Bamboo Industry Study Rod g

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B a m b o o I n d u s t r y C l u s t e r Page 1

Ta bl e of C on t e nt s

EXECUTIVE SUMMARY................................................................................................................3 I. INTRODUCTION .......................................................................................................................6 II. OBJECTIVES .............................................................................................................................8 III. BAMBOO DESCRIPTION AND ITS USES ..................................................................................9 IV. GLOBAL BAMBOO INDUSTRY ..............................................................................................13 V. WORLD PRODUCTION ..........................................................................................................16 VI. COMPETITIVE POSITION OF THE RAW MATERIALS .............................................................18 VII. BAMBOO TRADE ................................................................................................................19

1. EXPORT ........................................................................................................................................... 192. IMPORT ........................................................................................................................................... 21

VIII. PHILIPPINE SETTING ..........................................................................................................25 1. COMPETITIVEPOSITIONANALYSIS ....................................................................................................... 252. PRODUCTION ................................................................................................................................... 27

a. Input Scheme ........................................................................................................................... 27 b. Planted Areas .......................................................................................................................... 29 c. Production Volume .................................................................................................................. 32 d. Farm Gate Price ....................................................................................................................... 32 e. Suitable Areas .......................................................................................................................... 34

3. EXPORTMARKET .............................................................................................................................. 35a. Bamboo as Export ................................................................................................................... 35 b. Local Manufacturers of Bamboo as Raw Materials ............................................................. 36

c. Taxes Imposed on Bamboo ..................................................................................................... 37 4. OPPORTUNITIES ANDCONSTRAINTS(FIGURE1) .................................................................................... 395. ANALYSIS ONPHILIPPINERUBBERVALUECHAIN(FIGURE2) ................................................................... 40

IX. RECOMMENDED ACTION PLANS .........................................................................................41 X. BUSINESS OPPORTUNITIES ...................................................................................................45

A. BAMBOO NURSERY ........................................................................................................................... 45B. BAMBOO PLANTATION ...................................................................................................................... 46C. PROCESSING ..................................................................................................................................... 47

ANNEXES ..................................................................................................................................48 ANNEX1: CROP ESTABLISHMENT ..................................................................................................... 48ANNEX2: LIST OF BAMBOO FARM GATE PRICES ............................................................................. 52ANNEX3: LOCAL BAMBOO MANUFACTURERS ................................................................................ 56ANNEX4: BAMBOO NURSERY .......................................................................................................... 65ANNEX5: BAMBOO PLANTATION .................................................................................................... 73ANNEX6: BAMBOO PRODUCTION (NODES) .................................................................................... 81ANNEX7: BAMBOO HUB ................................................................................................................... 89ANNEX 8: ENGINEERED BAMBOO PRODUCTION COST (FOR MEDIUM ENTREPRENEURS)......... 96

REFERENCES ........................................................................................................................... 104


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ACCRONYMS

ASEAN Association of South East Asian NationsPBIDC Philippine Bamboo Industry Development CouncilFAO Food and Agriculture OrganizationINBAR International Network for Bamboo and RattanEO Executive OrderCOMTRADE Compressed International Trade Database -United NationsHS Harmonized SystemSME Small and Medium EnterprisesDA Department of AgricultureDTI Department of Trade and IndustryPBF Philippine Bamboo FoundationMENRO Municipal Environment and Natural Resources OfficerLGU Local Government UnitUNDP United Nations Development ProgramDENR Department of Environment and Natural ResourcesDOST Department of Science and TechnologyMMSU Mariano Marcos State University

TABLES

Table 1 Bamboo Resources Worldwide

Table 2 Bamboo ExportsTable 3 Bamboo ImportsTable 4 List of Bamboo Nursery in the PhilippinesTable 5 List of Bamboo Areas in the PhilippinesTable 6 List of Bamboo PricesTable 7 E-Bamboo Manufacturers in the PhilippinesTable 8 Recommended Action Plans

FIGURES

Figure 1 Opportunities and ConstraintsFigure 2 Analysis on Philippine Rubber Value Chain


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EXECUTIVE SUMM ARY

Bamboo belongs to the Graminae grass family

and commoly known in tagalog as kawayan . Bamboo

is mostly abundant in the Asia and the Pacific, Latin

America and Africa due to weather conditions. It is

best suited in regions of warmer climates with moist,

fertile, well-drained soils that are found on the banks

rivers and creeks. However, bamboo cannot grow in

swampy soil that is waterlogged all year round.

Bamboo is widely recognized as a promising, sustainable raw material because

of its fast growth, low price, and abundance. Products from bamboo are grouped into

traditional and non-traditional or emerging finished products. Market demand is

usually for traditional products such as handicrafts and bamboo shoots (new bamboo

culms that come out of the ground). Bamboo products such as paper, pulp, panels,

flooring and other building products are gaining attention with large opportunities

emerging in the market. With its technical performance in terms of hardness, stability

and strength, emerging bamboo products are now competitive in conventional timber

and wood fiber markets. Moreover, bamboo restores degraded lands and protects it

from soil erosion, landslides, mudslides and slippage.

There are over 75 genera and 1,250 species of bamboos worldwide; only 50

species are regularly used. In 2005, FAO recorded that bamboo production has reached

to about 37 million hectares globally and mostly located in Asia that shares around 60%

of total production.

The value of exports globally from year 2007 to 2010 averaged US$ 1.42 billion.

There was an increase during 2007 to 2008; however, export value continuously

dropped in 2008 to 2010 because of the global economic crises where most of the

ASEAN countries were affected. Countries export products such as textiles and


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garments, and furniture were mostly affected by the decline in world market particularly

in Western countries. China topped the list of exporters with 46% share of the total

export in 2010, followed by Indonesia and Vietnam with a world export share of 16%

and 5% respectively.

Despite instability in global export, importing countries have been spreading

opportunities for the industry particularly the emerging products such as flooring,

veneer, panels, and other building materials. World bamboo market is expected to

increase to US$ 20 billion by 2015 as demand for environmentally friendly products

increases.

Most of the bamboo products are being imported in the European Union, United

States of America, Japan, Canada, China, Singapore, South Korea, Malaysia, Mexico,

and Australia; collectively accounting for 70% of the total market share.

The International Network for Bamboo and Rattan (INBAR) records show that the

Philippines is among the top exporters of bamboo-based products, ranking 6 th

worldwide in 2009 with a total export value of US$ 30 million. Most bamboo poles

harvested in the country are used for furniture, agriculture and construction materials.

Bamboo furniture and handicrafts are the top dollar earner for the country, accounting

for about 40% of the bamboo raw materials. Aside from the local market, the countrys

bamboo-based products are being distributed to around 50 countries worldwide with

USA getting the biggest share of about one-third of the total export.

As of 2010, the Philippines has a total of 64 bamboo nurseries locatednationwide. An additional of 72 nurseries was established in 2011. The major bamboo

producing regions are CAR, Region 3, Region 6, Region 7 and Region 8.

As collated by the Department of Trade and Industry, as of July 2012, the

farmgate price per pole of bamboo ranges from PhP 5.00 to Php 500.00 depending on

its variety. The most expensive specie of bamboo is apos. Semi-processed bamboo


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products such as kalakat or woven bamboo is sold at PhP 90.00 per mat, while bamboo

splits are sold at Php 35.00 per dozen or PhP 2.00 per meter. Bamboo shoots are sold

at PhP 10.00 per kilo.

Aside from the sustainability of bamboo as a raw material, it has been

established that bamboo production will significantly contribute to the mitigation of

climate change and disaster management, considering its carbon capture capability and

cheaper reforestation cost. Bamboo is the best material for sequestering carbon.

According to Conrado S. Perreras, Chairman of the Bamboo Network of the Philippines,

If you plant one bamboo, it starts sequestering carbon within three years as opposed to

a tree which takes 15 to 20 years. And once you cut a tree, its gone. In the case of

bamboo, you keep harvesting because it is reproducible. Further, bamboo can be

easily transformed into cash crop thereby alleviating the plight of poor farmers engaged

it its production. In response, the Philippine Government committed to reforest at least

500,000 hectares with bamboo. This will form part of the 1 million hectares of

designated areas as its contribution to the ASEAN commitment of 20 million hectares of

new forest by 2020.

The growing advocacy for green products is fuelling the rapid growth of the US$8

Billion per annum market for traditional and non-traditional bamboo products. Bamboo is

fast becoming a cost effective and attractive complement and/or alternative to plastic,

metal and wood materials and can generate more jobs and self-employment

opportunities in both the rural and urban areas.

