Industry Study of Engineered Bamboo: For Internal Use Onlyfor Internal Use Only

Industry Study of Engineered Bamboo
This Report on the study of the Engineered Bamboo was submitted 27 January 2012 as part of the Requirements in TM 206 Technology Marketing and Commercialization
This Industry Study was conducted by Bonifacio, Junie Diaz, Jeremie Grajo, Lordinel C. Under the supervision of Prof. Edison D. Cruz Masters in Technology Management Technology Management Center, University of the Philippines Diliman, Quezon City
For internal use onlyFor internal use only
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Table of Contents
Table of Contents.........................................................................................................2 1. Executive Summary..................................................................................................3 2. Industrial Structure....................................................................................................6 2.1. Overview...........................................................................................................6 2.2. Products.............................................................................................................7 2.3. Market Structure.................................................................................................8 2.4. Revenues...........................................................................................................9 2.5. Investments........................................................................................................9 3. Macro-Environmental Trends..................................................................................12 4. Industry Value Chain..............................................................................................19 5. Market Study...........................................................................................................25 6. Conclusion..............................................................................................................32 References:................................................................................................................34
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1. Executive Summary
The Philippines, being one of the tropical countries in the world, has become the breeding ground for bamboo. Recognized as the tallest grass, bamboo is considered as one of the fastest growing plants in the world. Bamboo is notable for its economic and cultural significance, especially in South, Southeast, and East Asia, being used for building materials, as a food source, and as a flexible raw product. During the ancient times, many Asian countries believe in the cultural and spiritual importance of bamboo. Several myths and legends have been told in relation to bamboo, such as its ability to obstruct evil spirits and even the role that it played in the emergence of an island, a hero, or even the first human. In fact, in the Philippines, there is a Visayan folklore which states that the first Filipinos, namely Malakas and Maganda came from a split bamboo pole. Bamboo symbolizes longevity, friendship, humility, and stability. Early uses of bamboo include medicine, weapon, shelter, and ornament. In Chinese medicine, bamboo is used in treating infections and healing. In India, the fermented bamboo paste is known as folk remedy for impotence, infertility, and menstrual pains. Several ancient weapons were also created which utilizes bamboo as its part, particularly those used in archery and martial arts. Prior to paper, Chinese were reportedly used bamboo slips as writing surface. Today, bamboo is known for its numerous uses aside from the traditional ones. It has become a substitute for wood in the creation of furniture and handicrafts. Aside from that, it is now being considered as a source of food and biofuel, notwithstanding its role in the environmental protection and preservation. If there is another plant that should be considered as tree of life aside from coconut because of its uses from roots to leaves, it should be bamboo. Bamboo is one of natures promising alternatives for our endangered rainforest hardwood. It is found to be quick-growing and versatile whose rate of biomass generation is unsurpassed by any other plants. Moreover, bamboo has a wide range of specie, each having varying thickness, length, strength, and lightness. In fact, a special kind of bamboo, dubbed as Kawayang Tinik which is very dominant in the Philippines, is found to have has greater bending and crushing strength and is even more elastic even to a Nara wood. An emerging technology over the past decade is the introduction of what is called as engineered bamboo or simply e-bamboo. Essentially, this e-bamboo technology converts the typical bamboo poles into slats, which in turn can be
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converted into numerous products. By transforming bamboo poles into slats, bamboo can now be bent, tiled, polished, and interconnected. The principle of engineered bamboo is based on the concept that logs, when converted into lumber, can be designed to suit specific uses. Bamboo poles, when processed in bamboo slats, can be made into various products. The technology of engineered bamboo originated from Japan and Netherlands. Over the past decade, engineered bamboo is starting to be adapted in some parts of Asia, particularly in China and Vietnam. Several products out of e-bamboo are being produced, mainly on furniture. For several years, Filipinos are skeptical about bamboo, primarily because it has been dubbed as poor mans timber. Traditional use of bamboo includes the whole bamboo pole in the construction material and is often associated with nipa huts, hence perceived to be unsophisticated. Moreover, because bamboos are seen virtually everywhere in the country, it is regarded as something ordinary. But with the introduction of new technology and processes, bamboo is no longer seen as poor mans timber but as a way to alleviate poverty in the country. Given numerous benefits that can be derived from engineered bamboo, Filipinos are now starting to realize the potential for profitability of this so-called tallest grass. This potential is something that the Philippine government wanted to exploit. In our country, bamboos are very abundant. Bamboo plants luxuriously grow along farm boundaries, roadsides, riverbanks, backyards, and hilly areas. As per research from Department of Trade and Industry (DTI) and Department of Science and Technology (DOST) in 2009, there are about 65 known species of bamboo in the Philippines, encompassing at least 75,000 hectares of bamboo plantation. By investing in the engineered bamboo technology, the government aims to stimulate economic growth, and increase job opportunities particularly for the marginalized sector in the country, and contribute to climate and disaster mitigation in the Philippines. The e-bamboo project in the Philippines actually started way back 1997. It was on that year that talks between the Philippine government, care of DTICenter for International Trade, Expositions and Missions (CITEM), and the government of Netherlands, where the technology originated, was initiated. However, it wasnt became the priority of our government until 2010. Under the administration of former President Gloria Macapagal-Arroyo and former DTI Secretary Peter Favila, the e-bamboo project was finally triggered. PGMA issued Executive Order 879 which states that at least 20% of public school furniture should be translated to a P200 million market for e-bamboo. In addition, the Philippine Bamboo Industry Development Council (PBIDC) was established.
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On the market side, the primary agency that handles the e-bamboo project is the Cottage Industry and Technology Center (CITC) of DTI. The DTI as a whole and CITC will provide product development assistance to private organizations and individuals who wish to engage in e-bamboo business. In other words, CITC will be the agency responsible for transferring the technology of making bamboo slats and processing these into furniture. With more than 6 years since the kick-off of e-bamboo project, the number of bamboo organizations in the country is continuously growing. The initial investments are now starting to return. However, as of this writing, the bamboo market is not yet considered stable enough, so CITC is still managing the industry and drives demand. Engineered bamboo in the Philippines is in its infancy stage but the use of it in the furniture and handicraft industry is on an upward trend. Because creativity is inherent among Filipinos, these simple bamboos are transformed into high-value furniture and handicraft items that provide good economic revenues for the country. Engineered bamboo products do have potential in the market due to their uniqueness and the ingenuity and craftsmanship of local designers and workers.
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2. Industrial Structure
2.1. Overview
The market for engineered bamboo is considered as one of the emerging industries in the Philippines today. This industry was actually initiated and managed as of the moment by the Department of Trade and Industry. Prior to e-bamboo, wood from logs is considered as the primary material for construction and furniture. At that time, bamboo is given a little role in these areas because they are perceived to be weak, ordinary, cheap, and unstylish. But with the introduction of new technology and processes, a simple bamboo pole can now be converted into bamboo slats, the very idea of engineered bamboo. Slats are sticks resulting from the splitting or ripping of a bamboo pole. The usual size of a slat is 25 mm in width, 8 mm in thickness and 1 meter in length. These slats, in turn, become the basic building blocks that can be used in wide range of high-quality products such as furniture, decorations, floorings, and construction materials. The engineered bamboo industry, given that it is still in the emerging industry stage, is largely controlled by the DTI. The e-bamboo project is managed by the wood products arm of DTI called Cottage Industry and Technology Center (CITC).The aim of CITC is to plant seeds to the market i.e. to disseminate information, offer trainings, and provide support for start-up businesses who wish to enter the e-bamboo industry. Once the industry becomes stable, CITC will then leave it to the e-bamboo businesses and will just provide supervisory and regulatory functions. The Philippine government, in coordination with DTI and the Department of Education (DepEd) originally envisions e-bamboo to be used as desks in public schools. As mentioned, former President Arroyo directed that 20% of public school furniture should use engineered bamboo as construction material. Yet, more than school desks and arm chairs, other uses of e-bamboo have been discovered. Among the products that can be constructed using e-bamboo are doors, windows, trusses, floor planks, baluster, tiles, panels, sawali board, lumber, and tegula. As the industry grows and stabilizes, it is expected that even more products will be created using e-bamboo.
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2.2. Products
Generally, bamboo products are classified into three: primary; secondary or semi-processed; and finished products. Primary products are those that are derived directly from bamboo plant without processing. Traditional bamboo industry is known to use products that belong to this classification. The examples of bamboo products under this category are the following: a. Poles - The most common shape of the full culm is usually tapered from the butt to the tip. b. Shoots - This is the emerging portion of the rhizome that becomes the culm/pole, a number of bamboo shoots are edible. c. Stump - This is the portion of the bamboo plant/clump left after harvesting. Secondary or semi-processed products are those that underwent minimal processing. These are usually used as inputs for various finished products and industries including housing, fishing, agriculture and manufacturing. The following are examples of secondary products: a. Sawali - Bamboo mats are made by plaiting splits. The matting is used for interior walls partitions, ceilings doors and windows and for exterior walls. Mats are produced in a variety of shapes and patterns. b. Splits - The term split is used for any shape smaller than a quarter of the culm. Generally, splits are not used as building components but are woven into mats or made into lashing. c. Boards - Bamboo boards are commonly used for flooring walls and even roofing. A board consists of culm that has been cut and unfolded until it is almost flat. The last classification of bamboo products are so-called finished products. These are directly channeled to end users in both domestic and export markets for direct consumption. Finished products are further categorized into the following: a. Furniture - Furniture made of bamboo include sala set, dining tables, corner and center tables, cabinets, beds, lounging chairs, sofa beds and rocking chairs. b. Handicraft - These are non-traditional products made of indigenous raw materials like wood, rattan, bamboo, buri, abaca and handwomen, fibers. Products of the handicraft industry include trays, brooches, pen holders, wall decor, boxes, decorative baskets, vases, fans, and fancy items.
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c. Processed foods - Bamboo shoots throughout Southeast Asia are eaten fresh, pickled or diced. Processed bamboo shoots from various producing countries are being exported to more than 20 countries including the Philippines.
2.3. Market Structure

