Aside from its unorthodox applications, by shifting the linear economy to a
circular economy, patronizing pineapple leather can help alleviate poverty in our

9
 agricultural sector as it is then the primary source of the pineapple leather
production.

Threats
Despite the positive outlook in the possible opportunities of pineapple
leather, the said material faces some threats in its R&D and production
sustainability. As the country is located in the Pacific ring of fire, calamities are
known to devastate agricultural crops—leaving the country to sustain huge losses.
The government support can also be seen as lacking in R&D activities.
Since the establishment of PTRI in January 3, 1967, the country's hailed premier
national research institute, there have only been few research publications
(Philippine Textile Research Institute, 2013; Philippine Textile Research Institute,
2014)—proving that there is a significant room for improvement in enhancing the
Filipino competencies in R&D activities in order to attain technology catch-up
through leapfrogging. The private sector will thereafter consider partnering with the
research institutes, such as the PTRI, after it has proven its name in its innovations
output.
Since the pineapple leather is a vegan leather that has just begun its pilot
stage, consumer skepticism are anticipated. To understand the value of shifting to
a circular economy, aside from having a green thumb, education plays a vital role
in consumer adoption. of the said material. Moreover, the consumers have been
used to genuine leather products and some have already established their brand
loyalty to such products. Sceptic consumers may also see the product as a knock-
off product instead of the pineapple leather's benefit in the environment since
consumers are known to associate vegan leathers to such notions.
The pineapple leather also faces severe competition among its other vegan
leather competitors as it has the first-mover advantages and may have better
technological parameters such as cost effectiveness.

Strengths
The environmental benefits of the pineapple leather is the most highlighted
strength of the product. A material that not only contributes to the shift from linear
to circular economy, but also contributes to less ecological footprint, less carbon
footprint, less water usage, and less livestock’s skin footprint.

Since the aim of the technology roadmap is to forward integrate the

production process, the supplier of this material is definitely our local pineapple
farmers. Having a direct local supplier, not only minimizes costs but also gives the
local pineapple agriculture a boost in their morale.

The pineapple leather also boasts its effectiveness as an alternative

material to genuine leather as it has lighter, softer, more flexible, and more durable
material compared to the latter material (Asim et al., 2015).

10
Step 3

Identify and characterize key predictable variables

Leather as a material for any product is known for its premium feel and look. It can also
create a high market value for a certain product pricing cost by simply adding it to complement
the product. Knowing these certainties, there are key predictable variables that can be of help in
predicting the logical scenarios for roadmapping and characterization of its scenario building.

The Key Predictable Variables (KPV) that were identified are listed below:

1. Licensing of pineapple leather technology

2. Tax exemption laws
3. Exportation laws
4. Technology transfer laws
5. Local demand of genuine leather goods
6. Local demand of synthetic leather goods
7. Local demand of vegan leather goods
8. Global demand of genuine leather goods
9. Global demand of synthetic leather goods
10. Global demand of vegan leather goods
11. Local leather supply transportation
12. Local leather supply location
13. LMPC stability
14. Pinatex demand
15. Availability of pineapple fiber in other regions
16. Population growth
17. GDP
18. LGU Support
19. PTRI Office availability
20. Health of workers
21. Gender preference
22. Religion preference
23. Cultural preference
24. Consumer Behavior
25. Age Market Trends
26. Disposable income
27. Socioeconomic behavior
28. Age distribution
29. Social media influencers
30. Yield Decorticating
31. Yield Degumming
32. Yield Non-woven Mesh
33. Animal exploitation
34. Tropical country
35. Typhoon
36. Local influencer awareness
37. Global influencer awareness

11
 Having the above list, the number one predictable variable is the licensing of technology
which can be done as a government request to Ananas-Anam. The government can also help the
manufacturers that will produce the pineapple leather by having their tax exempted for some time
and also ease the exportation laws with this produce. Keeping these things in mind will help the
companies flourish and explore more possibilities with the raw material and leather goods.

Step 4
The possibility of synthetic leather in the Philippines leads to a bigger opportunity for
pineapple fiber as the primary source of this product. Despite the greater demand yet insufficient
production that our country has in order to produce the needed supply, this forecast identified
critical uncertainties which predetermine what measures that should be implemented to avoid the
likeliness of risks to be encountered.

