Bamboo Industry Study Rod G

qwertyuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxcvbnmqwer
tyuiopasdfghjklzxcvbnmqwertyuiopas
dfghjklzxcvbnmqwertyuiopasdfghjklzx
cvbnmqwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwertyuio
pasdfghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnmqwerty
uiopasdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklzxcvbnmrty
uiopasdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklzxcvbnmqw

B a mb o o I n d u s t r y C l u s t e r Page 1
Tabl e of Cont ent s

EXECUTIVE SUMMARY................................................................................................................3
I. INTRODUCTION .......................................................................................................................6
II. OBJECTIVES.............................................................................................................................8
III. BAMBOO DESCRIPTION AND ITS USES..................................................................................9
IV. GLOBAL BAMBOO INDUSTRY ..............................................................................................13
V. WORLD PRODUCTION ..........................................................................................................16
VI. COMPETITIVE POSITION OF THE RAW MATERIALS.............................................................18
VII. BAMBOO TRADE ................................................................................................................19
1. EXPORT ........................................................................................................................................... 19
2. IMPORT ........................................................................................................................................... 21
VIII. PHILIPPINE SETTING ..........................................................................................................25
1. COMPETITIVE POSITION ANALYSIS ....................................................................................................... 25
2. PRODUCTION ................................................................................................................................... 27
a. Input Scheme ........................................................................................................................... 27
b. Planted Areas .......................................................................................................................... 29
c. Production Volume .................................................................................................................. 32
d. Farm Gate Price ....................................................................................................................... 32
e. Suitable Areas .......................................................................................................................... 34
3. EXPORT MARKET .............................................................................................................................. 35
a. Bamboo as Export ................................................................................................................... 35
b. Local Manufacturers of Bamboo as Raw Materials ............................................................. 36
c. Taxes Imposed on Bamboo ..................................................................................................... 37
4. OPPORTUNITIES AND CONSTRAINTS (FIGURE 1) .................................................................................... 39
5. ANALYSIS ON PHILIPPINE RUBBER VALUE CHAIN (FIGURE 2) ................................................................... 40
IX. RECOMMENDED ACTION PLANS .........................................................................................41
X. BUSINESS OPPORTUNITIES...................................................................................................45
A. BAMBOO NURSERY ........................................................................................................................... 45
B. BAMBOO PLANTATION ...................................................................................................................... 46
C. PROCESSING ..................................................................................................................................... 47
ANNEXES ..................................................................................................................................48
ANNEX 1: CROP ESTABLISHMENT ..................................................................................................... 48
ANNEX 2: LIST OF BAMBOO FARM GATE PRICES ............................................................................. 52
ANNEX 3: LOCAL BAMBOO MANUFACTURERS ................................................................................ 56
ANNEX 4: BAMBOO NURSERY .......................................................................................................... 65
ANNEX 5: BAMBOO PLANTATION .................................................................................................... 73
ANNEX 6: BAMBOO PRODUCTION (NODES) .................................................................................... 81
ANNEX 7: BAMBOO HUB ................................................................................................................... 89
ANNEX8: ENGINEERED BAMBOO PRODUCTION COST (FOR MEDIUM ENTREPRENEURS)......... 96
REFERENCES........................................................................................................................... 104

ACCRONYMS

ASEAN Association of South East Asian Nations
PBIDC Philippine Bamboo Industry Development Council
FAO Food and Agriculture Organization
INBAR International Network for Bamboo and Rattan
EO Executive Order
COMTRADE Compressed International Trade Database -United Nations
HS Harmonized System
SME Small and Medium Enterprises
DA Department of Agriculture
DTI Department of Trade and Industry
PBF Philippine Bamboo Foundation
MENRO Municipal Environment and Natural Resources Officer
LGU Local Government Unit
UNDP United Nations Development Program
DENR Department of Environment and Natural Resources
DOST Department of Science and Technology
MMSU Mariano Marcos State University

TABLES

Table 1 Bamboo Resources Worldwide
Table 2 Bamboo Exports
Table 3 Bamboo Imports
Table 4 List of Bamboo Nursery in the Philippines
Table 5 List of Bamboo Areas in the Philippines
Table 6 List of Bamboo Prices
Table 7 E-Bamboo Manufacturers in the Philippines
Table 8 Recommended Action Plans

FIGURES

Figure 1 Opportunities and Constraints
Figure 2 Analysis on Philippine Rubber Value Chain

EXECUTIVE SUMMARY

Bamboo belongs to the Graminae grass family
and commoly known in tagalog as kawayan. Bamboo
is mostly abundant in the Asia and the Pacific, Latin
America and Africa due to weather conditions. It is
best suited in regions of warmer climates with moist,
fertile, well-drained soils that are found on the banks
rivers and creeks. However, bamboo cannot grow in
swampy soil that is waterlogged all year round.

Bamboo is widely recognized as a promising, sustainable raw material because
of its fast growth, low price, and abundance. Products from bamboo are grouped into
traditional and non-traditional or emerging finished products. Market demand is
usually for traditional products such as handicrafts and bamboo shoots (new bamboo
culms that come out of the ground). Bamboo products such as paper, pulp, panels,
flooring and other building products are gaining attention with large opportunities
emerging in the market. With its technical performance in terms of hardness, stability
and strength, emerging bamboo products are now competitive in conventional timber
and wood fiber markets. Moreover, bamboo restores degraded lands and protects it
from soil erosion, landslides, mudslides and slippage.

There are over 75 genera and 1,250 species of bamboos worldwide; only 50
species are regularly used. In 2005, FAO recorded that bamboo production has reached
to about 37 million hectares globally and mostly located in Asia that shares around 60%
of total production.

The value of exports globally from year 2007 to 2010 averaged US$ 1.42 billion.
There was an increase during 2007 to 2008; however, export value continuously
dropped in 2008 to 2010 because of the global economic crises where most of the
ASEAN countries were affected. Countries export products such as textiles and

garments, and furniture were mostly affected by the decline in world market particularly
in Western countries. China topped the list of exporters with 46% share of the total
export in 2010, followed by Indonesia and Vietnam with a world export share of 16%
and 5% respectively.

Despite instability in global export, importing countries have been spreading
opportunities for the industry particularly the emerging products such as flooring,
veneer, panels, and other building materials. World bamboo market is expected to
increase to US$ 20 billion by 2015 as demand for environmentally friendly products
increases.

Most of the bamboo products are being imported in the European Union, United
States of America, J apan, Canada, China, Singapore, South Korea, Malaysia, Mexico,
and Australia; collectively accounting for 70% of the total market share.

The International Network for Bamboo and Rattan (INBAR) records show that the
Philippines is among the top exporters of bamboo-based products, ranking 6
th

worldwide in 2009 with a total export value of US$ 30 million. Most bamboo poles
harvested in the country are used for furniture, agriculture and construction materials.
Bamboo furniture and handicrafts are the top dollar earner for the country, accounting
for about 40% of the bamboo raw materials. Aside from the local market, the countrys
bamboo-based products are being distributed to around 50 countries worldwide with
USA getting the biggest share of about one-third of the total export.

As of 2010, the Philippines has a total of 64 bamboo nurseries located
nationwide. An additional of 72 nurseries was established in 2011. The major bamboo
producing regions are CAR, Region 3, Region 6, Region 7 and Region 8.

As collated by the Department of Trade and Industry, as of J uly 2012, the
farmgate price per pole of bamboo ranges from PhP 5.00 to Php 500.00 depending on
its variety. The most expensive specie of bamboo is apos. Semi-processed bamboo

products such as kalakat or woven bamboo is sold at PhP 90.00 per mat, while bamboo
splits are sold at Php 35.00 per dozen or PhP 2.00 per meter. Bamboo shoots are sold
at PhP 10.00 per kilo.
Aside from the sustainability of bamboo as a raw material, it has been
established that bamboo production will significantly contribute to the mitigation of
climate change and disaster management, considering its carbon capture capability and
cheaper reforestation cost. Bamboo is the best material for sequestering carbon.
According to Conrado S. Perreras, Chairman of the Bamboo Network of the Philippines,
If you plant one bamboo, it starts sequestering carbon within three years as opposed to
a tree which takes 15 to 20 years. And once you cut a tree, its gone. In the case of
bamboo, you keep harvesting because it is reproducible. Further, bamboo can be
easily transformed into cash crop thereby alleviating the plight of poor farmers engaged
it its production. In response, the Philippine Government committed to reforest at least
500,000 hectares with bamboo. This will form 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.
The growing advocacy for green products is fuelling the rapid growth of the US$8
Billion per annum market for traditional and non-traditional bamboo products. Bamboo 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.

The development of the Philippine Bamboo Industry is embodied in Executive
Order 879 issued last May 2010 that created the Philippine Bamboo Industry
Development Council (PBIDC) and directed the use of bamboo for at least 25% of 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.

This study will present the identified contraints in the growth of the industry such
as the supply of raw materials, unavailability of updated technology, lack of technical
expertise of farmers and processors, quality and standard product output, financing
programs, policy support and implementation by the government, establishment of
bamboo database, information dissemination, infrastructure development, and pricing
orientation. The recommended actions for the constraints identified were elaborated in
the following pages.

I. INTRODUCTION

Bamboo is one of the most versatile, and perhaps the
fastest growing plant with some varieties growing at the rate
of five centimeter per hour or 1.5 meters a day. It can reach
as high as 60 feet and beyond in height with prehistoric
sizes recorded at 75 feet. Bamboo grows in different
climates it can be found in all the continents except
Antarctica. Bamboos have been growing at low to medium elevations in the tropics,
growing wild, cultivated or naturalized in a great variety of habitats.

Bamboo forest biomass stores a large quantity of carbon with a percentage of
40% - 45%. Bamboo can release up to 35% more oxygen than any other plant, and an
acre of bamboo can sequester 25 tons of carbon dioxide per year, compared to only 6
tons from a young forest. Carbon sequestration credits or offsets are calculated by the
amount of carbon emissions that would have been emitted if a diesel or other traditional
polluting electric generator was used to produce the same amount of electricity.

Environmentally, planting bamboo equates to being proactive to produce more
oxygen and sequester large quantities of carbon dioxide. Thus for this reason, bamboo
is now playing a significant role in linking climate change mitigation to sustainable
economic development in the developing world. Carbon credits trigger creation of
otherwise marginal bamboo plantations for processing, jobs and wealth generation.

Unlike tree crop plantations which are facing criticism regarding an unclear pro-poor
focus, bamboo is highly suitable for cultivation specifically for pro-poor development
(inbar.int).

Demand for traditional bamboo products such as handicrafts, blinds and bamboo
shoots remains strong in the world market. Flooring, building products and laminated
furniture are the emerging bamboo markets of today. These represent the largest
growth opportunities for the bamboo

industry. The worlds intensified interest on
bamboo, as presented in this study, has resulted in its emergence as a viable industry.

In the Philippines, demand for bamboo and its products is also promising. Back
in 2002, the Chamber of Furniture Industries of the Philippines needed 1.5 million poles
of bamboo. This demand increased to 1.875 million poles in 2003. As the markets and
demand for bamboo products continue to grow, there is also a growing demand for
governments attention to this industry, as manifested by the Philippine National
Bamboo Congress in November 2008.

Considering the economic and environmental contribution of bamboo, the
Government is encouraging the promotion of the industry through various programs.
Pursuant to Executive Order 879 issued in May 4, 2010, the Philippine Bamboo Industry
Development Council was created. The E.O. also directed the use of bamboo to supply
at least 25 percent of the desk and other furniture requirements of the Department of
Education and Culture. In addition, it directed the prioritization in the use of bamboo for
the furniture, fixtures, and other construction requirements of government facilities. The
Philippines has also committed to reforest at least 500,000 hectares with bamboo as
part of the one million hectares of designated areas as its contribution to the Association
of South East Asian Nation (ASEAN) commitment of 20 million of new forest by 2020 as
part of the initiatives to improve the environment.