DTIs strategy is to divide the plantations and processing into what are called nodes and hubs. A node is a satellite (i.e. community-based) primary processing center situated near the bamboo plantation that handles the first activities done to bamboo such as source selection, cutting, splitting and treatment. Their final products are waned and treated slats. This node-strategy is carried out for two primary reasons. First, this is to provide employment opportunities to local farmers. Second is to reduce waste and cost when transporting the bamboo to hubs. It is more efficient to transport bamboo slats to hubs instead of bamboo poles, so the initial processing is done in nodes. On the other hand, a hub is defined as the center for secondary processing for engineered bamboo products. Activities of hubs include lamination, milling, and assembly. This also serves as the community production center and crafts center in the production of bamboo huts, bamboo, and crafts to name a few, with common service facilities. Its finished products are laminated materials which could be in the form of tiles, planks, components. The hub serves as the consolidator of the nodes or the center for the development of institutional markets or as link to non-traditional ones. As of July 2011, DTI had identified 21 nodes and about 11 hubs in the country. These nodes and hubs are strategically located in areas known to have vast supply of bamboos. These areas include, but not limited to, the following, according to DTI:
Table 2.1: Identified provinces with vast amount of bamboo supplies
Region CAR Region 1 Region 2 Region 3 Region 4A

Provinces Abra Ilocos Provinces, La Union, Pangasinan Isabela Pampanga Rizal, Cavite
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Region 6 Region 7 Region 8 Region 10
Iloilo, Negros Provinces Bohol Leyte Bukidnon
Source: Department of Trade and Industry
2.4. Revenues
According to the accomplishment report of DTI from January to June 2011 (see Exhibit 1), it is estimated that the revenues in e-bamboo industry is at P24.66 million. However it is identified that investments made during the same period is at P59.15 million. This should not be confused and should not be considered as net loss for now because it is expected to take 3 to 5 years before bamboo plants become mature enough for sales, and hence, for investments to be fully recovered. These investments resulted in around 1,777 jobs during this period alone, as boasted by DTI.
2.5. Investments
Investments needed for putting up either bamboo nursery, bamboo plantation, node, or hub is relatively small, but still a big amount from the perspective of ordinary farmers. A careful consideration of soil, irrigation, labor, and bamboo type should be carried out before entering this business. The ideal specie of bamboo is Bamboosa Blumeana or Kawayang Tinik, because its pole is very durable, it is very common, and its easy to propagate, which commands the highest commercial value among bamboo varieties. Bamboo nursery is a place where bamboo seeds are propagated. Initially, marcottage is employed as method of propagation while the mother plant is still small. Eventually, it will be replaced by the culm-cutting method when the culm grows to full size. As of July 2011 DTI report, there are 17 identified commercial bamboo nursery operation in the country. For a bamboo nursery, Table 2.2 shows the investment needed for a 1 nursery with production capacity of 10,000 potted units per year. In addition, Table 2.3 shows the work required, and Table 2.4 shows the schedule for expected returns on investments by income. These data are according to the projections of DTI. For economic purposes, the projected nursery must be close Industrial Structure it must also be close to the source of seed material. to water, but
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Table 2.1: Investment for Bamboo Nursery

Table 2.3: Work and labor required for Bamboo Nursery
Year of operation 1st year 2nd year 3rd year 4th year 5th year
Vital activities Laying out, fencing, planting the mother plants Setting up watering system, plantation of nursery layout Marcotting and potting marcots Repeat marcotting and potting. Sale of previous years marcotts Repeat previous procedure

Table 2.2: Projected income from sales for Bamboo Nursery
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Source: Department of Trade and Industry Bamboo plantation, on the other hand, is the actual place where bamboos are cultivated and harvested, usually encompassing about a hectare or more. DTI had identified 52,037.5 hectares of land available for plantation; 13,162 hectares of which are already planted. For the calculation of needed investments, it is assumed that first, the planting density is at 200 per hectare (10M x 10M). Second, the sale price of harvested pole is at P30.00 wholesale or pakyaw system. Finally, the pole production capacity is at 4 per culm per year, constant indefinitely. For a 20 hectare plantation, here are the investments needed, work required, and time of return (Tables 2.5, 2.6, and 2.7 respectively).
Table 2.5: Investment for Bamboo Plantation
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Table 2.6: Work and labor required for Bamboo Plantation
Year of operation 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year
Vital activities Planting-out, fertilizing, ring clearing Fertilizing and ring-clearing (same) (same) Fertilizing and rear clearing (same) (same)
Table 2.3: Work and labor required for Bamboo Plantation
Year of operation 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year
Vital activities Planting-out, fertilizing, ring clearing Fertilizing and ring-clearing (same) (same) Fertilizing and rear clearing (same) (same)
Source: Department of Trade and Industry For the establishment of the node, it needs at least 8 laborers, 17 hectares of bamboo plantation, and around P350,000 to P750,000 capitalization as minimum requirements. Meawhile, if you want to invest for a hub, you will need at least 10 laborers, 50 hectares bamboo plantation, and P2,000,000 to P7,000,000 capitalization.
3. Macro-Environmental Trends
The Engineered Bamboo industry has captured its market in schools under the Department of Education. An E-bamboo update as of September 2011 reveals that Department of Education has issued an invitation to bid on EBamboo armchairs for Regions 1, 3, 5, 6 and the Cordillera Administrative Region (CAR). This was included in the 2010 budget with an original allocation of P42 Million. However, considering the current production capacities of the Department of Trade and Industry (DTI) assisting both suppliers and bidders, the amount was reduced to P17.8 Million. DTIs focus was on assisting suppliers and bidders from Abra, Alaminos, and Sta. Catalina. A Sun Star Pangasinan article last February 20, 2010 details a recent Engineered Bamboo Project launched in Binalonan, Pangasinan by the Former President Gloria Macapagal-Arroyo. This was to address the problem on lack of school desks and protection of the environment. At the forefront of the project are the Department of Trade and Industry (DTI) headed by Secretary Peter Favila and the Department of Environment and Natural Resources (DENR) led by Former Secretary Horacio Ramos. Former President Gloria Macapagal-Arroyo has designated DENR to be in charge of the bamboo nursery and dispersal growing while DTI will supervise the production of bamboo products. The expectation is that 25% of the school desks needed by the Department of Education will come from bamboo. The DTI, through the Cottage Industry Technology Center (CITC), has machines to make bamboo desks. The former President Gloria Macapagal-Arroyo has directed Former DTI Secretary Peter Favila to give the town of Binalonan a bamboo desk making machine which will be used to manufacture bamboo school desks for the province of Pangasinan. With the Engineered Bamboo Project, the National Government hopes to reduce the cutting of trees. At the same time, it hopes to create jobs and business opportunity for bamboo growers. In the province of Pangasinan, among the top suppliers of bamboo are San Carlos City, Sta. Barbara, Bolinao and some towns in Western Pangasinan. The Engineered Bamboo Industry has also shown an interesting tie up of the government, business as well as educational institutions. A more recent Manila Bulletin article last May 17, 2011 showed how businessmen support the engineered bamboo project. The Antique Chamber of Commerce and Industry (ACCI) has vowed to support the Provincial Development Plan particularly the Antique governments engineered bamboo project targeting growth and development of micro, small and medium enterprises in the province. A component of the project is the establishment of nodes where primary processing of bamboo will be done. It is where raw bamboo will be cut, sliced, treated and dried prior to shipment as slots to the hub, where the final processing into finished products will be undertaken.
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The proposed hub will be the University of Antique (UA) where initial machinery requirements have already been installed and evaluated by the governments Cottage Industy Technology Center (CITC). The Antique provincial government has also committed to fund additional machinery for the hub as well as the initial set of equipment needed for the nodes in such priority towns as Hamtic, Tobias Fornier, Anini-y, Sibalom and Laua-an. On May 14, 2010, Executive Order No. 879 was issued by the President Gloria-Macapagal Arroyo. It created the Philippine Bamboo Industry Development Council and directed the use of bamboo for at least 25 percent of the desk and other furniture requirements of public elementary and secondary schools. It also directed the prioritization in the use of bamboo in furniture, fixtures and other construction requirements of government facilities. This was headed by the Former DTI Secretary Favila. Looking closely at the bamboo industry profile, bamboo has proven to be a vital resource in terms of its contribution to the national economy and ecological stability of the Philippines. Bamboo stands out among woody plants because it possesses unique qualities and offer a wide array of uses. The bamboo culm has proved to be an inexpensive source of housing materials , furniture, handicraft, banana props, fishpen, and other innumerable products. The young bamboo shoots are gathered for food. The rhizomes in the bamboo roots help prevent soil erosion and control floods. Majority of the countrys regions engage in bamboo handicraft production. Because bamboo is ready available in the Philippines, it is crafted into various household items/commercial articles for both local and foreign markets. Common items include trays, lampshades, fancy baskets, brooches, napkin rings, pen holder, jewelry boxes, flower vases. An environmental force which drives the potential rich economic value of bamboo is its character for being a promising alternative for endangered rainforest wood. Looking at the life cycle, bamboo is a quick-growing, versatile, non-timber forest product with a rate of biomass generation unsurpassed by any other plant. With a 10-30% annual increase in biomass versus 2-5% for trees, bamboo creates greater yields of raw material for use. The most common commercial species of bamboo in the Philippines are the following: Kawayan Tinik (Bambusa blumeana); Giant Bamboo (Dendrocalamus asper); Puser (Schiozostachyum finexii); Bagoy (Bambusa blumeana var. luzonensis); Buho (Schiozostachyum lumampao); and Botong (Dendrocalamus latiflorus). The kawayang tinik which is the more prevalent type of bamboo in the Philippines, has greater bending and crushing strength and more elastic.
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Another promise of bamboo is its ecological value. It is the most sensible choice to grow and utilize especially now that world leaders are espousing clean and green movement to preserve Earths natural resources. Our planet is now facing global warming and climate change as a result of centuries of neglect and abuse of nature. One particular cause of global warming is deforestation and cutting of trees. The establishment of bamboo nurseries, farms and plantations, and reforestation are therefore seen as notable efforts in order to mitigate the ill effects of climate change. Planting of bamboo can also help prevent landslides and soil erosion. It is also interesting to take note that the Clean Development Mechanism (CDM) of the recent Kyoto Protocol ranks bamboo as one of the most suitable plants to earn carbon credits. The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change (UNFCCC or FCCC) which aims to fight global warming. UNFCCC is an international environmental treaty with the objective of achieving the stabilization of greenhouse gas concentrations in the atmosphere at a level that would avoid dangerous climate change. Unlike timber, bamboo releases very little carbon into the atmosphere when harvested and is also internationally recognized to have the property of sequestering carbon dioxide. Highlights of the Kyoto Protocols CDM regarding bamboos role in climate change as cited by the International Network of Bamboo and Rattan (INBAR) indicate that bamboo species may grow up to 1.2 meters a day. This unique growing capacity makes bamboo a valuable sink for carbon storage. Bamboo also has other advantages over wood as carbon stock, particularly offering the possibility of annual selective harvesting and removal of about 15-20% of the total stock without damaging the environment and productivity. In terms of sustainability and renewability, environment experts say that for every tree we cut, we should be able to replace it with six trees, but even the fastest growing tree species take 7 to 10 years and more to reach full maturity. Conversely, bamboo takes only three to five years to fully mature, is regenerative, and thrives practically anywhere. Bamboo can be grown without the use of pesticides, herbicides, fertilizers, and irrigation. The rapid growth characteristic and reduced environmental toxins of bamboo account for its strong sustainability. Another economic and social factor in the e-Bamboo industry is job creation and income generation. These are the most potent reasons why the government and the private sector are pushing for the development of the bamboo industry. Livelihood main motivation for creating satellites of primary processing centers (nodes) which will supply bamboo slats to secondary
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processing centers (hubs). These are seen to create multiplier effects in terms of creating opportunities for income generation and job creation. Disaster Risk Management is another important environmental contribution of bamboo. Recent earthquakes in Chile and Haiti and the tragic floods caused by typhoons Ondoy and Pepeng in the Philippines have led experts and environmentalists to pursue the crusade to plant and utilize bamboo. Bamboo plays an important role in environmental protection. Its thick foliage and tensile strength make for an ideal wind-breaker that can protect houses and other infrastructure from the fury of typhoons. Bamboo houses are also known to be earthquake resistant in other countries. Being lightweight, the bamboo poles are less likely to be damaged and it yields to vibrations without collapsing. For example, in the country of Ecuador, bamboo is being promoted as a seismically resistant building material. Also, according to earthgreenbamboo.com, in 2008, an engineering professor from China developed what is called the Bamboo Instant Houses in response to the Sichuan earthquake of that year. These modular houses can be built in less than two weeks and conform to the US building code standards for quake resistance. On the academe (Bamboo Profile, DTI), research activities on bamboo and rattan are being undertaken by state colleges and universities in coordination with government and private sectors. These include the University of the Philippines Los Banos (UPLB), Benguet State University (BSU), Mariano Marcos State University (MMSU), Nueva Viscaya State Institute of Technology (NVSIT), Tarlac College of Agriculture (TCA), Palawan National Agricultural College (PNAC), Panay State Polytechnic College (PSPC), Mindanao State University (MSU), and Visayas State College of Agriculture (VISCA). On the government side, there are existing policies on biological protection and genetic conservation related to bamboo. Various government policies and DENR Administrative Orders have been formulated and implemented. These are as follows: RA 7586 (1992). An act providing for the establishment and management of Natural Integrated Protected Areas System. DAO 25 (1992). The National Integrated Protected Areas System (NIPAS) implementing rules and regulations focusing on the twin objectives of biodiversity conservation and sustainable development. PD 1586 (1978). Establishment of Environmental Impact Statement System DAO 21 (1992). Revision of rules and regulation on EIS System/ DAO 96-37 (1996). Revisions of DAO 21 (1992) to further strengthen the implementation of the Environmental Impact Statement System.
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EO 247 (1995). Prescribing guidelines and establishing a regulatory framework for the prospecting of biological and genetic resources, their by-products and derivations for scientific and commercial purposes. DAO 96-20 (1996). Implementing rules and regulations on the prospecting Macro-Environmental Trends of biological and genetic resources. Each program implementer/stakeholder of the engineered bamboo project under the government has its own specific roles and responsibilities as follows (Project Concept, DTI).