The Critical Uncertainties that were identified are listed below:

1. Laws on BMBE
2. Grants for new machines & methods
3. Grants for textile finishing machines
4. Tax exemptions for needed machines
5. Technology transfer
6. Pineapple company layoffs
7. Health of workers
8. Interest of youth to farm
9. Competition with Pinatex
10. Competition with China’s Synthetic leather
11. Competition with other top pineapple growers
12. Customer preference
13. Awareness on animal exploitation
14. Awareness on leather alternatives
15. Awareness of pineapple leather
16. Preference vs. Genuine Leather
17. Preference vs. Synthetic Leather
18. Pace of fashion
19. Other pineapple fiber applications
20. New Market Opportunities
21. New machines and methods (decorticating, degumming, non-woven mesh, agriculture)
22. Coating & finishing for synthetic leather in the Philippines
23. Agriculture
24. Fiber extraction
25. Fiber processing
26. Textile finishing
27. Animal exploitation
28. Impact of chemicals used in the tanning process
29. Earthquake
30. Pest infestation
31. Typhoon
32. Tropical country

12
 33. Climate change
34. Laws on climate change
35. Price of Pinatex
36. Cost of Pineapple Leather

Even if these uncertainties are unavoidable aspects of any scientific endeavor, the
appropriate response to uncertainty is exactly the opposite: uncertainty provides an impetus to be
concerned about. Greater uncertainty increases the risks associated. So, it is important to identify
the uncertainties as early as now in order to mitigate less risk to occur during the implementation
and adoption of pineapple as an alternative to genuine leather.

Step 5

Clustering Variables

After identifying the unpredictable and predictable variables, the next step would be
grouping them based on their common focus. The clustering is done by examining the predictable
and unpredictable variables to identify different aspects of the same factor. It is a crucial step
because the variables will now become a more manageable set of data that can be used later on
when creating possible scenarios.

Cluster Variable(s) Description

Technology Policies ● Licensing of It pertains to changes in

Pineapple leather technology policies in the
technology Philippines
● Technology patents
● Technology transfer
policies

Economic Policies ● Tax Exemption It pertains to changes in

● Exportation economic policies in the
Philippines

Economic Growth ● GDP It pertains to the economic

● Population Growth stability of the country

Local Demand of Leather ● Genuine Leather It pertains to the local

● Synthetic Leather demand for leather products
● Vegan Leather

Pricing of Pineapple ● Price sensitivity of It pertains to the factors

Leather consumer affecting pricing of the
● Price of Pinatex pineapple leather given the
● Cost of Pineapple current status quo

13
 Leather

Global Demand of Leather ● Genuine Leather It pertains to the global

● Synthetic Leather demand for leather products
● Vegan Leather

Local Leather Supply ● Transportation It will help to determine if the

● Location company can provide enough
● Synthetic Leather supply for the demand.
● Genuine Leather

Pineapple Fiber Supply ● LMPC stability It pertains to changes in

● Pinatex demand supply of raw material
● Availability of
pineapple fiber in
other regions

Regional Distribution ● LGU Support It pertains to distribution of

● PTRI Office collection and consolidation
Availability center for components and
finished goods.

Yield of processes ● Decorticating It pertains to trends in yield of

● Degumming processes given status quo
● Non-woven Mesh

Influencers ● Local influencer It pertains to the impact and

awareness number of influencers that
● Global influencer would promote the product.
awareness

Preference ● Gender preference It pertains to possible

● Religion preference changes in behavior
● Cultural preference

Market Demand ● Consumer Behavior This sector will help to

● Age Market Trends determine the possible
amount of buyers in the
market.

Buying Power ● Disposable income It pertains to the amount of

● Socioeconomic money a person is willing to
behavior pay for the product.

New Machines and ● Decorticating It pertains to the processes or

Methods ● Degumming equipment needed to
● Non-woven Mesh produce a pineapple leather
● Agriculture product.

Finishing Production in PH ● Coating & finishing for It pertains to the availability of

Synthetic Leather in coating and finishing

14
 the Philippines technology in the Philippines

Competencies ● Agriculture It pertains to the specific

● Fiber Extraction observable and measurable
● Fiber Processing knowledge that can affect the
● Textile Finishing quality of pineapple leather in
the market.

Consumer Adoption ● Preference vs. This sector will identify the

Genuine Leather preferences of the target
● Preference vs. market whether they are
Synthetic Leather willing to adopt to the use of
● Pace of fashion synthetic leathers.

