Q1 abaca exports up 223%

Abaca fiber exports rose 223 percent to 3.377 metric tons (MT) from 1.04 million MT in the first four months of 2010, the Fiber Industry And Development Authority (FIDA) reported Thursday. FIDA said the increase in exports was due to a surge in demand from Europe. Europe posted a 566.9 percent growth in abaca fiber imports, Asia's increased by 112.6 percent. The group also said that the country’s abaca fiber output for the first half of the year went up by 2.6 percent to 25,889.9 MT. FIDA said the recovery of the sector was due to improved farm gate prices. The agency is optimistic that output will continue to be profitable and should post a 10 percent increase this year. In the first quarter, abaca production went down by 17.8 percent to 12,802 MT. During the period, major abaca-producing provinces except Zamboanga Peninsula, posted a decline in abaca fiber production. Abaca fiber production in Bicol, the top abaca fiber-producing region, declined by 7.4 percent to 4.892 MT. The region accounted for 38.2 percent of total production in the first quarter. The price of high-grade abaca peaked on tight supply in 2008. During this time, the Bicol region and other major abaca-producing provinces, were still reeling from the damage wrought by typhoons "Reming" and "Milenyo." The recovery in demand from developed countries will boost the country's abaca fiber exports for 2010 and cause shipments to increase by 35 percent to 10,000 MT, according to the association. Last year, total abaca fiber export was 7,400 MT, down by almost half of the total volume exported in 2008. Abaca cordage exports Abaca cordage exports went up by 11 percent to 1.8 million MT from 1.6 million MT in the first four month. Government figures showed that Germany, Greece, and the Netherlands posted demand increases of 100 percent, 77 percent, and 53 percent, respectively. North America remains the biggest market for Philippine abaca which accounts for 1.13 million MT, followed by the US with 1.1 million MT. Europe is an emerging market for Philippine abaca. In Asia, abaca imports by Singapore, Hong Kong, Malaysia, South Korea, China, and United Arab Emirates went up by 4.2 percent to 443 MT from 225 MT. –VVP, GMANews.TV