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

The rattan sector in the Philippines has grown tremendously since the 1970s,
when the country was primarily a raw material exporter. In 1970, the Philippines
exported 2 088 tons of rattan cane and 82 tons of rattan furniture. By 1974, the volume
of rattan exported as finished product exceeded the amount exported in the
unprocessed form for the first time. Thereafter, the furniture and handicrafts industries
took off, peaking in 1988 and then levelling out. During that time, the processing
industries became much more sophisticated, with many new designs and improved
quality to meet international market demands. Mechanized processing equipment
was instrumental in this transition.
The industry is now experiencing a raw material shortage. In order to cope,
many manufacturers, particularly the larger manufacturers, have strengthened their
links with suppliers, especially the regional traders. Some have begun to establish
plantations. Other sources of raw material are being explored. Imports are getting
increasingly important, with material now coming from Vietnam, Myanmar and Papua
New Guinea.
Perhaps the most obvious demonstration of the changing raw material supply
situation is the increasing substitution of wood, wrought iron and other materials for
rattan, especially in the main frames of furniture items. Wicker furniture is now often
made with wood providing the main structural element, for which formerly largediameter
rattan was used. Also, wicker with wrought iron is more and more common.
While the mixed-material designs are now quite fashionable, one of the originators
of the fashion notes that these designs were taken up as a means to overcome shortages
of large-diameter rattan for frame material.
Despite the raw material shortages, there has been relatively little attempt to
intensify raw material production. There are two large companies that have established
rattan plantations, totalling 6 000 ha. There have been some other small areas planted
by private companies, and some government efforts, as well as some planting done
to meet the replanting requirements of rattan cutting licences. However, it will still
be several years before the rattan in these plantations is ready for harvest. Even then,
it will make only a small contribution to meeting the demand for rattan in the country.
Contract reforestation has not yet proved itself, and it seems that there has not
been any great progress in the area of rattan planting. The effort to encourage
replanting by cutting permit holders is apparently not succeeding.
Constraints and opportunities
The study compared the various stakeholders in the PCS in terms of their income
and in terms of their level of dependency on rattan. This showed that the rattan
gatherers are the worst off, followed by labor working in the semi-processing and
manufacturing industries. These are the people with the fewest alternatives, and the
people who would be hurt most by a downturn in the industry. Conversely, they
might be helped the most by improvements in the PCS.
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