The mechanization of the stripping and tuxying process is the only solution to the farmers’ problem of low buying price of abaca fiber, the Philippine Fiber Development Authority (PhilFIDA) said recently in a meeting with provincial leaders and TGP Rep. Jose Teves Jr.
The statement was made during the Nov. 30, 2023 meeting in San Andres town between PhilFIDA Bicol OIC-Regional Director Mary Anne Molina, Technical Assistance Division OIC Orlando Bucal from the PhilFIDA central office and Provincial Fiber Officer Roberto Lusuegro with the partylist congressman, Governor Joseph Cua, Vice Governor Peter Cua, and Virac Mayor Samuel Laynes.
The solon and provincial officials sought the dialogue with the PhilFIDA officials in the light of low buying prices of abaca fiber that has persisted not only in the region but nationwide since February this year.
Official data showed that the buying price for I and G grades of fiber, which account for majority of the fiber produced in Catanduanes, fell by 13% and 11%, respectively, in February 2023.
Trading price of I and G fiber decreased from P78 and P54 per kilo to P68 and P48, respectively, during the month.
In April, the price was slashed to P62 and P42, followed by another price drop in June which saw I grade fiber being bought at a low of P56 and G fiber at P38.
On the other hand, the price of “JK” low-grade fiber plunged from P49 per kilo in December 2022 to just P25 to P30 kilo by August 2023, data showed.
Overall, the abaca fiber market was adversely impacted by the reduction in buying price that ranged from 23 percent (I fiber) to as much as 38 percent (JK fiber).
PhilFIDA fiber production statistics for the first nine months of 2023 also indicated that overall abaca fiber production in Catanduanes fell by 5%, from 75,244.70 bales (one bale is 125 kgs.) in 2022 to 71,566.75 bales this year.
In an interview last week, PFO Lusuegro disclosed that the abaca export market is moving again, with fiber prices increasing by at least P5 per kilo but demand is still low especially for JK and G grade fiber which accounts for majority of local production.
He said that these low-grade fibers are easy to strip but its cheap price means there is always oversupply of the fiber which is mainly used in cordage production.
On the other hand, the higher grade S2 and I fibers used for pulp production, which accounts for majority of the demand, is bought by traders at P85 and P65 per kilo, respectively.
Lusuegro added that “all-in” selling of fiber, in which low and higher grades of fibers are mixed, is keeping the buying price low as traders base the price on the lowest grade.
Local abaca farmers do not usually bother to separate the high-grade fiber from the low-grade ones.
The Grading and Baling Establishment (GBE), on the other hand, get extra revenue from the “all-in” fiber they bought by painstakingly sorting out the fiber mixture to get the higher-grade fibers which they can market at a higher price.
In response to the issue, both OIC-RD Molina and TAD in-charge Bucal urged local abaca farmers to mechanize fiber production in order to upgrade their fiber.
“The market demand for high-grade fiber should be satisfied,” they strongly reiterated.
In response, Cong. Teves expressed the TGP’s commitment to provide 30 units of portable abaca stripping machines as an initial move.
Eleven (11) abaca farmers associations will be given two units each while five other groups will have one unit each, with the Office of the Provincial Agriculturist (OPAg) and the Technical Education and Skills Development Authority (TESDA) to get one machine each.
According to Lusuegro, the stripping machines will be accompanied by 22 tuxying machines, which will make the abaca farmers’ work much easier.
The funds from the TGP Partylist will be downloaded to the provincial government, with the procurement and distribution to be coordinated with PhilFIDA Catanduanes.
It may be recalled that last August 223, the Cua administration received P4.5 million from the Department of Labor and Employment (DOLE) intended for Abaca Farmers Associations in the province.
The grant seeks to provide mechanized and modified stripping machines and other paraphernalia for the enhancement of abaca fiber production as envisioned under the DOLE Integrated Livelihood Program (DILP) and enable local farmers to produce world-class quality fiber.
Six (6) abaca farmers associations in Catanduanes were the recipients: Sto. Niño Abaca Farmers Association (Virac) – P497,980.00; Genitligan Abaca Farmers Association (Baras) – P492,380.00; Bayanihan Abaca Farmers Association (Caramoran) – P494,620.00; Salvacion Abaca Farmers Association (Bagamanoc) – P999,992.00; San Miguel Abaca Farmers and Traders Association (Panganiban) – P999,992.00; and SLP Tariwara Agricultural Farmers Livelihood Association (Pandan) – P999,992.00.