The development of the Philippine Bamboo Industry is embodied in Executive

Order 879 issued last May 2010 that created the Philippine Bamboo Industry

Development Council (PBIDC) and directed the use of bamboo for at least 25% of desk

and other furniture requirements of public elementary and secondary schools and

prioritizing the use of bamboo in furniture, fixtures and other construction requirements

of government facilities.


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This study will present the identified contraints in the growth of the industry such

as the supply of raw materials, unavailability of updated technology, lack of technical

expertise of farmers and processors, quality and standard product output, financing

programs, policy support and implementation by the government, establishment of

bamboo database, information dissemination, infrastructure development, and pricing

orientation. The recommended actions for the constraints identified were elaborated in

the following pages.

I . INTRODU CTION

Bamboo is one of the most versatile, and perhaps the

fastest growing plant with some varieties growing at the rate

of five centimeter per hour or 1.5 meters a day. It can reach

as high as 60 feet and beyond in height with prehistoric

sizes recorded at 75 feet. Bamboo grows in different

climates it can be found in all the continents except

Antarctica. Bamboos have been growing at low to medium elevations in the tropics,

growing wild, cultivated or naturalized in a great variety of habitats.

Bamboo forest biomass stores a large quantity of carbon with a percentage of

40% - 45%. Bamboo can release up to 35% more oxygen than any other plant, and an

acre of bamboo can sequester 25 tons of carbon dioxide per year, compared to only 6

tons from a young forest. Carbon sequestration credits or offsets are calculated by the

amount of carbon emissions that would have been emitted if a diesel or other traditional

polluting electric generator was used to produce the same amount of electricity.

Environmentally, planting bamboo equates to being proactive to produce more

oxygen and sequester large quantities of carbon dioxide. Thus for this reason, bamboo

is now playing a significant role in linking climate change mitigation to sustainable

economic development in the developing world. Carbon credits trigger creation of

otherwise marginal bamboo plantations for processing, jobs and wealth generation.


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Unlike tree crop plantations which are facing criticism regarding an unclear pro-poor

focus, bamboo is highly suitable for cultivation specifically for pro-poor development

(inbar.int).

Demand for traditional bamboo products such as handicrafts, blinds and bamboo

shoots remains strong in the world market. Flooring, building products and laminated

furniture are the emerging bamboo markets of today. These represent the largest

growth opportunities for the bamboo industry. The worlds intensified interest on

bamboo, as presented in this study, has resulted in its emergence as a viable industry.

In the Philippines, demand for bamboo and its products is also promising. Back

in 2002, the Chamber of Furniture Industries of the Philippines needed 1.5 million poles

of bamboo. This demand increased to 1.875 million poles in 2003. As the markets and

demand for bamboo products continue to grow, there is also a growing demand for

governments attention to this industry, as manifested by the Philippine National

Bamboo Congress in November 2008.

Considering the economic and environmental contribution of bamboo, the

Government is encouraging the promotion of the industry through various programs.

Pursuant to Executive Order 879 issued in May 4, 2010, the Philippine Bamboo Industry

Development Council was created. The E.O. also directed the use of bamboo to supply

at least 25 percent of the desk and other furniture requirements of the Department of

Education and Culture. In addition, it directed the prioritization in the use of bamboo for

the furniture, fixtures, and other construction requirements of government facilities. The

Philippines has also committed to reforest at least 500,000 hectares with bamboo aspart of the one million hectares of designated areas as its contribution to the Association

of South East Asian Nation (ASEAN) commitment of 20 million of new forest by 2020 as

part of the initiatives to improve the environment.


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General Objectives

The study intends to illustrate the bamboo value chain and evaluate theroles and functions of the actors involve and their relations tominimize, if not eliminate, the constraints against the growth of theindustry.

Specific Objectives

Assess the value chain situation of the bamboo industry.

Identify opportunities and constraints.

Recommend needed actions to respond to the identified constraintsin the production, policy issues, financing programs, marketing andother components concerning the industry.

The mentioned lucrative demand is an opportunity for the Philippines to expand

its Bamboo Industry performance. In this study, the worlds bamboo industry status will

be presented, together with the Philippine bamboo industrys global competitiveness. A

Value Chain Assessment method is used in identifying the constraints of the industrys

growth, roles and functions of the actors involved in the supply chain, and finally in

finding and addressing the gaps in the value chain.

I I. Obj ect ives


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III . BAM BOO D ESCRIPTION AN D ITS USES

Bamboo is a group of perennial evergreens in

the true grass family Poaceae, subfamily of

Bambusoideae and tribe of Bambuseae . Giant

bamboos are the largest members of the grass

family. It is one of the fastest-growing plants on

Earth with reported growth rates of 100 centimeter

(39 inches) in 24 hours. However, the growth rate

is dependent on local soil and climatic conditionsas well as species. During its growing period, a more typical growth rate for many

commonly cultivated bamboos in temperate climates is in the range of 3-10 centimeter

(1-4 inches) per day. Primarily growing regions of bamboo are warmer climates like

Asia. Some of the largest timber bamboo can grow over 30 meters (98 ft) tall, and be as

large as 15-20 centimeter (6-8 inches). However, the size range for mature bamboo is

species dependent, with the smallest bamboos reaching only several inches high at

maturity. Source: wikipedia.org

At present, bamboos are considered as a major construction material in many

countries, particularly in rural areas. It can be used for almost all parts of houses,

including posts, roofs, walls, floors, beams, trusses and fences. Also, it is used to

produce mats, baskets, tools, handles, hats, traditional toys, musical instruments and

furniture.

Bamboo can also be processed into modern products

usually referred to as Engineered Bamboo that can

compete in performance with regular wood products. Panels

and boards made of bamboo may well replace wood, steel

and concrete in many uses. Bamboo fibre is longer than

wood fibre, which gives bamboo some technological


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advantages due to its rigidity and durability. The panels are widely used in modern

construction as structural elements or as forms for concrete moldings. Bamboo can be

used for flooring, roofing, partitions, doors and window frames.

Today, several bamboo-producing countries, such as China and India, use

bamboo as pulp, paper and more recently cloth. Bamboo paper has practically the

same quality as paper made from wood. The morphological characteristics of bamboo

fibres yield paper with a high tear index, similar to that of hardwood paper. The tensile

stiffness is somewhat lower compared with softwood paper. The strain strength is

between that of hardwood and softwood papers.

In addition, through pyrolysis, bamboo can be converted into three valuable

products: bamboo charcoal, oil and gas. Bamboo extracts contain valuable elements

and can be used in pharmaceuticals, creams and beverages. Bamboo gas can be usedas a substitute for petroleum. Bamboo can also be used as charcoal. It can substitute

wood charcoal or mineral coal and can serve as a fuel, absorbent and conductor. The

calorific value of bamboo charcoal is almost half that of oil of the same weight. Activated

bamboo charcoal can be used for cleaning the environment, absorbing excess moisture

and producing medicines. The absorption capacity of bamboo charcoal is six times

more than wood charcoal of the same weight.


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In terms of food, with the increasing awareness on the many health attributes

and recipes one can make out of bamboo shoots, it is now gaining popularity within the

broader population and in the global market. About 200 species of bamboo can provide

edible and palatable bamboo shoots. Fresh bamboo shoots are delicious and healthy,

with high fibre content. Bamboo shoot has a huge market potential. Japan has a steady

market of 250 tons per month while Australia imports 6,000-12,000 tons of canned

bamboo shoots annually.


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Traditional:handicrafts,blind s, &bambooshoots

Emerging:flooring,laminatedfurniture, andconstructionmaterials

Bamboo marketsare classified i nto :

IV. GLOBAL BAM BOO INDU STRY

Behavior of Demand

Bamboo markets are classified into traditional and non-traditional or

emerging. Demand remains strong in traditional products such as handicrafts,

blinds and bamboo shoots with profitable opportunities despite moderate growth.

Other traditional markets, such as chopsticks, are highly commoditized with low

growth and low profit margins. Emerging bamboo products include flooring,

building products and laminated furniture. These represent the largest growthopportunities for the bamboo industry.

In 2005, the world demand for bamboo

products was valued at US$ 10 billion. By 2015, it is

expected to grow to US$ 15 - 20 billion per year. Of

this, it is expected that traditional products will grow,

but not as fast as the non-traditional market which is

estimated to account for around 45% of the total

bamboo market.

