Integrated Value Chain Analysis of the Abaca Industry in Catanduanes: Opportunities, Challenges, and Strategic Pathways to Sustainable Development

Abstract

The abaca industry in Catanduanes plays a vital role in rural livelihoods and global fiber supply yet faces systemic constraints that limit its competitiveness and sustainability. This study was undertaken to conduct a comprehensive value chain analysis of the abaca industry, with specific objectives to: (1) determine domestic and international demand for abaca products; (2) map the current value chain in Catanduanes; (3) identify opportunities and challenges across production, market access, financial, socio‑economic, and environmental dimensions; and (4) develop strategic recommendations for collaboration, sustainability, and competitiveness. Employing a mixed‑methods design, the research combined quantitative surveys with qualitative interviews among farmers, traders, farmers’ organizations, local government units, national government agencies, non-government organizations, and academe, complemented by secondary data from PhilFIDA, DA, and international fiber reports. Triangulation of data revealed that opportunities include pest-resistant varieties, certified planting materials, nursery accreditation, fair-trade certification, eco-label promotion, microfinance, cooperative empowerment, and climate-resilient technologies. However, challenges persist in the form of weak cooperative governance, farmer dependency on traders, limited access to credit and insurance, poor market incentives, and vulnerability to typhoons and pest outbreaks. The findings underscore that while Catanduanes enjoys climate suitability and global demand advantages, systemic barriers undermine its potential. Integrated interventions like strengthening institutional coordination, embedding sustainability in production and trade, expanding financial access, and empowering cooperatives through inclusive education and livelihood diversification are essential to transform the abaca industry into a resilient, competitive, and sustainable sector. This study contributes an evidence‑based framework that aligns local development with national priorities and global sustainability goals, positioning Catanduanes as a model for inclusive value chain upgrading in natural fiber industries.