DepEd shall procure the equivalent of at least 20% of the annual school desks and arm chairs requirement of all public elementary and secondary schools nationwide. DENR shall use bamboo as the planting material for at least 20% of its annual reforestation reforestation areas especially in those provinces and towns which are engaged or have the potential to engage in bamboo based industries or where trees are difficult to grow because of poor soil quality, susceptibility t erosion or steep gradients. DOST thru its appropriate bureaus/offices like the Forest Products Research and Development Institute (FPRDI) and Food and Nutrition Research (FNRI) shall undertake research and transfer the technologies which can reduce production costs and increase salability of bamboo products including bamboo shoots processing and packaging, alternative adhesives and finishes, effective yet affordable treatment and preservation techniques. DOLE shall identify and enroll with the program, special groups such as organizations of Persons with Disabilities, the Marginalized, and the like, who are in a very strategic position to advance the bamboo industry. League of Municipalities of the Philippines shall provide the coordinative support in the partbership with local government units for the development of the industry. LLDA shall identify and undertake in partnership with concerned LGUs, the establishment of nurseries and the planting of bamboo to help in watershed protection, erosion control and the enhancement of dikes and embankments with the added objective of having a potential source of livelihood and self employment opportunities thru the judicious harvesting of bamboo poles and shoots which shall be replicated in the national scale. DTI shall spearhead in providing market information, market development and other similar undertakings. CITC - shall transfer the technology of making bamboo slats, and the processing of these into bamboo desks and bamboo arm chairs. CITC will fabricate the needed equipment for the trainings and conduct the needed transfer of skills for the operation of the nodes and hubs all over the country.
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RUMEPP/DTI shall identify beneficiaries from the marginalized sector and provide interventions such as conduct of stakeholders workshop, business workshops, trainings/capability enhancement and provides marketing support. UNIDO shall provide funding assistance in terms of capability building Macro-Environmental Trends enhancement, product development and testing as well as in production and marketing promotion. NGO Representatives shall take the lead in advocating the planting and use of bamboo nationwide. AHON Movement - shall take the lead in the technology, production and marketing of bamboo huts/housing; assist LGUs to promote and establish bamboo plantations, crafts and products starting in flood and landslide prone areas which will provide livelihood to Community Based Forest Management and to resettlements of informal settlers from vital waterways. BambooPhil Network shall take charge in the completion of the Bamboo Information System in coordination with DTI, DENR and other stakeholders. LBP shall provide loan assistance to bamboo growers/farmers in the establishment and management of nurseries and plantation. DBP shall provide financing assistance in the production and processing of traditional bamboo products and engineered bamboo products.