Emerging bamboo products that compete with mainstream timber

products have only emerged on a commercial scale in the last 10 years

(excluding simple products like paper and chopsticks). Current global

consumption is approximately US$ 500 million per year, compared to the overall


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export market of US$ 80 billion per year for secondary processed wood products,

which has grown by an average of more than 12% per year since 2000. With the

growth in export markets for processed wood products and increasing

penetration of bamboo products into these markets, the industrial bamboo

market could grow to US$ 4-8 billion over the next 10 years.

Bamboo flooring enjoys a very

good demand especially in environment-

conscious Europe where people are

willing to pay more than $100 per squaremeter of bamboo flooring compared to

only about $25 per square meter for a

floor made of oak. The consumption of

bamboo ooring s in the EU was

estimated at 0.67 million meters in 2003 and expected to continue growing. Of

this volume, 95% is from China, while the rest comes from Australia, Vietnam

and Philippines. However, bamboo ooring consumption is growing steadily,

especially for engineered bamboo ooring. According to a study done by Pablo

Van Der Lugt and Maxim Lobovikov: Markets for Bamboo Products in the West ,

the bamboo ooring market in the European Union (EU) already amounted to

about 900,000 square meters in 2005. Further growth is expected due to the

recent interest in bamboo ooring among big retail chains such as IKEA, and the

Do It Yourself (DIY) sector. The largest bamboo ooring consumer is Germany,

with an estimated market share of 50%. France, Holland, Belgium, Switzerland,

Austria and Italy share the rest of the EU market, with individual market shares ofaround 7% (Corpei, 2005). The market size for bamboo ooring in the USA is 6

times larger than in the EU: approximately 0.7 million square meters for the EU in

2003 versus 4.2 million square meters in 2005 for the USA (Corpei, 2005; Malin,

Boehland, 2006).


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Besides flooring, other emerging bamboo

products, such as bamboo boards, play a

significant role in the Western market. The market

for solid boards for furniture and interior

applications is growing, but it is expected that

bamboo veneer will have the biggest growth

potential for these purposes (Von Reitzenstein,

2004). The EU is the main consumer of bamboo veneer, with around half of the

world consumption. Germany and Italy are the main consumers in Europe

(Corpei, 2005). Because of the relatively low price and the ease of productionand use, the market for bamboo veneer in the EU is expected to grow by several

million square meters annually in the next few years. According to Moso

International, the European market leader in the bamboo veneer trade,

consumption of bamboo veneer has almost doubled in year 2004 (Zaal 2006).

The stable worldwide demand for wood and the increasing interest in

sustainably produced timber further boost the potential market for emerging

bamboo products. Among many western consumers, bamboo is an inherently

sustainable resource. However, the present supply from natural stands is limited.

This needs to be increased manifold by growing bamboo in available lands.

Worldwide trends on supply and demand, therefore, clearly strengthen the

feasibility of growing bamboo in commercial scale.


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Source: FA O 2005

C ountryA rea O f Ba mboo

(1,000 ha )A SIA

India 11,361C hina 5,444

Indonesia 2,081La os 1,612Mya nma r 859Vietna m 813Ma la ysia 677O ther 340

Tha ila nd 261Philipp ines 172

Tota l A sia 23,620A FRICA

Nigeria 1,590Ethiopia 849

Ta nza nia 128Kenya 124Uga nda 67

Tota l A frica 2,758

LA TIN A MERICABra zil 9,300C hile 900Peru 190Ecua d or 9

Tota l La tin A meric a 10,399

V. W ORLD PRODUCTION

Most bamboo harvested for commercial use is

from naturally growing, wild stands, although more

attention has been given in recent years to the

establishment of planted bamboo (FAO, 2005). Bamboo

occurs often as an understory component in many forest

types in the tropics and warm temperate climate.

Although bamboo species differ in wood characteristics, they do not differ as much as

different species of trees in this regard (Hunter, 2003). Most bamboo producingcountries tend to favor their own native species.

Table 1: BAMBOO RESOURCES WORLDWIDE


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Over 75 genera and 1,250 species of bamboos occur in the world, most of them

occurring in the tropical belt (FAO, 1978). However, relatively few of these, about 50

species are regularly used. About 37 million hectares of the earth's surface are covered

with bamboo forests, of which 60% are in Asia, Southeast Asia in particular (FAO 2005).

India accounts for roughly half the total area of bamboo reported for Asia and,

together with China, approximately 70%. Over the last 15 years, the bamboo area in

Asia has increased by 10%, primarily due to large-scale planting of bamboo in China

and, to a lesser extent, in India. Approximately 30% of the total area of bamboo in Asia

is planted as opposed to wild (FAO, 2005).

The total area of bamboo reported by the five African countries makes up over

2.7 million hectares. This equals 4.1% of their total forest area. Bamboo has not been

commercialized in Africa, although INBAR and other organizations have done research

on the bamboo production in East Africa and implemented community based initiatives

to start building a market.

Latin America has no reliable data on the bamboo area at the regional level.

Information exists in some countries, but it is insufficient, scattered and at times

contradictory. Lack of reliable data on bamboo resources in Latin America is partially

explained by the current low economic value of bamboo in the continent. There, like in

Africa, many people regard bamboo as a weed plant and do not yet appreciate its huge

economic potential for development and poverty alleviation. Although the resources of

native species are abundant, their exploitation is limited to mostly low-end, low-profit,

traditional non-mechanized manufacturing. In Brazil, Colombia and Ecuador, bambooplays a more conspicuous economic role. In these countries, small-scale cultivation of

commercial bamboo is limited to a few native (G.angustifolia, G. amplexifolia) and

introduced species (Bambusa vulgaris, B. tuldoides, Phyllostachys aurea) (FAO, 2005).


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VI. COM PETITIVE POSITION OF TH E RAW MA TERIALS

Globally, bamboo has been receiving

closer attention as a wood substitute given the

depletion of timber resources that raised a

growing concern to save the forests. Wood is

largely being replaced by plastics, wherever

possible. However the environmental hazards

of plastics make it an unfavorable substitute. In

addition, the strength property of plastics is inferior compared with industrial wood.Same is true with timbers from fast growing plantation species that generally have lower

strength properties, dimensional stability and service life.

In addition to its excellent strength, bamboo is renewable, abundantly available,

low cost, and an environment friendly raw material resource for the struggling wood

based industry. It has tremendous economic potential with its versatile applications and

innovative products. Since the bamboo resource is widely available across the rural

domains, and industrial effort requires a lot of labor, its production offers a great

potential for job opportunities and income generation, especially among the rural

masses.

The bamboo industry can be divided into three main segments: handicrafts,

edible shoots and industrial manufactured products. Industrial bamboo products are a

new development in the industry that includes direct timber and wood fiber substitutes

such as flooring, panels and paper. Engineered bamboo provides a lower-cost

alternative to most hardwoods, with savings of 30% or more, while at the same time

providing comparable or better technical performance in terms of hardness, stability and

strength. Combined with environmental sustainability and good aesthetics, it is an

increasingly competitive product in mainstream timber markets.


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VII. BAM BOO TRADE

Tracking the international trade is difficult because of the lack of customs codes

for bamboo. Information on national markets is incomplete. Trade in all available

products is recorded through COMTRADE, which uses internationally agreed standard

de nitions and product coding. The current standard coding system is the Harmonized

System (HS) developed by the World Customs Organization comprising about 5,000

commodity groups, each identified by a six digit code. The said system was

implemented in 1988 and updated in 1992, 1996, 2002, and 2007.

1 . E xpo r t

According to the INBARs trade database as shown in table 2, average

bamboo global exports from year 2007 to 2010 amounted to US$ 1.42 billion.

Among the export products, bamboo emerging products were the most tradedwith a 26% share or equivalent to US$ 669 million. China is topping the list of

exporters with a share of 46% or US$986 million of exports, followed by

Indonesia and Vietnam with a world export share of 16% and 5% respectively.

The global export of bamboo for 2008 was valued at about US$1.8 billion

which was 12.5% higher than 2007. Unfortunately, the global bamboo exports


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during 2009 decreased by 28% due to the global economic crises, and

continuously dropped until 2010. The impact of the crises was felt mostly by the

ASEAN member countries. One particular reason was that these countries export

products which were mostly affected by the decline in world demand, particularly

from the US and European Union, namely textiles, garments and furniture.

In China, most of the enterprises that were forced to shut down were the

export-oriented SMEs. In January 2009, the number of new orders from the

United States and the European Union markets received by these SMEs dropped

by minimum of 20% to maximum of 50%. There were also many suspensionsand cancellations of contractual export orders.

Indonesia likewise reported a significant decline in their export in 2009.

