Farmers practices in marketing Abaca fiber in Caraga Region

Abstract

The study was conducted to determine the marketing practices and the profitability of establishing Abaca in the Caraga Region. A total of One Thousand Two Hundred Fifty-Six (1256) farmers, Seventy-Seven (77) traders, and three (3) processors were interviewed as the respondents of the study. Their names were obtained from the Philippine Fiber Development Authority (PhilFIDA) and the Municipal Agriculture Office (MAO) of the concerned municipalities of the Region. Data gathering activities included interviews and focus group discussions (FGDs), and stakeholder forums were conducted to validate and gather additional information. The said Focus Group Discussion and Stakeholders’ Forum were attended by the farmers, officers in various cooperatives, traders, representatives from the regional line offices, the Department of Trade and Industry (DTI), Department of Agriculture (DA), Department of Agrarian Reform (DAR) Municipal Agriculture Offices (MAO), Academe, Provincial Agriculture Officer. In the Caraga Region, abaca traders are situated in Agusan del Norte 28 or 36.36%, Agusan del Sur 25 or 32.47%, Surigao del Sur 24 or 31.17% and no traders in the province of Surigao del Norte. The one who sets the price for abaca fiber is the trader/buyer 99.28 % and only 0.71% sets by the farmer. The means of contacting buyers are referrals by the farmers 32.96%; traders will come to the farmers 27.46%, recommended by the Local Government Unit (LGU) 23.88%, and traders who are known by the cooperatives 15.68%. The buyers’ requirements in buying abaca fibers are quality 63.69% and volume 36.30%. Traders engage in buying Abaca for more than 15 years or 38.5%; 1-5 years, 30.12%; 11-15 years, 18.07% and 6-10 years, 13.25%. The means of transporting abaca fiber is through motorcycles 43.37% and hired trucks 56.61%. The estimated monthly volume sold is 1- 5 metric tons or 92.77% and 6 – 10 metric tons. The farmer’s Abaca fibers through Barangay or Municipal Traders, Cooperatives/Consolidators, Baling and Grading Establishment, Processors, and exporters. The issues and concerns for the traders are the following: classification and grading of fiber, cheating abaca bundles where stones inserted to increase weights, abaca fiber not adequately dried, and piles of Abaca are mixed with other fibers. The profitability of abaca farming for 1 hectare /year is the average of P48,000 for a typical farm, while for a good farm is P115,200 – 192,000.