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4. Industry Value Chain

The Department of Trade and Industry Regional Operations Development Group and the Cottage Industry Technology Center developed an industry value chain for the EBambu Philippines project. It aims to jumpstart the market demand for engineered bamboo at the same time to generate more jobs and provide livelihood opportunities compared to non-environmental friendly materials like plastic, wood, timber and metals. There are four identified major activities under its industry value chain model: research and development, production, processing and marketing.
Figure 1. The Engineered Bamboo Industry Value Chain
Source: Department of Trade and Industry Under Research and Development, bamboo nurseries are established and managed to cultivate the bamboo propagules. As of June 2011, the Department of Trade and Industry listed 68 nurseries in operation from Region CAR, 1, 2, 3, 5, 6, 7, 11, and 12. Most nurseries are managed by local government units, multipurpose cooperatives, private citizens and academe like University of the
Industry Value Chain
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Philippines Visayas and Isabela State University. The nurseries are able to produce 543, 880 propagules, 36% of which were already sold to the market to Php 7,430,000 in Region 2, 3 and 12. From the nursery, the propagules go to the plantation or the natural stand. In the plantation, the propagules are managed properly in a farm and eventually, raw bamboo materials are harvested. The Cottage Industry Technology Center uses selected bamboo varieties to propagate like the Kawayan Tinik (Bambusa blumeana) and Botong (Dendrocalamus latiflorus). There are 64,389.64 hectares available to plant bamboo, 20% of which had already been planted in Region CAR, 1 to 7, 10 and 11. The planted propagules amounted to Php 3,285,000. Once the bamboo reaches maturity, the bamboo poles and the cultivars are now harvested. The poles are used to process into engineered bamboo while the cultivars are further processed into propagules. Once harvested, the bamboo undergoes the next activity which is the production or the primary processing. It is the conversion of bamboo pole into slats, tadtad, sliver and spoke and round poles. Bamboo poles are cut to uniform lengths about 43 inches using a pole cutter machine with circular saw blades. Splitting or ripping converts the cut bamboo poles into slats using a twin rip saw machine with double-blade construction and automatic width-of-cut settings. Afterwhich, the knots are removed by smoothening out rough edges and further cleaning the bamboo slats. Then, the poles are crushed into slats either manually or using a pressing machine. The slats are then sliced into smaller, slender pieces used for weaving through a slicing machine, shaver and a sizer. The semi-processed bamboo, the slat, tadtad, slivers and round pokes are now treated for material preservation. Bamboo like any biodegradable material is subject for micro-organism and insect attack. Chemical and non-chemical methods are developed to improve the durability of the bamboo. Non-chemical methods include transpiration, soaking in running or sea water, and smoking. Transpiration is when freshly cut bamboos are left on the spot for several weeks and are allowed to transpire water through the leaves while smoking is when cut culms are placed above the fireplace or cooking area to protect the bamboo from insects. Chemical methods include butt treatment methods, open tank method, boucherie method, pressure treatment method, and hot-and-cold bath process. Now, the treated slats and tadtad proceed to be further processed to furniture components, boards and panels while the treated sliver and spokes are interlaced and weaved to form the sawali. Unprocessed bamboo poles are used for farming, fishing and construction. Bamboo shoots are also harvested to households or be processed to be sold in supermarkets and groceries. Upon harvesting and when the bamboo poles undergo the production activities, its waste materials are consolidated to be further processed. The next stage in the value chain is the processing which covers drying, milling and lamination and further converts the slats, tadtad and sawali into finished materials which are ready for the manufacture of floor board, floor tiles,
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furniture components and sawali boards. The three semi-processed bamboo are dried to reduce moisture content. This can be done through air, sun or kiln drying. Afterwhich, the two surfaces of the slats are sorted by thickness or color and are planed accordingly with the usual thickness of 5-8 mm using a planer. This is called rough milling. Then, they are laminated through glue application, composing and pressing. The lamination starts with glue application to the slats and arranging them before applying the required pressure by using clamps, hydraulic presses and other similar devices. After lamination, they shaped into desired shapes. This is called finish milling. The waste materials in the production stage are now processed into charcoal and other derivatives for household and commercial use. The engineered bamboo are now ready for the market including institutional buyers like the National Housing Authority, Department of Public Works and Highways, hardware and construction supply stores and designers for floor boards, tiles, sawali boards and panels. Foreign and local buyers will avail of furniture, furnishings, handicrafts and accents made of engineered bamboo. Out of charcoal made from waste materials in the processing stage are the active carbon, briquettes, and chemical products. Processed shoots are sold to supermarkets and groceries.
Figure 2: Mapping of the Bamboo Industry Value Chain
M P IN O T E B M O IN U T Y V L EC A A P G F H A B O D S R A U H IN
L w s V lu A d o et a e d
Nre u s ry G th r g a e in &C t in ut g o P le f o s
H h s V lu A d ig e t a e d
Po e s g r c s in
( d sr lP o / In u t ia r d
G o in rw g
M n fa t r r a u cu e)
?
R D &
N DS O E
H B U
A c r :C C C / o d n illa y P / C F o E gin e e B m o n er d a bo F r is in s c a t un h g , r f s, h u in / u , f o e c o s g h ts o d t
I S I UI N NT T T O ( eE f rSh D D c p o D k,e ) e st s c Mr e a k ts
R D &
D pr a is e s l
Ta es r dr
S p ot Sse :Int uios t a s ot plic s u pr yt m sit t n, r npr , o ie

