Republic of the Philippines

Department of Environment and Natural Resources

Ecosystems Research and Development Bureau

Policies in Support to Bamboo Sector Development

THE PHILIPPINE EXPERIENCE

Myline O. Aparente

International Workshop on the Roles of Small and Medium Enterprises (SMEs) in Bamboo Industry Development

Bamboo and Rattan Tower, 16th Floor Conference Room, INBAR, Chaoyang, Beijing, April 10, 2015

Outline of Presentation

1Status of the Philippine Bamboo Industry

2Policies on

Bamboo Sector Development

3Challenges and

Opportunities

4Future Plans

Status of the Philippine Bamboo Industry1

Philippine Bamboo Statistics

62 native and introduced species, only 11 species have high economic value

52,000 hectares of bamboo plantations nationwide

40 M poles (supply) and 60 M poles (demand) = 20 M poles supply deficit annually

40% of bamboo raw materials are used by the furniture and handicraft, 25% for fish pens and housing construction, 10% for the agriculture and 25% for other purposes

Government institutions, and private sectors established bamboo plantations for pole production, reforestation, and shoot production

Raw materials came from natural stands and bamboo plantations either from public or private lands

Bamboo Resources

“Survey of Bamboo Stands and Establishment of a National Database of Economically Important Bamboo Species in the Philippines”. ERDB-DENR (2013)

Luzon

Visayas

Mindanao

Philippine Bamboo Industry

In 2009, Philippines is one of the top exporters of bamboo products worldwide with a total export value of $30 million

Policy to promote bamboo industry already exists

From 2012-2014, about P306.3 million worth of investments was made, P261.8 million sales generated and 13,103 were employed

Production

Components of Bamboo Industry

12 Processing or Manufacturing

Production

Components of Bamboo Industry

1Products Consumers Poles

Planting stocks (ornamental sp.)

Bamboo shoots

House construction sector; fish pen owners; banana growers; makers of fishing boats; bamboo processors (furniture and handicrafts, E-bamboo, musical instruments, barbecues sticks, chopsticks, etc.).

Homeowners residing in affluent subdivisions and those engaged in landscaping work.

General public and manufacturers of bamboo shoot products.

Components of Bamboo Industry

Product Consumers Furniture

Handicrafts

E-bamboo

Homeowners, hotels, restaurants, resorts, others are for exports . Local and foreign tourists, hotels, restaurants and resorts. The biggest dollar earning products of the Philippines. Construction industry (mostly in the form of building materials), homeowners seeking unique furniture and cabinets and house decors.

2 Processing or Manufacturing

Components of Bamboo Industry

Products ConsumersMusical instruments

Bamboo mats Baskets, crates, other woven containers Processed food Pulp and paper

Schools and special groups involved in entertainment activities.

House construction sector. General public, producers of vegetables and fruits General public, distributors of food products Public and private offices, schools and colleges, packaging industry, etc.

