Export earnings from abaca to go down by 20%

cai's picture
Submitted by cai on Tue, 06/02/2009 - 12:02am

uh-oh...this article is from www.businessmirror.com.ph.

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Export earnings from abaca to go down by 20%
Written by Jennifer A. Ng / Reporter
Sunday, 31 May 2009 19:23

EXPORT earnings from abaca fiber and abaca products are projected to decline by 20 percent to $80 million in 2009 due to slower demand caused by the global financial crisis.

The Department of Agriculture’s (DA) Fiber Industry Development Authority (Fida) noted that the recession in the United States has caused a slowdown in demand for abaca products.

The US is one of Manila’s major markets for abaca products.

“The US was hit hard by the recession, so our exports were slightly affected, especially for cordage. It is our biggest buyer for cordage, they use it for their marine, shipping and oil exploration,” said Mystic Pelayo, Fida supervising statistician, in a statement released by the Philippine Exporters Confederation Inc. (Philexport).

Fida, however, said it remains optimistic the abaca export sector could recover by the end of 2009.

“Based on our past experience, one year after the 9/11 terrorist incident, abaca exports recovered. Abaca papers are mostly used for food packaging. People will continue eating, smoking and drinking tea and coffee,” said Pelayo.

The Fida supervising statistician, however, pointed out that the projected 2009 export figures for abaca could be much higher if earnings of other export industries using abaca for their raw materials are included.

Pelayo said the country’s commodity code classifies only small items such as handbags, placemats and doormats under the sector’s export sales.

She said the Philippines remains as the world’s biggest supplier of abaca fiber, with a share of around 86 percent, followed by Ecuador which accounts for 14 percent.

Fida data show that the United Kingdom and Japan are the country’s biggest markets for abaca fiber from 2004 to 2008; Germany, the UK and Japan for abaca pulp, and the US for abaca cordage, cables, ropes and twines.

Abaca is a versatile material which has many applications. It is also used as material for textile or as blending material to silk, piña and polyester in the production of high-end fabrics, as well as handmade paper for media and decoratives.

The Bicol region and Eastern Visayas are the main producers of abaca in the Philippines.