Knowledge Capacity ● Laws on BMBE It pertains to possible

Building changes to the BMBE

Financial Assistance ● Grants for new It pertains to the possible

machines & methods financial assistance that will
● Grants for textile help to lessen the cost of
finishing machines producing good quality
● Tax Exemptions for pineapple fiber products.
needed machines

Supply of workforce for ● Pineapple Company It pertains to factors affecting

pineapple plantation lay-offs supply of workers of
● Health of workers pineapple plantations
● Interest of youth to
farm

Global Competition ● Competition with It pertains to competition of

Pinatex pineapple leather outside the
● Competition with Philippines
China’s Synthetic
leather
● Competition with other
top pineapple growers

Market Awareness ● Awareness on Animal It pertains to awareness of

Exploitation the public on issues on
● Awareness on leather genuine leather and the
alternatives alternatives
● Awareness of
Pineapple leather

New Pineapple Fiber Goods ● Other Pineapple Fiber It pertains to the innovative
Design Applications uses of pineapple fiber that
● New Market may open new opportunities.
Opportunities

Unpredictable Natural ● Earthquake It pertains to potential

15
 Calamities ● Pest infestation unpredictable natural
calamities

Sustainability of Genuine ● Animal Exploitation It pertains to the parts of the

Leather ● Impact of Chemicals processing of genuine leather
used in the tanning that may affect the
process environment

Seasonal Natural ● Typhoon It pertains to natural

Calamities ● Tropical country calamities that come with the
season

Carbon Footprint ● Climate Change It pertains to increase in heat

● Laws on climate index and changes in laws to
change mitigate climate change

Step 6
This step entails the identification of clusters, that will be used for the formulation of
different scenarios, from the previous step. The group discussed topics related to all of the clusters
presented and arrived at a consensus regarding their impacts and uncertainties by giving scores
with 1 being the lowest impact and uncertainty and 10 being the highest. The summary of the
scores of the different clusters are tabulated in Table X.X.

Clusters Uncertainty Impact

KEY PREDICTABLE

Technology Policies 2 8

Economic Policies 4 7

Local Demand of Leather 6 8

Global Demand of Leather 2 10

Local Leather Supply 2 9

Pineapple Fiber Supply 2 10

Economic Growth 4 4

Regional Distribution 2 8

Pricing 6 9

16
 Market Demand 6 10

Buying Power 5 9

Consumer Preference 2 6

Influencers 2 5

Yield of processes 2 7

Sustainability of Genuine Leather 4 10

Seasonal Natural Calamities 2 4

UNPREDICTABLE

Knowledge Capacity Building 7 9

Financial Assistance 6 7

Supply of workforce for pineapple plantation 6 2

Global Competition 8 6

Market Awareness 8 8

Consumer adoption (crossing the chasm) 6 9

New pineapple fiber goods design 7 9

New machines & methods 9 10

Finishing Production in PH 8 10

Competencies 8 9

Carbon Footprint 7 5

Unpredictable Natural Calamities 9 4

Table X.X: Summary of Cluster Scores based on Impact and Uncertainty

With the results acquired, the group plotted the numbers on the x and y axes with the x-
axis corresponding to the uncertainty of the cluster and the y-axis with the impact of the cluster.
The plot for the data involving the considered clusters can be observed on the figure below.

17
 Figure X.X Impact and Uncertainty of the Clusters

Based on the plot that we sketched, there are clusters that have significant values in
uncertainty and impact variables (Quadrant I). These clusters are then selected by the group to
form different scenarios that the group will use in forecasting. Using these clusters, the group
formulated three scenarios and each scenario will be discussed in the next steps.

Step 7
The selection and formulation of the different scenarios will be based on the clusters that
we selected. In this project, we formulated three different scenarios. Each scenario is composed
of three to four variables that the group selected based on their impacts and uncertainties. These
scenarios and their corresponding clusters are summarized in Table X.X.

Scenarios Legend Clusters

LD Local Demand of Leather
Piñabilities of FA Financial Assistance
Fiber2Leather
MA Market Awareness

MD Market Demand
Piñagaling Pinoy BP Buying Power
Crop2Shop
CA Consumer Adoption

18
 New Pineapple Fiber Goods
NP Design

NM New Machines and Methods

Piñalawak FP Finishing Production in PH
Options2Solutions
C Competencies

Table X.X: Scenarios with their corresponding clusters

Each scenario has different objectives and risks that the group would like to study even
further. Their descriptions are composed based on the research and studies that the group
conducted.

Scenario 1: Piñabilities of Fiber2Leather

Local Demand for Genuine Leather

Based on the flagship event Philippine Garment and Leather Goods Industries and Fabric Expo”
held in August last year (2018), over USD 1.20B-worth of garments, textile, footwear, and leather
goods were exported in 2016 according to the Bureau of Investments (BOI).

Moreover, “the market demand of clothing in the Philippines is forecasted to be $ 11.9-Billion for
2018.”

Today, “leathergoods” imply a gamut of functional items that follow fashion trends.

