The Philippines remains the world’s top supplier of abaca, meeting nearly 90 percent of global demand. To sustain this leadership, industry experts are pushing for increased production, diversification into high-value products, and the strengthening of the entire value chain.
Key priorities include modernizing abaca farming with improved varieties, building post-harvest and processing facilities, expanding exports of finished goods such as luxury paper and composites, and empowering farmers through stronger integration into social enterprises. Achieving this requires a coordinated strategy driven by government support, scientific innovation, and robust public–private collaboration.
In line with this vision, the private sector-led consultative body on fiber development facilitated by the Philippine Council for Agriculture and Fisheries (PCAF) has adopted four key policy resolutions aimed at modernizing and strengthening the abaca industry to sustain the country’s global leadership in natural fibers.
The PCAF National Sectoral Committee on Fiber Crops (NSC-Fiber Crops), in a report shared with the Philippine Exporters Confederation, Inc., said the resolutions adopted between January and September 2025 have been endorsed to concerned government agencies for implementation. PCAF, the policy advisory arm of the Department of Agriculture (DA), brings together public and private stakeholders to craft strategies that advance the country’s agriculture and fisheries sectors.
The first resolution endorsed to the DA supports the 2026 budget proposal of the Philippine Fiber Industry Development Authority (PhilFIDA) amounting to over ₱1.4 million. The proposed funding will establish common drying facilities to enhance fiber quality, expand abaca production in Region IV-B, open a PhilFIDA regional office in Region VI, and improve disease indexing systems in Mindanao.
A second resolution urges the Department of Science and Technology–Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (DOST-PCAARRD) to include NSC and PCAF members in monitoring the Abaca Hybrid Fiber Project, which evaluates the commercial potential of abaca hybrid fibers for large-scale industrial use. PCAARRD has confirmed the committee’s inclusion in the project’s monitoring team.
The third resolution calls on the DA to establish an abaca demonstration farm to serve as a technology and training hub promoting innovation, improved abaca varieties, sustainable production practices, and value-chain development. PhilFIDA has committed to include this project in its 2027 budget proposal.
Meanwhile, the fourth resolution seeks stronger inter-agency collaboration between the DA, DOST–Philippine Textile Research Institute, and other partners to enhance the production of high-quality abaca yarn for global markets.
Despite being the dominant player in global abaca trade, the Philippine industry faces persistent challenges, including traditional farming methods, limited access to modern technologies, weak disease management, and insufficient R&D support.
PCAF NSC-Fiber Crops emphasized that modernizing the abaca industry is key to sustaining export growth while promoting inclusive development. “Strengthening the fiber industry contributes to rural employment, environmental sustainability, and economic resilience—key drivers of long-term competitiveness for Philippine agriculture,” the committee stated.