According to Mr. Ambar P. Tjahyono, Chairman of the Indonesian Furniture

Producers (ASMINDO), the export value of Indonesian furniture to a number of

countries declined by 30% in the second quarter of 2009, compared to 2008 at

US$2.65 million. In the first quarter of 2009 they realized that the Indonesian

export value of furniture dropped by 35% compared to the same period in 2008.


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Shown in Table 2 are the exports of bamboo globally from 2007 to 2010.

Table 2: BAMBOO EXPORT

BAMBOO GLOBAL EXPORT

YEAR 2007-2010

Value In US Dollar

Commodity

CodeProduc t Descrip tion Categor y 2007 2008 2009 2010

140110 Bamboo Used Primarily for PlaitingRaw

Materials46,769,800 53,058,684 44,000,877 48,946,311

200591 Preserved Bamboo Shoots Shoots 216,482,362 207,531,508 193,153,167 221,364,756

440210 Bamboo Charcoal

Industrial

Products

42,461,826 20,432,680 22,811,795 15,468,202

440921 Bamboo Shaped Products 329,279,420 369,510,553 251,681,242 247,935,905

441210 Bamboo Plywood 192,099,733 176,399,578 101,736,137 102,370,264

470630 Bamboo Pulp 921,528 606,323 641,237 3,011,269

482361 Bamboo Paper Articles 55,042,615 28,007,899 16,537,264 10,572,893

460121 Bamboo Mats and ScreensPlaited

Products

218,350,128 354,290,464 229,055,332 133,869,582

460211 Bamboo Basketwork 232,475,714 333,028,569 221,267,282 173,523,968

460192 Bamboo Plaits and Plaited Products 22,177,782 51,015,862 52,902,681 62,949,157

940151 Bamboo and Rattan Seats Furniture

and Seats

77,663,464 84,275,909 75,695,566 55,383,884

940381 Bamboo Rattan and Furniture 178,688,764 160,718,660 118,615,732 116,397,973

Total Global

Export1,612,413,136 1,838,876,689 1,328,098,312 1,191,794,164

2. Impor t

The European Union, United States, Japan, Canada, China, Singapore,

South Korea, Malaysia, Mexico, and Australia were the major markets for

bamboo products, collectively accounting for 70% of the total market share.

The USA is the largest Western consumer of bamboo, with annual imports

of almost US$300 million of bamboo products, 95% of which come from China.

Imports of bamboo products in the USA grew considerably between 2000-2003,

by 98% in volume and 127% in value. About 57% of imports are flooring and

baskets, which have the largest bamboo markets in the USA (Corpei, 2005).


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Table 3: BAMBOO IMPORT

BAMBOO GLOBAL IMPORT

YEAR 2007-2010

Value In US DollarCommodity

Code

Product

Descrip tion Category 2007 2008 2009 2010

140110

Bamboo Used

Primarily for

Plaiting

Raw

Materials 85,488,486.00 92,047,289.00 77,529,510.00 86,349,418.00

200591

Preserved Bamboo

Shoots Shoots 228,951,584.00 236,312,409.00 210,385,273.00 236,818,178.00

440210 Bamboo Charcoal

Industrial

Products

19,240,972.00 29,260,741.00 28,590,099.00 35,134,105.00

440921

Bamboo Shaped

Products 171,744,402.00 123,373,680.00 94,010,036.00 111,703,001.00

441210 Bamboo Plywood 244,675,490.00 202,041,979.00 127,776,236.00 129,713,455.00

470630 Bamboo Pulp 18,077,154.00 10,700,689.00 66,842,319.00 69,170,358.00

482361

Bamboo Paper

Articles 85,595,998.00 64,750,711.00 45,076,225.00 46,429,386.00

460121

Bamboo Mats and

Screens

Plaited

Products

103,680,911.00 104,511,738.00 79,264,240.00 80,235,888.00

460211

Bamboo

Basketwork 247,072,811.00 251,347,856.00 198,011,259.00 204,644,020.00

460192

Bamboo Plaits and

Plaited Products 41,449,037.00 42,301,151.00 32,386,296.00 33,869,800.00

940151

Bamboo and

Rattan Seats Furniture

and Seats

312,940,332.00 274,547,754.00 203,178,457.00 202,803,800.00

940381

Bamboo and

Rattan Furniture 325,767,301.00 318,056,301.00 204,258,383.00 193,178,873.00

Total Global

Expor t 1,884,684,478.00 1,749,252,298.00 1,367,308,333.00 1,430,050,282.00


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VIII. PH ILIPPIN E SETTIN G

1 . Compet it ive Posit ion Ana l ysis

Bamboo is commonly known as

kawayan in tagalog and has been used

by many Filipinos as construction material

for their houses since ancient times. From

more than 1,000 species of bamboo

worldwide, about seventy species onlyhave been documented in the country.

Out of the seventy species, twenty-one

have been found endemic; of which

thirteen are climbers and eight are erect. The remaining forty-nine are introduced

species that are intended for commercial use.

Generally, traditional bamboo products are classified as primary and

secondary. The primary products are poles, shoots, stumps while the secondary

or semi-processed are sawali, splits, sticks and boards. Finished products

consist of handicraft, furniture, and ready-to-cook shoots. The primary and

secondary products are used as inputs for various industries including housing,

fishing, agriculture, and manufacturing, while finished products are sold directly

to end-users by the traders or wholesalers. Aside from traditional bamboo,

Engineered Bamboo is gaining its popularity in the country as raw materials for

furniture and handcraft industry.

Around 40% of the countrys bamboo raw materials are absorbed by the

furniture and handicraft sector, 25% by fish pens, housing and construction, and

10% by the vegetables and fruits industries. The remaining 25% of the bamboo

raw materials are used for other purposes.


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Bamboo-based furniture is one of the fastest growing furniture exports of

the country with a growth rate of around 15% annually. According to foreign trade

statistics, from year 2000 to 2005, bamboo furniture generated US$19.3 million

or US$3.2 million per year in export revenues. There is an estimated demand of

3.5 million poles for furniture and 575,000 poles for handicraft in 2010. The

supply deficit is about two million poles for furniture and 340,000 poles for

handicraft. To meet the domestic demand for bamboo, the country imports an

annual average of US$10,000 worth of poles from different counties like Korea,

Taiwan, Hong Kong, China, Thailand, Vietnam, Indonesia, Singapore, and

Japan. To lessen the importation of bamboo poles, and meet increasingdomestic demand, a total of 150,000 to 166,000 hectares should be planted with

bamboo by year 2015 .

Philippines bamboo-based products produce are mostly exported to more

than 50 countries worldwide. Among these are the United States of America,

Spain, France, Italy, Netherlands, Cyprus, Japan, Germany, United Kingdom,

Hong Kong, New Zealand, Sweden, and others. The USA was recorded as the

biggest market capturing about one-third of the total export.

Majority of bamboo products exported by the Philippines requires labor

intensive manufacturing process. The Bamboo sector in the country involves

various numbers of participants such as licensees, gatherers, millers,

manufacturers, truckers, traders, and consumers. It is known to consist of many

small unregistered firms and informal market transactions that are difficult to

determine.

In 2007, the Philippines placed 6th in total bamboo export, valued at US$

64 million, according to International Network for Bamboo and Rattan (INBAR). In

2009, the country remained in its 6th spot in spite of a decrease in export value

at US$ 30 million. The drop-off was due to the economic crisis experienced by

the European countries.


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Amplified interest on bamboo has led to its growth as a viable industry.

The strong demand from different foreign markets for bamboo-based products

has paved the way for local bamboo growers and manufacturers to strengthen

their participation. Domestic demand for bamboo and its products has also been

increasing. Back in 2002, the Chamber of Furniture Industries of the Philippines

needed 1.5 million poles of bamboo. This demand increased to 1.875 million

poles in 2003. As the demand for bamboo products continue to grow, there is

also a growing need for governments support for the industry, as manifested by

the Philippine National Bamboo Congress in November 2008.

With the governments intervention and support, it is projected that in a

few years time, the Philippines can gain some share of Chinas US$15 billion

bamboo export market. Though the Philippines has a low hectarage planted to

bamboo as of 2005, bamboo experts dream that in about ten years or more, it

can be the world's second biggest bamboo exporter next to China, which is the

global top exporter of bamboo products. With the bamboos increasing demand,

it is projected that China will be running out of bamboo in the next five years. This

would open a huge export opportunity for Filipino farmers to participate in an

estimated US$813-billion global market for bamboo products.

2 . P r o d uc t io n

a. Input Scheme

According to experts, bamboo plant ispropagated mainly through cuttings, and is relatively

easy to grow. The plant can be harvested after five

years and every year thereafter for the next 20 to 50

years.


