DA pleads for government help to abaca farmers

Abaca farmers, who have long enjoyed a ready and stable market in government– through the peso bills printed by the Bangko Sentral ng Pilipinas– have been losing this same market with the shift to imported polymer plastics in the P1,000 banknotes now being circulated in the country.

Another source of support for abaca farmers is the passport, which can use abaca fiber.

DA Secretary Francisco Tiu Laurel Jr. is appealing to BSP and DFA to consider shifting to abaca fiber for the passports and for the BSP to bring back the use of abaca fiber for the printing of peso notes to revitalize the industry.

“We will request that the Bangko Sentral reconsider its decision to remove abaca fiber from Philippine banknotes, given the impact this decision has on the livelihoods of millions who rely on the abaca industry,” Laurel said.

“We will also urge the DFA to incorporate abaca fiber into Philippine passports and ask other government agencies to consider its use in official documents.”

The BSP started circulating the new plastic P1,000 piso notes in April 2022, initially for P1,000 paper banknotes. It is touted to be smarter than paper banknotes as it has more sophisticated security features, making it harder to counterfeit.

Philippine Fiber Industry Development Authority (PhilFIDA) Executive Director Arnold Atienza stressed that the government should spearhead the support for the sector that generates national pride and produces products highly valued overseas.

He also highlighted that promoting the abaca industry aligns with the global shift toward sustainable industries.

“Abaca is biodegradable and can be recycled into compost, benefiting the farming community. As the world’s largest supplier of abaca, we have a responsibility to ensure that more of this valuable resource is available to support both the environment and local farmers,” Atienza said.

Atienza pointed out that the 120,145 farmers engaged in abaca cultivation are among the poorest in the country, earning an estimated annual gross income of less than P40,000.

Abaca, internationally known as Manila hemp, is indigenous to the Philippines, accounting for 86 percent of the global supply in 2023.

From 2014 to 2023, DA records showed the abaca industry generated an average annual export revenue of $139.2 million, with 18 percent derived from raw fiber and 82 percent from manufactured products, primarily pulp. Nearly all abaca pulp produced in the Philippines is exported.

Atienza said the agency has been keen on regulating the entry of imported fibers, particularly abaca, as part of efforts to bolster the local industry.

He said they are looking at legal possibilities that would regulate fiber imports, noting the possibility of seeking the issuance of an Executive Order (EO) from President Ferdinand Marcos Jr.

“We should also look into the imports, because why are we importing abaca when we have [plenty of] abaca?” Atienza told reporters in a previous interview.

“There’s a lot of imports because [private entities] don’t know where to source their materials,” he said.

Atienza noted that the agency also wants to forge partnerships thaat would link farmers with the private sector involved in value-added products of fiber textiles.

This will be part of its “Adopt-a-Farm” program, which will help bridge that gap by providing the private sector direct access to raw materials, he added.

Atienza said the “Adopt-a-Farm” initiative would also fast-track the agency’s goal to arrest the decline in abaca output this year.

“So, we get to produce not just raw material but we get to produce value-added products,” he said.

PhilFida data showed that the country’s abaca production in 2024 declined by 4 percent 

to 43,055.78 metric tons (MT) from the previous year’s 44,868.36 MT. The recent figure is also lower than the 63,640.61 MT in 2022.