Aside from their basic use of holding various personal items, leather goods also serve as clothing
accents and prime upholstery material.

With the local manufacturers’ incorporation of indigenous fibers and materials into their product
designs, producers broadened their product lines and also became more innovative in terms of
design.

(Sources: PDI-Pressreader & Philexport.Ph)

Market Awareness

A survey was conducted to initially determine and study the market behavior and
awareness of the market for pineapple fiber as an alternative for leather material substitute. The
sample size for this study consists of 136 individuals. It was found out that the majority of the
respondents are mostly not aware of pineapple fiber as a leather material substitute.

19
 Figure X. Market Analysis by Age Category

The respondents were also clustered by the age in for market analysis. Based on the
current data, most of the respondents preferred genuine leather from the 25-35 age category and
none from the 36 and above age category preferred synthetic leather.

Figure X. Gender Identity and Leather Material Preference

Results also show that males mostly prefer genuine leather and females have no
preference for leather material. There are also a small number of females that prefer synthetic
leather over genuine leather.

20
 Figure X. Consumer Environmental Sustainability Awareness

Since animal leather production involves toxic chemicals affecting workers and the
environment it is important to determine whether this affects consumer behavior. According to
Figure X, respondents are mostly aware about the environmental impacts of animal Leather
Production and have a 25% price elasticity to switch to a more sustainable leather material.
Additionally, the majority of the respondents that are not affected about the animal leather
production environmental impacts are also willing to explore other viable material alternatives and
spend 25% more than genuine leather.

Financial Assistance: SMEs and Manufacturers

The government together with some selected financing institutions are setting up a 1.2
billion facility to assist the development of the garments and textile industry. As a matter of fact,
the Department of Science and Information Technology (DOST) Philippine Textile Research
Institute (PTRI) acquired equipment for the Innovation Center for Yarns and Textiles last May 25,
2015. This is a 54 million flagship project of the agency which aims to put tropical fabrics such as
piña and banana in the mainstream by producing more yarns of abaca, banana, pineapple and
other indigenous fibers and make them available to handloom weaving communities and
commercial millers or knitters in the country. PTRI has also partnered with Power Fashion, the
company behind local clothing brands Unica Hija, Vise Versa, and Bayo, which has agreed to use
said fabrics in one of their capsule collections.

Moreover, the attached agency is opening its doors to new innovations and launching its
new programs and initiatives that incorporate the “Concept to Cloth” theme. Among these are
(1)“The Perfect Fit” Project (Textile Product Development Center), it is the first textile R&D
“laboratory” in the Philippines that provides access to textile designers, artists, retailers, and
manufacturers to aid them in the prototyping of their designs/products for evaluation before
offering it to the public, (2) “Textile Design Hub” a proposed hub concept of physical and virtual
space which will bring together textile stakeholders from the academe, social entrepreneurs, and

21
local weaving communities and (3) Open House to enable first-hand views and close encounters
with the research, testing, and technical services teams of the Institute. (DOST-PTRI website).

In addition, the DOST continuously provides assistance to relevant R&D endeavours to

push the development of local and appropriate technologies with socio-economic benefits for the
people through its Grant in Aid (GIA) programs. In line with this is the CRADLE program which
encourages synergic relationships between academe, research and development institutions,
and the industry through collaborative Research and Development (R&D) projects. Supported
industries by this program that is recognized by DOST and DTI includes Agriculture and
Manufacturing, the private sector can identify the problem that undertake the R&D to solve the
problem.

Another government agency tasked to aid and provide assistance for the SMEs and
Startup leather goods manufacturers is the Department of Trade and Industry. The agency has
an ongoing program called Shared Services Facilities wherein the agency has invested a lot of
capital and equipment for the manufacturing process of goods in various local industries. One of
these industries that they are currently subsidizing is the shoe and leather goods industry.
Through this government channel, we will have an excellent way to introduce Pineapple leather
as a viable alternative to animal hide leather as a raw material.

These shared services facilities for the shoe and leather industry in Marikina City cater to
SMEs and small manufacturers of shoes and other leather goods all over the nation. Through
this office, we can already promote the positive sustainable qualities that Pineapple leather
represents. Having these manufacturers use the material for their leather goods will mean
exposure and availability of products made from Pineapple leather to end consumers. Once
consumer products are made readily available, awareness of Pineapple Leather will naturally
increase.

On the other hand, aside from public funding and subsidies, there are also private firms
and association that offers financing through loan and sponsorship to textile industry and fabric
manufacturers such as (1) Conventional Bank Loans, (2) Textile Company Small Business
Administration (SBA) Loans, (3) Alternative textile Business Loans, (4) Asset based financing, (5)
Equipment Financing and (6) Industry Cash Advance.