2 Processing or Manufacturing

Bamboo Products/Uses

Bamboo Products/Uses

Bamboo Products/Uses

Traditional Bamboo Industry Value Chain

PRODUCTION DEMAND

NURSERY EST. and MGMT

FARM MGMT

NATURAL STAND

PLANTATION

Cultivars

TRADITIONAL PRODUCTS

Bamboo Poles

Handicrafts and Furniture, Furnishings

Bamboo Shoots

Bamboo Poles

HARVESTING

Farming, Fishing and Construction

Households

FOREIGN AND LOCAL BUYERS

NURSERY EST. and MGMT

FARM MGMT

NATURAL STAND

PLANTATION

Cultivars

ENGINEERED BAMBOO

Milling and ComposingPrimary Processing

TRADITIONAL PRODUCTS

Machine, Tools Fabrication, Adhesive Production

Bamboo Poles

Handicrafts and Furniture, Furnishings

Floor Boards, Tiles, Sawali

Boards, Panels,

Furniture, Furnishings,

Accents

Furniture Comp. Boards, Panels

Bamboo Poles HARVESTING

DepEd

FOREIGN AND LOCAL BUYERS

INSTITUTIONAL BUYERS

NHA, DPWH

OTHER MARKETS

Hardware and Construction Supply Stores

Designers

Furniture MakersTreated Poles, Slats, Slivers,

Tadtad

Engineered Bamboo Value Chain

Processing Market

ProductionR&D

Sample Engineered Bamboo Value Chain

Processing Market Production

NURSERY EST. and MGMT

FARM MGMT

NATURAL STAND

PLANTATION

Cultivars

ENGINEERED BAMBOO

Milling and ComposingPrimary Processing

TRADITIONAL PRODUCTS

Machine, Tools Fabrication, Adhesive Production

Bamboo Poles

Handicrafts and Furniture, Furnishings

Floor Boards, Tiles, Sawali

Boards, Panels,

Furniture, Furnishings, Accents

Furniture Comp. Boards, Panels

Bamboo Poles HARVESTING

DepEd

FOREIGN AND LOCAL BUYERS

INSTITUTIONAL BUYERS

NHA, DPWH

OTHER MARKETS

Hardware and Construction Supply

Stores

Designers

Furniture MakersTreated Poles, Slats, Slivers,

Tadtad

Primary Processing

Raw Materials Selection and Harvesting

Sample Making &

Manufacturing

Machine and

Equipment Fabricatio

n

R&D

THE APPROACHES

NODES TO HUB

Nodes – facility for the primary processing of bamboo, producing sticks or slats

Hub – final processing into various engineered bamboo products

The APPROACHESNODES to HUB

Establishment of NODES

Establishment of HUB

The APPROACHES EXPANDING NODE TO SMALL HUB TO BIG HUB

SONZA

HUB in CITC

TIMPC

TIMPCo

HUB & NODE

Licuan-baay

Tayum

Peñarrubia

TINGGUIAN-ILOKO MULTI-PURPOSE COOPERATIVE (TIMPCo)Dangdangla, Bangued, Abra

Cooperative’s Bamboo FactoryBrgy. Laang, Lagangilang, Abra

E-Bamboo Station 1 - AbraAssembly and Finishing

E-Bamboo Production in ManilaDTI-CITC, SSS Village, Marikina City

NODES & HUBS IN THE COUNTRY

CAR - Abra• Langangilang (Hub)• Tayum (Node)

• San Juan (Node)• Penarubia (Node)• Bangued (Node)

Region I• Bani, Pangasinan (Node)• Mangatarem, Pangasinan (Hub)• Alaminos, Pangasinan (Hub)

Region III• San Luis, Aurora (Start-up Hub)• Maria Aurora, Aurora (Node)• Llanera, Nueva Ecija (Node)•Lubao, Pampanga (Hub)•Dona Remedios, Bulacan (Node)

Region IV-A• Talim Island, Cardona, Rizal (Node) c/o DTI• Cardona Multi-Purpose Cooperative, Cardona, Rizal (Start-up) /co DOLE• Tui, Batangas (Node)

Region V Pawili, Camarines Sur (Hub)

Region VI Dumalag, Capiz (Start-up) Miag-ao, Iloilo (Hub) Sibalom, Antique (Node)

Region XI Ramon Magsaysay, Zamboanga del Sur (Start-up)

Region XII ProDev Koronadal City, SoCot (Node) Sta. Maria, SoCot (Node)

CARAGAButuan, Agusan del Sur (Node)

Nodes and Hubs

LEGEND: Node Hub

2 Policies to support bamboo sector industry

The Philippine Experience

Executive Order 879

Philippine Bamboo Industry Development Council

Non-Governmental Organizations (NGOs)

Reforestation of at least 50,000 hectares from 2010 to 2020

DENR to use bamboo for at least 20% of its annual reforestation projects (e.g. National Greening Program)

25% of annual desk requirements of DepEd shall be made of bamboo

What constitute EO 879?

