The Bamboo and Rattan Sectors in Asia: an Analysis of ... - INBAR

Traders buy bamboo from the cutters and sell it to various users. Interestingly,
about 63% of the traders are women. Many involve other members of their families
in the trading activity. The traders reported to have an estimated income of
P1 001-50 000. Although most have other sources of income ---- including farming and
other business endeavors such as general merchandise stores ---- the larger portion of
their income comes from bamboo trading.
Inadequate capital to buy bamboo is a problem for some. Financial assistance
was obtained by one-third of the respondents from credit cooperatives, banks,
financing institutions and relatives or friends. There were some instances cited of
traders obtaining financial assistance from their buyers. The reasons given for the
choice of the funding sources included the ease in the processing of documents and
non-requirement of collateral. Furthermore, these sources charged lower interest rates.
Those who seek monetary assistance from their buyers do so because of their good
and established marketing relationship.
Most bamboo product manufacturers are small businesses owned by individual
proprietors. There are also three corporations and two cooperatives in which the
members produce bamboo products themselves. There is also one business run by
Carmelite missionaries as a project to help out-of-school youth, former drug
dependents and emotionally disturbed people. Most were registered with the
Department of Trade and Industry or with the Securities and Exchange Commission
(SEC).
Manufacturers secured their bamboo raw materials from five different sources.
The majority of them reported getting the raw materials directly from a bamboo
grower. Some have direct suppliers, while a few in Iloilo sourced the raw materials
from an agent or a cooperative. One respondent in Negros Occidental has his own
bamboo plantation for the raw material needs for his furniture shop.
There is a variety of market outlets available to bamboo products manufacturers,
including: exporters based in Manila; direct sales; furniture shops or display centers
in the city or town proper; and wholesalers. Many complained of having inadequate
capital to expand their businesses. Technical problems ---- poor preservation technology
and the use of immature and poor quality of poles ---- are also encountered.
High cost and unavailability of labor are the main problems that manufacturers
face during peak production times. Most workers are out in the field attending to
their farms (planting or harvesting rice) that labor is unavailable when most needed.
Maintaining regular workers is very costly because of the free board and lodging that
need to be given. Three respondents in Iloilo even cited insufficient skilled labor.
Thus, they felt the need to conduct training to improve the workers' skills.
Most of the laborers in the manufacturing industry derive most of their income
from this occupation. Some also do some farming, while others engage in carpentry
and wood carving. Annual incomes range from P20 000-30 000.
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