Scenario 2: Piñagaling Pinoy Crop2Shop

Scenario 2 explores the possibility of mastering textile processing & finishing technologies.
It has been explained in the previous stages that the coating & finishing of the Pineapple leather
was done in Spain because of the lack of facilities and competencies in the country. This
technology is crucial since it allows the pineapple fiber base textile to transform into the leather
look and feel. Such technology also allows development of other kinds of textiles which the
Philippines usually import from nearby countries such as China.

22
Additionally, this scenario explores the possibility of forward integration of farmers. It seeks to
discuss the linkages between the Filipino competencies on agriculture, the agricultural technology
acquisition, the design and the production of local pineapple-fiber-made products. The need for
technological mastery and deepening can be seen in the country’s pressing issues in agriculture
and textile industry as described in the following paragraphs.

The Philippine agricultural competencies can be seen as a neglected factor by its

countrymen. Fraynas (2013) noted that the average age of farmers are between 55 to 59—an
aging population of farmers. Fraynas (2013) also emphasized that much of the youth “prefer jobs
that are urban in nature” because of the perceived hardships of being in the agricultural industry.
This is reflected in the 2015 poverty incidence report of Philippine Statistics Authority which
reported that the agriculture sector continues to receive the lowest wages in the Philippines
(Bersales, 2017). This resulted in dropping the number of agricultural course enrollees. Moreover,
discouragements continue to pile up against farm workers as the cost of inputs continues to rise
but, unfortunately, prices of produce also continue to plummet (Fraynas, 2013). The said series
of events dragged down the number of enrollees in agricultural courses (Fraynas, 2013) which
contributes to the dying agricultural competencies in the country.

Labo Progressive Multi-purpose Cooperative (LPMC) general manager, Mario Espeso,

reported that only 4 out of 8 deployed decorticating machines are working (Biccay, 2016).
Troubleshooting skills are lacking as no technological mastery among the farm workers.
Therefore, production of non-woven mesh fiber is slowed down. Moreover, most of the post-
harvest processes are exported to other countries because of the lack of technological mastery
and facilities in the local industry.

Aside from the decroticating process, degumming and non-woven mesh techniques and
technologies can be improved further through focus in R&D. Degumming is currently offered at
PTRI shared services facilities. Non-woven mesh suppliers are quite limited and are mostly found
in CALABARZON, luzon. Strengthening competencies in these two stages would further reduce
cost of production and improve yield and efficiency.

Scenario 3: Piñalawak Options2Solutions

Scenario 3 aims to explore other applications of pineapple fibers in order to promote

consumer adoption. It seeks to discuss the linkages of market demand to the consumer's buying
power, as well as to new pineapple fiber-good designs, in order to promote consumer adoption.

There is a high market demand for the decorticated pineapple fibers from both
international and local markets. For instance, Pinatex, also known as Ananas Annam and based
in the United Kingdom, ordered 47,030 kilos of decorticated fiber in 2017 (Cooperative
Development Authority, n.d). However, the supply is inadequate to meet this immense market
demand, such that the production volume of pineapple fiber is at merely 631 kilos from a total of
130 hectares owned by Labo Progressive Multi-Purpose Cooperative (LPMC) and its members
(Cooperative Development Authority, n.d).

Note that the aforementioned demand, especially the international demand, is mostly for
pineapple leather production. As such, if pineapple fibers itself were instead used to create non-

23
leather products, this demand would further increase and generate a viable Pineapple industry in
the Philippines.

On the consumer-side, creating sustainable and affordable pineapple-based products

may drive buyer power and enable ease of consumer adoption. Based on a survey conducted by
the group with 136 respondents, consisting mostly of young professionals aged 25 to 35 years
old, 77% are willing to pay an extra premium of at least 25% more than genuine/animal leather
for sustainable leather alternatives. This shows that buyers have both the initiative and purchasing
power to patronize affordable and sustainable leather alternatives. Additionally, the leather
alternatives should retain the properties of genuine leather, since 89% of the respondents
answered durability as the top consideration when purchasing leather goods.

Figure X. Willingness to Pay a Premium for Sustainable Genuine Leather Alternatives

Figure X. Consumer Considerations when Purchasing Leather Goods

24
Step 8

Scenario 1: Piñabilities of Fiber2Leather

Legend:

LD: Local Demand of

Genuine Leather

MA: Market Awareness

FA: Financial
Assistance

Figure X.X. The

possibility of pineapple leather as an alternative material for manufacturers and SMEs

LD: The market demand of clothing in the Philippines is forecasted to be $ 11.9-Billion for
2018.
MA: Out of 136 individuals in the survey conducted, it was found out that the majority of
the respondents are mostly not aware of pineapple fiber as a leather material substitute.