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According to the Department of Agriculture (DA), establishing a

nursery is recommended for a cooperative venture among community

members, or a community bamboo nursery. As a larger unit, community

nursery has more leverage in accessing inputs and selling its outputs. It is

also able to use the full range of relevant skills that are available within the

community. Community bamboo nurseries have been very successful in

the Philippines, where local technologies have been developed to meet

specific demands.

As of 2010, the Philippines has a total of 64 bamboo nurseriessituated all over the country, according to the collated data of the

Department of Trade and Industry, Region III. In year 2011 an additional

72 nurseries were established. Table 4 shows the location and number in

hectares of nurseries in the country as of 2011. (See Annex 1 pages 48-

51 for the detailed information on crop establishment).

Table 4: LIST OF BAMBOO NURSERIES IN THE PHILIPPINES

Area

2010 Areas of

Nurseries(In Hectares)

2011 AdditionalBamboo Nurseries

(In Hectares) Remarks

CAR 7 5 Abra

Region 1 1 8 -

Region 2 8 13 -

Region 3 15 44

Bataan, Bulacan, Nueva Ecija,

Tarlac , Pampanga

Region 5 2 4 Camarines Sur

Region 6 3 1 Oriental

Region 7 1 1 -

Region 11 2 - -

Region 12 25 1 -

Total 64 72


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Source: Collated by Department of Trade and Industry Region III, Year Ended 2011

b. P l a n t e d A r e a s

There are two sources of bamboo; natural stands and plantations.

Some of the native varieties of bamboo in the country today are the

kawayan tinik, bayog, botong, buho, bikal, kiling and laak . However, there

are bamboo species which are to be conserved. These species are

considered rare and endangered such as Bambusa atra, Bambusa

cornuta. Schizostachyum luzonicum, S. textorium, Cephalostachyummindorensis and Yushania niitakayamensis.

According to the Philippine Bamboo Foundation (PBF), there were

52,000 hectares of bamboo plantations in the country in 1998, distributed

as follows: 20,500-34,000 hectares in forest land; 2,236 hectares in

government plantations; 3,037 hectares in privately-owned lands; and

13,435 hectares in natural stands.

Information on bamboo hectares in the natural forests or in private

lands has not been updated for so many years because of the following

reasons:

(1) Bamboo stands in the forest are generally found in small

patches and sparsely distributed over the vast forest;

(2) 75 percent of bamboo stands are found in the lowlands, which

are also sparsely distributed throughout the countryside in either

backyard type planting or along riverbanks; and

(3) It was only recently when bamboo has become a part of the

total plantation development effort especially by the private sector.


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Upon the enactment of EO 879 in year 2010, the Department of

Trade and Industry, as one of PBIDC members, has been tasked to

conduct a study on the bamboo industry. A survey on the total number of

bamboo plantation in the country was conducted. Data are being solicited

from all the bamboo producing regions for baseline data purposes as

shown in Table 5.

The planted areas gathered in 2010 showed a decrease of more or

less 46,000 hectares compared to a 1998 survey. The drastic decline isattributed to the overexploitation of the bamboo plantations, destruction of

forests and rapid changes in land use, absence of systematic

management of resources and lack of concerted effort to develop the

resources.

There is insufficient data on the total area planted with bamboo.

Bamboos are found scattered along riverbanks, creeks, and riparian

zones. Some regions have enough facilities and equipment in detecting

existing bamboo planted areas, while others do not.

Table 5 is an attempt to list the bamboo areas in the Philippines, as

collated by the Department of Trade and Industry, Region III.


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Table 5: LIST OF BAMBOO AREAS IN THE PHILIPPINES

REGION AVAILABLEHECTARES REMARKS

CAR 2,559.11 Hectares

1,100 hectares in Abra639.11 hectares old bamboo plantation820 hectares established in 2010

Region 1 171 HectaresFor Pangasinan only19,275 Bamboo Clumps in Bani Pangasinan

Region 2 61.5 Hectares For Isabela only

Region 3 263.15 Hectares

Bataan (74.75 Hectares)Nueva Eciija (12.4 Hectares)

Bulacan (1 Hectare)Pampanga (175 Hectares and 18 km stretch)

Region4A 97.29 hectares Laguna and RizalRegion 5 1,704 Hectares -Region 6 52,000 Hectares Iloilo and Capiz

Region 7 220 hectares

20.50 Hectares (Data of BBI's Bamboo VillageEstablished)

80 Hectares (Data sourced out from CENRO Dgte and Ayungon)

Primarily of Bambusa Blumeana Specie-Kawayan Tinik

No. of Barangay Bamboo Village into BambooPlantation:10 Barangays in Municipality of DauinWidely spread in the City of Bais (Tacalan river

banks and water shed area), Municipality of Ayungon,Tayasam and Guidhulngan City

Total hectares for Negros Oriental approximately 220Region10 1,447.74 Hectares -Region11 450 Hectares

Tagum City (180.73 Hectares)Municipality of Asuncion (75 Hectares) + other areas

Region12 1,027.59 Hectares

South Cotabato -483.25 hectaresNorth Cotabato 419.34 hectaresSarangani 14 hectaresKudarat 111 hectares

Collated b y: Department of Trade and Industry , Region 3( As o f end o f J uly 2012)


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c . P r oduc t ion Vol ume

The volume of bamboo produced locally is insufficient to meet the

domestic demand for the raw materials, the Philippines need to import an

average of US$10,000 worth of poles yearly. Most of the bamboo poles

are sourced from Korea, Taiwan, Hong Kong, China, Thailand, Vietnam,

Indonesia, Singapore, and Japan.

In 1997, the Philippines identified a total of 52,000 hectares for

erect bamboos with a production of approximately 29 to 52 million

harvestable poles annually. About 65% to 68% are forestlands, 22% to

25% are natural stand, 5% to 5.5% are private plantations and the

remaining 3% to 4% are government plantations.

However, at present there are no available sources of data on the

quantity of bamboo harvested in the country, although some regions

provided available data on their estimated quantity of bamboo production.

In Maitum, Sarangani Province, the Municipal Environment and Natural

Resources Office (MENRO-LGU) is regulating the transport of bamboo

poles and splits. Average annual record estimated around 3,000 poles of

bamboo being bought from their farmers. In 2007, an industry profile done

by DTI-Region XII estimate a total production of 392,523 poles in theentire region.

d . Fa r m Gat e Pr ice

The price of bamboo poles depends on several factors, such as

species, quality in terms of pole sizelength and diameterand presence


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or absence of discoloration or stains, pests, and fungi, maturity, distance

from source, cost of labor for cutting and handling, government

regulations, and profit margins.

Over the years, the prices of bamboo harvest have seen significant

increases. As a result of local demand and supply dynamics and the

quality of the locally grown bamboo shoots and trees, prices vary from

region to region. Other factors influencing the price are quantity, customer

relationships, payment terms and the potential of the market segment the

customer represents.

In year 2001, Region 12 published data on the farmgate prices of

bamboo, sold mostly as poles or splits. The most expensive bamboo is

apos found in Glan, Sarangani Province which pegged at Php 500.00 per

pole. These poles are used for boat making. Other products such as

kalakat or woven bamboo with a measurement of 4 x 8 feet is sold at PhP

90.00 per mat, while bamboo splits are sold at PhP 35.00 per dozen or

PhP 2.00 per meter. Bamboo shoots are sold at PhP 10.00 per shoot.

Prices of botong, bayog and tinik below PhP 50.00 do not include the

cutting or harvest of bamboo that costs around PhP 18.00 to PhP 30.00

per pole of bamboo.

The Department of Trade and Industry, Region III conducted a

survey on the farm gate prices of bamboo poles per region. Majority of the

regions except for Regions 2, 8, 9 and 12 have given the prices per variety

of bamboo poles in their respective areas, as presented in Table 6. See Annex 2 page 52-55 for the list of bamboo price per variety from different

regions in the country.


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Bamboo Variety Price per PoleKawayan Tinik Php 35-Php 200Bayog Php 20- Php 200Kiling Php 20- Php 60Buho Php 15- Php 30Botong Php 8.10- Php 200Laak Php 10-Php 60Bagakai Php 10-Php 20Apos Php 50-Php 500Bolo Php 90

Lunas Php 5- Php 60

Table 6: LIST OF BAMBOO PRICES

Collated by: Region 3, as of July 2012

e . Su it ab l e Ar eas

Location areas for bamboo as well as bamboo species should

properly be selected before planting since bamboo plant is highly

dependent on climate and the nutrients from the soil. Bamboo primarilygrows in regions of warmer climates. It grows best in moist, fertile, well-

drained soils that are found on the banks of rivers and creeks and cannot

grow in swampy soil that is waterlogged all year. Bamboo also grows well

in sandy soil and very well in red clay. There are bamboo species that are

suitable to any type of soil.


