Professional Documents
Culture Documents
Case Studies 2
Case Studies 2
I. Identification
1. The Issue
2. Description
Lambanog is an alcholic beverage known for its potency (it is sold in 80 or 90 proof
variations). It is primarily produced in the Quezon Province of the Philippines, or
about 143 kilometers southeast of Manila. The lambanog making process has been
a tradition passed down through generations of coconut plantation farmers in this
region. In fact, the Mallari distillery was established in 1918.
The process begins with the coconut tree -- "the tree of life." As with most fruit-
bearing trees, flowers turn into the fruit. Lambanog making trees never produce
fruit, because it is the sap from the coconut flower that is the crucial ingredient for
this unique coconut wine. Plantation workers called mangagarit climb the coconut
trees every afternoon to prune the flowers so that their sap drips into bamboo
receptacles called tukil. (This process is analogous to rubber tree tapping.) The next
morning, the mangagarit returns to collect the sap from these receptacles. The sap
is then put through a cooking or fermentation process, which produces a popular
coconut toddy called tuba. The tuba is then taken and distilled to produce
lambanog. Until recently, lambanog was primarily an local drink, much like home-
made apple cider or backwoods moonshine. Lambanog is widely enjoyed by the
locals of the Quezon province, and festive occasions are incomplete without the
traditional "tagayan" or wine-drinking. While the "tagayan" can take on different
forms, the most common kind involves taking turns drinking out of a single glass set
in the middle of the group.
Because of its long history as a cottage industry product, lambanog is still beginning
to gain worldwide recognition. Also, in an efforts to increase its appeal to people of
all ages, it is now marketed in several flavors: mango, blueberry, bubblegum,
cinnamon, etc.
Cultural Relevance
Because coconut trees abound throughout the Philippines, and because the process
of distilling lambanog from tuba is a relatively inexpensive process, it is known as a
poor mans drink. Farmers often wind down by drinking lambanog after a long days
work.
Government Involvement
Coconut Products are among the Philippines top ten exports. In recent years, other
countries have increased their investment in the coconut industries, rivaling the
Philippines in terms of export production. In response, the country has been looking
for new ways to recover its corner on the market. Lambanog was one of the
products selected for export development. The Industrial Technology Development
Institute, along with the Department of Science and Technology began working with
the three biggest distilleries to standardize the distillation process; their suggestions
improved the quality of the product. To prepare for export, the governments Brand
Development Program worked with the distilleries to develop unique bottling and
packaging; they hoped to introduce lambanog with a Philippine trademark on the
global market to increase its competitiveness.
Environmental impact
Because lambanog comes from the distilled sap of the unopened coconut flower, it
is in the industrys best interests to take good care of its coconut trees. As the
demand for lambanog increases, it will naturally serve as an incentive to plant more
trees.
3. Related Cases
Sugar -- Philsug case which highlighted sugar as the Philippines leading export crop
and the large impact that the U.S. quota reduction in the late 1980s has had on the
Philippine economy and environment.
Sake -- Sake is a Japanese rice wine that is now widely known, and often consumed
with sushi and other Japanese foods. Like lambanog, there are traditional ways of
making sake, and great care goes into making it. Currently, sake is the only Asian
wine featured in the TED database.
Grappa -- The Grappa case describes it as a distillation of the sediment left after
pressing grapes to make wine. It goes on to say that while it originally emerged as
a poor man's drink, grappa has recently attained status equivalent to that of Scotch
whisky or exquisite cognacs. Italians sip it for breakfast, it is added into coffee and
also used as a digestive after meals or an ingredient in cooking (e.g., in cakes,
cookies and homemade sausages).
TsingTao beer -- This case study explores the history of TsingTao and Taiwan Beer,
the politics of Taiwan and the Mainland, relevant economic issues, and the legal
principles that would be involved in possible litigation.
As a member of the WTO, the Philippines is a party to negotiations that took place
during the Uruguay round of the GATT. As such, all products that it exports or
imports are subject to the schedules or commitments that the Philippines has
submitted as part of those negotiations. As a relatively new product, lambanog is
not directly involved in any current WTO disputes, but a dispute raised by Argentina
in September 2002 could be applicable. In September 2002, Argentina brought a
request for consultations regarding EU regulations and other requirements
regarding oenological practices and on trade in wines, pursuant to Article 14.1 of
the Agreement on Technical Barriers to Trade of the GATT 1994. Argentinas
complaint concerned bilateral negotiations between the EU and several WTO
members, providing exceptions to requirements about the acidification of wines
with malic acid. Argentina argued that these arrangements were an infraction of the
EUs commitments under the Agreement on Technical Barriers to Trade. If this
dispute is decided in favor of Argentina, it would benefit the Philippines with regards
to lambanog, because this product is not acidified with malic acid. Although it is
called a coconut wine, the Lambanog making process does not involve malic acid or
any other additives; instead, it is produced by distilling the fermented sap of the
unopened coconut flower.
The Philippine governments Brand Development Program has been working with
the three leading lambanog distilleries to develop unique bottling and packaging for
the beverage with the intention of releasing it on the global market as a
trademarked alcoholic beverage. Since the late 1990s, the Philippine Department
of Science and Technology has worked with distilleries to standardize a process that
has been passed down over many generations as a cottage industry.