FA: The government (DOST-PTRI, DTI) together with some selected financing institutions
(Private Firms) are setting up facilities and providing funding to assist the development of the
garments and textile industry.

As the local demand for genuine leather and market awareness here in our country
increases, the possibility of pineapple leather as an alternative material for manufacturers and
SMEs also elevates. Product demand has a direct connection to the awareness of the user to the
use of the leather, the more the customer is aware of the leather the higher the demand it creates
to the market. These factors push most of the firms to invest in developing a technology that will
serve as an alternative to genuine leather. Also, this initiative is supported mostly by financial
assistance coming from public or private firms. In contrast with the local demand for genuine
leather, we examine the market awareness of Pineapple leather and its viability for business,
small trade, and industry financing and subsidy.

Scenario 2: Piñagaling Pinoy Crop2Shop

Mastering textile processing & finishing technologies

25
 Legend:

NM : New machines & methods

FP : Finishing Production in PH

C : Competencies on Agriculture

Figure XX. Enhancing Technological Capabilities in Pineapple-Fiber Products Production in PH.

C: Development of competencies becomes a priority of PTRI, and sends researchers to STAHL

CAMPUS ® to train on the current trends and technologies about the manufacturing of alternative
leather textiles. Short courses will be offered in Technical Education and Skills Development
Authority (TESDA), in partnership with local textile companies and national R&D institutes. This
will supplement the drive in encouraging the youth to venture out in studying textiles in the hopes
of having a decent-paying job.

DepED revives garden programs to rekindle interest of youth in agriculture, while CHED
updates the curriculum in Agricultural & Textile courses. PhilFIDA to aid them in gaining
technological mastery in pineapple fiber processing and production. After which, farm workers
can move from adaptation to innovation through technological deepening. They will ask the
agriculture academy and industry experts, as well as DOST PTRI, to aid them in reverse
engineering Piñatex’s and its competitors’ products. Agricultural competencies will thereafter be
built drastically.

FP: Armed with the new knowledge and skills, PTRI collaborates with DTI for the setup of textile
coating & finishing shared services in the Philippines. This stage is important in the value chain
of Pineapple Leather, and production costs and pricing decreases by lessening shipping costs to
the facility.

NM: PTRI collaborates with SUCs to improve fiber extraction and degumming processes and
machines. As agricultural competencies grow, agricultural machineries will also be developed by
local agricultural and engineer graduates. They will venture in creating machines designed to
expedite the pineapple fiber processing. They will also be capable of troubleshooting the

26
machines. Machine downtimes will then be mitigated which will lead to increase in production of
non-woven mesh.

In order to overcome the “me-too” stage of the products, additional technological

parameters will be incorporated in the product such as increased flexibility and durability, as well
as adding water repellent characteristic to the product. Such additional parameters will require
incremental innovations and are hence subject to R&D activities. Moreover, the developed
agricultural machines will be deployed in the DTI Shared Service Facilities for High Value Custom-
Made for Footwear Plant. Bagmakers and shoemakers can then utilize the technology by using
the machines in the said plant.

Scenario 3: Piñalawak Options2Solutions

Legend:

MD : Market Demand

BP : Buying Power

New Pineapple Fiber-Good

NP :
Designs

CA : Consumer Adoption

Figure XX. Exploring pineapple fiber applications and market adoption

Given the strong and flexible fibers, this scenario explores other possible pineapple fiber
applications leading to greater market demand and constituting an attractive new Pineapple
industry in the Philippines.

MD: Pineapple fibers are now being used massively for clothing, apparels, and furnishing,
in the aircraft and automotive industry for things like door panels, dashboards, trunks, seats; as
well as electronic goods like cellphones and laptops. They are part of the weight reduction moves
of the industries that use them; and their use is a meaningful salute to the environment for it brings
awareness to their biodegradable, natural, and benign presence in products.

According to Dr. Clarito Barron, Officer-in-Charge of PhilFIDA, we are not producing

enough of these fibers to meet the demand. So, that is what the PhilFIDA road map is all about –
to raise production to meet demand and to benefit from the opportunities that a growing market
will give to those who have the natural fibers. At present, world consumption growth rate for these

27
fibers is 11 percent. And it is expected that the next five years will produce a growth rate of 15
percent.

