Abaca users forced to import as producers untangle supply chain
THE Philippine abaca industry is beset by supply chain issues that are forcing users to turn to imports from Ecuador, according to the University of Asia and the Pacific’s Center for Food and Agri Business (CFA).
In an industry brief, the CFA said “Despite being the world’s leading exporter, the Philippines faces a ‘sourcing paradox,’ where local firms import abaca fiber largely from Ecuador, due to weak coordination in domestic supply chains.”
It added that the industry’s fundamental supply issues are rooted in recurring typhoons, pest infestations, and diseases such as the abaca bunchy top virus, which has significantly affected plantations in the Eastern Visayas.
“These challenges also discourage farmers from expanding production, further contributing to the overall decrease in output,” the CFA added.
Abaca production fell to 39,089 metric tons (MT) in 2025 from 58,943 MT in 2021, based on government data cited in the CFA report.
Abaca, also known as Manila hemp, remains one of the Philippines’ key agricultural exports, with the country able to service about 87% of global demand, according to the Philippine Fiber Industry Development Authority.
The natural fiber derived from the plant is used in ropes, textiles, tea bags, banknotes, and specialty paper.
The CFA called for sustained investment in research and development, particularly to develop disease-resistant varieties and to improve farm productivity.
It added that connecting farmers more directly to domestic processors could help reverse a multi-year decline in production and improve supply reliability.
Some programs cited in the report are the Philippine Fiber Industry Development Authority’s “Adopt a Farm” program, which connects private investors directly to abaca farmers. The program aims to guarantee market access for producers while securing a consistent supply of raw materials for manufacturers.
The CFA said the opportunities for the industry when it recovers include rising demand for sustainable and biodegradable materials. — Vonn Andrei E. Villamiel