General Objectives
The study intends to illustrate the bamboo value chain and evaluate the
roles and functions of the actors involve and their relations to
minimize, if not eliminate, the constraints against the growth of the
industry.
Specific Objectives
Assess the value chain situation of the bamboo industry.
Identify opportunities and constraints.
Recommend needed actions to respond to the identified constraints
in the production, policy issues, financing programs, marketing and
other components concerning the industry.
The mentioned lucrative demand is an opportunity for the Philippines to expand
its Bamboo Industry performance. In this study, the worlds bamboo industry status will
be presented, together with the Philippine bamboo industrys global competitiveness. A
Value Chain Assessment method is used in identifying the constraints of the industrys
growth, roles and functions of the actors involved in the supply chain, and finally in
finding and addressing the gaps in the value chain.

II. Obj ect ives

III. BAMBOO DESCRIPTION AND ITS USES

Bamboo is a group of perennial evergreens in
the true grass family Poaceae, subfamily of
Bambusoideae and tribe of Bambuseae. Giant
bamboos are the largest members of the grass
family. It is one of the fastest-growing plants on
Earth with reported growth rates of 100 centimeter
(39 inches) in 24 hours. However, the growth rate
is dependent on local soil and climatic conditions
as well as species. During its growing period, a more typical growth rate for many
commonly cultivated bamboos in temperate climates is in the range of 3-10 centimeter
(1-4 inches) per day. Primarily growing regions of bamboo are warmer climates like
Asia. Some of the largest timber bamboo can grow over 30 meters (98 ft) tall, and be as
large as 15-20 centimeter (6-8 inches). However, the size range for mature bamboo is
species dependent, with the smallest bamboos reaching only several inches high at
maturity. Source: wikipedia.org

At present, bamboos are considered as a major construction material in many
countries, particularly in rural areas. It can be used for almost all parts of houses,
including posts, roofs, walls, floors, beams, trusses and fences. Also, it is used to
produce mats, baskets, tools, handles, hats, traditional toys, musical instruments and
furniture.

Bamboo can also be processed into modern products
usually referred to as Engineered Bamboo that can
compete in performance with regular wood products. Panels
and boards made of bamboo may well replace wood, steel
and concrete in many uses. Bamboo fibre is longer than
wood fibre, which gives bamboo some technological

advantages due to its rigidity and durability. The panels are widely used in modern
construction as structural elements or as forms for concrete moldings. Bamboo can be
used for flooring, roofing, partitions, doors and window frames.

Today, several bamboo-producing countries, such as China and India, use
bamboo as pulp, paper and more recently cloth. Bamboo paper has practically the
same quality as paper made from wood. The morphological characteristics of bamboo
fibres yield paper with a high tear index, similar to that of hardwood paper. The tensile
stiffness is somewhat lower compared with softwood paper. The strain strength is
between that of hardwood and softwood papers.

In addition, through pyrolysis, bamboo can be converted into three valuable
products: bamboo charcoal, oil and gas. Bamboo extracts contain valuable elements
and can be used in pharmaceuticals, creams and beverages. Bamboo gas can be used
as a substitute for petroleum. Bamboo can also be used as charcoal. It can substitute
wood charcoal or mineral coal and can serve as a fuel, absorbent and conductor. The
calorific value of bamboo charcoal is almost half that of oil of the same weight. Activated
bamboo charcoal can be used for cleaning the environment, absorbing excess moisture
and producing medicines. The absorption capacity of bamboo charcoal is six times
more than wood charcoal of the same weight.


In terms of food, with the increasing awareness on the many health attributes
and recipes one can make out of bamboo shoots, it is now gaining popularity within the
broader population and in the global market. About 200 species of bamboo can provide
edible and palatable bamboo shoots. Fresh bamboo shoots are delicious and healthy,
with high fibre content. Bamboo shoot has a huge market potential. J apan has a steady
market of 250 tons per month while Australia imports 6,000-12,000 tons of canned
bamboo shoots annually.


Traditional :
handi crafts,
bl inds, &
bamboo
shoots
Emerging:
flooring,
laminated
furniture, and
constructi on
material s
Bamboo markets
are cl assi fi ed i nto:
IV. GLOBAL BAMBOO INDUSTRY

Behavior of Demand

Bamboo markets are classified into traditional and non-traditional or
emerging. Demand remains strong in traditional products such as handicrafts,
blinds and bamboo shoots with profitable opportunities despite moderate growth.
Other traditional markets, such as chopsticks, are highly commoditized with low
growth and low profit margins. Emerging bamboo products include flooring,
building products and laminated furniture. These represent the largest growth
opportunities for the bamboo

industry.

In 2005, the world demand for bamboo
products was valued at US$ 10 billion. By 2015, it is
expected to grow to US$ 15 - 20 billion per year. Of
this, it is expected that traditional products will grow,
but not as fast as the non-traditional market which is
estimated to account for around 45% of the total
bamboo market.

Emerging bamboo products that compete with mainstream timber
products have only emerged on a commercial scale in the last 10 years
(excluding simple products like paper and chopsticks). Current global
consumption is approximately US$ 500 million per year, compared to the overall

export market of US$ 80 billion per year for secondary processed wood products,
which has grown by an average of more than 12% per year since 2000. With the
growth in export markets for processed wood products and increasing
penetration of bamboo products into these markets, the industrial bamboo
market could grow to US$ 4-8 billion over the next 10 years.

Bamboo flooring enjoys a very
good demand especially in environment-
conscious Europe where people are
willing to pay more than $100 per square
meter of bamboo flooring compared to
only about $25 per square meter for a
floor made of oak. The consumption of
bamboo oorings in the EU was
estimated at 0.67 million meters in 2003 and expected to continue growing. Of
this volume, 95% is from China, while the rest comes from Australia, Vietnam
and Philippines. However, bamboo ooring consumption is growing steadily,
especially for engineered bamboo ooring. According to a study done by Pablo
Van Der Lugt and Maxim Lobovikov: Markets for Bamboo Products in the West,
the bamboo ooring market in the European Union (EU) already amounted to
about 900,000 square meters in 2005. Further growth is expected due to the
recent interest in bamboo ooring among big retail chains such as IKEA, and the
Do It Yourself (DIY) sector. The largest bamboo ooring consumer is Germany,
with an estimated market share of 50%. France, Holland, Belgium, Switzerland,
Austria and Italy share the rest of the EU market, with individual market shares of
around 7% (Corpei, 2005). The market size for bamboo ooring in the USA is 6
times larger than in the EU: approximately 0.7 million square meters for the EU in
2003 versus 4.2 million square meters in 2005 for the USA (Corpei, 2005; Malin,
Boehland, 2006).

Besides flooring, other emerging bamboo
products, such as bamboo boards, play a
significant role in the Western market. The market
for solid boards for furniture and interior
applications is growing, but it is expected that
bamboo veneer will have the biggest growth
potential for these purposes (Von Reitzenstein,
2004). The EU is the main consumer of bamboo veneer, with around half of the
world consumption. Germany and Italy are the main consumers in Europe
(Corpei, 2005). Because of the relatively low price and the ease of production
and use, the market for bamboo veneer in the EU is expected to grow by several
million square meters annually in the next few years. According to Moso
International, the European market leader in the bamboo veneer trade,
consumption of bamboo veneer has almost doubled in year 2004 (Zaal 2006).

The stable worldwide demand for wood and the increasing interest in
sustainably produced timber further boost the potential market for emerging
bamboo products. Among many western consumers, bamboo is an inherently
sustainable resource. However, the present supply from natural stands is limited.
This needs to be increased manifold by growing bamboo in available lands.
Worldwide trends on supply and demand, therefore, clearly strengthen the
feasibility of growing bamboo in commercial scale.

Source: FAO 2005
Country
Area Of Bamboo
(1,000 ha)
ASIA
India 11,361
China 5,444
Indonesia 2,081
Laos 1,612
Myanmar 859
Vietnam 813
Malaysia 677
Other 340
Thailand 261
Philippines 172
Total Asia 23,620
AFRICA
Nigeria 1,590
Ethiopia 849
Tanzania 128
Kenya 124
Uganda 67
Total Africa 2,758
LATIN AMERICA
Brazil 9,300
Chile 900
Peru 190
Ecuador 9
Total Latin America 10,399
V. WORLD PRODUCTION

Most bamboo harvested for commercial use is
from naturally growing, wild stands, although more
attention has been given in recent years to the
establishment of planted bamboo (FAO, 2005). Bamboo
occurs often as an understory component in many forest
types in the tropics and warm temperate climate.
Although bamboo species differ in wood characteristics, they do not differ as much as
different species of trees in this regard (Hunter, 2003). Most bamboo producing
countries tend to favor their own native species.

Table 1: BAMBOO RESOURCES WORLDWIDE

Over 75 genera and 1,250 species of bamboos occur in the world, most of them
occurring in the tropical belt (FAO, 1978). However, relatively few of these, about 50
species are regularly used. About 37 million hectares of the earth's surface are covered
with bamboo forests, of which 60% are in Asia, Southeast Asia in particular (FAO 2005).

India accounts for roughly half the total area of bamboo reported for Asia and,
together with China, approximately 70%. Over the last 15 years, the bamboo area in
Asia has increased by 10%, primarily due to large-scale planting of bamboo in China
and, to a lesser extent, in India. Approximately 30% of the total area of bamboo in Asia
is planted as opposed to wild (FAO, 2005).

The total area of bamboo reported by the five African countries makes up over
2.7 million hectares. This equals 4.1% of their total forest area. Bamboo has not been
commercialized in Africa, although INBAR and other organizations have done research
on the bamboo production in East Africa and implemented community based initiatives
to start building a market.

Latin America has no reliable data on the bamboo area at the regional level.
Information exists in some countries, but it is insufficient, scattered and at times
contradictory. Lack of reliable data on bamboo resources in Latin America is partially
explained by the current low economic value of bamboo in the continent. There, like in
Africa, many people regard bamboo as a weed plant and do not yet appreciate its huge
economic potential for development and poverty alleviation. Although the resources of
native species are abundant, their exploitation is limited to mostly low-end, low-profit,
traditional non-mechanized manufacturing. In Brazil, Colombia and Ecuador, bamboo
plays a more conspicuous economic role. In these countries, small-scale cultivation of
commercial bamboo is limited to a few native (G.angustifolia, G. amplexifolia) and
introduced species (Bambusa vulgaris, B. tuldoides, Phyllostachys aurea) (FAO, 2005).

VI. COMPETITIVE POSITION OF THE RAW MATERIALS

Globally, bamboo has been receiving
closer attention as a wood substitute given the
depletion of timber resources that raised a
growing concern to save the forests. Wood is
largely being replaced by plastics, wherever
possible. However the environmental hazards
of plastics make it an unfavorable substitute. In
addition, the strength property of plastics is inferior compared with industrial wood.
Same is true with timbers from fast growing plantation species that generally have lower
strength properties, dimensional stability and service life.

In addition to its excellent strength, bamboo is renewable, abundantly available,
low cost, and an environment friendly raw material resource for the struggling wood
based industry. It has tremendous economic potential with its versatile applications and
innovative products. Since the bamboo resource is widely available across the rural
domains, and industrial effort requires a lot of labor, its production offers a great
potential for job opportunities and income generation, especially among the rural
masses.

The bamboo industry can be divided into three main segments: handicrafts,
edible shoots and industrial manufactured products. Industrial bamboo products are a
new development in the industry that includes direct timber and wood fiber substitutes
such as flooring, panels and paper. Engineered bamboo provides a lower-cost
alternative to most hardwoods, with savings of 30% or more, while at the same time
providing comparable or better technical performance in terms of hardness, stability and
strength. Combined with environmental sustainability and good aesthetics, it is an
increasingly competitive product in mainstream timber markets.

VII. BAMBOO TRADE

Tracking the international trade is difficult because of the lack of customs codes
for bamboo. Information on national markets is incomplete. Trade in all available
products is recorded through COMTRADE, which uses internationally agreed standard
denitions and product coding. The current standard coding system is the Harmonized
System (HS) developed by the World Customs Organization comprising about 5,000
commodity groups, each identified by a six digit code. The said system was
implemented in 1988 and updated in 1992, 1996, 2002, and 2007.

