Status, Problems and Prospects of the Buri Fiber Industry in Sampaloc, Quezon

Date

6-2015

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Maria Noriza Q. Herrera

Committee Member

Glenn N. Baticados, Jeanette Angeline B. Madamba, Reynaldo L. Tan, Dinah Pura T. Depositario

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Abstract

The study was conducted to present the current status, problems, and prospects of the buri fiber industry in Sampaloc, Quezon.

The study had the following objectives: 1) present and analyze the structure and performance of the industry; 2) identify the problems, and weaknesses in the buri fiber industry in Sampaloc, Quezon; 3) explore investment opportunities and/or development entry points in the industry for entrepreneurs and government and/or non-government organizations, respectively; 4) formulate pragmatic recommendations for the buri products industry of Sampaloc, Quezon to achieve its competitiveness, full potential and viability.

There were 11 male gatherers, 14 female processors, 75 female weavers, and 9 traders that were interviewed in the study. Respondents for traders were obtained through complete enumeration and snowball sampling. Whereas, respondents for gatherers, processors, and weavers were obtained through quota sampling using proportional allocation per barangay and snowball sampling for the identification of the respondents to fulfill the computed quota per key player per barangay. Primary data were gathered through two set of questionnaires and personal interviews. Secondary data came from local government unit of Sampaloc, Quezon, FIDA, and DTI. The analyses of this study were mainly descriptive using SWOT Analysis and Porter’s Five Forces model.

Buri fiber industry is a traditional home-based cottage industry that provide additional livelihood for a typical household in the rural areas. Most of the players that were involved in this operation were female and married. This buri fiber industry in Sampaloc, Quezon is labor-intensive and demand driven. Moreover, the market size, prevalence of backward and forward integration, and the changing societal concerns, attitude and lifestyle are the dominant economic factors and drivers of change in the industry.

SWOT Analysis determined the strengths and the weaknesses of the industry as wells as the opportunities and threats that it currently faced. For the strengths, 1) naturally abundant source of buri palms in the town of Sampaloc; 2) technical-know how of the people in the town; 3) longevity and popularity of their town as producer of buri products; 4) Sampaloc, Quezon is registered in OTOP as buri fiber product producer. Weaknesses in the industry was seen namely: 1) no buri palm plantation; 2) no grading classification for the buri fibers; 3) lesser support of the national government; 4) key players in the industry do not want to engage in financing activities. On the other hand, opportunities arose for the industry namely: 1) other economic uses of buri palm; 2) LGU of Sampaloc gives support and assistance to the industry. 3) assurance of demand for buri products due to trends for healthy lifestyle; 4) ASEAN integration can open new market for the buri products. However, threats to the industry were also identified such as increasing stronger typhoons annually.

Using Michael Porter’s Framework, it was identified that threat of new entrants is high in this kind of industry because of low barriers to entry. Threat of substitute is high because there are many available alternatives for raw materials in this kind of industry. Bargaining power of suppliers is high while the bargaining power of buyers is low. Lastly, degree of rivalry among players is moderate.

Problems were identified in the buri fiber industry namely 1) low income derived from unopened buri leaves and weaved buri products; 2) shortage of available buri palms at peak season; 3) shortage of raw materials at peak season and rainy season; 4) gathering and processing of buri leaves not favorable on rainy season; 5) calamities destroy the buri palms; 6) delayed payments of the buri products to the weavers; 7) rejections of weaved products; 8) decreasing orders; 9) cannot commit to exports; 10) decreasing number of weavers; 11) some weavers do not honor her obligations.

On the other hand, prospects for the industry were determined: (1) increasing demand for natural, sustainable and friendly environment products; (2) other industrial and economic uses of buri palm; (3) emerging support from the government like programs, loans, and trainings.

After the analyzing all the information about the industry, recommendations were formulated namely (1) establishing a buri palm plantation; (2) establishing a cooperative for the weavers; (3) engaging in loans to finance the capitalization of the business, (4) continuous research about the buri palm, and the buri fiber processing.

Language

English

LC Subject

Fibers, Business enterprises

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2015 M17 M37

Notes

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Document Type

Thesis

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