Philippine abaca output rose by 4.5 percent to 49,802.6 metric tons in January to September, from last year’s 47,644.2 MT, according to data from the Philippine Fiber Industry Development Authority (PhilFida).
PhilFida Executive Director Kennedy T. Costales attributed the hike in output to higher buying prices, which are now at an “all-time high.” The implementation of a new classification system in October, Costales said, also boosted prices.
“From an average P50 per kilo all-in a year ago, [average price rose] to a bit over P80 per kilo classification basis,” he told the BusinessMirror. “[The increase in prices was due to the] projected shortage of 25,000 metric tons.”
The implementation of buying abaca fiber on a classification basis pushed more farmers to harvest more to take advantage of higher buying prices, according to Costales.
“It is to their advantage that if they produce better quality fibers, they earn more unlike before when all the fibers are produced at a fixed price and ‘all-in,’ to boot. Now, there is motivation to produce better quality to earn more,” he said.
The PhilFida entered into a memorandum of agreement with abaca processors and manufacturers and grading establishments to end the “all-in” abaca trading scheme. The MOA took effect on October 1 but Costales explained that some of the parties have shifted to the classification basis as early as April.
“The only difference is after the MOA takes effect on October 1, if a major player is caught buying all-in, there is a graduated increase in penalty from P10,000 to P100,000 per offense,” he said.
The latest data released by PhilFIDA showed that the Bicol region remained the top producer of the natural fiber as it accounted for 31.3 percent of the nine-month output. However, production in the region declined by 13.2 percent to 15,584 MT, from 17,962 MT recorded a year ago.
Davao region was the second-largest producer of abaca, accounting for 19.9 percent of total output. The other top producers of the fiber during the period were Eastern Visayas and Caraga, which both recorded a 12.4-percent production share.
Output in the Davao region grew by 18.5 percent to 9,921.2 MT from 8,371.5 MT, while production in Easern Visayas and Caraga expanded by 4.5 percent and 22.6 percent, respectively.
PhilFida data also showed that Northern Mindanao posted the fastest increase in terms of production during the nine-month period.
Abaca production in the region expanded by 34.5 percent to 3,757.4 MT, from 2,792.9 MT recorded a year ago. Northern Mindanao accounted for 7.5 percent of total output.
Image credits: Nonie Reyes