1. Expor t

According to the INBARs trade database as shown in table 2, average
bamboo global exports from year 2007 to 2010 amounted to US$ 1.42 billion.
Among the export products, bamboo emerging products were the most traded
with a 26% share or equivalent to US$ 669 million. China is topping the list of
exporters with a share of 46% or US$986 million of exports, followed by
Indonesia and Vietnam with a world export share of 16% and 5% respectively.

The global export of bamboo for 2008 was valued at about US$1.8 billion
which was 12.5% higher than 2007. Unfortunately, the global bamboo exports

during 2009 decreased by 28% due to the global economic crises, and
continuously dropped until 2010. The impact of the crises was felt mostly by the
ASEAN member countries. One particular reason was that these countries export
products which were mostly affected by the decline in world demand, particularly
from the US and European Union, namely textiles, garments and furniture.

In China, most of the enterprises that were forced to shut down were the
export-oriented SMEs. In J anuary 2009, the number of new orders from the
United States and the European Union markets received by these SMEs dropped
by minimum of 20% to maximum of 50%. There were also many suspensions
and cancellations of contractual export orders.

Indonesia likewise reported a significant decline in their export in 2009.
According to Mr. Ambar P. Tjahyono, Chairman of the Indonesian Furniture
Producers (ASMINDO), the export value of Indonesian furniture to a number of
countries declined by 30% in the second quarter of 2009, compared to 2008 at
US$2.65 million. In the first quarter of 2009 they realized that the Indonesian
export value of furniture dropped by 35% compared to the same period in 2008.

Shown in Table 2 are the exports of bamboo globally from 2007 to 2010.

Table 2: BAMBOO EXPORT

BAMBOO GLOBAL EXPORT
YEAR 2007-2010
Value In US Dollar
Commodity
Code
Product Description Category 2007 2008 2009 2010
140110 Bamboo Used Primarily for Plaiting
Raw
Materials
46,769,800 53,058,684 44,000,877 48,946,311
200591 Preserved Bamboo Shoots Shoots 216,482,362 207,531,508 193,153,167 221,364,756
440210 Bamboo Charcoal
Industrial
Products
42,461,826 20,432,680 22,811,795 15,468,202
440921 Bamboo Shaped Products 329,279,420 369,510,553 251,681,242 247,935,905
441210 Bamboo Plywood 192,099,733 176,399,578 101,736,137 102,370,264
470630 Bamboo Pulp 921,528 606,323 641,237 3,011,269
482361 Bamboo Paper Articles 55,042,615 28,007,899 16,537,264 10,572,893
460121 Bamboo Mats and Screens
Plaited
Products
218,350,128 354,290,464 229,055,332 133,869,582
460211 Bamboo Basketwork 232,475,714 333,028,569 221,267,282 173,523,968
460192 Bamboo Plaits and Plaited Products 22,177,782 51,015,862 52,902,681 62,949,157
940151 Bamboo and Rattan Seats Furniture
and Seats
77,663,464 84,275,909 75,695,566 55,383,884
940381 Bamboo Rattan and Furniture 178,688,764 160,718,660 118,615,732 116,397,973
Total Global
Export
1,612,413,136 1,838,876,689 1,328,098,312 1,191,794,164

2. Impor t

The European Union, United States, J apan, Canada, China, Singapore,
South Korea, Malaysia, Mexico, and Australia were the major markets for
bamboo products, collectively accounting for 70% of the total market share.

The USA is the largest Western consumer of bamboo, with annual imports
of almost US$300 million of 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 have the largest bamboo markets in the USA (Corpei, 2005).

Germany (70%) and Austria (20%) are the largest consumers of high-
quality bamboo boards used for the top layers of laminated ooring, which is
perceived as a separate product group. The total consumption of 2.4 million
square meters amounts to 0.9% of the total laminated ooring market in the EU,
estimated at 252 million square meters

(Corpei, 2005). Furthermore, the flooring
market is growing steadily (von Reitzenstein, 2004).

Markets 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. This product group has a bigger potential for the USA market than
for the EU, because the tropical appearance of bamboo products is more highly
appreciated in the USA than in the EU, where bamboo is perceived more as a
niche product for specific purposes, for example in zoos and theme park (von
Reitzenstein, 2004).

During 2007 up to 2010, the import value of bamboo products were
fluctuating due to the recession of the importing countries as what has been
discussed in the global export trade situation. Table 3 shows the detailed value of
each bamboo products imported.

Table 3: BAMBOO IMPORT

BAMBOO GLOBAL IMPORT
YEAR 2007-2010
Value In US Dollar
Commodity
Code
Product
Description Category 2007 2008 2009 2010
140110
Bamboo Used
Primarily for
Plaiting
Raw
Materials

85,488,486.00

92,047,289.00

77,529,510.00

86,349,418.00
200591
Preserved Bamboo
Shoots Shoots

228,951,584.00

236,312,409.00

210,385,273.00

236,818,178.00
440210 Bamboo Charcoal
Industrial
Products

19,240,972.00

29,260,741.00

28,590,099.00

35,134,105.00
440921
Bamboo Shaped
Products

171,744,402.00

123,373,680.00

94,010,036.00

111,703,001.00
441210 Bamboo Plywood

244,675,490.00

202,041,979.00

127,776,236.00

129,713,455.00
470630 Bamboo Pulp

18,077,154.00

10,700,689.00

66,842,319.00

69,170,358.00
482361
Bamboo Paper
Articles

85,595,998.00

64,750,711.00

45,076,225.00

46,429,386.00
460121
Bamboo Mats and
Screens
Plaited
Products

103,680,911.00

104,511,738.00

79,264,240.00

80,235,888.00
460211
Bamboo
Basketwork

247,072,811.00

251,347,856.00

198,011,259.00

204,644,020.00
460192
Bamboo Plaits and
Plaited Products

41,449,037.00

42,301,151.00

32,386,296.00

33,869,800.00
940151
Bamboo and
Rattan Seats Furniture
and Seats

312,940,332.00

274,547,754.00

203,178,457.00

202,803,800.00
940381
Bamboo and
Rattan Furniture

325,767,301.00

318,056,301.00

204,258,383.00

193,178,873.00
Total Global
Export

1,884,684,478.00

1,749,252,298.00

1,367,308,333.00

1,430,050,282.00


VIII. PHILIPPINE SETTING

1 . Compet it ive Posit ion Anal ysis

Bamboo is commonly known as
kawayan in tagalog and has been used
by many Filipinos as construction material
for their houses since ancient times. From
more than 1,000 species of bamboo
worldwide, about seventy species only
have been documented in the country.
Out of the seventy species, twenty-one
have been found endemic; of which
thirteen are climbers and eight are erect. The remaining forty-nine are introduced
species that are intended for commercial use.

Generally, traditional bamboo products are classified as primary and
secondary. The primary products are poles, shoots, stumps while the secondary
or semi-processed are sawali, splits, sticks and boards. Finished products
consist of handicraft, furniture, and ready-to-cook shoots. The primary and
secondary products are used as inputs for various industries including housing,
fishing, agriculture, and manufacturing, while finished products are sold directly
to end-users by the traders or wholesalers. Aside from traditional bamboo,
Engineered Bamboo is gaining its popularity in the country as raw materials for
furniture and handcraft industry.

Around 40% of the countrys bamboo raw materials are absorbed by the
furniture and handicraft sector, 25% by fish pens, housing and construction, and
10% by the vegetables and fruits industries. The remaining 25% of the bamboo
raw materials are used for other purposes.

Bamboo-based furniture is one of the fastest growing furniture exports of
the country with a growth rate of around 15% annually. According to foreign trade
statistics, from year 2000 to 2005, bamboo furniture generated US$19.3 million
or US$3.2 million per year in export revenues. There is an estimated demand of
3.5 million poles for 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. To meet the domestic demand for bamboo, the country imports an
annual average of US$10,000 worth of poles from different counties like Korea,
Taiwan, Hong Kong, China, Thailand, Vietnam, Indonesia, Singapore, and
J apan. To lessen the importation of bamboo poles, and meet increasing
domestic demand, a total of 150,000 to 166,000 hectares should be planted with
bamboo by year 2015.

Philippines bamboo-based products produce are mostly exported to more
than 50 countries worldwide. Among these are the United States of America,
Spain, France, Italy, Netherlands, Cyprus, J apan, Germany, United Kingdom,
Hong Kong, New Zealand, Sweden, and others. The USA was recorded as the
biggest market capturing about one-third of the total export.

Majority of bamboo products exported by the Philippines requires labor
intensive manufacturing process. The Bamboo sector in the country involves
various numbers of participants such as licensees, gatherers, millers,
manufacturers, truckers, traders, and consumers. It is known to consist of many
small unregistered firms and informal market transactions that are difficult to
determine.

In 2007, the Philippines placed 6th in total bamboo export, valued at US$
64 million, according to International Network for Bamboo and Rattan (INBAR). In
2009, the country remained in its 6th spot in spite of a decrease in export value
at US$ 30 million. The drop-off was due to the economic crisis experienced by
the European countries.

Amplified interest on bamboo has led to its growth as a viable industry.
The strong demand from different foreign markets for bamboo-based products
has paved the way for local bamboo growers and manufacturers to strengthen
their participation. Domestic demand for bamboo and its products has also been
increasing. Back in 2002, the Chamber of Furniture Industries of the Philippines
needed 1.5 million poles of bamboo. This demand increased to 1.875 million
poles in 2003. As the demand for bamboo products continue to grow, there is
also a growing need for governments support for the industry, as manifested by
the Philippine National Bamboo Congress in November 2008.

With the governments intervention and support, it is projected that in a
few years time, the Philippines can gain some share of Chinas US$15 billion
bamboo export market. Though the Philippines has a low hectarage planted to
bamboo as of 2005, bamboo experts dream that in about ten years or more, it
can be the world's second biggest bamboo exporter next to China, which is the
global top exporter of bamboo products. With the bamboos increasing demand,
it is projected that China will be running out of bamboo in the next five years. This
would open a huge export opportunity for Filipino farmers to participate in an
estimated US$813-billion global market for bamboo products.

2 . Pr oduct ion

a. Input Scheme

According to experts, bamboo plant is
propagated mainly through cuttings, and is relatively
easy to grow. The plant can be harvested after five
years and every year thereafter for the next 20 to 50
years.

According to the Department of Agriculture (DA), establishing a
nursery is recommended for a cooperative venture among community
members, or a community bamboo nursery. As a larger unit, community
nursery has more leverage in accessing inputs and selling its outputs. It is
also able to use the full range of relevant skills that are available within the
community. Community bamboo nurseries have been very successful in
the Philippines, where local technologies have been developed to meet
specific demands.

As of 2010, the Philippines has a total of 64 bamboo nurseries
situated all over the country, according to the collated data of the
Department of Trade and Industry, Region III. In year 2011 an additional
72 nurseries were established. Table 4 shows the location and number in
hectares of nurseries in the country as of 2011. (See Annex 1 pages 48-
51 for the detailed information on crop establishment).

Table 4: LIST OF BAMBOO NURSERIES IN THE PHILIPPINES

Area
2010 Areas of
Nurseries
(In Hectares)
2011 Additional
Bamboo Nurseries
(In Hectares)
Remarks
CAR 7 5 Abra
Region 1 1 8 -
Region 2 8 13 -
Region 3 15 44
Bataan, Bulacan, Nueva Ecija,
Tarlac, Pampanga
Region 5 2 4 Camarines Sur
Region 6 3 1 Oriental
Region 7 1 1 -
Region 11 2 - -
Region 12 25 1 -
Total 64 72

Source: Collated by Department of Trade and Industry Region III, Year Ended 2011

b. Pl ant ed Ar eas

There are two sources of bamboo; natural stands and plantations.
Some of the native varieties of bamboo in the country today are the
kawayan tinik, bayog, botong, buho, bikal, kiling and laak. However, there
are bamboo species which are to be conserved. These species are
considered rare and endangered such as Bambusa atra, Bambusa
cornuta. Schizostachyum luzonicum, S. textorium, Cephalostachyum
mindorensis and Yushania niitakayamensis.

