Status, Problems, and Prospects of the Abaca Industry in San Teodoro, Oriental Mindoro

Date

5-2019

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Mar B. Cruz

Committee Member

Hanna D. Miranda-Quibot, Dia Noelle F. Velasco, Jeanette Angeline B. Madamba, Nomito R. Zapata, Jr.

Abstract

The Philippine is the top supplier of abaca fiber in the global market. However, this is threatened by expansion and mechanization efforts of the other abaca-producing countries. To maintain the country’s dominance in the global abaca market, the Philippine Fiber Industry Development Authority has formulated an industry roadmap to help achieve its aim of increasing output to 221,238 MT by 2022. Mindoro is one of the locations that were identified to be potential areas for expansion. The study entitled “Status, Problems, and Prospects of the Abaca Industry in San Teodoro, Oriental Mindoro” was conducted to assess the status and issues of the industry and to also identify the prospects and opportunities for the key players of the industry. Specifically, the research intended to: (1) present the profile of the players engaged in the abaca industry of San Teodoro, Oriental Mindoro; (2) describe the conduct, structure, and performance of the industry; (3) analyze the problems encountered in each aspect of the industry; (4) assess the prospects and opportunities of the industry, and (5) formulate recommendations to address the identified problems, issues and prospects of the abaca industry in San Teodoro, Oriental Mindoro.

The municipality of San Teodoro was chosen as it is one of the top abaca producing municipalities in the province. This study used a descriptive research design to describe, present and analyze the profile of the industry participants, the different management aspects and the current status of the abaca fiber industry in San Teodoro, Oriental Mindoro. The respondents were obtained through purposive sampling and the respondents were comprised of 26 farmers, 12 farmer-strippers, and 3 traders. Primary data was collected through personal interviews with the aid of a structured questionnaire. Secondary data were gathered from Philippine Fiber Industry Development Authority (PhilFIDA) and Philippine Statistics Authority (PSA) and from special problem reports and theses, and other related literature and news were obtained from credible online publications and resources. The data analysis tools used were various statistical tools, such as frequency counts, means, and percentages, SWOT analysis, Cost and Return Analysis.

It was observed that most of the farmers in the industry are of old age given that majority belong in the 41-50 years old age group. This negatively impacts the industry as productivity and efficiency of the farmers would depend on their physical strengths. The study also found that abaca farmers operate on a small scale as abaca is only planted as an intercrop and is only a secondary source of income for most of the respondents. The average total farm size of the farmers and farmer-strippers is 3.68 and 2.45 hectares, respectively. On the average, 56 percent of the total farm area is allocated for abaca production.

The local abaca industry is comprised of large number of producers that have small-scale operations and a few traders. Due to this, the traders gain high bargaining power. The performance of the industry is poor and lacking. This is a result of the inaccessibility of advanced farming technologies such as farm inputs and stripping machineries which highly affect the industry’s productivity. In addition, the lack of willingness of the industry participants to improve their farming and trading businesses which resulted to their low profitability.

The main problem of the abaca fiber industry in San Teodoro is the low volume produced by the by the upstream industry participants. This is a result of the low productivity of the farms, inefficient fiber extraction process, attitude of farmers, and individual marketing. Aside from this, the industry is also faced with lack of support from the government and abundance of supply from other provinces.

There were numerous opportunities identified for the industry. these were: rehabilitation and expansion of abaca plantations which are efforts of the Provincial Government and PhilFIDA, the global interest for sustainable and natural raw materials, the high demand for fair grade fibers, discovery of high-yielding and disease-free varieties, and intercropping of other high value crops.

The recommendations formulated for the existing players were: the establishment of an abaca producers cooperative; production of fair grade fibers, venture into value-adding activities such as handicraft-making, use of recommended planting materials, intercropping of other high value crops, and adopting a customer-centric strategy. The recommended entry points for potential entrants are planting abaca as an intercrop and a crop for reforestation and the use of abaca as a raw material for handicraft making of Mangyans. In addition, the government can provide farm inputs to the farmers, establish an abaca plant nursery, and introduce a microfinance program.

Language

English

LC Subject

Abaca industry--Philippines

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 S27

Notes

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Document Type

Thesis

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