Abaca Exports Seen To Rise 8% In 2013
Published on The Manila Bulletin Newspaper Online (http://www.mb.com.ph) Published February 3 ,2013

Philippine abaca exports are projected to increase by eight percent this year, as more countries opt for eco-friendly products and renewable materials.

Fiber Industry Development Authority (FIDA) Administrator Cecilia Gloria Soriano expressed this optimism despite the reduced exports demand for abaca last year due to the financial crisis that hit major markets.

The country's abaca export earnings from January to October reached only $91.35 million, well below the projection of %151.84 million for 2012. The agency is still waiting for the November and December exports data.

"Opportunities are always present especially for our products, the use of which could help arrest the damaging effects of climate change. The manufacture of 'green' consumer products and composites for the transport and construction industries presents bright prospects for our natural fibers," she said.

Soriano said the growing interests of consumers worldwide to go back to using eco-friendly and renewable materials like abaca and other natural fibers has also been boosting the demand for these commodities.

"We experienced an unprecedented high level of exports in 2011 but unfortunately, there was a weakening of demand in 2012 because of the uncertainties in the global economies that led to reduced consumer spending," she said.

Soriano pointed out that like any other commodities, the financial crisis continues to dampen the demand for local fiber-based products, especially by the country's major trading partners Europe and United States. Purchases of China, the country's principal market for fiber products, are also affected.

She identified the United Kingdom among the biggest market for abaca fiber, pulp and cordage; while US for pulp and cordage. Other markets for abaca products are Japan, China, Germany, Singapore and Netherlands.

Despite the weakening demand for abaca, the Philippines continues to gain significant world market share of 90 percent. Ecuador accounts for the remaining 10 percent.

- Danielle Venz, PHILEXPORT News and Features