According to the Philippine Bamboo Foundation (PBF), there were
52,000 hectares of bamboo plantations in the country in 1998, distributed
as follows: 20,500-34,000 hectares in forest land; 2,236 hectares in
government plantations; 3,037 hectares in privately-owned lands; and
13,435 hectares in natural stands.

Information on bamboo hectares in the natural forests or in private
lands has not been updated for so many years because of the following
reasons:

(1) Bamboo stands in the forest are generally found in small
patches and sparsely distributed over the vast forest;

(2) 75 percent of bamboo stands are found in the lowlands, which
are also sparsely distributed throughout the countryside in either
backyard type planting or along riverbanks; and

(3) It was only recently when bamboo has become a part of the
total plantation development effort especially by the private sector.


Upon the enactment of EO 879 in year 2010, the Department of
Trade and Industry, as one of PBIDC members, has been tasked to
conduct a study on the bamboo industry. A survey on the total number of
bamboo plantation in the country was conducted. Data are being solicited
from all the bamboo producing regions for baseline data purposes as
shown in Table 5.

The planted areas gathered in 2010 showed a decrease of more or
less 46,000 hectares compared to a 1998 survey. The drastic decline is
attributed to the overexploitation of the bamboo plantations, destruction of
forests and rapid changes in land use, absence of systematic
management of resources and lack of concerted effort to develop the
resources.

There is insufficient data on the total area planted with bamboo.
Bamboos are found scattered along riverbanks, creeks, and riparian
zones. Some regions have enough facilities and equipment in detecting
existing bamboo planted areas, while others do not.

Table 5 is an attempt to list the bamboo areas in the Philippines, as
collated by the Department of Trade and Industry, Region III.


Table 5: LIST OF BAMBOO AREAS IN THE PHILIPPINES

REGION
AVAILABLE
HECTARES REMARKS
CAR 2,559.11 Hectares
1,100 hectares in Abra
639.11 hectares old bamboo plantation
820 hectares established in 2010
Region 1 171 Hectares
For Pangasinan only
19,275 Bamboo Clumps in Bani Pangasinan
Region 2 61.5 Hectares For Isabela only
Region 3 263.15 Hectares
Bataan (74.75 Hectares)
Nueva Eciija (12.4 Hectares)
Bulacan (1 Hectare)
Pampanga (175 Hectares and 18 km stretch)
Region
4A 97.29 hectares Laguna and Rizal
Region 5 1,704 Hectares -
Region 6 52,000 Hectares Iloilo and Capiz
Region 7 220 hectares
20.50 Hectares (Data of BBI's Bamboo Village
Established)
80 Hectares (Data sourced out from CENRO Dgte and
Ayungon)
Primarily of Bambusa Blumeana Specie-Kawayan Tinik
No. of Barangay Bamboo Village into Bamboo
Plantation:
10 Barangays in Municipality of Dauin
Widely spread in the City of Bais (Tacalan river
banks and water shed area), Municipality of Ayungon,
Tayasam and Guidhulngan City
Total hectares for Negros Oriental approximately 220
Region
10 1,447.74 Hectares -
Region
11 450 Hectares
Tagum City (180.73 Hectares)
Municipality of Asuncion (75 Hectares) +other areas
Region
12 1,027.59 Hectares
South Cotabato -483.25 hectares
North Cotabato 419.34 hectares
Sarangani 14 hectares
Kudarat 111 hectares
Collated by: Department of Trade and Industry, Region 3( As of end of July 2012)


c. Pr oduct ion Vol ume

The volume of bamboo produced locally is insufficient to meet the
domestic demand for the raw materials, the Philippines need to import an
average of US$10,000 worth of poles yearly. Most of the bamboo poles
are sourced from Korea, Taiwan, Hong Kong, China, Thailand, Vietnam,
Indonesia, Singapore, and J apan.

In 1997, the Philippines identified a total of 52,000 hectares for
erect bamboos with a production of approximately 29 to 52 million
harvestable poles annually. About 65% to 68% are forestlands, 22% to
25% are natural stand, 5% to 5.5% are private plantations and the
remaining 3% to 4% are government plantations.

However, at present there are no available sources of data on the
quantity of bamboo harvested in the country, although some regions
provided available data on their estimated quantity of bamboo production.
In Maitum, Sarangani Province, the Municipal Environment and Natural
Resources Office (MENRO-LGU) is regulating the transport of bamboo
poles and splits. Average annual record estimated around 3,000 poles of
bamboo being bought from their farmers. In 2007, an industry profile done
by DTI-Region XII estimate a total production of 392,523 poles in the
entire region.

d. Far m Gat e Pr ice

The price of bamboo poles depends on several factors, such as
species, quality in terms of pole sizelength and diameterand presence

or absence of discoloration or stains, pests, and fungi, maturity, distance
from source, cost of labor for cutting and handling, government
regulations, and profit margins.
Over the years, the prices of bamboo harvest have seen significant
increases. As a result of local demand and supply dynamics and the
quality of the locally grown bamboo shoots and trees, prices vary from
region to region. Other factors influencing the price are quantity, customer
relationships, payment terms and the potential of the market segment the
customer represents.

In year 2001, Region 12 published data on the farmgate prices of
bamboo, sold mostly as poles or splits. The most expensive bamboo is
apos found in Glan, Sarangani Province which pegged at Php 500.00 per
pole. These poles are used for boat making. Other products such as
kalakat or woven bamboo with a measurement of 4 x 8 feet is sold at PhP
90.00 per mat, while bamboo splits are sold at PhP 35.00 per dozen or
PhP 2.00 per meter. Bamboo shoots are sold at PhP 10.00 per shoot.
Prices of botong, bayog and tinik below PhP 50.00 do not include the
cutting or harvest of bamboo that costs around PhP 18.00 to PhP 30.00
per pole of bamboo.

The Department of Trade and Industry, Region III conducted a
survey on the farm gate prices of bamboo poles per region. Majority of the
regions except for Regions 2, 8, 9 and 12 have given the prices per variety
of bamboo poles in their respective areas, as presented in Table 6. See
Annex 2 page 52-55 for the list of bamboo price per variety from different
regions in the country.

Bamboo Variety Price per Pole
Kawayan Tinik Php 35-Php 200
Bayog Php 20- Php 200
Kiling Php 20- Php 60
Buho Php 15- Php 30
Botong Php 8.10- Php 200
Laak Php 10-Php 60
Bagakai Php 10-Php 20
Apos Php 50-Php 500
Bolo Php 90
Lunas Php 5- Php 60

Table 6: LIST OF BAMBOO PRICES

Collated by: Region 3, as of July 2012

e. Suit abl e Ar eas

Location areas for bamboo as well as bamboo species should
properly be selected before planting since bamboo plant is highly
dependent on climate and the nutrients from the soil. Bamboo primarily
grows in regions of warmer climates. It grows best in moist, fertile, well-
drained soils that are found on the banks of rivers and creeks and cannot
grow in swampy soil that is waterlogged all year. Bamboo also grows well
in sandy soil and very well in red clay. There are bamboo species that are
suitable to any type of soil.

Based on the survey conducted by the Department of Trade and
Industry, there are a total of 66,706 hectares available for bamboo
plantation countrywide. Out of the total identified areas, 52,000 hectares
are found in Region 6.

Recognizing the vast potential of bamboo as a source of steady
income in the country, the United Nations Development Program (UNDP)
had teamed up with the Ecosystems Research and Development Bureau
and Department of Environment and Natural Resources (DENR) to put up
pilot plantations in different parts of the country from Northern Luzon to the
Surigao Provinces.

3 . Expor t Mar ket

a. Bamboo as Expor t

Philippines bamboo products
potential still remains in the areas of
furniture and handicrafts. It has a global
market growth rate averaging 7% and
valued at US$8 billion annually. The
Philippine bamboo handicrafts averaged
about $368M in annual export earnings.
As of 2007, the total exports of
Philippine bamboo was 47,005 (net
kilograms) valued at US$25,231. Meanwhile, total export of bamboo seats
was 87,592 (gross kilograms) valued at US$ 247,618. In the same period,
exports of bamboo bedroom, dining room, or living room sets had a total
of 59, 898 gross kilograms with a value of US$ 1,676,152.

The final destination of the Philippine bamboo-based products are
EU-27, USA, J apan, Canada, China, Singapore, Australia, Republic of
Korea, Switzerland, Russia, Hong Kong, South Africa, Mexico, India,
Norway and Turkey.

b. Local Manuf act ur er s of Bamboo as Raw Mat er ial s

According to Bamboo Information
Network-DOST, Philippines has a total
of 32 local manufacturers who
operates all over the country.
Manufacturers convert the local
produced bamboo poles into different
products such as chimes, handicraft
and furniture. See Annex 3 page 56-
63 for the current list of bamboo
manufacturers operating in the country.

Aside from traditional bamboo-based products, the country is into
engineered bamboo (e-bamboo) production. E-bamboo is produced by
laminating or gluing two or more layers of crushed, split, or veneered
bamboo which can be made into engineered floors, chopping boards,
table tops and furniture. This technology was developed at the Mariano
Marcos State University (MMSU) located in Batac, Ilocos Norte. Though
the e-bamboo industry in the country is still in its infancy stage, it is now
one of the emerging raw materials used by the construction and furniture
sectors. Several manufacturers engaged in production are starting up with
a very small production volume catering only to the local markets. Shown
in Table 7 is the list of e-bamboo manufacturers in the different areas.


Table 7: E-BAMBOO MANUFACTURERS IN THE PHILIPPINES

Manufacturer Location Status
Wing-An Construction
San J uan, Metro
Manila
Actively producing as of 2009: production is around
800 planks per day
BamboZa Iloilo
Starting up their production of engineered bamboo:
targets 400 planks per day
Buglas Bamoo Institute Negros Oriental Produces e-bamboo on order basis
In-Hand Abra Abra Produces e-bamboo on order basis
Sidlak Pinoy Bukidnon temporarily stopped
Southern Leyte Multi-Purpose
Cooperative
Southern Leyte Start-up
Mariano Marcos State University Ilocos Norte Produces e-bamboo on order basis

c. Taxes Imposed on Bamboo

The Department of Environment and Natural Resources included
bamboo as one of the reforestation species for contract reforestation and
watershed reforestation program. It is lumped with other non-wood (minor)
forest products which entails bamboo growers to pay taxes (crop taxation)
and road block fees.

Revised Forestry Administrative Order No.11, dated September 14,
1970, regulates the collection and harvesting of bamboo in forest lands by
requiring the gatherer to secure a cutting permit. Exempted from the
payment of forest charges for planted bamboos are industrial tree
plantations and private lands that are covered by existing titles or tax
declarations.

Bamboo poles are prohibited from exportation except for scientific
or testing purposes, for which an export clearance from the government is

required. Exporters of manufactured bamboo products follow the general
procedures required for exportation. Importation of bamboo poles for
commercial purposes is also not allowed by the government, except for
noncommercial purposes (e.g. for pearl farm fencing). The Omnibus
Investment Code of 1989 also provides for the following:
Income Tax Holiday
Tax and Duty Exemption
Tax Credit on Domestic Capital Equipment
Tax and Duty-Free Importation of Genetic Material
Tax Credit on Domestic Genetic Material

Bamboo and its products are also included in the trade
liberalization policy, which provides fiscal and non-fiscal incentives and
create an export market orientation, institute tax measures, and introduce
financial packages. Fiscal and non-fiscal incentives policy aims to reduce
tax burden through outright, total or partial exemption from a particular tax,
or by preferential tax treatment, thus, increasing the rate of return on the
firm's investment.