NP: The current use of pineapple fibers is focused on creating leather products for
clothing, apparel and furnishing. In the future, pineapple leather may be used to create sports
merchandise such as basketballs or baseball gloves. However, the future of the pineapple fiber
usage may not be restricted to the leather industry. The pineapple fiber itself may also be used
for thermal insulation, as natural fibers are known to have better thermal technical characteristics
than synthetic fibers. The durable and flexible pineapple fibers may also be used for packaging
products and may eventually become an alternative to plastic bags and containers. Thereby
responding to the market demands that are related to environmental sustainability and circular
economy.

BP :Once the pineapple fiber industry is able to penetrate these new product designs, the
market demand is capable of driving enough buying power to enable ease of consumer adoption.

CA: Note that the new product design is driven from the market demands thus, allowing
to craft more responsive products that are geared towards facilitating better market adoption for
this new market opportunity.

Step 9

Scenario 1: Piñabilities of Fiber2Leather

Strengths Vulnerabilities Impacts

● Sustainable supply for ● Demand for genuine ● Sustainable supply of pina

local industries Leather leather

● Ready government ● Price elasticity of ● Technology is available;

linkages for technology
push
● Ready SMEs and
business channels for
adoption of new
alternative materials
consumers to Pineapple Leather becomes
sustainable part of the leather goods
alternatives industry.
● Low awareness for ● Value added pina leather
Pineapple leather products become available

Strategy: To implement a focused differentiation strategy on alternative leather materials

for SMEs and Manufacturers to address the demand for sustainable leather

28
Scenario 2: Piñagaling Pinoy Crop2Shop
Mastering textile processing & finishing technologies

Strengths Vulnerabilities Impacts

● Develops ● Significant efforts ● Creates opportunity

technological between academic and to develop new
mastery and private sector linkages textiles using other
deepening in will be challenging philippine fibers that
agriculture and ● National and local may be offered
textile industry government grants globally
● Improves yield in significant amount of ● Develops
fiber extraction budget for long-term competitive
● Increases output development projects advantage of the
of degumming ● Risk of intellectual nation and potential
and non-woven property infringements to become a fiber
mesh processing by being a me-too processing global
● Decreases cost product. center of excellence
of production ● Risk of trained ● Promotes fiber
● Creates jobs personnel seeking processing R&D, in
within the opportunities which output may be
Philippines elsewhere offered globally

29
Strategy: Implement textile finishing technology catch-up initiated by the government

Scenario 3: Piñalawak Options2Solutions

Strengths Vulnerabilities Impacts

● Strong and flexible ● Limited production ● New material applications

fiber of pineapple fibers that can expand and
open new product and
● Good leather ● Lack of local market potential
alternative access to process
technologies ● May cause disruption of
● Has various leather providers
applications in ● Insufficient R&D
different industries to come up with ● Provision of more options
(Clothing, furnitures, product and and alternative materials
automobile, etc.) market for consumers
innovations
● Promotes circular
economy and ● Marketability of
environmental output is subject
sustainability to consumer
buying power

Strategy: Develop product and market strategies for other Pineapple fiber applications

30
Step 10

Decision Analysis
Upon formulating various strategies, it is important to evaluate each and set a criteria to
determine if the focal issue is being addressed and objectives are met. A decision analysis tool
was used to assess different strategies for developing pineapple leather, an attractive new
industry for the Philippines for stakeholders.

The first part of this decision analysis tool consists of non-negotiable requirements for a
strategy to be robust under all scenarios. For a strategy to proceed to the next phase of the
decision analysis process it must satisfy all the non-negotiable requirements. Any strategy that
cannot fulfill the initial requirement will immediately drop out of the analysis.

Focused
differentiation Implement textile Develop product
strategy on finishing and market
MUSTS
alternative leather technology catch- strategies for other
(Non-negotiable)
materials for SMEs up initiated by the Pineapple fiber
and Manufacturers government applications

31
 Increase pineapple
fiber production

Improve technology
awareness

Improve production
cost

Improve
environmental
sustainability

Upon assessment, it was found out that there are three major strategies that satisfy the
first condition of the decision analysis tool used.In the next phase, strategies are further assessed
according to other factors that are not necessarily mandatory. This gives a sense of how different
strategies perform relative to each other.