C C C m un P u tionC nt P o m ity rod c e er C C ftsC n r C ra e te
Source: Department of Trade and Industry Using Michael Porters Value Chain model, two activities, primary and support, helps identify activities important for competitiveness and creating the greatest value. With the primary activities explained, the secondary activities are encapsulated into an approach and strategy implemented by the Department of
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Trade and Industry under the E Bamboo Philippines Project. This is the establishment of nodes and hubs. Nodes are satellite primary processing centers or plants located in identified communities. They are identified based on their potential capacity to grow and process bamboo. The final products of nodes are waned and treated slats. As of June 2011, there are 28 nodes established and maintained in Region CAR, 2 to 9 except Region 4. The nodes generated 167,648 slats and 334,700 pieces for other bamboo products and amounting to Php 2,477,193. The hubs, on the other hand, are the main plant that does the production of the processed bamboo. The hubs produce laminated materials which could be in the form of tiles, planks, and furniture components. The hub acts as a consolidator of the nodes or the center for the development of institutional markets or as link to non-traditional ones. There are 13 hubs in Region CAR, 1 to 8 except 2 and 4.
Figure 3: Process Flow from Harvesting to Marketing
P p sd ro o e A asfo C lla o io re r o b rat n
P O E SF O F O H R E TI GT M R E N R C S L W R M A V S N O A K TI G L w s V l eA d o e t au d
H R E TN A VSI G &S L C I N EE TO C T I G& UTN S LTI G PI TN
Hg e t V l eA d i h s au d
P OESN RCSI G
L m a o ,M n , a in ti n illi g A s m ly se b
I d s r l P o u t no n u t ia r d c io f E gin e e B m o S h l D s s n e r d a b o c oo e k , F r is in s un h g , C ats , H ts o s g r f u /H u in , F o ,e o d tc .
I S I UI N : NT T S T O D E f r c ol e D Sh o p o D k,F riue e s u t rs s n MRES AKT
N DS O E
H B U S
S p ot Sse :Int uios t as ot plic s u pr yt m sit t n, r npr , o ie
Source: Department of Trade and Industry Also, secondary activities as explained in Michael Porters Value Chain model in the engineered bamboo industry consists of support from institutions, transport and policy formulation. Capacity building programs are conducted to strengthen the skills of its workers towards procurement, technology development, human resources management and firm infrastructure. Programs include organizational development training, bookkeeping seminars, and skills training in bamboo planting, machine operation, furniture making and bamboo craft. 18 different types of training were conducted in Region CAR, 3, 5, 6, 11, and 12. While in hubs, there were 17 training programs conducted in Regions 1, 3, 5, 7 and 10 as of June 2011.
In analysing the value chain of the engineered bamboo industry, linkages between activities are identified. In both activities, primary and secondary, benchmarking missions are regularly conducted locally and internationally to further develop the skills of the workers thereby, strengthening the Industry Value Chain competitiveness of the industry. The missions involve various workers going to other regions to study and learn about the engineer bamboo industry. As of June 2011, there were 14 successful business missions participated by 182 workers. Nodes can become a small hub, which will soon establish nodes of its own in order to meet its growing requirements for bamboo slats. In the process, the small hub will slowly evolve into a big hub and become a main processing plant. The approach adopted by the Department of Trade and Industry in promulgating the Engineered Bamboo Industry assures firms participating in the program in creating the need for bamboo products through product development thereby enhancing its versatile application and multi-utilization together with business development for entrepreneurial and livelihood opportunities. It takes a convergence approach with various stakeholders led by the Department of Trade and Industry to promote and develop markets for engineered bamboo products; to develop and organize business opportunities for bamboo products; to develop and design bamboo as quality raw or base material for industrial and manufacturing use; and to promote bamboo as a green alternative building material for mass housing and community centers for schools, health centers, social and sports halls and others. They position firms to be active in the value chain such that they support each other. To say there is a competition among firms in the engineered bamboo industry like what the Five Forces Model by Michael Porter would suggest is benign or show less influence. Competition drives profitability which is important in formulating strategy. Firms have to understand the industry by analyzing how different forces work for competitive position. These forces are barriers to entry, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, and rivalry among the existing players.
As far as the approach used by the Department of Trade and Industry is concerned, the more firms entering the Engineered Bamboo Industry, the more raw materials result to more finished products. But firms have to fit themselves in the value chain. The Department of Trade and Industry prefers more nodes than hubs. These hubs in turn will provide processed engineered bamboo for firms to convert into finished products. As of June 2011, the Department of Trade and
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Industry posted 25 nodes and 13 hubs established and maintained all over the country.
Engineered bamboo is positioned to substitute wood in response to climate change and disaster risk mitigation in its framework. Wood is cheaper than engineered bamboo. However, with existing environmental laws, using wood in furniture will soon be replaced by bamboo according to the Department of Trade and Industry.
Buyers of the engineered bamboo are various depending on the value chain. Bamboo nurseries are able to sell propagules amounting to Php 7,430,000 as of June 2011. Also, bamboo plantations are able to generate Php 3,285,000 selling bamboo poles to nodes and hubs. The nodes in turn, sold 167,648 bamboo slats amounting to Php 2,477,193 to hubs. The hubs are then, able to sell Php 2,290,794 worth of bamboo desks and other bamboo products as of June 2011. Presently, there is an order of 18,000 chairs worth Php 7,200,000 from an institutional buyer, the Department of Education. There are other products made out of engineered bamboo but are still being valued by participating firms assisted and developed by the Department of Trade and Industry.
It is clear that if there is demand, there should be a supply. The Department of Trade and Industry know this by heart such that they established nurseries and plantation to sustain the steady flow of bamboo to be processed by the nodes and hubs. There are 43 bamboo nurseries all over the country that were able to produce 207,330 propagules as of June 2011. On the level of innovativeness to adopt technology transfer among bamboo furniture manufacturers, Robilos (2008) found out that certain socio-cultural demographics such as age, educational attainment, family size, religious affiliation, business life, manpower size and income have no significance to the level of innovatiness but rather with capitalization. This relationship was supported by access to information and level of satisfaction with bamboo furniture production as a source of livelihood, the former contributing more to the correlation. Thus, it was recommended in the study to maintain a steady capital base for the suppliers to keep producing bamboo.
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As to rivalry among the existing players, at this stage where the industry is being led by a government agency encouraging a change of pace from maintaining a supply to finding markets for engineered bamboo, it is still premature to consider intense competition in the industry. For Michael Porter (2008), if the forces are benign, many companies are profitable as compared to industries with intense forces.
5. Market Study
The Bamboo Industry Development Project spearheaded by the Department of Trade and Industry aims to stimulate economic growth and increase job opportunities particularly for the marginalized sector in the country as well as contributing to climate and disaster mitigation in the Philippines. It is also, to help the attain the countrys commitment to reforest at least 500 hectares with bamboo as part of the 1 million hectares of designated areas as its contribution to the ASEAN commitment of 20 million hectares of new forest by 2020 as part of its initiatives to improve the environment and to maximize the utilization of the environmental contribution of bamboo as the green alternative through a sound business scheme that will highlight its economic significance and thereby practically advocate the widest participation of the citizenry. The project also aims to mitigate climate change through a more efficient capture of carbon emission and replacement of materials that are produced with high carbon credit/emission and to promote technologically advanced and innovative development of bamboo products will promote bamboo application. While it is a government mandate to be able to generate renewable crops, jobs, and income while thriving on carbon and nitrogen, thus helping to stabilize climates, soils, and economies, the project will contribute to disaster mitigation since bamboo is extremely hardy, it can withstand strong typhoons and fire and has no known serious pests and diseases. As previously mentioned, through product development, bamboo products are improved through its versatile application and multi-utilization together with business development for entrepreneurial and livelihood opportunities by way of: a) promoting and developing markets for engineered bamboo products; b) developing and organizing business opportunities for bamboo products; c) developing and designing bamboo as quality raw or base material for industrial and manufacturing use; and e) promote bamboo as a green alternative building material for mass housing and community centers for schools, health centers, social and sports halls and others
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To create a potential market, the project posted Php 57.849 million in investments since 2010. Domestic sales reached Php 26.08 million in 2010 and 2011. Export sales reached Php .14 million in 2010 and 2011. The project aims to supply about 20% of the Php 10 billion desk requirements of the Department of Education. The Department of Trade and Industry posted 18,000 chairs ordered by the Department of Education made of engineered bamboo costing to P400 per desk which amounts to Php 7,200,000. This amount dwarfs the expected annual procurement of Php 200 million worth of desks and chairs (de Leon, 2011). Also ready markets are the bamboo huts for the 100,000 poorest families that would have to be relocated from the waterways. The relocation sites will be the community production centers for bamboo intermediate products for school furniture requirements of government schools, colleges and universities, simple furniture for sale at core housing projects of the government where families find it hard to afford more expensive furniture, bamboo boards to Market Study substitute plyboards, and production of simple products that we still import in big quantities such as toothpicks, barbecue sticks and chopsticks. The project also aims to assist LGUs to promote and establish bamboo plantations, crafts and products starting in flood and landslide prone areas thereby provide livelihood to Community Based Forest Management and to resettlements of informal settlers from vital waterways and to aggressively promote the product development and the market access of bamboo products to sustain bamboo industry development. The preceding chapters discussed the supply side of the industry. The utilization and income generation factors of business development tackle how the market of engineered bamboo is formed out of the expectations of the Bamboo Industry Development Project. Considering the perpetual nature of harvesting both plants, the country can embark into their active and regular utilization for more income generation. The Department of Trade and Industry, together with the Department of Science and Technology and the private sector provided product development assistance. The Cottage Industry Technology Center uses transfer technology in making bamboo slats, and the processing of these into bamboo desks and bamboo arm chairs. Technology on bamboo treatment and preservation will be applied. Housing components that can make use of bamboo as raw material will be developed and targeted to sustain mass bamboo housing. Bamboo will involve common service facilities for community production centers, particularly in the production of engineered bamboo products, bamboo huts, crafts and foods. This will be widely participative to accommodate the most employment. Nationwide, it is proposed to establish 8 hubs and 10 nodes per hub. Market development and marketing assistance through the DTI and other institutions will be undertaken to provide the marketing leads and schemes to ensure a profitable operation.
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Bamboo can offer livelihood opportunities, from propagation nursery and plantation; to utilization construction and wood products. Jobs that can initially be given are in nursery development and in the plantation in both the urban and rural areas for both plants. Cash for work program of the government can be partially directed towards this. Micro enterprises including home industries will be developed in the relocation areas to support the demand for bamboo products. As the industry needs only simple tools and know-how, it will be easy to develop the manpower required. Big industries can also be put up to support utilization of both plants. Big furniture and construction companies that can tap big markets will have to be established. The use of engineered bamboo in the furniture and handicraft industry as well as in the housing and construction sector is on an upward trend. Bamboo is distributed to both the domestic and export markets, where the domestic market is segmented for furniture and handicraft. The high-quality products are directed Market Study to high-end markets, i.e. hotels, restaurants, condominiums and residential houses, while low-end ones are sold to low-end, medium-income consumers. The engineered bamboo project is endorsed to help cultivate and produce bamboo enough to supply about 25 percent of the P10-billion desk requirements of the Department of Education. Engineered bamboo products do have potential in the market due to their uniqueness, and the ingenuity and craftsmanship of local designers and workers. In Van Der Lugt and Lobovikov (2008), new industrially manufactured bamboo products in the early 1990s mainly from India and China boomed world markets with moderate but steady growth. Due to high prices for industrial bamboo products and their growing market share, more bamboo producing countries intend to develop modern bamboo industries for products. Existing potential demand for engineered bamboo includes furniture-manufacturing firms, engineers involved in the construction of residential buildings, designers, manufacturers and traders of engineered products, i.e., tiles, tabletops, floorboards, among others. In every peso invested on an engineered bamboo product gives a net return of P2.11. Engineered bamboo in the Philippines is in its infancy stage that the Department of Trade and Industry is trying to boost to help it penetrate the world market. However, due to small production of engineered bamboo in the Philippines, little is known about its trade. Bamboo is sourced either from natural stands or plantations. Assessment of bamboo resources relative to the national pole demand and requirements indicates inadequate supply for sustained yield. According to NERBAC, the annual demand for bamboo in 1997 was estimated at about 50 million culms or poles per year. The existing bamboo stands of about 46,000 hectares yield only about 36 million culms per year, showing a supply deficit of 14 million culms. The
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annual demand has been projected to increase to between 113 million and 132 million culms per year by 2015. Worldwide, experts believe that the current value of the bamboo trade is in the range of US$1.5-3 billion. China generates a very significant portion of global exports. The European Union and USA markets consume over 80% of total bamboo imports. Bamboo exports are smaller compared to other main commodities such as bananas, US$5 billion share, cotton, US$6 billion share and tropical wood, US$35 billion share (Van Der Lugt and Lobovikov, 2008) The percentage distribution of the raw material production locally is distributed to various industries/sectors as follows: furniture and handicraft (40%); fish pens, housing and construction (25%); vegetables and fruit industries (10%); and other uses (25%). Bamboo-based furniture is one of the fastest growing furniture exports of the country with a growth rate about 15 % annually. According to NERBAC, there is an estimated demand of 3.5 million poles for Market Study furniture and 575,000 poles for handicraft in 2010. The supply deficit is about two million poles for furniture and 340,000 poles for handicraft. The USA, according to Van Der Lugt and Lobovikov (2008) is the largest Western consumer of bamboo, with annual imports of almost US$300 million in bamboo products, 95% of which come from China. Imports of bamboo products in the USA grew considerably between 2000-2003, by 98% in volume and 127% in value. About 57% of imports are flooring and baskets, which are the largest bamboo markets in the USA (Van Der Lugt and Lobovikov, 2008). The market for bamboo poles and strips for various uses in the USA is estimated at US$15 million (90% from China), 30% of which is used for decorative purposes in gardens and parks, such as garden wood, fences, gates and gazebos. Philippines export bamboo furniture to more than 50 countries, i.e., United States of America (USA), Spain, France, Italy, Netherlands, Cyprus, Japan, Germany, United Kingdom, Hong Kong, New Zealand, Sweden, and others. The USA is the only biggest market capturing about one-third of the total export. Engineered bamboo has a great potential for the construction industry other than handicrafts. In a study by Ujjwal Raj Pokhrel (2012), bamboos are easy to construct, easily detachable and transferable from one place to another and they have good insulation characteristics. These houses are environment friendly and have better earthquakes resistance. The author mentioned research conducted in Costa Rica revealed that only 70 hectares of bamboo plantation are sufficient to build 1,000 bamboo houses per year. If these houses were built with timber, 500 hectares of natural forests would be destroyed every year. Bamboo processing and production consumes less energy compared to other building materials. It requires only 30 MJ/m3 per N/mm2 compared to concrete, steel and timber, that require 240, 500 and 80 MJ/m3 per n/mm2 respectively. Studies show that processing of bamboo requires only 1/8 of the energy that concrete needs to create a building material of the same capacity.
The bamboos potential still remains in the areas of furniture and handicrafts, with a global market growth rate averaging at seven percent and valued US$8 billion annually. The Philippine bamboo handicrafts averaged about 368 million dollars ($368M) in annual export earnings. Exports mainly consist of basket and basket wares comprising 92.47%, and furniture of 7.41%.
Table 2.6: Philippine Bamboo Export (2004-2009)

Market Study
Bamboo Quantity (in 000 kgs) Value (in 000 US$, FOB)
2004 39 24
2005 74 73
2006 66 129
2007 47 25
2008 47 72
2009 45 17
Source: DENR-FMB Other bamboo products, which have been included among exports and have potentials for expansion in the export market, are bamboo torches, electric lamps, ceiling and wall light fittings, and bamboo seats. In the global use of bamboo as an alternative to wood, Van Der Lugt and Lobovikov (2008) compared the potential market for the new industrial bamboo products. Both markets trade natural and similarly processed materials, which have similar aesthetic and tactile features. In other words, current consumers of wood products in the future may also be interested in buying bamboo substitutes. Because of the stable global demand for wood and the increasing interest in sustainably produced timber, the potential market for industrial bamboo products is expected to grow.
Table 2.7: Consumption of Bamboo and Wooden flooring in the EU and USA, 1000 m2
Countries EU
Year 2003 2005
Bamboo 670 850-900 4200
Wood 95000 n/a n/a
USA
2005
Source: Van Der Lugt and Lobovikov (2008)