4 . Oppor t unit ies and Const r aint s (Figur e 1)

5 . Anal ysis on Phil ippine BAMBOO Val ue Chain (Figur e 2)

IX. RECOMMENDED ACTION PLANS

Bamboo is a highly valuable natural resource in many parts of the world. It is a
good substitute for wood and has strong economic potential contribution. Despite the
economic contribution of bamboo industry in the country, there are still concerns
identified in the value chain that must be addressed. Shown in the following table are
the constraints faced by the bamboo industry, together with the recommended action
plan to jumpstart the industry.
Table 8
CONSTRAINTS

ACTIVITIES

RESPONSIBLE

1. Supply of raw materials
Budget allocation for the
propagation of bamboo
Organize a team of experts to
study and develop high quality
planting materials.
Farmers, LGU, DENR
FPRDI-DOST/ SUCs
2.Unavailability of Technology
and Lack of Technical
Expertise of Farmers and
Processors

Provide funding support and
technical assistance on updated
techniques on production and
processing.
Conduct seminars and training
programs.
Farmers, DOST, DBP, Land
Bank, LGUs, DOLE,
Manufacturers, R&D
Committee
SUCs
3. Financing Programs
Create special credit/financing
programs to bamboo farmers and
processors.
Linkage between producers and
their markets.
Lessen credit processing
requirements for business and
loan application.
Banking Institutions, DTI,
LGUs, Buyers/Markets

4.Policy Support and
Implementation of Government

Proper allocation and use of funds
Strengthen government programs
for the bamboo industry
Government Agencies
enumerated in E.O. 879.

5. Establishment of bamboo
database
Creation and Validation of
database from responsible
government agencies and other
players in the industry.
Designate committee as a
responsible agency for the
continuous update on the status
of the industry
DENR, Manufacturers,
Farmers, LGUs, DTI, Bureau
of Customs, PBIDC

6. Information dissemination

Conduct training programs6 and
seminars on the new/upgraded
techniques in using bamboo as
raw materials.
LGU, DTI, DENR, DOST,
PBIDC

7. Quality and Standard
Product Output
Provide local and export product
orientation.
Product benchmarking
Local and Foreign
Market/Buyers , DOST,
Manufacturers
8. Infrastructure development
Improvements of farm to market
roads
DPWH, LGU
DENR-DAR-DA

1. Supply of Raw Materials

The existing bamboo stands available in the country is insufficient to supply the
huge market demand. Many of the investors who ventured into the production of
bamboo-based products such as handicrafts, furniture, E-bamboo products are now
inactive due to the lack of supply of bamboo poles/slats as their main raw materials.
Given this situation, stakeholders involved in the industry, especially agencies
concerned in the propagation and establishment of bamboo plantation must implement
programs, policies and orientation activities to strengthen the industry and increase the
production of bamboos in the country. This could be done in the form of subsidies to
farmers, who will be engaged in massive planting and eventually processing of bamboo.

2. Unavailability of Technology, Lack of Technical Expertise of Farmers and
Processors, and Quality and Standard Product Output

Unavailability of technologies for the processing of bamboo-based products,
especially for the emerging engineered bamboo products causes low quality of finished
products. The local manufacturers usually use simple technologies and machinery and

have no knowledge on bamboo preservation. Hence, this limits their capability to meet
high-value demands. To address these circumstances, updated research and
development, promotion, and benchmarking among the actors involved in the industry
should be implemented. In addition, upgrading training and workshops should be
implemented and technology expert linkages should be strengthen for continuous
technology enhancement and product development.

Agencies involved in bamboo production and processing such as FPRDI-DOST,
CITC-DTI, and ERDB-DENR must be given sufficient allocation of budget to continue
conducting research & development (R&D) activities on bamboo. Much has been done
on this. Reactivation and re energizing these agencies will be of great advantage.

3. Financing Programs

Bamboo grows for about three to four years to harvest good quality kawayan
tinik. Though bamboo grows fast within a short period of time, many farmers prefer to
plant other crops due to limited source of financial support both from government and
private funding institutions. To address this, government and other financing institutions
should create a special credit facility for bamboo growers and processors. In addition,
public-private partnerships could be established in such a way that both producers,
processors, and distributors could benefit.

4. Policy Support and Implementation of Government

Government involvement is significant to boost the bamboo industry. Although
bamboo has long existed in the country, it was not given much attention compared to
other wood products. It is still in its infancy stage because of low policy support,
promotion and development. In this regard, the government ought to review its policies
and programs for the bamboo industry to give it the much needed assistance for the
industrys continuous development and sustainability. Finances required for policy

implementation must be allocated through legislation. The National Greening Program
(NGP) is an example of this.

5. Establishment of Bamboo database

The Philippines still lacks information on the bamboo industry such as the prices
of bamboo products and their trends, directory of producers and suppliers, directory of
bamboo experts, training assistance/seminar available, and export information,
processing and requirements. To facilitate information, the government through any of
its national agencies should create a body to develop and maintain a database for the
bamboo industry, which will be made available to stakeholders through internet access.

6. Information Dissemination

Lack of knowledge on the new and upgraded methods and processes for
bamboo-based products is one of the reasons for the slow growth of the industry. Thus
there is a need to continuously provide updated information on new methods of
production, new designs and product innovation, including marketing strategies
especially bamboo-based export products.

7. Infrastructure Development

Planted areas with bamboo and identified suitable areas for plantation are mostly
found at hilly lands which gives hindrance for the farmers to market their produce.
Infrastructure should be developed for easy access of the farmers to the marketplace.
Collaboration with other government agencies such as DAR-DA-DENR and DPWH to
improve infrastructure is needed. This will be made possible if contiguous areas will be
planted for large scale plantations which will produce the volume to create greater
economic impact.

X. BUSINESS OPPORTUNITIES

a. Bamboo Nur ser y

Based on a study done by Regina Irene A. Gaza; Bamboo Plantation,
Nursery, Node & Hub: Technical and Financial Feasibility, a bamboo nursery
venture will require an initial investment of PhP160,000.00 with a working capital
of PhP138,000.00. The investment will generate an average annual income of
PhP105,000.00.00. For detailed computation, please refer to Annex 4, Pages
65-72.

b. Bamboo Pl ant at ion

The bamboo grass has different products (food and non-food), non-food
products includes handicrafts, furniture and engineered bamboo, food product on
the other hand is called bamboo shoots which can be produce on the 2
nd
year of
the bamboo plant (see page 64 for the timetable of bamboo production). Bamboo
shoots command a good price in the market. Grated and boiled shoots during the
wet season of 2009 were sold for as much as P30 per kilogram in Los Banos,
Laguna (http://www.agribusinessweek.com).

The cost in producing bamboo includes farm inputs, labor and overhead.
After three to four years, the bamboo can be harvested. Based on the same
study done by Regina Irene A. Gaza; Bamboo Plantation, Nursery, Node & Hub:
Technical and Financial Feasibility, the investment cost per hectare is estimated
at PhP40,000.00 that includes a 1-year working capital. Only one year working
capital is provided since after the first year until harvest time, the investors need
not incur cost for fertilizers and other maintenance. However, twice a year
weeding must be done to mange the growth of the bamboo poles.

On the first year of harvest (after gestation period), a hectare of bamboo
will have an income of PhP 20,500.00 with an annual average of 1,200 poles.
Annually the selling price of bamboo poles are assumed to increase by 10% and

all expenses are also assumed to increase by 10% annually. For detailed
computations on bamboo plantation, please refer to Annex 5 pages 73-80.
c. Pr ocessing

Due to unavailability of advance equipment needed in making boards,
plywood and processed food, most bamboo processors in the country are
engaged in making furniture and handicrafts. (Refer to Annexes 6, 7 and 8,
pages 81-102 for the computations of Nodes Production, Bamboo Hub and
Engineered Bamboo Processing)

Most of the local bamboo shoots are consumed locally due to its shelf life
and lack of food manufacturers of shoots. It is commonly sold in wet
markets/supermarkets at a very affordable price. At present, there are few
restaurants that offer bamboo shoots (dabong) as one of their main dishes.

In the export market, bamboo shoots have been traditionally used as
vegetable food in China, J apan, Korea, and in many other Asian countries. With
the increasing awareness on the many health attributes and recipes one can
make out of bamboo shoots, it is now gaining popularity within the broader
population. Bamboo shoot has a huge market potential. J apan has a steady

market of around 250 tons per month while Australia imports 6,000-12,000 tons
of canned bamboo shoots annually.
ANNEXES

Annex 1 : CROP ESTABLISHMENT
(Source: Growing Bamboo)

Selecting suitable site for many plant species is a primary requisite to any
plantation establishment. It is important that the site for planting should match with the
requirements of the species. Bamboo follows an annual growth cycle that is somewhat
different from other plants. For running bamboos, this cycle begins with the onset of
warm weather in March or April. The growth rate of the culms during few weeks can be
very rapid, especially in the larger bamboo species. An established grove of bamboo
will grow well with an annual, light application of a lawn fertilizer. Fertilizer is usually
applied in February or March before shooting begins.

A. PROPAGATION

When bamboo does flower, it can be very detrimental to the plant. In some
species, flowering quickly leads to the death of the plant. However, the flowering
process can often be halted by heavy application of lawn fertilizer, followed by
ample irrigation. This should be done at the first sign of flowering. Bamboo
flowers are small, grass-like, and appear in the mid-spring. Because bamboo
flowers so rarely, it is usually propagated by division. The best time to transplant
most bamboos is in the early spring before the new shoots appear. The top half
of the culms should be cut off to reduce water loss. The roots of the plant should
be kept moist until it can be planted in the ground. Once the plant has been
moved it should be lightly fertilized with lawn fertilizer and watered heavily for a
week or two. The transplanted clump should be watered regularly during the first
summer if natural rainfall is lacking.


B. PLANTING and SPACING

The main requirement in planting is to make sure that there are no air
pockets around the root ball (this means that when back-filling, the soil should be
well tamped and gently compacted around the plant).

Dig a hole with a size of a pot then remove the plant from the pot. Be
careful not to damage the newly planted cutting when doing this. Set the plant in
the hole so that the soil with the plant is just slightly below the grade of the
existing soil. Make sure that there are no air pockets around the root ball. Pull all
the weeds for a diameter of about a foot all the way around the plant. Many
fertilizers designed for grasses and palms will work. Avoid any products with very
high nitrogen on young plants as you can burn the roots. Compost is good.

C. WATERING and IRRIGATION

Some basic considerations are rainfall, humidity, wind, and soil type &
condition. Actual watering plan will depend on the climate and soil, this could
mean no irrigation at all, or a well designed drip irrigation system that puts water
on the plant every day. Bamboos like to dry out a bit between watering.

D. FERTILIZING, COMPOST and MULCH

During the first season of growth it is recommended to use fertilizer with a
Nitrogen value of no more than 10. After the plant is established, higher Nitrogen
amounts can be used safely. The actual formula (N, P, K), including some
particular complement of minor nutrients and minerals should be determined by
the particular type of soil.

Healthy soil is the greatest resource for healthy plants. Compost and
mulch result in healthier soil, healthier plants, and ultimately in less work. If
applying fresh (green) wood-chips as mulch make sure that there is ample
Nitrogen underneath the mulch to feed both the microorganisms and the
bamboos.

E. PRUNING and THINNING

Starting after the second summer of growth, it is good for the bamboo to
be thinned out a bit. Take away only a few of the oldest canes (these will most
likely be the smallest in the clump). Do not take more than 1/3 of the total mass
of the clump, and do not take any of the newest growth.

After this initial thinning:

1. Bamboo clump can be leave alone and sufficient water and occasional
fertilizer. Canes within the clump will eventually die and decompose, but the
clump, as a whole will most likely continue with vigor.
2. Thin the clump out every year or two or three - again being careful not to take
too much of the newest (youngest) part of the plant, as that is the most
important for its future good health.
3. Thin the clump each year carefully making sure that there are no canes over
3-4 years of age. You can also cut out any canes that are under size, or going
in a direction.

After harvesting bamboo poles from the farm it is directly delivered in the
manufacturing plant. Several processes are done to a bamboo pole to convert it
into finished products.

First, bamboo poles are cut using a machine to ensure the uniformity of
the product. Afterwards, it will pass in a splitting machine to remove the bamboo

nodes. However, there are bamboo products which do not require bamboo poles
to undergo splitting process. Instead of splitting it will then pass to knot removal
process. After which, it will be treated using chemicals to make the bamboo
product last for many years. Afterwards, it will pass through dying process, rough
milling and glue application. Thus this ensures that the bamboo poles are
competitive to other wood products. Lastly, it will pass to finish milling to fully
furnish the product.