9. Geographic Locations
Because of lambanog is such a new product on the international scene, and the
levels of exportation are not so high, I was not able to come across any relevant
trade measures dealing with lambanog in particular.
There is currently no import ban on alcoholic beverages, or coconut based products
from the Philippines. The absence of an import ban means that there are no
restrictions or prohibitions to the importation of lambanog into the United States.
There is no quota, or limit to the amount of lambanog allowed into the United
States, and there is no associated tariff for containers with a volume of less than 4
liters.
Currently, the United States and Japan are the two largest importers of alcoholic
beverages from the Philippines, where distilleries produce beer, rum, and whiskey
for several popular international brands.
In 1996, the Philippines, Indonesia, and India accounted for 69.6% of the worlds
coconut production of 9.6 million metric tons. About 25.4% of the Philippines arable
agricultural land was planted with coconut in 1997. Since then, efforts to increase
countrys competitive share of the coconut market have been underway, including
the push to plant more coconut trees, and to develop new coconut products. The
Philippine coconut industry is generally viewed as a monopoly, controlled by a very
privileged few. Small time coconut farmers livelihoods are being threatened as an
increasingly powerful United Coconut Planters Bank, has been buying out or
absorbing most of the market share. In response, these farmers have become more
organized and united over the past decade.
The lambanog industry, although it has been around for centuries, takes up a fairly
small share of the overall coconut industry.
In recent years, the product has been launched onto the world market, and it is
hoped that this industry will grow. This would, however, necessitate the planting of
more coconut trees, since production is dependent upon the amount of sap
collected daily. As noted in the story below, the process of sap collection is largely
dependent on the skill of the mangagarit, who have a very risky job. Although they
are afforded health and housing benefits due to the risky nature of their work, their
living situations and financial compensation still leave room for improvement.
Unless more safety features are installed for them, it will be hard to attract new
workers for this position as public education becomes more accessible, and other
job opportunities arise.
As far as the environment is concerned, the lambanog industry does not pose any
major threats, since it is in their best interests to encourage more tree planting.
Both the product and the process do not include any harmful chemicals; in fact, it is
being marketed as an organic product.
Because lambanog has only recently begun its introduction onto the international
market, trade data tracking export and import of this product is very limited. In
terms of production, lambanog-making is still very much a cottage industry with
deep historical roots. The Mallari Distillery, one of the three major producers in the
country, was established in 1918; today, it still has only 21 employees. So far, my
research has shown that the Mallari distillery has been the most active in trade fairs
promoting product awareness. It lists its annual sales at $40,000. A one-gallon
bottle of lambanog retails for $3 to $4, depending on the alcohol content (80 or 90-
proof).
Lambanog exports have increased since 2001, as reflected by data from a report
generated by the Philippine Department of Trade and Industry, but it seems the
listed quantities are still too small to be reflected in most (inter)national
export/import statistics. (See Table 1).
V. Environment Clusters
Type: Plant
Diversity: this type of coconut tree is common to most tropical climates
Because lambanog comes from the distilled sap of the unopened coconut flower, it
is in the industrys best interests to take good care of its coconut trees. As the
demand for lambanog increases, it will naturally serve as an incentive to plant more
trees.
Every morning, as the sun begins to rise, 58 year-old Rolando Rubiales makes his
way to his starting tree in his area of the 24-hectare coconut plantation. Rolando
is the oldest of 19 mangagarit (sickle handlers) for the Mallari distillery, one of the
three largest lambanog distilleries in the Philippines. Watching Rolando at work on
his sixty trees is reminiscent of watching tightrope artists at a circus. The trees that
he climbs average 30 feet in height, and are connected by thin bamboo bridges
one to walk on, and a higher one to hold onto. Rolando goes from tree to tree
collecting sap or nectar into a stainless steel container strapped onto his back. His
other tool is a sickle, which he uses to prune the coconut flowers every afternoon,
making sure that the precious nectar flows into the bamboo containers overnight.
He empties these during his morning collection rounds.
There are no safety nets, and the danger of falling is ever present. Recounting one
of his two falls, "the bamboo cracked and split midway while I was crossing the
bridge. Luckily, I landed directly on a soft moist spot below. I was hospitalized for
almost a month," he recalled. "This is the only work I know since I was 17. This is
the job that all my four sons have also learned. Yes, there is risk and danger but it's
an honest job," Rolando said.
According to Abe Paderes, Mallari Distillery plant supervisor, all the mangangarit
are Philhealth and Social Security System cardholders. "Because of the dangerous
nature of their work, all the 'mangangarit' have been recipients of numerous
benefits and incentives from the company," he said. "All work-related injuries are
shouldered by the distillery owner. And as they recuperate from their injury, the
company also allots free substantial allowance until they fully recover and start
working again," he added.
27. Rights: No
Study shows coco flour good for diabetics, weight conscious people
http://www.stii.dost.gov.ph/sntpost/frames/dec2k2/pg5a.htm
http://www.discoverquezon.com/lambanog.htm
http://www.stii.dost.gov.ph/sntpost/frames/julytosept04/fotonews_pg12.htm
http://mis.dost.gov.ph/itdi/lambanog.htm
http://www.ias.org.uk/publications/theglobe/01issue3,4/globe0103_04_p12.html
Spring/2005