Abaca exports earnings down 22.7% in 2012 — FIDA

Earnings from abaca exports fell by 22.7 percent in 2012 as demand from key markets remain weak. Data from the Fiber Industry Development Authority (FIDA) showed abaca exports earnings from January to December 2012 fell to $108.2 million from $140 million in 2011 year-on-year. The export value of abaca pulp, which, comprised 69 percent in 2012, fell by 28.3 percent to $74.7 million from $104 million in 2011. Export value of the cordage sector also fell by 4.2 percent to $16.2 million from $16.9 million. Export value of abaca fabric rose 16.3 percent to $1 million from $988,925 in 2011. Export earnings from fiber crafts were valued at $10.7 million in 2012, up by 133.6 percent from $4.5 million in 2011. "The trend has really been going down in key markets such as US and Europe. But we are confident we would be able to rise again through the help of the private sector," said  Imelda Marbella, officer-in-charge of FIDA's Planning and Statistics Division. She noted several private investors have been proposing the creation of innovative products from abaca. Abaca is a material used for making tea bags, casing of meat sausages, surgical masks and cigarette paper. Philippine abaca fiber are sold mainly to the US, Germany, United Kingdom, France, Belgium, China, Taiwan and South Korea. FIDA earlier reported the government is facilitating the opening of new markets for abaca fiber and other abaca products to offset the weak demand from traditional markets. FIDA has entered into negotiations with buyers from France, Spain, Qatar and Russia for the supply of fiber twine, rope, mat and pulp. FIDA administrator Cecile Soriano said the government is grooming the abaca industry to be more export-competitive through higher-value processing. On the other hand, Ramon Branzuela, chief of planning and statistics division of FIDA, said in that key abaca producing regions, several investors have expressed interest in manufacturing higher-value abaca-based products such as monobloc chairs, biocomposite and yarn for making denim. The government is also seeking certification for abaca farms from the Rainforest Alliance, a foreign certifying body for sustainable industries, to increase the market value of local abaca manufactures. Branzuela said local abaca products that are Rainforest Alliance certified can gain access to more markets and fetch a higher buying price. — LBG, GMA News