There are bamboo products which require high-end machinery like
Laminated Boards and Floor Tiles and Board. However, there are also bamboo
products such as bamboo furniture and handicraft which do not necessarily need
machinery but a creative mind.


Annex 2 : LIST OF BAMBOO FARM GATE PRICES
REGION BAMBOO VARIETY PRICE
CAR
Kawayan Tinik PhP35.00/pole
Puser PhP8.00/pole
Reed (Rono) PhP1.25/pole
REGION 1
Kawayan Tinik
PhP70.00-
PhP80.00/pole
Bayog
PhP50.00-
P70.00/pole
REGION 3
Aurora:
Kiling PhP20.00/pole
Bunsina PhP60.00/pole
Bayog PhP20.00/pole
Bataan:
Kawayan Tinik
PhP150.00-
PhP200.00/pole
PhP8,000-PhP10,000
per ELF truck
Bulacan:
Kawayan Tinik
PhP100.00-
PhP120.00/pole
Buho
PhP15.00-
PhP30.00/pole
Bocaue PhP10.00-PhP15/pole
Nueva Ecija:
Pampanga:
Kawayan Tinik
PhP150.00-
PhP200.00/pole
Bayog
PhP150.00-
PhP200.00/pole
Tarlac:
Kawayan Tinik (small)
PhP45.00-
PhP50.00/pole
Kawayan Tinik (big)
PhP60.00-
PhP80.00/pole

Zambales:
Kawayan Tinik
PhP70.00-
PhP80.00/pole
REGION 4A
Kawayan Tinik (prices depend on the
thickness and length of bamboo poles)

Majayjay, Laguna PhP60.00/pole
Magdalena, Laguna
PhP50.00-
PhP60.00/pole
Sta. Maria, Laguna
PhP60.00-
PhP80.00/pole
Rizal, Laguna
PhP40.00-
PhP60.00/pole
Kawayan Sina (Price based on the buying
price of Berris Bamboo (Hub)
Small- P30.00/pole
Medium- P40.00/pole
Large - P50.00/pole
Extra Large-P60.00/pole)

Majayjay, Laguna
PhP30.00-
PhP60.00/pole
Nagcarlan, Laguna
PhP30.00-
PhP60.00/pole
Liliw, Laguna
PhP30.00-
PhP60.00/pole
Killing (Average length: 14 ft per pole)
Province of Rizal PhP20.00/pole
Tingkal (Average length: 14 ft per pole)
Buho/Bungkawe (Average length: 14 ft per
pole)

REGION 5
Kawayan Tinik (small) PhP40.00/pole
Kawayan Tinik (medium) PhP50.00/pole
Kawayan Tinik (big) PhP60.00/pole
Kawayan Tinik (jumbo) PhP75.00/pole
REGION 6 Botong PhP40.00/pole
REGION 7

Laak
PhP10.00-
P15.00/pole
Kawayang tinik PhP35.00-

PhP45.00/pole
Botong
3"-4 inches in
diameter-
PhP40.00/pole
4"-5 inches in
diameter-
PhP80.00/pole
5" inches and above
in diameter-
PhP100.00/pole
Bayog
PhP25.00-
PhP30.00/pole
Bagakay PhP10.00/pole
Killing
PhP15.00-
PhP35.00/pole
Bolo PhP10.00/pole
Lunas
PhP15.00-
PhP35.00/pole
REGION 10
Bukidnon:
Giant Bamboo
PhP60.00/pole in
slope area
(buyers will be the one to cut the bamboo)
PhP80.00/pole in flat
area
Camiguin:
Laak
PhP50.00-
PhP60.00/pole
Kawayan Tinik (Batakan)
PhP90.00-
PhP100.00/pole
Botong
PhP70.00-
PhP80.00/pole
Bagakay
PhP20.00-
PhP30.00/pole
Killing
PhP50.00-
PhP60.00/pole
Lunas
PhP50.00-
PhP60.00/pole
Prices vary depending on the area of bamboo to
be harvested.
Buyers shoulder the transportation cost and
delivery cost.
Bamboo poles are already cleaned when
delivered.

Source of Kind of Bamboo Specie available in
Camiguin- DENR
Source of Price- Farmers in Different Areas

Misamis Occidental:

Botong PhP50.00/pole
Bayog PhP110.00/pole
Bagakay PhP20.00/pole
Lunas PhP30.00/pole
Misamis Oriental:
Giant Bamboo PhP170.00/pole
13m long to be used for fish pen
Lanao Del Norte:
REGION 11 All kinds of Bamboo Poles (18-20 ft long) PhP9.00/pole
CARAGA
Mature Botong
-if delivered on site to fishponds PhP200.00/pole
Botong or Patong
-if pick-up PhP50.00/pole
Bamboo as propping Pole (2 per banana, used for
2 times, 12 weeks to harvest)

14 feet, 3 1/2 inch bottom diameter and 2 1/2
top diameter

Spiny PhP8.60/pole
Patong, Kayali PhP8.35/pole
Botong PhP8.10/pole
Tambuay PhP6.00/pole
Lunas PhP7.35/pole
Source: Collated by Department of Trade and Industry Region III


Annex 3 : LOCAL BAMBOO MANUFACTURERS
LOCATION MANUFACTURERS
LUZON:
Abra
BALBIN'S Quality Furniture
Bariquir, Zone 5, Bangued, Abra
Tel./Fax No. (074) 752-8574
Mr. Romeo M. Balbin, General Manager
Wood and Bamboo Products Raw Materials : Wood, Bamboo and Rattan
Year Established : 1986
Nature of Business : Manufacturer and Subcontractor
CALIXTERIO'S HANDICRAFT
Capitulacion St., Zone 1, Bangued, Abra
Tel/Fax No. (074) 752-8490
Ms. Prospera Calixterio, Manager
Wood and Bamboo Products
Raw Materials : Wood, Bamboo, Rattan
Nature of Business : Manufacturer and Subcontractor
Cordillera
MAYAT-AN HANDICRAFTS
Km. 4 Asin Rd., Baguio City
Tel No.: 0919-6417410; 0917-692254
Fax No.: (074) 442-7859 c/o DTI-CAR
Rovilyn Mayat-An, Owner
Bags, Back pack, Bottle container, Baskets, Binga with ribbon
Raw Materials :Wild Bamboo
Nature of Business : Manufacturer/Exporter
Cavite
NS ALBA HANDICRAFT
Brgy. Magdiwang, Noveleta, Cavite
Tel. No.: 438-3981
Fax No.: (046) 414-0699 (c/o DTI-Cavite)
Noville B. Alba, Owner/Manager

Bamboo, rattan furniture and accessories
Raw Materials Used : Bamboo, rattan, wicker, metal
Ilocos Sur
VIGAN CASA ANTIGUA
19 Liberation Blvd., Vigan City, Ilocos Sur
Tel No.: (077) 722-1873; 722-2130
Enrico C. Acosta, Owner/Manager
Tables, Chairs, Beds, Cabinets
Raw Material Used : Old recycled wood, narra, molave, bamboo
Nature of Business : Manufacturer/Wholesaler/Retailer
Metro Manila
CADET DEVELOPMENT CORP.
Unit S-24, 2/F, Sunvar Plaza, Amorsolo St., cor. Pasay Rd., 1200 Makati City
Tel No.: (63-2) 845-3435
Fax No.: (63-2) 535-2655; 532-2197
E-mail: dvc_phils_inc@vacia.com
Ms. Cynthia G. Ortaez/Ma. Theresa P. Corona
Wooden furniture & accessories, folding chair, side chair, picnic table, rattan
side chair, bamboo ladder and chest of drawers
KINGFLUTE PHIL., INC.
1842 Carhoun cor. Evangelista Sts., Pio Del Pilar, Makati City
Brgy Caridad, Quezon, Quezon
Tel No.: 751-6241; 888-4996
Fax No.: 751-6242
E-mail: kingflute@axti.com
Jeffrey B. Cada, Marketing Manager
Bamboo flutes
Raw Materials Used : Bamboo, wood, nito, vines
DANSCOR MFG. & MARKETING, INC.
412 Zamora St., Fortune 7 Village, Malinta 1440 Valenzuela City
Tel No.: (63-2) 294-1715; 294-2729
Fax No.: (63-2) 294-2722
www.bamboofurniture.com.au

Mr. Richard Dansey
Bamboo-related furniture & accessories
DURU's INDUSTRIES CORPORATION
2nd Avenue, Sta. Maria Industrial Estate, Bagumbayan, Taguig 1631
Tel No.: (63-2) 837-2171 to 74
Fax No.: (63-2) 837-2175; 831-0388 E-mail: durus@pworld.net.ph
Mr. Haresh P. Mirpuri
Furniture made of bamboo combinations, wood, rattan, metal, tube & solid
round bar & table lamps made of metal & material fiber and house ware
linens
F-4 CORPORATION
177 Brgy. San Jose, Magalang 20111842 Carhoun cor. Evangelista Sts., Pio Del
Pilar, Makati City
Tel No.: 751-6241; 888-4996
Fax No.: 751-6242
E-mail: kingflute@axti.com
Jeffrey B. Cada, Marketing Manager
Bamboo flutes
INTERNATIONAL CANES PRODUCTS INC.
Intercanes Bldg., 695 Quirino Avenue Tambo, 1701, Paranaque
Tel No.: (63-2) 834-1907; 851-6008
Fax No.: (63-2) 851-6008; 525-7801
E-mail: incanes@i-manila.com.ph
Mr. Renefrank R. Guillermo
Bamboo, rattan, wicker, and wrought iron furnitures
OPM INTERNATIONAL CORPORATION
38 Scout Torillo cor. Sct. Rallos 1100 Quezon City
Tel No.: (63-2) 330-8167; 928-5471
Fax No.: (63-2) 928-5466
E-mail: opm@mydestiny.net
Dr. George Sy
Rattan, wrought iron furnitures in combination with wicker, split bamboo,
wood and leather
PACIFIC INTERIORS SUPPLY

1325 Pacific Bldg. Filmore Avenue cor. Emelia St., 1200 Makati City
Tel No.: (63-2) 832-5076; 804-0620
Fax No.: (63-2) 833-2492
E-mail: waynem@skyinet.net
Wayne Edward Morris
Hotel furniture and furnishing made of bamboo, rattan, wood, wrought iron,
napery, towelling, carpets, embroidery, jewelry and giftsware
POLYMART, INC.
97 Wawa St., Alabang, 1770 Muntinlupa City
Tel No.: (63-2) 842-2147; 850-1007; 850-0860
Fax No.: (63-2) 842-2987
E-mail: pmart@broline.com
Rodolfo N. Navarro/ Rowena Navarro
Furniture - bamboo, rattan, wrought iron, mixed media, handwoven materials
using leather, assorted accessories, upholstery fabric, wooden blinds, threads
and indigenous fibers
Naga
KOLPING SOCIETY PHILIPPINES, INC.
BCAT Compound, Penafrancia Avenue, Naga City
Tel No.: (054) 472-5631
Fax No.: (054) 811-2018
Rico Borromeo, Production manager
Two-seater tub chair, Tub chair, Tables, Chairs
Raw Materials Used : Bamboo, wrought Iron
Nature of Business : Manufacturer
Palawan
KAMANTIA NATIVE HANDICRAFTS
Dagomboy Vill., Rizal Ave.Ext., Puerto Princesa City, Palawan
Tel No.: (048) 434-3504; 434-4621
Fax. No. : (048) 433-7316 (c/o DTI-Palawan)
Rosalinda S. Mercado, Owner/Manager
Native handicrafts
Raw Materials Used : Tarran, vines, bamboo, wood
Nature of Business : Manufacturer/Trader