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Based on the survey conducted by the Department of Trade and

Industry, there are a total of 66,706 hectares available for bamboo

plantation countrywide. Out of the total identified areas, 52,000 hectares

are found in Region 6.

Recognizing the vast potential of bamboo as a source of steady

income in the country, the United Nations Development Program (UNDP)

had teamed up with the Ecosystems Research and Development Bureau

and Department of Environment and Natural Resources (DENR) to put up

pilot plantations in different parts of the country from Northern Luzon to theSurigao Provinces.

3 . E xpo r t M a r k et

a . Bamboo as Expor t

Philippines bamboo products

potential still remains in the areas of

furniture and handicrafts. It has a global

market growth rate averaging 7% and

valued at US$8 billion annually. The

Philippine bamboo handicrafts averaged

about $368M in annual export earnings.

As of 2007, the total exports of

Philippine bamboo was 47,005 (netkilograms) valued at US$25,231. Meanwhile, total export of bamboo seats

was 87,592 (gross kilograms) valued at US$ 247,618. In the same period,

exports of bamboo bedroom, dining room, or living room sets had a total

of 59, 898 gross kilograms with a value of US$ 1,676,152.


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The final destination of the Philippine bamboo-based products are

EU-27, USA, Japan, Canada, China, Singapore, Australia, Republic of

Korea, Switzerland, Russia, Hong Kong, South Africa, Mexico, India,

Norway and Turkey.

b. L oc a l M a n uf a c t u r er s of B ambo o as Ra w M a t er ia l s

According to Bamboo Information

Network-DOST, Philippines has a total

of 32 local manufacturers whooperates all over the country.

Manufacturers convert the local

produced bamboo poles into different

products such as chimes, handicraft

and furniture. See Annex 3 page 56-

63 for the current list of bamboo

manufacturers operating in the country.

Aside from traditional bamboo-based products, the country is into

engineered bamboo (e-bamboo) production. E-bamboo is produced by

laminating or gluing two or more layers of crushed, split, or veneered

bamboo which can be made into engineered floors, chopping boards,

table tops and furniture. This technology was developed at the Mariano

Marcos State University (MMSU) located in Batac, Ilocos Norte. Though

the e-bamboo industry in the country is still in its infancy stage, it is now

one of the emerging raw materials used by the construction and furniture

sectors. Several manufacturers engaged in production are starting up with

a very small production volume catering only to the local markets. Shown

in Table 7 is the list of e-bamboo manufacturers in the different areas.


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Table 7: E-BAMBOO MANUFACTURERS IN THE PHILIPPINES

Manufacturer Location Status

Wing-An ConstructionSan Juan, Metro

Manila

Actively producing as of 2009: production is around

800 planks per day

BamboZa IloiloStarting up their production of engineered bamboo:

targets 400 planks per day

Buglas Bamoo Institute Negros Oriental Produces e-bamboo on order basis

In-Hand Abra Abra Produces e-bamboo on order basisSidlak Pinoy Bukidnon temporarily stopped

Southern Leyte Multi-Purpose

CooperativeSouthern Leyte Start-up

Mariano Marcos State University Ilocos Norte Produces e-bamboo on order basis

c . Taxes Imposed on Ba mboo

The Department of Environment and Natural Resources includedbamboo as one of the reforestation species for contract reforestation and

watershed reforestation program. It is lumped with other non-wood (minor)

forest products which entails bamboo growers to pay taxes (crop taxation)

and road block fees.

Revised Forestry Administrative Order No.11, dated September 14,

1970, regulates the collection and harvesting of bamboo in forest lands byrequiring the gatherer to secure a cutting permit. Exempted from the

payment of forest charges for planted bamboos are industrial tree

plantations and private lands that are covered by existing titles or tax

declarations.

Bamboo poles are prohibited from exportation except for scientific

or testing purposes, for which an export clearance from the government is


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required. Exporters of manufactured bamboo products follow the general

procedures required for exportation. Importation of bamboo poles for

commercial purposes is also not allowed by the government, except for

noncommercial purposes (e.g. for pearl farm fencing). The Omnibus

Investment Code of 1989 also provides for the following:

Income Tax Holiday

Tax and Duty Exemption

Tax Credit on Domestic Capital Equipment

Tax and Duty-Free Importation of Genetic Material

Tax Credit on Domestic Genetic Material

Bamboo and its products are also included in the trade

liberalization policy, which provides fiscal and non-fiscal incentives and

create an export market orientation, institute tax measures, and introduce

financial packages. Fiscal and non-fiscal incentives policy aims to reduce

tax burden through outright, total or partial exemption from a particular tax,

or by preferential tax treatment, thus, increasing the rate of return on the

firm's investment.


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4. Oppor t unit ies and Constr aint s (Figur e 1)


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5. Anal ysis on Phil ippine BAMBOO Val ue Chain (Figur e 2)


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IX. RECOMM EN DED AC TION PLAN S

Bamboo is a highly valuable natural resource in many parts of the world. It is a

good substitute for wood and has strong economic potential contribution. Despite the

economic contribution of bamboo industry in the country, there are still concerns

identified in the value chain that must be addressed. Shown in the following table are

the constraints faced by the bamboo industry, together with the recommended action

plan to jumpstart the industry.

Table 8

CONSTRAINTS ACTIVITIES RESPONSIBLE

1. Supply of raw materials

Budget allocation for the

propagation of bamboo

Organize a team of experts to

study and develop high quality

planting materials.

Farmers, LGU, DENR

FPRDI-DOST/ SUCs

2.Unavailability of Technology

and Lack of TechnicalExpertise of Farmers andProcessors

Provide funding support and

technical assistance on updated

techniques on production and

processing.

Conduct seminars and training

programs.

Farmers, DOST, DBP, LandBank, LGUs, DOLE,

Manufacturers, R&D

Committee

SUCs

3. Financing Programs

Create special credit/financingprograms to bamboo farmers and

processors. Linkage between producers andtheir markets.

Lessen credit processingrequirements for business andloan application.

Banking Institutions, DTI,LGUs, Buyers/Markets

4.Policy Support andImplementation of Government

Proper allocation and use of funds

Strengthen government programs

for the bamboo industry

Government Agenciesenumerated in E.O. 879.


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5. Establishment of bamboodatabase

Creation and Validation ofdatabase from responsiblegovernment agencies and otherplayers in the industry.

Designate committee as aresponsible agency for thecontinuous update on the statusof the industry

DENR, Manufacturers,

Farmers, LGUs, DTI, Bureauof Customs, PBIDC

6. Information dissemination Conduct training programs6 and

seminars on the new/upgradedtechniques in using bamboo asraw materials.

LGU, DTI, DENR, DOST,PBIDC

7. Quality and StandardProduct Output

Provide local and export productorientation.

Product benchmarking

Local and ForeignMarket/Buyers , DOST,

Manufacturers

8. Infrastructure development Improvements of farm to market

roads

DPWH, LGU

DENR-DAR-DA

1. Supply of Raw Materials

The existing bamboo stands available in the country is insufficient to supply the

huge market demand. Many of the investors who ventured into the production ofbamboo-based products such as handicrafts, furniture, E-bamboo products are now

inactive due to the lack of supply of bamboo poles/slats as their main raw materials.

Given this situation, stakeholders involved in the industry, especially agencies

concerned in the propagation and establishment of bamboo plantation must implement

programs, policies and orientation activities to strengthen the industry and increase the

production of bamboos in the country. This could be done in the form of subsidies to

farmers, who will be engaged in massive planting and eventually processing of bamboo.

2. Unavailability of Technology, Lack of Technical Expertise of Farmers and

Processors, and Quality and Standard Product Output

Unavailability of technologies for the processing of bamboo-based products,

especially for the emerging engineered bamboo products causes low quality of finished

products. The local manufacturers usually use simple technologies and machinery and


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have no knowledge on bamboo preservation. Hence, this limits their capability to meet

high-value demands. To address these circumstances, updated research and

development, promotion, and benchmarking among the actors involved in the industry

should be implemented. In addition, upgrading training and workshops should be

implemented and technology expert linkages should be strengthen for continuous

technology enhancement and product development.