Focused
Implement textile Develop product
differentiation
finishing and market
strategy on
WANTS technology catch- strategies for other
alternative leather
up initiated by the Pineapple fiber
materials for SMEs
government applications
and Manufacturers

Weight Rating Rating Rating Weighte

Weighted Weighted
( 10 - ( 10 - ( 10 - ( 10 - d
Score Score
High) High) High) High) Score

Improve
Pineapple
Leather 8 9 72 10 80 8 64
Export
Capacity and
Capability

Increase 10 9 90 8 80 10 100
product
diversification

32
 Develop new 7 6 35 9 63 5 35
textiles using
other
philippine
fibers

Total Score 197 223 199

Results from the next phase of the decision analysis tool shows that the strategy with the
most weight is implementing a technological catch-up, followed by focused differentiation and
product diversification which relatively have equal weights. This means that in order for our
objectives to be achieved we must prioritize technology catch-up but still implement the two
remaining strategies since they have satisfied our conditions in the first phase of the decision
analysis tool.

Lastly, the risks and vulnerabilities per strategy are listed and rated according to
seriousness and probability. This will allow the stakeholders to mitigate risks and further assess
the effectiveness of the strategies into different scenarios. For a project to have high risks it must
have a rating of six and above for both seriousness and probability. Also for a strategy to proceed
it must not have a rating of 10 for both seriousness and probability because it is bound to fail if it
has a rating of 10.

Focused differentiation strategy on

alternative leather materials for SMEs and
Manufacturers
Risks and Vulnerabilities

Seriousness Probability
( 10 - High) ( 10 - High)

Demand for sustainable leather 7 5

alternatives may be correlated with
the demand for animal hide leather.

Price elasticity of consumers to 9 7

sustainable leather alternatives

33
Low awareness of pineapple leather 6 9

Implement textile finishing technology

catch-up initiated by the government

Risks and Vulnerabilities

Seriousness Probability
( 10 - High) ( 10 - High)

Significant efforts between academic 8 5

and private sector linkages will be
challenging

National and local government grants 10 5

significant amount of budget for long-
term development projects

Risk of intellectual property 6 9

infringements by being a me-too product.

Risk of trained personnel seeking 8 10

opportunities elsewhere

34
 Develop product and market strategies for
other Pineapple fiber applications

Risks and Vulnerabilities

Seriousness Probability
( 10 - High) ( 10 - High)

Limited production of pineapple fibers 10 8

Lack of local access to process 8 8

technologies

Insufficient R&D to come up with product 7 6

and market innovations

Marketability of output is subject to 5 4

consumer buying power

Upon assessment, strategy one which is focused differentiation belongs to the low risk
category, strategy two - technology catch-up has a medium risk profile, and strategy three which
is product diversification has high risks involved.

Technology Roadmap
As mentioned in the decision analysis tool, the 2nd scenario strategy - technology catch-
up, is weighed as the most important among the 3 scenarios formulated. Visualized in a
technology roadmap, the technology catch-up scenario would be part of the Technology section
of the roadmap which coincides with our given weights as most important as this jumpstarts the
technology development of pineapple leather.
The first 3 years would comprise technology acquisition and development and would show
government linkages with DTI, DOST, Dept. Of Agriculture etc. as part of the Business and market
drivers of the technology. This will enable technology push in both scenario 1 strategy - focused
differentiation in business and industry, and scenario 2 strategy- technology catch-up in
production technology.

35
 As seen in the roadmap, the government linkages in the first 3 years will provide the
necessary equipment for research, development, and production. These government agencies
will also help facilitate R&D on improvement of farming processes of pineapple fibre.
For Scenario 3 strategy - product diversification, we can see this clearly in the Product /
Service section of the roadmap. In the first year alone, we will be able to produce pineapple
leather as a viable alternative to leather as raw material. Shortly after, consumer leather goods
like shoes, bags, wallets etc. will become available. This is made possible through the linkages
with government agencies like DTI that have the “shared services programs” that enable SMEs
and other leather manufacturers to roll out products using pineapple leather as primary source of
material. This technology pushes cascades from business / market drivers to products for end
consumers.
After the 3rd year, maturity of technology occurs and the pineapple leather technology we
have introduced starts its journey towards a period of advanced technology wherein this
technology becomes one of the competencies of our nation. We are able to license out this
technology as well as export high value-added products made from this material.
The availability of Pineapple Leather as a sustainable leather alternative is a very lucrative
and engaging possibility as we see its progression in the roadmap below. We already have the
capabilities for Pineapple fiber production. By executing the strategies we have mentioned,
Pineapple Leather can and will be a feasible industry that will contribute to the overall GDP and
performance of our nation. By practicing an inclusive industry model, PowerTex Pineapple
Leather becomes part of our daily lives.

PowerTex: Bringing power back to the People through Textile.

36
Figure XX. Technology Roadmap of PowerTex Pineapple Leather.

37
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https://psa.gov.ph/poverty-press-releases/nid/120251

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