Pampanga
F-4 CORPORATION
177 Brgy. San Jose, Magalang 2011 Pampanga
Tel. No. (63-45) 343-9424; 343-4925; 866-1124
Fax No.: (63-45) 343-4925
E-mail: f4corp@yahoo.com
Mr. Manuel R. Alfonso
Bamboo/metal furniture accessories and bamboo nipa huts
VERA WOOD INDUSTRIES (VERA MULTICRAFT MFG)
1265 Diamond Street, Ramar Village San Agustin, San Fernando, 2000
Pampanga
Tel. No. (63-45) 961-4530
Fax No.: (63-45) 961-3809
E-mail: jver@mozcom.com
Mr. Restaquio E. De Vera/ Ms. Leilyn V. Tolentino
Furniture and furnishings made of bamboo, wood, rattan & metal
Pangasinan
DOREVI INDUSTRIES
Martin Posadas Ave., San Carlos City, Pangasinan
Tel. No.L075) 531-4047; 531-4672
Fax No.: (075) 531-3047
Lorelie Vicente, Asst. Manager
Plantres, Mini bike, Bamboo tray
Raw Material Used : Bamboo, rattan
Rizal
ELES AND JAS HANDICRAFTS
Purok Sampaguita, Brgy. Sta Cruz, Antipolo City
Tel. No.: 650-4253
Fax No.: 656-6827 (c/o DTI-Rizal)
Josephine B. Antonio, Owner/Manager
Wind chimes
Raw Materials Used : Bamboo, aluminum tubing

REVELATION ARTS AND CRAFTS
20 Ipil St., Phase 2, Dona Justa Vill., Angono Rizal
Tel. No.: 451-1488; Pager No.: 141-950-155Fax No.: 451-2658
Clara L. Balmaceda, Owner/Manager
Handpainted birds on bamboo twigs, birds on driftwood, letter opener and
magnetic birds
Raw Materials Used : Wood, bamboo, twigs, driftwood
VISAYAS:
Cebu City
BARON ARTS & CRAFTS, INC.
Hernan Cortes St., Mandaue City 6014, Cebu
Tel. No. : (63-32) 346-3368; 346-1579; 344-5510
Fax No.: (63-32) 1579; 346-3368
baron@cebu.weblinq.com
Mr. Erwin B. Miranda
Products: bamboo, stone-in-laid furniture, wrought iron, wood, wicker, rattan
and leather metal furniture combined
CASTILEX INDUSTRIAL CORP.
M.L. Quezon Street, Cabangcalan, Mandaue City, 6014, Cebu
Tel. No. : (63-32) 346-0213; 346-3035
Fax No.: (63-32) 346-0428
castilex@i-cebu.com.ph
Mr. Michael Veloso
Furniture (Bamboo, rattan, wood, wicker, buri, wrought iron), furnishing
(lamps/lighting fixtures) and architectural components
GEFA PHILIPPINES INT'L
F. Jaca St., Inayawan Lower Torre, Cebu City
Tel. No. : (63-32) 273-1613
Fax No.: (63-32) 2731613
Fe L. Garces, Production Manager
Fashion accessories, gifts, toys and housewares, bags
Raw Materials Used : Wood, sea shell, coco, leather, bamboo & abaca

Iloilo
CM BAMBOCRAFT
2 Jreos St., Lapaz, Iloilo City
Tel./Fax No.: (033) 320-0053
Sr. Cynthia Calamba, Sister in Charge
Bamboo chimes, kitchen wares, religious articles
Raw Materials Used : Bamboo
COP-TRAPPIST MONASTERY
Sitio San Miguel, Jordan, Guimaras
Tel./Fax Nos. : 0912-520-0358/0918-7615710
Sr. Ma. Guia Gaitan, Project Director
Kitchen utensils, religious items, trays, baskets
Raw Materials Used : Coco shells, bamboo, nito
Negros Occidental
SASON SHOP, INC
Brgy. Alijis, Bacolod City 6100 Negros Occidental
Tel No.: (63-34) 434-0654
Fax No.: (63-34) 434-4759
bernie@sasonshop.com; www.sasonshop.com
Bernie Sason
Bamboo and wood furniture, home decors and accessories
T-FLAVORS FOOD PROCESSORS
44 Pleasantville Subd., Taculing, Bacolod City
Tel No.: (034) 433-1712
Fax No.: (034) 435-4185
Teresita Hom
Bottled pickle products, packed assorted dried fish
Raw Materials Used : Ampalaya, bamboo shoots, other vegetables,
Mango

Northern Samar
PITAD FOUNDATION, INC.
333 D. Macapagal St., Catarman, Northern Samar
Tel No. : (055) 354-1082
Samuel G. Gelera, Executive Director
Rubberized plant liners, coco coir sheets, coco twine, coco peat, bamboo
baskets, trays
Raw Materials Used : Coco-coir, bamboo, abaca
MINDANAO:
Davao
ORLAD'S NOVELTY AND CRAFT SHOP
108 Yellow Bell St., Alpha Homes Subd., Matina, Davao City
Tel Nos.: (082) 297-2436 0r 227-4548
Fax No.: (082) 298-1978
Fredolina L. Farma/Tito F. Farma, Sales Manager/Proprietor Ashtrays, pencil
holders, jewelry boxes, flower vases, canisters and jars
Raw Materials Used : Coco trunk, bamboo
Zamboanga del Sur
FEMS HANDICRAFT
Baklay, tukuran, Zamboanga del Sur
Eufemia C. Leopoldo, Owner, Manager
Fossilized flowers
Raw Materials Used : Bamboo vines, corn husk, grass

BAMBOO PRODUCTION TIMETABLE
Timetable
Activities
Year 1 Year 2 Year 3 Year 4
Month
1 2 3 4 5 6 7 8 9 10 11 12
Nursery (preparation up to seedlings disposal)

Bamboo Shoots Production
Bamboo Production (POLES)

Bamboo
Poles
Cutting Splitting Knot
Removal
T
r
e
a
t
m
e
n
t

Slivering
Crushing
Round
Poles
Bamboo
Slats
Slivers/
Spokes
Tadtad
Weaving
Sawali
Treated
Slats
Treated
Poles
Treated
Tadtad
D
r
y
i
n
g

R
o
u
g
h

M
i
l
l
i
n
g

G
l
u
e

A
p
p
l
i
c
a
t
i
o
n
,

A
s
s
e
m
b
l
y

a
n
d

P
r
e
s
s
i
n
g

(
C
o
m
p
o
s
i
n
g
)

Finish
Milling
Sawali
Boards
Floor
Tiles
Furnitureand
Handicrafts
Floor
Boards

Annex 4 : BAMBOO NURSERY

ASSUMPTIONS
1. It will take about two months to prepare the site for nursery (1/2 hectare)
2. It will take an average of 5 months for the nursery to prepare and make the
bamboo seedlings available for sale.
3. Sales from bamboo seedlings will start on the 7th month of Year 1 operation and
onwards.
4. A half-hectare nursery can produce 10,000 bamboo seedlings per year (recovery
rate of 83%).
5. Shading materials is estimated at PhP10.00 per 100 propagates.
6. Transportation cost in hauling materials is PhP300 per 6,000 propagules.
7. Cost of nursery maintenance is assumed at PhP1, 000 per month.
8. Cost of fertilizer is PhP3.51 / propagule derived from 260g/propagule multiplied
by PhP13.50/kg.
9. Cost of land is excluded in the computations since land valuation varies in every
region.

Annex 4.1: TOTAL PROJECT COST

PARTICULARS AMOUNT

1. FIXED ASSETS
1.1 Shed 10,000.00
1.2 Tools 700.00
1.3 Dugwell 5,000.00
Sub -to tal Fi x ed As sets 15,700.00
2. WORKING CAPITAL [ 1 c ro ppi ng c yc l e ]
2.1 Direct Costs
2.1.1 Direct Materials 84,000.00
2.1.2 Direct Labor 37,000.00
2.2 Production Overhead 14,000.00
2.3 Operating Expenses
2.3.1 Marketing Expenses 1,000.00
2.3.2 Gen. & Admin. Exps. 2,000.00
Sub -to tal Wor ki ng Capi t al 138,000.00
3. PRE- OPERATING EXPENSES
3.1. Business permit and clearance 500.00
3.2. Business planning and organizing 500.00
3.3. Canvassing of materials 500.00
3.4. Site Preparation 2,000.00
Sub -to tal Pr e- Oper ati ng Exp ens es 3,500.00
TOTAL PROJ ECT COSTS 160,000.00
B AMBOO NURSERY
TOTAL PROJECT COST

Annex 4.2: PROJECTED INCOME STATEMENTS

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
1.0 GROSS SALES 200,000.00 330,000.00 360,000.00 400,000.00 440,000.00
2.0 Less: Cost of Goods Sold
2.1 Direct Material Used
2.1.1 RawMaterialsInventory, Beg.
2.1.2 Add: Purchases 84,000.00 140,000.00 160,000.00 170,000.00 190,000.00
2.1.3 Total RMAvailablefor Use 84,000.00 140,000.00 160,000.00 170,000.00 190,000.00
2.1.4 Less: RMInventory, End
2.1.5 RawMaterialsUsed 84,000.00 140,000.00 160,000.00 170,000.00 190,000.00
2.2 Direct Labor 37,000.00 41,000.00 81,000.00 89,000.00 98,000.00
2.3 ProductionOverhead 16,000.00 18,000.00 20,000.00 21,000.00 23,000.00
2.4 Total Production Costs 137,000.00 199,000.00 261,000.00 280,000.00 311,000.00
2.5 Add: Work-in-Processbeg. - - - - -
2.6 Less: Work-in-Process end - - - - -
2.7 Total Costs of Seedlings Produced 137,000.00 199,000.00 261,000.00 280,000.00 311,000.00
2.8 Add: Inventory of Seedlings, beg. - - - - -
2.9 Total Seedlings Availablefor Sale 137,000.00 199,000.00 261,000.00 280,000.00 311,000.00
2.10Less: SeedlingsInventory end - - - - -
COST OF GOODS SOLD 137,000.00 199,000.00 261,000.00 280,000.00 311,000.00
3.0 GROSS PROFIT 63,000.00 131,000.00 99,000.00 120,000.00 129,000.00
4.0 LESS: OPERATING EXPENSES
4.1MarketingExpenses 1,000.00 1,100.00 1,200.00 - -
4.2Gen. and Admin. Expenses 2,000.00 2,200.00 2,400.00 2,700.00 2,900.00
Total OperatingExpenses 3,000.00 3,300.00 3,600.00 2,700.00 2,900.00
5.0 NET OPERATING PROFIT 60,000.00 127,700.00 95,400.00 117,300.00 126,100.00
6.0 Less: Other Expenses
Pre-OperatingExpenses 3,500.00 - - - -
8.0 NET PROFIT BEFORE TAX 56,500.00 127,700.00 95,400.00 117,300.00 126,100.00
BAMBOO NURSERY
PROJECTEDINCOME STATEMENT
For the year ended

