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PHL expects demand for abaca to push export earnings


Industrialized countries importing abaca pulp and cordage for use in biodegradable coffee cups is expected to lift the country's export earnings from abaca by P5 billion this year, up 13.6-percent from last year's figures. Biodegradable cups have been gaining popularity in the US, Russia and Germany, enhancing the demand for raw material, the Fiber Industry Development Authority (FIDA) said on Tuesday. "The trend now is to go natural," said FIDA administrator Cecilia Gloria Soriano. "The hazard of using non-biodegradable products has prompted developed countries to seek alternatives. Germany, for instance, will gain much in their carbon footprint swapping if they declare the use of natural fibers in their products." Soriano added that inquiries from Brazil and other European countries have already reached FIDA. Those countries plan to use abaca for automobile composites, the FIDA administrator said. Abaca fiber sells for $1,200 per metric ton on average, but unlike other fibers used in car production — such as sisal and kenaf which are 40 percent cheaper than abaca — it is stronger and more resilient. "We can easily replace the use of kenaf and sisal in Brazil and other car-producing countries, but they are mindful of the price difference," Soriano said. "Abaca price is demand-driven. And the fact that this fiber is no less superior [to] other fibers [merits] a premium on price," she added. Aside for car composites, Soriano said European auto makers are also looking at using abaca fiber as car seat fillers. This year, abaca production is expected to grow by10 percent to 62,936 MT from 57,215 MT in 2010. Abaca’s traditional export markets include Japan, UK, France, Singapore, Canada, Italy, Spain and Hong Kong. The Philippines accounts for about 85 percent of the world's abaca supply. Ecuador accounts for 15 percent of the supply. Of the 59 abaca-producing provinces in the Philippines, the major producers are Catanduanes, Southern Leyte, Davao Oriental, Samar and Sulu. — JMT/VS, GMA News

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