The bamboo sector involves various participants ranging from licensees, gatherers, manufacturers, furniture workers, traders and consumers. They are not mutually exclusive such that a market participant may be involved in various activities at varying extent. It is estimated that annual income from bamboo, except for traders and manufacturers, is low for gatherers with an average of P 5,000 in a year. The same is experienced by raw material producers and furniture workers with an income of P5,000 - P 10,000 per year. Raw material traders and handicraft workers earned an average of P 15, 000 per annum. It is shown that in every household, at least one woman is involved in the production of bamboo components. In the factory, most of the workers in the assemble section are women, who earn at least minimum wage. The marketing strategies practiced by the furniture makers include joining Market Study trade fairs, both local and abroad, gaining them exposure and access to foreign markets. The use of internet in publishing the company and its bamboo products is also widely used. Locally, most furniture makers display their products along the highway for walk-in buyers and placing orders. High-end industrial bamboo products generally have a number of competitive advantages compared to hardwood and softwood products, based on their aesthetics, mechanical properties, production rate and eco-friendliness. (Van Der Lugt and Lobovikov, 2008). The authors also said that in the future, various cheaper industrial bamboo products might be able to compete with softwood in Western markets. For it to find its niche as alternative to wood, industrial bamboo can target high-volume industrial markets, such as the building industry where bamboo might substitute hardwood in applications such as decking, cladding, flooring, interior decoration and laminated beams. Smaller high-end niche markets should not be neglected, including yacht coverings and exclusive products. Margins in these sectors are high and the image of bamboo as a cheap material might be altered as an additional spin-off. (Van Der Lugt and Lobovikov, 2008) The technologies used in the engineered bamboo industry are two-fold: its processing machines and its process innovation strategy which the Department of Trade and Industry is promoting. The different kinds of processing machines for the node and hub and its equivalent price are: Equipment (Node) Twin Rip Saw Bamboo Pole Cutter Treatment Vat
Unit Cost (Php) 80,000.00 40,000.00 30,000.00

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Total Cost Equipment (Hub) Kiln Dyer Thickness Planer Jointer Planer Circular Saw Laminating Press Cold Press Radio Frequency (RF)
Market Study
150,000.00 Unit Cost (Php) 300,000.00 250,000.00 200,000.00 180,000.00 900,000.00 1,700,000.00 1,500,000.00 650,000.00 180,000.00
Hot Press Wide Belt Sander (Small) Arm Saw
Air Compressor with Spray 30,000.00 Gun Sharpening for Circular Saw 150,000.00 Grinder for Plane Knives Total 150,000.00 6,190,000.00
The Department of Trade and Industry spanned out the chain of activities from the nursery to processing of engineered bamboo so that all stakeholders will benefit most particularly the communities in identified areas of planting bamboo. This is a stark contrast to usual manufacturing models where all activities in the value chain are located in the same location. The Department of Trade and Industry considered this an innovation in introducing an emerging industry, making it grow so that it could benefit all at the same time mitigate other interventions as well like climate change and disaster risk.
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Market Study
6. Conclusion
The Department of Trade and Industry has identified the bamboo industry as one of its flagship projects through its Regional Operations and Development Group. The Department initiated the implementation of the Engineered Bamboo Project which is endorsed by former President Gloria Macapagal-Arroyo to help cultivate and produce bamboo enough to supply about 25% of the P10 billion desk requirements of the Department of Education. The clustering approach has been adopted for bamboo production and processing such that each island will have the following clusters: LUZON Pampanga (pilot area & hub for Central Luzon), Abra (hub for Northern Luzon), Laguna (hub for Southern Luzon), and other provinces such as Tarlac, Palawan, and Camarines Sur, etc. as nodes; Visayas Iloilo and Negros Oriental (as hubs and the provinces of Panay Island as nodes); Mindanao General Santos City (hub), Sarangani, South Cotabato, Davao del Norte, Compostela Valley, Bukidnon, Lanao del Norte, Zamboanga del Sur and Zamboanga Sibugay. The engineered bamboo being promulgated nationwide as spearheaded by the DTI could only be pursued to stimulate economic growth and increase job opportunities particularly for the marginalized sector in the country as well as contributing to climate and disaster mitigation in the Philippines. While it seems the sole reason for the DTI to support engineered bamboo is the E.O. 879 which mandates the production of school desks made out of engineered bamboo to be used in public schools, the potential of the engineered bamboo can still be benefit other markets as well like real estate and construction. Real estate developers will use engineered bamboo in floors, walls and even rooftops. It is still a work in progress to perfect engineered bamboo in construction uses but the DTI along with its partners are ensuring the viability of the product that can be of great alternative to wood and plastic. People are now switching to a green lifestyle, that means they are more conscious in the way they use and consume materials around them being concerned with the
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environment. With this mindset, the engineered bamboo will take precedence in the country and will beat off the competition due to China imports. The DTI and its partners have also to ensure the supply chain and mechanism to continuously provide raw materials for producers and manufacturers of engineered bamboo. The communities which were tapped, and trained to cultivate bamboo in their area should be widely supported not only by DTI but also the local government. There are more improvements to be done to enrich the industry including development of bamboo plantations to meet the raw material requirements of the bamboo industry; upgrading the skills of bamboo workers from supervisors to technicians to improve product quantity and quality; and establishment of bamboo villages (nodes and hubs) nationwide in the Conclusion identified ECO-TOWN areas to support a wider job creation.

Conclusion
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References:
1. Engineered bamboo project in Pangasinan. Sun Star Pangasinan.
Retrieved December 13, 2011 from http://www.sunstar.com.ph/pangasinan/engineered-bamboo-projectpangasinan

2. Businessmen support engineered bamboo project. Manila Bulletin
Publishing Corporation. Retrieved December 13, 2011 from http://www.mb.com.ph/node/318613/bu

3. Kyoto Protocol. (2012). In Wikipedia. Retrieved January 23, 2012, from
http://en.wikipedia.org/wiki/Kyoto_Protocol
4. UNFCCC (2012). In Wikipedia. Retrieved January 23, 2012, from
http://en.wikipedia.org/wiki/United_Nations_Framework_Convention_on_C limate_Change
5. Engineered Bamboo. Department of Trade and Industry National
Economic Research and Business Assistance Center, Region 12. Retrieved January 8, 2012 from http://www.investinr12.net/index.php? option=com_content&view=article&id=196:engineeredbamboo&catid=62:project-briefs-files&Itemid=123
6. Project Concept on the Bamboo Industry Development Project. (Date
Unknown). Department of Trade and Industry Regional Operations Development Group.

7. Five Forces Model by Michael Porter. (2012). In Maxi-pedia.com.
Retrieved. January 24, 2012, from http://www.maxipedia.com/Five+Forces+model+by+Michael+Porter.

8. Michael Porter. (2008). In Harvard Business Review. Retrieved January
18, 2012, from http://hbr.org/2008/01/the-five-competitive-forces-thatshape-strategy/ar/1.

