Abaca exports decline in Jan-May 2012 due to tepid demand

The value of abaca exports declined by 7.5 percent year on year to $54.86 million for the period of January to May due to lackluster demand for the commodity, the Fiber Industry Development Authority (FIDA) reported over the weekend. Shipments of abaca pulp, which accounted for 75.7 percent of exports for the period, declined by 3 percent on year to $41.51 million. Abaca cordage, the second top export, went down by 4.2 percent on year to $6.73 million. Raw fiber, the fourth biggest abaca export product, posted a 55.4 percent decline year on year to $2.48 million. Only abaca fabrics registered an increase in revenues for the period, but it's a big one— 98.1 percent on year to $638,299. In terms of volume, shipments of abaca pulp went up by almost 4 percent to 12,045.2 metric tons (MT). Shipments of abaca cordage in terms of volume went down by 12.3 percent on year to 2,790.8 MT. Abaca fiber shipments also went down by 56.7 percent on year to 1,825.38 MT. The country's major markets for abaca products are the United Kingdom, the United States, Germany, and Japan. Unfazed by declining revenues, abaca farmers continue to plant more in 2012. Proof was that output for January to June was up by almost 4 percent to 29,013 MT. The Bicol region remained the top producer of abaca during the first half though output was lower by 18.2 percent to 8,903 MT compared to a year ago. Production in Eastern Visayas and the Davao region both exhibited improved performance. Eastern Visayas, which accounted for 24 percent of output, increased its production by 14 percent on year to 6,804 MT. Accounting for 14.8 percent of production, Davao registered a 39-percent increase in its output in January to June. - BM, GMA News