ANNEX A – CMG Concept Note

CMG CONCEPT NOTE

Title of Project Abaca Production

Supported Value [] Horticulture [ ] Aquaculture [ ] Handwoven Goods
Chain
CSG Names Primary: Kasarigan-Cabasagan
Masakaw-Cabasagan
Secondary: None

Location Cabasagan, Pantaoragat Lanao Del Norte

Type of Project [] Livelihood [ ] Community Engagement [ ] Community
Improvement
Partner: [  ] EcoWEB [ ] Maradeca
Endorsements
Project Name CSG/Position Tel Signature
Proponents
Norjanna Mangotara Kasarigan/Leader 09126328841
Maimona Minalang Masakaw/Leader 09501865706
Rasmia Minalang 09094425177
Project Summary
United State Agency International Development (USAID) in partnership with Plan international
and local partners Ecosystem Works for Essential Benefits, Inc. and MARADECA, Inc.
implemented project called Marawi Response Project to support the remaining Internally
Displaced Person within their current hosting to community in two (2) different ways
1. Uplift the economic condition of IDPs
2. To strengthen social cohesion among IDPs and Host community members
Through this, the project will be realize by if MRP will procure and deliver the materials needed
in establishing abaca production as well as provide the necessary training to enhance their
skills in abaca Farming. A total of 2 CSG members will benefit this livelihood (Masakaw 20
members and Kasarigan 20 A total of 18 IDPs and 22 HCM.
This project initially aims to provide livelihood opportunities to all CSG members. Thus, the
livelihood seeks to achieve the following:
 To promote sustainable farming system and provide livelihood projects to farm families
in the Barangay.
 To create rural community awareness in organic farming practices introducing its
benefit and help, rehabilitate, conserve and protect the natural resources for
sustainable agriculture.
 To achieve farm production sustainability and provide healthy agricultural food products
to the community through proper organic agriculture practices.
 To promote economically sound and sustainable abaca production in the
community.
 To generate employment and provide additional income to rural farm family
through community-based project.
 Decrease poverty incidence by 40-50% (if implemented successfully and is
sustained rightly) by 2023

All CSG’s will engage into production with separate identified areas
Why is the assistance needed?
 Since the day abaca entered into the world market, Philippines was the main, if not the only, supplying
country. Even when its demand was at the lowest in the 1970’s and farmers were cutting their abaca
and converted their farms, the Philippines remains to be a top producing country.

In the late 80’s the demand for abaca started to increase as its usage in the specialty paper industry
increased. As the impact of climate change started to be felt in the early 1990’s, the search for
alternatives to synthetic fiber increased and abaca, with its superior quality, was among those
identified. Experiments using abaca fiber as polymers and re-enforcements to plastics expanded. In
2004, DaimlerChrysler, one of the largest automobile manufacturing company in the world announced
that it planned to use abaca fibers as reinforcing materials instead of fiber glass for car parts. From then
on, more usage of abaca fiber was discovered driving the demand to continuously increase.

In 2012, the world demand for abaca fiber reached 77.9 thousand metric tons (MT) and 83 percent or
64.66 MT was coming from the Philippines. The increasing demand for abaca fiber is expected to
continue as the fiber is now used in an increasing number of products including specialty papers for
food packaging like tea bags and meat casings, filter papers, textiles and hygienic disposables. Abaca
fiber is increasingly used in polymers and re-enforcements in various plastic-based parts of the cars.
The increasing use of natural fiber to replace synthetic fiber as a strategy to reduce green-house gas
emissions by European countries is also expected to propel the worldwide demand for abaca fiber. This
trend is validated by the report Philippine Abaca Fiber Market Forecast and Opportunities, 2019
published by the Research and Markets, a global market research think-tank based in Dublin, Ireland.
The Report projected that world demand for abaca fiber will increase at 5.7 percent annually from 2013
to 2019. The Philippines supplied 85 percent of the world’s demand of abaca fiber in 2013.

The above trend is now being witnessed in the Philippines. Newtech Pulp Incorporated (NPI), the
biggest pulping company in the Philippines that consumes an average of 60 tons of abaca fiber daily,
has already experience shortage of the fiber. Based on their data for 2014, barely half of the 22,000 MT
need was produced from the Philippines. The rest was imported from Ecuador and Costa Rica, the
second and third abaca fiber exporting countries.

The increasing demand of abaca fiber at the local market in western and northern Mindanao and the
increasing demand at the international market is a great opportunity to the farmers. Both the elevation
and the volcanic origin of the slopes and upland areas of the two regions are favorable to growing
abaca. It is the peace and order situation in most upland areas that discouraged farmers to cultivate
long-term crops like abaca. However, with the sustained improvement of the peace and order situation
and the building of access roads to rural areas, abaca farming is increasingly viable. Being proximate to
a huge pulping company could make transportation cost less and thereby allowing higher farm-gate
price.

Required goods and services

Item Detailed Description and Specification Unit Quantity

 Shared Service Facilities    
Fiber Stripping Centers Provision of Fiber Stripping Centers (with
MSSM and drying shed) with a size of
200sqm floor area
Nursey

Allocated to CSGs
Item Detailed Description and Specification Unit Quantity
Planting Material
Abaca Nursery
Decorticating Machine
Grass Cutter
Bolo
Fertilizers
Training
Training on Planting
Materials Production and
Nursery Management
Basic Training on Abaca
Farming and Industry
Abaca Fiber Processing,
Baling and Storage
Training on Social
Enterprise and
Cooperatives

Cost-share Counterpart

Item Estimated Value Provider

(Php)
Land (2 hectares) Php 500,000.00 2CSG’s
Labor Php 25,000 2 CSG’s
Transportation Php 6,000.00 2 CSG’s