Why is ABACA important?

INTERNATIONA
L TRADE
FOR
ABACA
Presented by:
Michelle Whiting
 ABACA
• Manila Hemp

• A plant with multiple purpose.

• Fibrous Plant

• Strongest natural fiber (PhilFIDA)

Philippines

World’s largest ABACA producer

 Pulp Fiber

2009 Change % 2020

Export USD 11,502,607 Approx 70% USD 38,273,537
Import USD 837,125 Approx 95% USD 20,234,874

Raw Fiber
INCREASING DEMAND FOR QUALITY ABACA FIBER

LESSER LAND AREA FOR

AGRICULTURE

LESS PLANTED ABACA

NOT ENOUGH SUPPLY

IMPORT TO SUSTAIN
Definition of Terms
PulpFiber
Pulp RawFiber
Raw

• A lignocellulosic fibrous material or plant dry • Fibers that have not received any processing or
matter (biomass) prepared by chemically or manioulation.
mechanically separating cellulose fibers from • Original form
wood, fiber crops, waste paper, or rags.
 Philippine Trade
Trade SITUATION

USD 20,234,874 Import

[PERCENT
AGE] Export USD 38,273,537
[PERCENT
AGE]

2010: 130,000 ha
2018: 180,320 ha
 Philippine Trade
Export Import

• Japan with a share of 20% (7.75 million US$) • Kenya with a share of 8.58% (1.73 million
• Korea - 313 thousand US$ US$)
• India - 266 thousand US$ • India - 1.09 thousand US$
• South Africa - 56 thousand US$
• Equador
• Malaysia - 43 thousand US$
• Indonesia - 40 thousand US$
• Other parts of Asia
• Other Asia, nes - 39 thousand US$
• Vietnam - 986 US$
• Italy - 340 US$
• Australia - 150 US$
WHERE TO EXPAND?
 2009 Change % 2020
Export
Import Malaysia Trade
USD 4,141,420
USD 1,487, 758
Approx -1.25%
Approx +20%
USD 1,818,993
USD 1,850,208

Trade SITUATION

USD 1,818,993
Import Export
[PERCENTAGE] [PERCENTAGE] USD 1,850,208
 Malaysia Trade
Export
• China with a share of 90% (1.64 million US$)
• Australia with a share of 2.68% (48 thousand US$)
• Singapore with a share of 2.59% (47 thousand US$)
• Thailand with a share of 1.45% (26 thousand US$)
• USA - 15.2 thousand US$
• Maldives - 9.45 thousand US$
• United Kingdom - 7.32 thousand US$
• Hong Kong - 3.39 thousand US$
• New Zealand - 3.05 thousand US$
• Vietnam - 2.8 thousand US$
Import
• Sri Lanka with a share of 39% (733 thousand
US$)
• Thailand with a share of 30% (561 thousand
US$)
• India with a share of 24% (454 thousand US$)
• Indonesia with a share of 3.91% (72 thousand
US$)
• Philippines - 16.1 thousand US$
• China - 8.2 thousand US$
• Vietnam - 3.69 thousand US$
 Domestic production
Advantage Disadvantage

• Quality can be controlled better domestically. • Limited land for ABACA plants
• Lesser overhead cost • Limited production
• Bigger market share • Limited exports
• Faster fulfillment times • Exploited labor standards
• Easier communication
 International production
Advantage Disadvantage

• High volume capacity • Quality can be compromised

• Greater variability • Greater variability
• Both countries earn • Increased shipping cost
• Builds a strong relationship • Shift of reputation
 Opportunity Cost
If production is not expanded

• Less production capacity = Demand not met = Decrease in

international reputation = Less earnings
If production is expanded

• Increase production capacity = Demand is supplied = Better

relationship internationally = Increase in future earnings
MABUHAY!
mariamichellewhiting@gmail.com
References
• The Philippine Fiber Industry Development Authority website:  www.philfida.da.gov.ph
• https://businessmirror.com.ph/2020/03/14/philippines-retains-top-slot-in-global-abaca-producti
on/
• https://www.philstar.com/business/2020/09/21/2043862/abaca-export-income-hits-54-million-
4-months
• https://www.da.gov.ph/wp-content/uploads/2019/06/Philippine-Abaca-Industry-Roadmap-
2018-2022.pdf