Agencies involved in bamboo production and processing such as FPRDI-DOST,

CITC-DTI, and ERDB-DENR must be given sufficient allocation of budget to continue

conducting research & development (R&D) activities on bamboo. Much has been doneon this. Reactivation and re energizing these agencies will be of great advantage.

3. Financing Programs

Bamboo grows for about three to four years to harvest good quality kawayan

tinik. Though bamboo grows fast within a short period of time, many farmers prefer to

plant other crops due to limited source of financial support both from government and

private funding institutions. To address this, government and other financing institutions

should create a special credit facility for bamboo growers and processors. In addition,

public-private partnerships could be established in such a way that both producers,

processors, and distributors could benefit.

4. Policy Suppor t and Implementation of Government

Government involvement is significant to boost the bamboo industry. Althoughbamboo has long existed in the country, it was not given much attention compared to

other wood products. It is still in its infancy stage because of low policy support,

promotion and development. In this regard, the government ought to review its policies

and programs for the bamboo industry to give it the much needed assistance for the

industrys continuous development and sustainability. Finances required for policy


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implementation must be allocated through legislation. The National Greening Program

(NGP) is an example of this.

5. Establishment of Bamboo database

The Philippines still lacks information on the bamboo industry such as the prices

of bamboo products and their trends, directory of producers and suppliers, directory of

bamboo experts, training assistance/seminar available, and export information,

processing and requirements. To facilitate information, the government through any of

its national agencies should create a body to develop and maintain a database for thebamboo industry, which will be made available to stakeholders through internet access.

6. Infor mation Dissemination

Lack of knowledge on the new and upgraded methods and processes for

bamboo-based products is one of the reasons for the slow growth of the industry. Thus

there is a need to continuously provide updated information on new methods of

production, new designs and product innovation, including marketing strategies

especially bamboo-based export products.

7. Infrastructure Development

Planted areas with bamboo and identified suitable areas for plantation are mostly

found at hilly lands which gives hindrance for the farmers to market their produce.

Infrastructure should be developed for easy access of the farmers to the marketplace.Collaboration with other government agencies such as DAR-DA-DENR and DPWH to

improve infrastructure is needed. This will be made possible if contiguous areas will be

planted for large scale plantations which will produce the volume to create greater

economic impact.


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X. BUSIN ESS OPPORTUN ITIES

a . Bamboo Nur ser y

Based on a study done by Regina Irene A. Gaza; Bamboo Plantation,

Nursery, Node & Hub: Technical and Financial Feasibility , a bamboo nursery

venture will require an initial investment of PhP160,000.00 with a working capital

of PhP138,000.00. The investment will generate an average annual income of

PhP105,000.00.00. For detailed computation, please refer to Annex 4, Pages

65-72.


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b . Bamboo P l an t a t ion

The bamboo grass has different products (food and non-food), non-food

products includes handicrafts, furniture and engineered bamboo, food product on

the other hand is called bamboo shoots which can be produce on the 2 nd year of

the bamboo plant (see page 64 for the timetable of bamboo production). Bamboo

shoots command a good price in the market. Grated and boiled shoots during the

wet season of 2009 were sold for as much as P30 per kilogram in Los Banos,

Laguna (http://www.agribusinessweek.com).

The cost in producing bamboo includes farm inputs, labor and overhead.

After three to four years, the bamboo can be harvested. Based on the same

study done by Regina Irene A. Gaza; Bamboo Plantation, Nursery, Node & Hub:

Technical and Financial Feasibility , the investment cost per hectare is estimated

at PhP40,000.00 that includes a 1-year working capital. Only one year working

capital is provided since after the first year until harvest time, the investors need

not incur cost for fertilizers and other maintenance. However, twice a year

weeding must be done to mange the growth of the bamboo poles.

On the first year of harvest (after gestation period), a hectare of bamboo

will have an income of PhP 20,500.00 with an annual average of 1,200 poles.

Annually the selling price of bamboo poles are assumed to increase by 10% and


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all expenses are also assumed to increase by 10% annually. For detailed

computations on bamboo plantation, please refer to Annex 5 pages 73-80.

c . Pr ocessing

Due to unavailability of advance equipment needed in making boards,

plywood and processed food, most bamboo processors in the country are

engaged in making furniture and handicrafts. (Refer to Annexes 6, 7 and 8,

pages 81-102 for the computations of Nodes Production, Bamboo Hub and

Engineered Bamboo Processing)

Most of the local bamboo shoots are consumed locally due to its shelf life

and lack of food manufacturers of shoots. It is commonly sold in wet

markets/supermarkets at a very affordable price. At present, there are few

restaurants that offer bamboo shoots (dabong) as one of their main dishes.

In the export market, bamboo shoots have been traditionally used as

vegetable food in China, Japan, Korea, and in many other Asian countries. With

the increasing awareness on the many health attributes and recipes one can

make out of bamboo shoots, it is now gaining popularity within the broader

population. Bamboo shoot has a huge market potential. Japan has a steady


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market of around 250 tons per month while Australia imports 6,000-12,000 tons

of canned bamboo shoots annually.

ANNEXES

An nex 1: CROP ESTABLISHMEN T

(Source: Growing Bamboo)

Selecting suitable site for many plant species is a primary requisite to any

plantation establishment. It is important that the site for planting should match with the

requirements of the species. Bamboo follows an annual growth cycle that is somewhatdifferent from other plants. For running bamboos, this cycle begins with the onset of

warm weather in March or April. The growth rate of the culms during few weeks can be

very rapid, especially in the larger bamboo species. An established grove of bamboo

will grow well with an annual, light application of a lawn fertilizer. Fertilizer is usually

applied in February or March before shooting begins.

A. PROPAGATION

When bamboo does flower, it can be very detrimental to the plant. In some

species, flowering quickly leads to the death of the plant. However, the flowering

process can often be halted by heavy application of lawn fertilizer, followed by

ample irrigation. This should be done at the first sign of flowering. Bamboo

flowers are small, grass-like, and appear in the mid-spring. Because bamboo

flowers so rarely, it is usually propagated by division. The best time to transplant

most bamboos is in the early spring before the new shoots appear. The top halfof the culms should be cut off to reduce water loss. The roots of the plant should

be kept moist until it can be planted in the ground. Once the plant has been

moved it should be lightly fertilized with lawn fertilizer and watered heavily for a

week or two. The transplanted clump should be watered regularly during the first

summer if natural rainfall is lacking.


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B. PLANTING and SPACING

The main requirement in planting is to make sure that there are no air

pockets around the root ball (this means that when back-filling, the soil should be

well tamped and gently compacted around the plant).

Dig a hole with a size of a pot then remove the plant from the pot. Be

careful not to damage the newly planted cutting when doing this. Set the plant inthe hole so that the soil with the plant is just slightly below the grade of the

existing soil. Make sure that there are no air pockets around the root ball. Pull all

the weeds for a diameter of about a foot all the way around the plant. Many

fertilizers designed for grasses and palms will work. Avoid any products with very

high nitrogen on young plants as you can burn the roots. Compost is good.

C. WATERING and IRRIGATION

Some basic considerations are rainfall, humidity, wind, and soil type &

condition. Actual watering plan will depend on the climate and soil, this could

mean no irrigation at all, or a well designed drip irrigation system that puts water

on the plant every day. Bamboos like to dry out a bit between watering.

D. FERTILIZING, COMPOST and MULCH

During the first season of growth it is recommended to use fertilizer with a

Nitrogen value of no more than 10. After the plant is established, higher Nitrogen

amounts can be used safely. The actual formula (N, P, K), including some

particular complement of minor nutrients and minerals should be determined by

the particular type of soil.


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Healthy soil is the greatest resource for healthy plants. Compost and

mulch result in healthier soil, healthier plants, and ultimately in less work. If

applying fresh (green) wood-chips as mulch make sure that there is ample

Nitrogen underneath the mulch to feed both the microorganisms and the

bamboos.

E. PRUNING and THINNING

Starting after the second summer of growth, it is good for the bamboo to

be thinned out a bit. Take away only a few of the oldest canes (these will mostlikely be the smallest in the clump). Do not take more than 1/3 of the total mass

of the clump, and do not take any of the newest growth.

After this initial thinning:

1. Bamboo clump can be leave alone and sufficient water and occasional

fertilizer. Canes within the clump will eventually die and decompose, but the

clump, as a whole will most likely continue with vigor.

2. Thin the clump out every year or two or three - again being careful not to take

too much of the newest (youngest) part of the plant, as that is the most

important for its future good health.

3. Thin the clump each year carefully making sure that there are no canes over

3-4 years of age. You can also cut out any canes that are under size, or going

in a direction.