Support programs to strengthen the industry

Provision of shared service facilities

Training

Techno transfer

Access to raw materials

Bamboo expo

Marketing assistance

Research and development on bamboo

Loan Assistance for bamboo development projects

Shared Service Facility

• Component of the DTI’s industry cluster development approach employed to micro, small and medium enterprise

• Aims to raise production output, power cost, and improve the level of product quality that could make operation more efficient and consequently becoming competitive

• Requires facilities, equipment and tools that are being shared by members of the cooperators

SME related policies that could support bamboo industry

Government’s participation on free trade agreements (FTAs) - pave the way for country’s deeper trade and investment

integration in the global economy

Magna Carta for MSMEs (RA 9501)- Mandatory allocation of at least 8% of credit resources’ total

loan portfolio to MSMEs

Barangay Micro Business Enterprise (RA 9178) Act- Provides support to microenterprise and the informal sector

through incentives to local government registered MEs, tax exemptions/reductions in local taxes, financial support and technological assistance from government institutions

SME related policies that could support bamboo industry

2011-2016 MSME Development Plan - Addresses critical constraints to the growth and development

of MSME sector

Universal Access to Competitiveness and Trade (U-Act)- Prepares FTA primers and conducts industry studies along with

policy papers and impact on competitiveness

3 Challenges and Opportunities

Opp

ortu

nitie

s

Available tract of lands for bamboo plantations

Availability of scientific experts doing research on bamboo and industrial engineers who can develop bamboo processing technologies

Bamboo already established its commercial value as substitute for wood, plastic and metal

Support from government and private sectors are in place

Increasing demand for bamboo furniture, handicraft, construction materials and other finished products using 100% e-bamboo

Contributes to climate change mitigation and reduce impact of natural disaster

Opportunities

Chal

leng

esLack of high tech facilities/ machineries in processing

Lack of supply of bamboo poles as raw materials for finished products

Lack of coordinated action in ensuring a steady supply of bamboo poles

Lack of market information

Substandard quality of products due to:- Low quality of raw materials- Lack of appropriate machinery- Lack of highly skilled technicians- Poor product designs

4 Future Plans 4

» Continue R and D on bamboo production and utilization» Establishment of bamboo plantations by the government and private

sectors » Continue provision of shared service facilities» Maintenance of bamboo nodes and hubs» Conduct of SME Roving Academy» Bamboo Showcases (different events, venues) and Philippine International

Furniture Show» Marketing and Promotion and Bamboo advocacy thru mass media» Financing Facilitation

Plans to support bamboo industry in the Philippines

To keep the country's status as one of the world's top bamboo producers, Senator Paulo Benigno Aquino has filed Senate Resolution No. 1203 seeking to conduct an inquiry on the status of the Philippine Bamboo Industry Development Roadmap.

Claudio, Cora. Support the Private Partnership on Climate Change, Disaster Preparedness and Sustainability – PPP with a Difference.

Cruz, Merly M. Philippine Bamboo Roadmap Workshop, May 15-16, 2012, Clark, Pampanga, Philippines.

Lantican, Celso B. 2012. Directions for Bamboo Development in the Philippines– an NGO ViewPhilippine Bamboo Foundation, 2014.Lanting M.V. Jr, et.al. 2013. Survey of Bamboo Stands and Establishment of a National Database of

Economically Important Bamboo Species in the Philippines. ERDB-DENR, Los Baños, Laguna, Philippines.

Razal, Ramon A. and M.C. 2013. Guerrero, Scoping Study on Cutting Edge Technology and Strategies Knowledge on NTFPs for the Green Economy

PBIDC-DTI, Bamboo Industry Plans and Programs for 2015Virtucio, F. and C. Roxas. 2004. Bamboo Production in the Philippines. ERDB-DENR, Los Baños,

Laguna, Philippines.http://www.mb.com.ph/information-bright-prospect-for-bamboo-industry/#heYDCTL3fHsIT1RI.99http://www.mb.com.ph/engineered-bamboo-houses-answer-to-sendong-wreck/#5MLGxFODsVcLY3HW.99

http://

www.gmanetwork.com/news/story/276454/economy/agricultureandmining/dti-to-farmers-grow-more-bamboo-to-meet-rising-demand-of-10-b-global-market

https://www.senate.gov.ph/press_release/2015/0227_aquino1.asp

References

Thank you!"While the bamboo is planted to protect our environment, we also need to realize its economic potential as communities will have livelihood and job opportunities because of the growing demand,"

Senator Paolo Benigno “Bam” A. Aquino