Abaca in Lanao Del Sur

VALUE CHAIN ANALYSIS FAO ©

HIGHLIGHTS ABACA IN LANAO DEL SUR

BACKGROUND This study examines the abaca value chain for Selected Municipalities in Lanao del Sur and identifies needed interventions to improve the livelihood of internally displaced farmers affected by the Marawi conflict.

This is part of the project entitled “Support for enhancing agri-based livelihoods of internally displaced farmers affected by the Marawi conflict” supported by the Australian Government through Community and Family Services International (CFSI). It aims to provide livelihood support through the provision of agricultural inputs and machineries as well as training for the sustainable economic recovery of the displaced, especially the most vulnerable and those with special needs. This includes strengthening the enabling environment and improving production and processing, and marketing platforms of selected agricultural value chains in Lanao del Sur. This study is in collaboration with Xavier University – Ateneo de Cagayan. OBJECTIVE The study examined the abaca value chains in Lanao del Sur with the aim of identifying interventions to improve the livelihood of internally displaced farmers affected by the Marawi conflict. METHODOLOGY Focus group discussions with farmer-beneficiaries and with experienced abaca farmers in selected Lanao del Sur municipalities (Piagapo, Marantao, and Ditsaan Ramain), interviews with selected abaca industry stakeholders of the local abaca industry and secondary data collection were conducted.

THE ABACA INDUSTRY • The Philippines is the leading producer of abaca (Musa textilis) fiber in the world, surpassing Ecuador – the second largest and only major other competitor – by over 20 000 MT of total production every year in the past decade. Despite leading in overall production of abaca, the Philippines lags in yield per hectare (FAOSTAT). • The region of Bicol produces the most abaca fiber in the country, followed by Eastern Visayas, Davao, and Caraga (Philippine Statistics Authority).

CONSTRAINTS FAO ©

The value chain analysis (VCA) of abaca in Lanao del Sur identifies the following constraints: • Lack of quality planting material sources. Planting materials are currently sourced from a Philippine Fiber Industry Development Authority (PhilFIDA) nursery in Pagadian City, 160 km away. A feasibility study on the establishment of a nursery in Piagapo or Marantao can be done to lower costs of planting materials and related logistics. • Limited knowledge on abaca production, primary processing and marketing.

Farmers have limited knowledge on crop maintenance and pest/disease FAO © management. Most farmer beneficiaries have not yet experienced a full abaca growing cycle and also do not know about postharvest production and trade classification of fibers. • Absence of postharvest equipment and facilities. Farmers lack decorticating machines needed for fiber extraction, and rental is 15–20 percent of gross sales, which farmers find to be too expensive. Capacitated community based organizations (CBOs) could provide this support service to fellow abaca farmers. • Limited extension support services provided by PhilFIDA and local government units (LGUs). Extension support is provided by PhilFIDA, not LGUs. Extension © FAO © support, however, may be is limited in capacity. Higher education institutions and

NGOs can be tapped to provide advisory and training services as well. • Farmer-beneficiaries’ negative attitudes and lack of interest toward abaca production. Most participants don’t see abaca as a major source of livelihood, and so provide minimal attention to the crop. Many consider them to be vegetable.

FINDINGS and RECOMMENDATIONS 1. Strengthen capacity of CBO farmer-members to chain within a short period. PhilFIDA can provide develop productive and profitable abaca farms. technical advisories, DTI can help in marketing and Current knowledge and experience of farmer promotion for CBOs (and trainings in these areas), members are limited. This lack of knowledge is and NGOs can be tapped to train them to engage evident through low productivity and crop failure and adapt to the supply chain. due to pest and disease damage, and 4. Strengthen capacity of LGUs and PhilFIDA Lanao exacerbated by the farmers’ lethargic attitude del Sur for sustainability of the program. toward abaca. To generate substantial income, LGUs can provide extension support through (a) farms should become productive and profitable. establishment of an abaca demo farm and (b) This can be achieved by changing the mindset and strengthened capability of Agricultural Technicians attitude toward abaca. Capacity building could be to provide technical advisories. The PhilFIDA Lanao done through the Famer Field School approach. del Sur regional field office should also be From amongst the pilot farmers, “abaca farming strengthened. specialists” can be identified and further trained 5. Develop abaca seedling nurseries, other abaca- to advise their fellow farmer. derived products and cash production as 2. Strengthen and capacitate CBOs to become additional liveli hood opportunities for the CBOs. licensed traders. Abaca seedlings are usually procured from Iligan or Licensure of CBOs would help them penetrate the Pagadian. Transport logistics are costly. CBO abaca market. CBOs should also be strengthened development of nurseries would lead to savings for into abaca trading cooperatives that could farmers and earnings through selling to non- receive capacity-building programs equipping member farmers. CBOs should also pursue them with technical and entrepreneurial skills to production of other abaca-derived products. run a trading enterprises and satisfy government PhilFIDA and LGUs can support training, regulations. infrastructure and equipment needed to establish a 3. Tap relevant national government agencies and manufacturing shed. NGOs to assist CBOs in the marketing and promotion of their abaca fiber and abaca- derived products. Due to heavy regulation of the abaca industry, it may be difficult for CBOs to enter the supply

Food and Agriculture Organization of the United Nations 20 Representation in Philippines Tel.: +632 8638 9886 Some rights reserved. This work is available under a CC BY-NC-SA 3.0 IGO licence. Website: [email protected] CA7633EN/1/02.20 20 FAO, ©