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

The Philippine Rattan Sector: a Case Study of the Production-to-
Consumption Systems 15
Introduction
The rattan sector in the Philippines has very high economic and social
significance. The rattan products industry is largely export-oriented, and earned
US$241 in foreign exchange in 1994 from rattan furniture and handicrafts, up from
US$188 million in the previous year. The largest markets for Philippine rattan are the
U.S. (more than 50% of exports), Japan, U.K. and Belgium. The domestic market is
also growing, especially in newly industrializing areas of the country where new
residential, industrial and recreational establishments are coming up.
Almost all rattan in the Philippines grows wild in state-owned forests. There is
no tradition of encouraging growth, weeding or planting/transplanting rattan in the
forest. A few rattan plantations have been established, but to date no rattan has been
harvested from them. The latest inventory, done in 1987, estimated the standing crop
in natural forests at 4.6 billion lineal meters, of which 63% was less than 2 cm diameter,
and 37% greater than 2 cm. Considering that harvest rates have continued at a high
level in the intervening period, and that deforestation has reduced the area suitable
for rattan growth, the current stock must be much less. Hence, in the long term, the
sustainability of the resource is threatened. The processing industry is already
experiencing raw material supply problems. Domestic supply is being augmented by
imports of rattan and semi-processed products like wicker and core, though accurate
records of raw material imports are not available.
This study considered the whole of the Philippines. Research was focused on the
four most important cutting areas and three major products manufacturing centers.
In addition, information was gathered on two rattan plantations to assess the feasibility
of rattan cultivation to augment raw material production.
The PCS
The key stakeholders in the Philippine rattan PCS are:
● Rattan gatherers
● Rattan cutting permit holders
● Town/village traders
15 By Isabelita M. Pabuayon (College of Economics and Management, University of the Philippines Los
Baños, Laguna, the Philippines), Merlyn N. Rivera (Ecosystems Research and Development Bureau,
Laguna, the Philippines) and Leina H. Espanto (College of Economics and Management, University of
the Philippines Los Baños, Laguna, the Philippines).
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