After harvesting bamboo poles from the farm it is directly delivered in the

manufacturing plant. Several processes are done to a bamboo pole to convert it

into finished products.

First, bamboo poles are cut using a machine to ensure the uniformity of

the product. Afterwards, it will pass in a splitting machine to remove the bamboo


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nodes. However, there are bamboo products which do not require bamboo poles

to undergo splitting process. Instead of splitting it will then pass to knot removal

process. After which, it will be treated using chemicals to make the bamboo

product last for many years. Afterwards, it will pass through dying process, rough

milling and glue application. Thus this ensures that the bamboo poles are

competitive to other wood products. Lastly, it will pass to finish milling to fully

furnish the product.

There are bamboo products which require high-end machinery like

Laminated Boards and Floor Tiles and Board. However, there are also bambooproducts such as bamboo furniture and handicraft which do not necessarily need

machinery but a creative mind.


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An nex 2 : LIST OF BAMBOO FARM GATE PRICES

REGION BAMBOO VARIETY PRICE

CAR

Kawayan Tinik PhP35.00/pole

Puser PhP8.00/pole

Reed (Rono) PhP1.25/pole

REGION 1Kawayan Tinik PhP70.00-PhP80.00/pole

Bayog PhP50.00-P70.00/pole

REGION 3

Aurora:Kiling PhP20.00/pole


Bunsina PhP60.00/pole

Bayog PhP20.00/pole

Bataan:

Kawayan Tinik

PhP150.00-PhP200.00/polePhP8,000-PhP10,000

per ELF truckBulacan:

Kawayan Tinik PhP100.00-PhP120.00/pole

Buho PhP15.00-PhP30.00/poleBocaue PhP10.00-PhP15/pole

Nueva Ecija:


Pampanga:Kawayan Tinik PhP150.00-PhP200.00/pole

Bayog PhP150.00-PhP200.00/poleTarlac:

Kawayan Tinik (small) PhP45.00-PhP50.00/pole

Kawayan Tinik (big) PhP60.00-PhP80.00/pole


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Zambales:

Kawayan Tinik PhP70.00-

PhP80.00/pole

REGION 4A

Kawayan Tinik (prices depend on thethickness and length of bamboo poles)

Majayjay, Laguna PhP60.00/pole

Magdalena, Laguna PhP50.00-PhP60.00/pole

Sta. Maria, Laguna PhP60.00-PhP80.00/pole

Rizal, Laguna PhP40.00-PhP60.00/pole

Kawayan Sina (Price based on the buyingprice of Berris Bamboo (Hub)Small- P30.00/poleMedium- P40.00/poleLarge - P50.00/poleExtra Large-P60.00/pole)

Majayjay, Laguna PhP30.00-PhP60.00/pole

Nagcarlan, Laguna PhP30.00-PhP60.00/pole

Liliw, Laguna PhP30.00-PhP60.00/poleKilling (Average length: 14 ft per pole)

Province of Rizal PhP20.00/pole

Tingkal (Average length: 14 ft per pole)

Province of Rizal PhP100.00/poleBuho/Bungkawe (Average length: 14 ft per

pole)Province of Rizal PhP15.00/pole

REGION 5

Kawayan Tinik (small) PhP40.00/pole

Kawayan Tinik (medium) PhP50.00/poleKawayan Tinik (big) PhP60.00/pole

Kawayan Tinik (jumbo) PhP75.00/pole

REGION 6 Botong PhP40.00/pole

REGION 7 Laak PhP10.00-P15.00/poleKawayang tinik PhP35.00-


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PhP45.00/pole

Botong

3"-4 inches in

diameter-PhP40.00/pole4"-5 inches indiameter-PhP80.00/pole5" inches and abovein diameter-PhP100.00/pole

Bayog PhP25.00-PhP30.00/poleBagakay PhP10.00/pole

KillingPhP15.00-PhP35.00/pole

Bolo PhP10.00/pole

Lunas PhP15.00-PhP35.00/pole

REGION 10

Bukidnon:

Giant Bamboo PhP60.00/pole inslope area

(buyers will be the one to cut the bamboo) PhP80.00/pole in flatareaCamiguin:

Laak PhP50.00-PhP60.00/pole

Kawayan Tinik (Batakan) PhP90.00-PhP100.00/pole

Botong PhP70.00-PhP80.00/pole

Bagakay PhP20.00-PhP30.00/pole

Killing PhP50.00-PhP60.00/pole

Lunas PhP50.00-PhP60.00/polePrices vary depending on the area of bamboo to

be harvested.Buyers shoulder the transportation cost anddelivery cost.Bamboo poles are already cleaned whendelivered.

Source of Kind of Bamboo Specie available inCamiguin- DENRSource of Price- Farmers in Different Areas

Misamis Occidental:


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Ann ex 3: LOCAL BAMBOO MANUF ACTURERSLOCATION MANUFACTURERS

LUZON:

Abra

BALBIN'S Quality FurnitureBariquir, Zone 5, Bangued, AbraTel./Fax No. (074) 752-8574Mr. Romeo M. Balbin, General Manager

Wood and Bamboo Products Raw Materials : Wood, Bamboo and RattanYear Established : 1986Nature of Business : Manufacturer and Subcontractor

CALIXTERIO'S HANDICRAFTCapitulacion St., Zone 1, Bangued, AbraTel/Fax No. (074) 752-8490Ms. Prospera Calixterio, Manager

Wood and Bamboo Products

Raw Materials : Wood, Bamboo, RattanYear Established : 1975Nature of Business : Manufacturer and Subcontractor

Cordillera

MAYAT-AN HANDICRAFTSKm. 4 Asin Rd., Baguio CityTel No.: 0919-6417410; 0917-692254Fax No.: (074) 442-7859 c/o DTI-CARRovilyn Mayat-An, Owner

Bags, Back pack, Bottle container, Baskets, Binga with ribbonRaw Materials :Wild BambooYear Established : 1994Nature of Business : Manufacturer/Exporter

Cavite

NS ALBA HANDICRAFTBrgy. Magdiwang, Noveleta, CaviteTel. No.: 438-3981Fax No.: (046) 414-0699 (c/o DTI-Cavite)Noville B. Alba, Owner/Manager


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Bamboo, rattan furniture and accessories

Raw Materials Used : Bamboo, rattan, wicker, metalYear Established : 1990

Ilocos Sur

VIGAN CASA ANTIGUA19 Liberation Blvd., Vigan City, Ilocos SurTel No.: (077) 722-1873; 722-2130Enrico C. Acosta, Owner/Manager

Tables, Chairs, Beds, Cabinets

Raw Material Used : Old recycled wood, narra, molave, bambooYear Established : 1990Nature of Business : Manufacturer/Wholesaler/Retailer

Metro Manila

CADET DEVELOPMENT CORP.Unit S-24, 2/F, Sunvar Plaza, Amorsolo St., cor. Pasay Rd., 1200 Makati CityTel No.: (63-2) 845-3435Fax No.: (63-2) 535-2655; 532-2197E-mail: [email protected]. Cynthia G. Ortaez/Ma. Theresa P. Corona

Wooden furniture & accessories, folding chair, side chair, picnic table, rattan

side chair, bamboo ladder and chest of drawers

KINGFLUTE PHIL., INC.1842 Carhoun cor. Evangelista Sts., Pio Del Pilar, Makati CityBrgy Caridad, Quezon, QuezonTel No.: 751-6241; 888-4996Fax No.: 751-6242E-mail: [email protected] B. Cada, Marketing Manager

Bamboo flutes

Raw Materials Used : Bamboo, wood, nito, vinesYear Established : 1981Nature of Business : Manufacturer/Exporter

DANSCOR MFG. & MARKETING, INC.412 Zamora St., Fortune 7 Village, Malinta 1440 Valenzuela CityTel No.: (63-2) 294-1715; 294-2729Fax No.: (63-2) 294-2722www.bamboofurniture.com.au


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Mr. Richard Dansey

Bamboo-related furniture & accessories

DURU's INDUSTRIES CORPORATION2nd Avenue, Sta. Maria Industrial Estate, Bagumbayan, Taguig 1631Tel No.: (63-2) 837-2171 to 74Fax No.: (63-2) 837-2175; 831-0388 E-mail: [email protected]. Haresh P. Mirpuri

Furniture made of bamboo combinations, wood, rattan, metal, tube & solidround bar & table lamps made of metal & material fiber and house warelinens

F-4 CORPORATION177 Brgy. San Jose, Magalang 20111842 Carhoun cor. Evangelista Sts., Pio DelPilar

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