9. Van Der Lugt, P. and M. Lobovikov. (2008). Markets for bamboo products
in the West. Retrieved January 20, 2012 from http://www.bambooteam.com/pablo/200801%20BFT%20published %20article.pdf
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10. Bamboo Profile. Department of Trade and Industry - National Economic
Research and Business Assistance Center, Region 12. Retrieved January 18, 2012 from http://www.investinr12.net/index.php? option=com_docman&task=doc_download&gid=80&Itemid=53
11. De Leon, Max. (2011). Govt's 4-year program to boost engineered-
bamboo industry, Business Mirror. Retrieved January 12, 2012 from http://www.businessmirror.com.ph/component/content/article/53-agricommodities/17973-govts-4-year-program-to-boost-engineered-bambooindustry
12. Ujjwal Raj Pokhrel. (2012). In abari.org. Retrieved January 16, 2012, from
http://abari.org/bamboohousing.
Reference
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APPENDICES Bamboo Development Project Accomplishment Report Jan. June 2011 Bamboo Development Project Accomplishment Report 2010 Engineered Bamboo Products Executive Order 879 Philippine Bamboo Industry Development Council Update Presentation
Appendices
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Detailed Report on Bamboo Development Project For the period January April 2011 Program/Project/Activity I. Bamboo Propagation 1. Bamboo Nursery No. of existing nursery Accomplishment Contribution per Region
15
Region 1 = 1 Region 2 = 3 Region 3 = 5 Region 5 = 2 Region 6 = 1 Region 7 = 1 Region 11 = 2 Region 1 = 100 Region 2 = 65,000 Region 3 = 38,600 Region 6 = 1,000 Region 7 = 30 Region 11 = 2,000 Region 2 = 100,000 Region 6 = 200 Region 2 = 2
No. of propagules available
106,730
No. of propagules sold
100,200
No. of nursery established
Program/Project/Activity No. of propagules available No. of propagules sold Amount of sales generated
Accomplishment 45,000 25,000 P2.90M
Contribution per Region Region 2 = 45,000 Region 2 = 25,000 Region 2 = P1.70M Region 3 = P1.20M Region 2 = 4 Region 1 = P10,000.00 Region 2 = P240,000.00 Region 3 = P517,424.00 Region 1 = 2 Region 3 = 137
No. of market matches facilitated Amount of investment generated
4 P0.767M
No. of jobs created
139
Capability Building For internal use onlyFor internal use only Page 37
No. of training programs conducted
Region 2 = 1 Region 12 = 1
No. of participants
50
Benchmarking Mission No. of missions conducted 2 Region 2 = 1 Region 12 = 1 Contribution per Region Region 2 = 10 Region 12 = 18
Program/Project/Activity No. of participants
Accomplishment 28
2. Bamboo Plantation No. of hectares available
52,037.50
Region 1 = 16 hectares Region 2 = 1.5 hectares identified available for some part of Cagayan Province Region 3 = 20 hectares Region 6 = 52,000 Region 8 = no existing plantation. Region 1 = 2 hectares Region 3 = 6 hectares Region 5 = 997 hectares Region 6 = 3 hectares Region 7 = 20.50 Region 1 = 1 Region 3 = 800 Region 6 = 300 Contribution per Region Region 9 = 730
No. of hectares planted
1,028.50
No. of propagules planted
1,831
Program/Project/Activity
Accomplishment
Amount of sales generated No. of market matches facilitated Amount of investment generated For internal use onlyFor internal use only
P0.075M
Region 7 = P75,000.00
P0.304
Region 3 = P258,712.00 Page 38
Region 6 = P45,000.00 No. of jobs created Capability Building No. of training programs conducted 15 Region 3 = 9 Region 6 = 2 Region 7 = 3 Region 12 = 1 No. of participants 242 Region 3 = 127 Region 6 = 52 Region 7 = 40 Region 12 = 23 71 Region 3 = 71
Benchmarking Mission
Program/Project/Activity No. of missions conducted
Accomplishment 4
Contribution per Region Region 3 = 3 Region 12 = 1 Region 3 = 30 Region 12 = 18
No. of participants
48
II. Establishment of Nodes No. of nodes established/maintained
21
Region 2 = 1 Region 3 = 7 Region 5 = 5 Region 6 = 5 Region 8 = 2 Region 9 = 1
Program/Project/Activity No. of bamboo slats produced
Accomplishment 358,498
Contribution per Region Region 3 = 36,298 Region 6 = 77,000 Region 8 = 245,200 Region 3 = P68,860.00 Region 6 = P75,000.00 Region 8 = P113,500.00 Region 9 = P269,700.00
Amount of sales generated
P0.528M
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No. of market matches facilitated
Region 6 = 5 Region 9 = 1 Region 3 = P0.521M Region 6 = P0.694M Region 3 = 19 Region 6 = 56 Region 7 = 30 Region 8 = 27 Region 9 = 394
Amount of investment generated
P1.215M
No. of jobs created
526
Capability Building No. of training programs conducted
10
Region 3 = 3 Region 5 = 3 Region 6 = 2 Region 11 = 1 Region 12 = 1
Program/Project/Activity No. of participants
Accomplishment 184
Contribution per Region Region 3 = 31 Region 5 = 63 Region 6 = 35 Region 11 = 25 Region 12 = 30
Benchmarking Mission No. of missions conducted
CAR =1 Region 3 = 1 Region 6 = 1 CAR = 12 Region 3 = 17 Region 6 = 6
No. of participants
35
III. Establishment of Hubs No. of hubs established/maintained
11
Region 1 = 1 Region 3 = 2 Region 5 = 1 Region 6 = 5 Contribution per Region Region 7 = 1 Region 8 = 1
Accomplishment
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No. of bamboo desks/products made
22,412
Region 6 = 12 Region 8 = 22,400
Amount of sales generated
P1.04M
Region 6 = P335,000.00 Region 8 = P476,341.00 Region 7 = P231,000.00 Region 6 = 5 Region 7 = 4 Region 8 = 7 Region 1 = P1,610,000.00 Region 6 = P4,350,000.00 Region 7 = P300,000.00 Region 8 = P135,000.00 Region 1 = 8 Region 6 = 8 Region 7 = 20 Region 8 = 10
No. of market matches facilitated
16
Amount of investment generated
P6.395M
No. of jobs created
46
Capability Building No. of training programs conducted Program/Project/Activity
8 Accomplishment
Region 1 = 1 Contribution per Region Region 5 = 3 Region 7 = 3 Region 10 = 1
No. of participants
126
Region 1 = 7 Region 5 = 79 Region 7 = 20 Region 10 = 20
Benchmarking Mission No. of missions conducted No. of participants Other Activities: CAR: 1. Special Showcase of E-bamboo Products 2. Prepared Proposal for the GIS For internal use onlyFor internal use only
1 4
2 1 Page 41
Bamboo Resource Mapping 3. Bamboo Identification and Hands on Skills Training on the use of Geographical Positioning System 4. Conduct of Trainings - Organizational Development - Sawali Making & Novelty Items - Fabrication of Charcoal Making Equipment Program/Project/Activity Region 1 : 1. Turned-over Pneumatic Press 2. Turned over Twin Rip Saw 3. Trainings Provided by CITC Region 3: 1. Regional Bamboo Stakeholders Meeting at DTI RO. 2. Organized China Bamboo Study Tour Aurora: 1. Integration of Bamboo Plantation Project as part of Convergence Area in Dipaculao & Dinalungan, Aurora 2. DENR Allocation of 20 hectares for bamboo plantation in Casiguran (source: CENRO) 3. Presence of an Entrepreneur eyeing the possibility of converting bamboo waste materials into other products. 4. Conducted Bamboo Briefing for DTIAurora associates. Bataan: 1. Meeting with Mayor Rommel del Rosario of Bagac, Bataan re: the operationalization of the Bagac Node. 2. Meeting/Orientation on Bamboo Development Program for Bagac Foundation
Coordination on-going
Coordination on-going Coordination on-going Coordination on-going Accomplishment 1 unit 1 unit
2 training programs
Contribution per Region
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Program/Project/Activity 3. Bataan Bamboo Core Group Meeting 4. Bataan Bamboo Technical Working Group Meeting. 5. Attended the bamboo strategic planning workshop at DTI-3 6. Conducted bamboo TWG action planning at BPSU, Balanga City 7. Drafting of 2011-2013 Bataan Bamboo Action Plan with corresponding budgetary requirements 8. Bagac LGU fabricated one sample of engineered bamboo desk for elementary student 2 trainees from Bagac who attended the CITCs training course on Advance Machine Operations, Composing and Lamination at CITC fabricated the said sample. 9. Four participants will be joining the Bamboo China Mission on April 511, 2011. 10. Attended the regional bamboo meeting. 11. Awaiting for the signing of the EO and the approval of the corresponding budget per bamboo activity as indicated in the 20112013 Bataan Bamboo Action Plan 12. Meeting with MASAGKA CBFM (Bagac Node) Bulacan: 1. Kaduki MPC has already started on their nursery operation. Nueva Ecija: Program/Project/Activity 1. Attended the bamboo strategic planning at DTI-3, Angeles City 2. Conducted provincial bamboo strategic action planning at the NE Provincial Capitol with 44 participants; the output was the 2011-2013 action plans For internal use onlyFor internal use only
Accomplishment
Accomplishment
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Attended the meeting on bamboo project 4. Meeting with Mayor Vero and bamboo stakeholders re MOA signing and establishing costing for bamboo slats Pampanga: 1. Transport of machine, tools and equipment from CITC to Lubao Bamboo Negosyo Village (Bamboo Hub) 2. Installation of machine, tools and equipment 3. Meeting conducted with Dir. Frank Bunoan and Mr. Elvin Demasu-ay of CITC. 4. Attended the Provincial Bamboo Development Council Meeting 5. Hosted the LSM of Isabela Bamboo Stakeholders. 6. Attended the Regional Bamboo Meeting at DTI RO. 7. Coordination of Pampanga Bamboo Devt Councils LSM to Iloilo Bamboo Industry schedule on May 11-13, 2011 Tarlac: 1. Conducted skills training on engineered bamboo products and furnitures processing. Program/Project/Activity 2. Meeting with Gov. Vic Yap and Mr. Romy Sta. Ana. Zambales: 1. Masinloc Bamboo Node is expected to operate within the month of March, 2011. 2. Monthly meeting cum visit of the Provincial Bamboo Development Council to Masinloc Bamboo Node Region 4A: 1. The Memorandum of Understanding (MOU) among the various stakeholders is still being finalized. 2. Actual survey by DA, DENR and LLDA is on-going. Accomplishment Contribution per Region
3.
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Region 5: 1. Value Chain Validation Workshop Region 6: 1. Meeting of Provincial Development Council, Antique 2. Meeting of Technical Working Group, Antique Program/Project/Activity 3. Meeting of Sub-Committee for Industry Survey, Antique 4. MOA Signing re E-Bamboo Training, Aklan 5. Demonstration and Production Center 6. Engineered Bamboo Demonstration, Training and Production Center in LORRI, ARC, Libacao 7. Showcase of Engineered Bamboo in the Province Program/Project/Activity 8. Two TWG meeting, Capiz 9. Two meetings fro Dumalag, Capiz 10. One meeting in Dumarao Region 7: 1. Provided Common Service Facilities (Tools & Equipment) 2. Provided/Conducted three entrepreneurial/capability building trainings
3 2 Accomplishment 2 Contribution per Region
Accomplishment
3. In the process of conducting Training cum Production of EBamboo School chairs & Teachers Table and Chair for a Model Bamboo Classroom. This project is in partnership with the LGU of Dauin. Region 8: Local Study Mission at PDDCP Los Banos, 24-26 Jan. 2011: For internal use onlyFor internal use only Page 45
Techno trainings: Finishing Techniques, Bleaching and Dying, Bamboo Production & Maintenance, Harvesting, Basic Trends, Wood Bending, Wood Drying and Veneering Program/Project/Activity No. of Participants Product Clinic No. of Designs No. of Designs Executed Production of Bamboo Sala Set Prototype Printing of brochure Region 9: 1. One participant from Ramon Magsaysay Bamboo Assn. (RAMAGBA) attended the NTF Advisory Course at PTTC 2. Trade Fair participation during the Araw ng Ramon Magsaysay Region 11: 1. Regionwide Stakeholders Consultative Meeting Region 12: 1. Kawayan Festival 2. BOS
Accomplishment 9 1 19 6 5 sets
1 1
Program/Project/Activity Preparation of Brief Profile of Bamboo Node and Hub
Accomplishment 4
Contribution per Region Region 5 = 1 Region 6 = 1 Region 7 = 1
Accomplishment
Contribution per Region Region 8 = 1
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Bamboo Industry Development Project Bottomline Performance 2010 Performance Indicator Region Investments (in Php M) 5,00 0,000.00 Domestic Sales (in Php M) 250, 000.00 Exports (In $ M) Jobs Generate d No. of MSMEs/Organization s Created Assisted
No. of Trainings Conducte d
No. of Beneficiari es Trained
CAR
288
118
115
Region 1 Region 2 70,000.00 Region 3 0,525.00 Region 4A Region 5 Region 6 0,000.00 12,95 3,045, 000.00 5,465, 500.00 138,300.0 0 49 540 2 4 18 5
4
4 12,66
1,153, 000.00 666, 890.00
112 219
7 14
35
642
6 93
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Region 7 Region 8 Region 9 Region 11 2,40 6,800.00 550.00 45, 5
600 63
33,487, TOTAL 325.00
10,625,9 40.00
138,300. 00
1,213
820
47
856
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Engineered Bamboo Products
Page 49
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MALACANANG PALACE MANILA BY THE PRESIDENT OF THE PHILIPPINES EXECUTIVE ORDER NO. ______
CREATING THE PHILIPPINE BAMBOO INDUSTRY DEVELOPMENT COUNCIL (PBIDC) TO PROMOTE THE BAMBOO INDUSTRY DEVELOPMENT PROJECT AND DIRECTING THE USE OF BAMBOO FOR AT LEAST TWENTY (20%) PERCENT OF THE DESK AND OTHER FURNITURE REQUIREMENTS OF PUBLIC ELEMENTARY AND SECONDARY SCHOOLS AND PRIORITIZING THE USE OF BAMBOO IN FURNITURE, FIXTURES AND OTHER CONSTRUCTION REQUIREMENTS OF GOVERNMENT FACILITIES AND ALLOCATING FUNDS THEREFORE AND OTHER PURPOSES WHEREAS, the Philippines has committed to reforest at least 500,000 hectares with bamboo as part of the 1 million hectares of designated areas as its contribution to the ASEAN commitment of 20 million hectares of new forest by 2020 as part of its initiatives to improve the environment; WHEREAS, it has been established that planting and use of bamboo will significantly contribute to the mitigation of climate change, disaster and poverty in the Philippines, considering its carbon and nitrogen capture capability, cheaper reforestation cost and with sufficient government assistance, can easily be transformed into a cash crop for farmers and community based forest management agreement holders who engaged in its cultivation; WHEREAS, the growing advocacy for green products is fuelling the rapid growth of the US$ 8 billion dollar per annum market for traditional and non-traditional bamboo products, is fast becoming a cost effective and attractive complement and/or alternative to plastic, metal and wood materials and can generate more jobs and self employment opportunities in both the rural and urban areas; WHEREAS, there is a need to assist LGUs to promote and establish Bamboo plantations, crafts and products starting in flood and landslide prone areas and thereby provide livelihood to Community Based Forest Management (CBFM) and to resettlements of informal settlers from vital waterways; WHEREAS, there is a need to aggressively promote the product development and the market access of bamboo products to sustain bamboo industry development; NOW THEREFORE, I GLORIA MACAPAGAL ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order the following:
SECTION 1. The Philippine Bamboo Industry Development shall be made a priority program of the government and the Philippine Bamboo Industry Development Council (PBDIC) is hereby created to provide the over-all policy and program directions of the program for all stakeholders; 1. It shall be composed of the following: a. Secretary of the Department of Trade and Industry as Chair b. Secretary of the Department of Environment and Natural Resources c. Secretary of the Department of Education d. Secretary of the Department of Science and Technology e. Secretary of the Department of Labor and Employment f. Chair of the Executive Committee g. League of Municipalities of the Philippines h. General Manager of the Laguna Lake Development Authority i. Two (2) Representatives from the Non-Government Organizations j. One (1) Representative each from two (2) Private Industry Associations 2. To assist the Council in terms of program/project identification and resource generation, an Executive Committee, headed by the DTI Undersecretary for Regional Operations and Development Group shall likewise be created with the membership composition to be identified by the PBIDC; 3. The Executive Committee shall direct the preparation of the Philippine Bamboo Industry Development Plan 2010-2020 and shall identify, prioritize and recommend initial strategic interventions, research directions and critical data needs while the Development Plan is being drawn up; 4. The Executive Committee shall be assisted by the Bamboo Technical Working Group headed by the Executive Director of the Cottage Industry Technology Center, composed of representatives designated by the members of the Council and it shall identify the gaps in the bamboo industry supply-value chain and determine the most appropriate activities to address those gaps; SECTION 2. The Department of Education shall procure the equivalent of at least twenty percent of the annual school desks and arm chairs requirement of all public elementary and secondary schools nationwide. SECTION 3. The Department of Environment and Natural Resources shall use bamboo as the planting material for at least twenty percent of its annual
reforestation areas especially in provinces and towns which are engaged or have the potential to engage in bamboo based industries or where trees are difficult to grow because of poor soil quality, susceptibility to erosion or adverse and steep gradients. SECTION 4. The Department of Science and Technology, thru its appropriate bureaus/offices like the Forest Products Research and Development Institute (FPRDI) and Food and Nutrition Research Institute (FNRI) shall undertake research and transfer the technologies which can reduce production costs and increase salability of bamboo products including bamboo shoots processing and packaging, alternative adhesives and finishes, effective yet affordable treatment and preservation techniques. It shall likewise allocate twenty percent of its MSME assistance funds such as SET-UP and TAPI Venture Capital to bamboo based enterprises. SECTION 5. The Department of Labor and Employment shall identify and enroll with the Program, special groups such as organizations of Persons with Disabilities, the Marginalized, and the like, who are in a very strategic position to advance the bamboo industry. SECTION 6. The League of Municipalities of the Philippines shall provide the coordinative support in the partnership with local government units for the development of the bamboo industry; SECTION 7. The Laguna Lake Development Authority shall identify and undertake in partnership with concerned LGUs, the establishment of nurseries and the planting of bamboo to help in watershed protection, erosion control and the enhancement of dikes and embankments with the added objective of having a potential source of livelihood and self employment opportunities thru the judicious harvesting of bamboo poles and shoots which should be replicated on a national scale. SECTION 8. The NGO and private sector representatives shall take the lead in advocating the planting and utilization of bamboo nationwide and in providing market information and research, market development and other similar undertakings. SECTION 9. The initial funding of PHP 20,000,000.00 to support the operations of the council shall be provided by the Department of Budget and Management to the DTI-RODG for the initial operation and administration of the PBIDC. The estimated PHP 2 billion budgetary requirements of the ten year bamboo industry development program shall be incorporated in the respective annual appropriations of the cooperating government departments and organizations based on the recommendation/budget plans of the PBIDC. SECTION 10. All executive issuances, rules, regulations or parts thereof, which are inconsistent with any of the provisions hereof are hereby repealed, amended or modified accordingly.
SECTION 11. This Executive Order shall take effect immediately. Done in the City of Manila this ___ day of ______________ 2010. GLORIA MACAPAGAL ARROYO President
By the Authority of the President EDUARDO R. ERMITA Executive Secretary
Page 54
PHILIPPINE BAMBOO INDUSTRY DEVELOPMENT COUNCIL UPDATE PRESENTATION APRIL 2010
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Industry Study of Engineered Bamboo: For Internal Use Onlyfor Internal Use Only

