Abaca export earnings fall 17.3%

MANILA, Philippines - Export earnings from abaca fiber and manufactures fell 17.3 percent in the first seven months of the year because of lower demand in the US and Europe coupled with lower export volume and lower buying prices, according to the Fiber Industry Development Authority (FIDA).

Export earnings from January to August this year reached $81.65 million, down 17.3 percent from $98.70 million in the same period last year. 

The export value of abaca pulp fell 19.1 percent during the period to $58.81 million from $72.69 million in the same period last year.

The export volume of abaca pulp fell in all export destinations except in Asia where shipments rose 27.2 percent to 5, 674.5 metric tons (MT) from 4,461.4 (MT) in the same period last year.

Shipment volume to the United States fell 34. 5 percent to 1, 293.9 metric tons (MT) from 1, 976.1 MT in the same period last year.

The volume of shipments to Europe fell 31.7 percent to 9,992 MT from 14, 632.5 MT in the same period last year.

The total volume of abaca pulp exports fell 19.5 percent in the first eight months of the year to 16, 960 metric tons (MT) from 21, 070 MT in the same period last year.

The value of raw fiber exports fell 55.22 percent to $4.31 million from $9.63 million in the same period last year.

The export volume of abaca fiber fell in all countries of destination. These are: Europe (down 22.6 year-on-year), Asia (72.3 percent), and other countries such as Egypt, Brazil and South Africa (99.4 percent).

The total volume of abaca fiber exports fell by 54.5 percent to 25,903 bales weighing 125 kilogram each in the first eight months of the year from 56, 874 bales.

“Abaca exports weakened as it was affected by the crisis in Europe and the US, aside from lower export volume and lower (buying) prices,” said Imelda Marbella, office-in-charge of the FIDA statistics and planning division, noting that production is dependent on export demand. 

The value of outbound shipments of cordage, fabrics, and fiber crafts, however, registered increases for the period year-on-year.

Exports of cordage for the eight-month period was placed at $12.88 million, up by 11.6 percent from $11.54 million in the same period last year.

Outbound shipments of fabrics rose 5.5 percent to $753, 609 from $714, 460 in the same period last year.

Fibercrafts export rose 18.5 percent to $4.88 million from $4.12 million last year.

Abaca is a material used for making tea bags, casing of meat sausages, surgical masks and cigarette paper.

Philippine abaca products are sold to countries like the US, Germany, United Kingdom, France, Belgium, China, Taiwan and South Korea among others.