Abaca prices surge on supply shortage; DA pushes planting

The Department of Agriculture (DA) wants to immediately identify unharvested abaca areas across the country after an alleged shortage pushed the price of this commodity to R90 per kilo.

Agriculture Secretary Emmanuel Piñol said that abaca is now in short of supply, causing the price to shoot up from a low of R46 per kilo to about R90 per kilo.

However, officials from Philippine Fiber Industry Development Authority (PhilFIDA), the attached agency to DA mandated to regulate and develop the abaca sector, were saying that while price for abaca did increase, it is nowhere R90 per kilo just like the agriculture chief was claiming.

“As of Wednesday, there is slight increase to other grades but not R90. Our production, although, increased slightly but it still not enough for the demand. We need to increase the areas to be planted,” Petronilo Jabay, officer in charge-deputy executive director at PhilFIDA, said in a text message.

Victor Prodigo, new executive director of PhilFIDA, also said the average price of S2 fiber grade for abaca is now at R74.80 per kilo.

Piñol was specifically reacting to the email sent by a top official from manufacturing company Newtech Pulp, Inc.

“I received an urgent email message from Alberto Fenix, one of the stalwarts of the abaca industry in the country, informing me of a crisis because of the inability of the Philippines to supply the huge demand in the world market,” Piñol said.

Fenix is the president and chief executive officer of export manufacturing company Newtech Pulp, Inc., which produces paper products, among others.

“With today’s lack of supply, lower quality, and record high prices of abaca fiber, the specialty paper manufacturers like Glatfelter Gernsbach GmbH, mother company of Newtech Pulp, Inc., are being forced to change their manufacturing processes to use less and less abaca, by switching to synthetic or man-made fibers and to other natural fibers like sisal,” Fenix told Piñol.

As a response, Piñol ordered PhilFIDA to urgently locate and identify unharvested abaca areas.