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Industry Study of Engineered Bamboo

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For internal use onlyFor internal use only

For internal use onlyFor internal use only

For internal use onlyFor internal use only

Executive Summary For internal

use onlyFor internal use only

Industrial Structure For internal

use onlyFor internal use only

For internal use onlyFor internal use only

2.3. Market Structure

Region CAR Region 1 Region 2 Region 3 Region 4A

For internal use onlyFor internal use only

Region 6 Region 7 Region 8 Region 10

Iloilo, Negros Provinces Bohol Leyte Bukidnon

Source: Department of Trade and Industry

Table 2.1: Investment for Bamboo Nursery

Source: Department of Trade and Industry

Source: Department of Trade and Industry

For internal use onlyFor internal use only

Table 2.5: Investment for Bamboo Plantation

Source: Department of Trade and Industry

For internal use onlyFor internal use only

Table 2.6: Work and labor required for Bamboo Plantation

Source: Department of Trade and Industry

Table 2.3: Work and labor required for Bamboo Plantation

For internal use onlyFor internal use only

Macro-Environmentaluse onlyFor For internal Trends

internal use only

internal use only

For internal use onlyFor internal use only

For internal use onlyFor internal use only

For internal use onlyFor internal use only

4. Industry Value Chain

S p ot Sse :Int uios t a s ot plic s u pr yt m sit t n, r npr , o ie

I S I UI N : NT T S T O D E f r c ol e D Sh o p o D k,F riue e s u t rs s n MRES AKT

S p ot Sse :Int uios t as ot plic s u pr yt m sit t n, r npr , o ie

For internal use onlyFor internal use only

For internal use onlyFor internal use only

Industry Value Chain

For internal use onlyFor internal use only

For internal use onlyFor internal use only

For internal use onlyFor internal use only

Table 2.6: Philippine Bamboo Export (2004-2009)

Year 2003 2005

Bamboo 670 850-900 4200

Wood 95000 n/a n/a

Source: Van Der Lugt and Lobovikov (2008)

Unit Cost (Php) 80,000.00 40,000.00 30,000.00

Hot Press Wide Belt Sander (Small) Arm Saw

For internal use onlyFor internal use only

For internal use onlyFor internal use only

For internal use onlyFor internal use only

Retrieved December 13, 2011 from http://www.sunstar.com.ph/pangasinan/engineered-bamboo-projectpangasinan

Publishing Corporation. Retrieved December 13, 2011 from http://www.mb.com.ph/node/318613/bu

Unknown). Department of Trade and Industry Regional Operations Development Group.

Retrieved. January 24, 2012, from http://www.maxipedia.com/Five+Forces+model+by+Michael+Porter.

18, 2012, from http://hbr.org/2008/01/the-five-competitive-forces-thatshape-strategy/ar/1.

in the West. Retrieved January 20, 2012 from http://www.bambooteam.com/pablo/200801%20BFT%20published %20article.pdf