Bankrolling various interventions aimed at hiking the country’s abaca output to 177,189 metric tons (MT) by 2025 would require a total budget of nearly P20 billion, according to a draft road map prepared by the Philippine Fiber Industry Development Authority (PhilFida).
Based on the road map presented by PhilFida during its recent public consultation, the government plans to nearly triple the current abaca output of 61,492 MT over the course of five years.
The draft blueprint showed that the government aims to expand effective abaca hectarage to 154,427 hectares (has) from the current 89,627 has.
Furthermore, the PhilFida, an attached agency of the Department of Agriculture, eyes to more than double the current yield of 800 kilograms per hectare to 2,000 kilograms per hectare.
During the public consultation, PhilFida Executive Director Kennedy T. Costales emphasized that there is a need to boost the local industry’s supply due to worsening shortage of abaca fiber on the back of rising demand.
Costales said the total demand deficit of abaca fiber today has reached an “all-time high” of about 150,000 MT, which is equivalent to 80,000 has of abaca farm, as the world requires more renewable and sustainable raw materials.
“A progressive Philippine abaca industry supplying the world’s best quality fiber, meeting global demand for renewable, sustainable and environment-friendly products to achieve the country’s inclusive growth,” the draft blueprint read.
Costales said the latest abaca industry road map has “identified the potential areas intended for planting and treatment of diseases, which are the two most important factors in abaca fiber production.”
The BusinessMirror earlier reported that the country’s abaca output last year fell to a seven-year low of 61,492 MT due to movement restrictions imposed by the government to stop the spread of Covid-19 coupled with the devastation caused by Typhoon Rolly (international code name Goni). (Related story: https://businessmirror.com.ph/2021/03/08/phl-abaca-output-falls-to-7-year-low/)
Targets, budgetary requirements
For this year, PhilFida is hoping for a rebound of the local industry as it is target a total production output of 73,509 MT, which is nearly 20 percent higher than last year’s total production.
Likewise, PhilFida aims to expand effective abaca areas this year by 2.6 percent to 91,927 hectares from last year’s 89,627 hectares.
For 2021, the PhilFida has a total budget of P192.689 million, with bulk of which or about P104.487 million, allocated for programs dedicated to increase fiber production, such as area expansion, area rehabilitation, disease management, and capacity building of farmers.
The draft abaca industry road map showed that PhilFida would need a total budget of P19.799 billion to sustain various interventions starting 2022 until 2025 to achieve its production and hectarage targets.
The road map indicated that PhilFida needs P2.545 billion next year, P3.004 billion in 2023, P7.631 billion in 2024 and P6.617 billion in 2025.
For the years 2022 to 2023, bulk of their proposed budgetary requirements would go to increasing abaca fiber production (P1.495 billion in 2022 and P2.279 billion in 2023).
By 2024 until 2025, the agency would focus more on the establishment of processing facilities and equipment (P6.366 billion for 2024 and P6.367 billion for 2025), based on the draft road map.
By the end of 2025, the PhilFida said it expects an additional income for the industry of P53.02 billion.
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