Schedul e 1: PROJECTED SALES

Schedul e 2: PRODUCTION COST PER UNIT

Schedul e 3: FARM INPUTS

Product
Qt y. Price Total Sal es Qt y. Pri ce Total Sales Qty. Pri ce Total Sales Qt y. Price Tot al Sal es Qty. Pri ce Total Sales
Bamboo seedlings 10,000 20.00 200,000.00 15,000 22.00 330,000.00 15,000 24.20 363,000.00 15,000 26.62 399,300.00 15,000 29.28 439,230.00
Total Sales 200,000.00 330,000.00 360,000.00 400,000.00 440,000.00
Year 4 Year 5 Year 1 Year 2 Year 3
Quantity Cost/Uni t Total Cost Quanti ty Cost/Uni t Total Cost Quanti ty Cost/Uni t Total Cost Quanti ty Cost/Unit Total Cost Quanti ty Cost/Uni t Total Cost
Di rect/Raw Materi al s
Bamboo branch/culm 12,000 3.00 36,000.00 18,000 3.30 59,400.00 18,000 3.63 65,340.00 18,000 3.99 71,874.00 18,000 4.39 79,061.40
Polythene bags 12,000 0.50 6,000.00 18,750 0.55 10,312.50 18,750 0.61 11,343.75 18,750 0.67 12,478.13 18,750 0.73 13,725.94
Fertilizer 12,000 3.51 42,120.00 18,750 3.86 72,393.75 18,750 4.25 79,633.13 18,750 4.67 87,596.44 18,750 5.14 96,356.08
Total Di rect Materi al s 84,000.00 140,000.00 160,000.00 170,000.00 190,000.00
Indi rect Materi al s
Shading Materials 125 10.00 1,250.00 188 11.00 2,068.00 188 12.10 2,274.80 188 13.31 2,502.28 188 14.64 2,752.51
Total - Indi rect Materi al s 1,300.00 2,100.00 2,300.00 2,500.00 2,800.00
Total Materi al Cost 85,300.00 142,100.00 162,300.00 172,500.00 192,800.00
Year 4 Year 5
Particul ars
Year 3 Year 2 Year 1
P ar t ic u l a rs Y ea r 1 Y e ar 2 Y ea r 3 Y ea r 4 Ye ar 5
D ire ct Mate ri al s 84,0 00. 00 140, 000. 00 160, 000.00 170, 000.00 19 0,000. 00
D ire ct La bo r 37,0 00. 00 41, 000. 00 81, 000.00 89, 000.00 9 8,000. 00
M anufa ctur ing O ve rhea d 16,0 00. 00 18, 000. 00 20, 000.00 21, 000.00 2 3,000. 00
T ota l P r oducti on C osts 13 7, 0 00 . 00 1 99 , 00 0. 00 2 61 , 00 0. 0 0 28 0, 0 00 .0 0 31 1, 00 0. 0 0
D ivi de by: P ro d'n V o lume 10,0 00. 00 15, 000. 00 15, 000.00 15, 001.00 1 5,002. 00
P ro ductio n C o st per U ni t 13. 70 13. 27 17.40 18.67 20. 73

Schedul e 4: LABOR COSTS

Schedul e 5: OVERHEAD COSTS

P O S I T IO N Y E A R S
L A B O R
R E Q U I R E M E N T S
R A T E / M O N T H
T O T A L
C O S T S
C O S T A N N U A L L Y
N u r s e r y S u p e r v i s o r
( 1 0 - d a y s w o r k )
1 2 , 5 0 0 . 0 0 3 0 , 0 0 0 . 0 0
N u r s e r y A s s i s t a n t ( 3 -
d a y s w o r k )
1 6 0 0 . 0 0 7 , 2 0 0 . 0 0
( 1 0 - d a y s w o r k )
1 2 , 7 5 0 . 0 0 3 3 , 0 0 0 . 0 0
d a y s w o r k )
1 6 6 0 . 0 0 7 , 9 2 0 . 0 0
( 1 0 - d a y s w o r k )
2 3 , 0 2 5 . 0 0 7 2 , 6 0 0 . 0 0
d a y s w o r k )
1 7 2 6 . 0 0 8 , 7 1 2 . 0 0
( 1 0 - d a y s w o r k )
2 3 , 3 2 7 . 5 0 7 9 , 8 6 0 . 0 0
d a y s w o r k )
1 7 9 8 . 6 0 9 , 5 8 3 . 2 0
( 1 0 - d a y s w o r k )
2 3 , 6 6 0 . 2 5 8 7 , 8 4 6 . 0 0
d a y s w o r k )
1 8 7 8 . 4 6 1 0 , 5 4 1 . 5 2
1
2
3
4
5
3 7 , 0 0 0 . 0 0
4 1 , 0 0 0 . 0 0
8 1 , 0 0 0 . 0 0
8 9 , 0 0 0 . 0 0
9 8 , 0 0 0 . 0 0
Par t icul ars Year 1 Year 2 Year 3 Year 4 Year 5
Indirect Materials 1,300.00 2,100.00 2,300.00 2,500.00 2,800.00
Transportation 600.00 900.00 900.00 900.00 900.00
Nursery Maintenance 12,000.00 13,200.00 14,520.00 15,972.00 17,569.20
Total cash OH 14,000.00 16,000.00 18,000.00 19,000.00 21,000.00
Depreciation 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Total Overh ead Costs 16,000.00 18,000.00 20,000.00 21,000.00 23,000.00

Schedul e 6: ANNUAL DEPRECIATION

Schedule 7: SELLING AND ADMINISTRATIVE EXPENSES

Schedul e 8: MARKETING EXPENSE
F i x ed A s s e t s Q t y . C o s t / U n it T o t al C o s t s E s t . L i f e A n n u al D e p ' n
S h ed 1 10 ,00 0. 00 10 ,00 0. 0 0 10 1, 00 0. 0 0
S h ov el 2 20 0. 00 40 0. 0 0 3 13 3.3 3
R ake 1 30 0. 00 30 0. 0 0 5 6 0.0 0
D ug we ll 1 5 ,00 0. 00 5 ,00 0. 0 0 15 33 3.3 3
T o t a l 15 , 70 0. 0 0 1, 50 0. 0 0
P a rt i u l ar s Ye a r 1 Y ea r 2 Ye a r 3 Y ea r 4 Y ea r 5
P rm o ti on E x pe ns e s 1 , 00 0. 00 1, 1 00 . 00 1 , 21 0. 00 1, 3 31 . 00 1, 46 4. 1 0
T o t a l M a rk et i n g E x p e n s es 1 , 0 0 0. 00 1, 1 00 . 00 1 , 20 0. 00 1, 3 00 . 00 1, 50 0. 0 0
3,500.00 T otal
Amou nt (Php )
Site P reparation
500.00
500.00
500.00
2,000.00
Par t ic ul ars
Business Permit and Licensing
Business planning and organizing
Canvassing of materials
Part i cul ars Year 1 Year 2 Year 3 Year 4 Year 5
Bookkeeper (part time) 2,000.00 2,200.00 2,420.00 2,662.00 2,928.20
Total Admi ni st rati ve Expenses 2,000.00 2,200.00 2,400.00 2,700.00 2,900.00

ANNEX 4.3: PROJECTED STATEMENT OF CASH FLOWS

Pre-Op Year 1 Year 2 Year 3 Year 4 Year 5
2.0 CASHINFLOW
2.1 CashSales 200,000.00 330,000.00 360,000.00 400,000.00 440,000.00
2.2Investment 160,000.00
Total CashInflow 160,000.00 200,000.00 330,000.00 360,000.00 400,000.00 440,000.00
3.0 CASHOUTFLOW
3.1 Paymentsfor RawMaterials 84,000.00 140,000.00 160,000.00 170,000.00 190,000.00
3.2 Paymentsfor Labor 37,000.00 41,000.00 81,000.00 89,000.00 98,000.00
3.3 ProductionOverhead 14,000.00 16,000.00 18,000.00 19,000.00 21,000.00
3.4 MarketingExpenses 1,000.00 1,100.00 1,200.00 1,300.00 1,500.00
3.5 Gen. &Admin. Expenses 2,000.00 2,200.00 2,400.00 2,700.00 2,900.00
3.6 Payment of FixedAssets 15,700.00 - - - 400.00 -
3.10Pre-OperatingExpenses 3,500.00 - - - - -
Total CashOutflow 19,200.00 138,000.00 200,300.00 262,600.00 282,400.00 313,400.00
4.0 NETCASHFLOW 140,800.00 62,000.00 129,700.00 97,400.00 117,600.00 126,600.00
Add: CashBalanceBeginning 140,800.00 202,800.00 332,500.00 429,900.00 547,500.00
5.0CASHENDINGBALANCE 140,800.00 202,800.00 332,500.00 429,900.00 547,500.00 674,100.00
BAMBOONURSERY
PROJECTEDCASHFLOWSTATEMENT
For theyear ended

Annex 4.4: RETURN ON INVESTMENTS

Annex 4.5: PAYBACK PERIOD

Particulars Amount
Average Income 104,600.00
Investment Cost 160,000.00
ROI 65%
Year NI + Depreciation Cumulative Total Payback Period
1 58,000.00 58,000.00
2 129,200.00 187,200.00
Less: Cummulative Income(Year 6) 58,000.00
Amount to be Recovered 102,000.00 0.54
Year 1
Month 6 6.54
Day 11 16.15
Payback Period is approximately 1 years and 6 months

Annex 5 : BAMBOO PLANTATION

ASSUMPTIONS
1. An average of 6 poles per year in every bamboo clump can be harvested.
2. It requires 12.25 hectares in a 7x7 meter area per clump to produce 15,000
bamboo poles.
3. It requires 25 hectares in a 10 x 10 meter area per clump to produce 15,000
bamboo poles.
4. Average cost of hauling is PhP8.00/bamboo pole.
5. Cost of propagule is PhP10.00/seedling. A total of 210 propagules are acquired.
6. Cost of transport of propagule from the nursery to the plantation is
P0.50/seedling.
7. A clump requires 300g of chemical fertilizer w/ equal amount of nitrogen,
phosphorus and potassium every 3 mos. or 1.2kgs/year.
8. A kilogram of fertilizer is valued at PhP20.00.
9. Labor cost for weeding is PhP300/hectare and is done twice a year.
10. Replacement of mortality is assumed at 5% of the total propagules planted.
11. Maintenance cost is PhP300/ha. Maintenance is done twice a year.
12. . Harvesting cost is PhP4.00 per bamboo pole.
13. Cost of land was excluded in the computation since land valuation varies in every
region.


PARTICULARS AMOUNT
1. FIXED ASSETS
1.1 Dug well 5,000.00
1.3 Tools 900.00
Sub-total Fi xed Assets 5,900.00
2. WORKING CAPITAL
2.1 Direct Costs
2.1.2 Direct Labor 15,300.00
2.3.1 Marketing Expenses -
2.3.2 Gen. & Admin. Exps. -
Sub-total Worki ng Capi t al 33,500.00
3. PRE-OPERATING EXPENSES
3.1 Business Permit and Licensing 500.00
3.2 Plantation Site Preparation 1,500.00
Sub-total Pre-Operating Expenses 2,000.00
TOTAL PROJECT COSTS 40,000.00
BAMBOO PLANTATION
INVESTMENT COST

Annex 5.2: PROJECTED INCOME STATEMENT

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
1.0 SALES - - - 43,000.00 48,000.00 52,000.00 57,000.00 63,000.00 70,000.00 77,000.00
2.1.1 Raw Materials Inventory, Beg. - - - - - - - - -
2.1.2 Add: Purchases 8,000.00 3,600.00 3,900.00 4,300.00 4,700.00 5,200.00 5,700.00 6,300.00 6,900.00 7,600.00
2.1.3 Total RM Available for Use 8,000.00 3,600.00 3,900.00 4,300.00 4,700.00 5,200.00 5,700.00 6,300.00 6,900.00 7,600.00
2.1.4 Less: RM Inventory, End - - - - - - - - - -
2.1.5 Raw Materials Used 8,000.00 3,600.00 3,900.00 4,300.00 4,700.00 5,200.00 5,700.00 6,300.00 6,900.00 7,600.00
2.2 Direct Labor 7,800.00 4,600.00 2,900.00 5,200.00 5,700.00 6,300.00 6,900.00 7,600.00 8,400.00 9,200.00
2.3 Manufacturing Overhead 2,300.00 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00 1,500.00 1,500.00 1,500.00 1,500.00
2.4 Total Manufacturing Costs 18,100.00 9,600.00 8,200.00 10,900.00 11,800.00 12,900.00 14,100.00 15,400.00 16,800.00 18,300.00
2.5 Add: Work-in-Process beg. - - - - - - - - - -
2.6 Less: Work-in-Process end - - - - - - - - - -
2.7 Total Costs of Goods Manufactured 18,100.00 9,600.00 8,200.00 10,900.00 11,800.00 12,900.00 14,100.00 15,400.00 16,800.00 18,300.00
2.8 Add: Finished Goods Inventory beg. - - - - - - - - - -
2.9 Total Goods Available for Sale 18,100.00 9,600.00 8,200.00 10,900.00 11,800.00 12,900.00 14,100.00 15,400.00 16,800.00 18,300.00
2.10 Less: Finished Goods Inventory end - - - - - - - - - -
COST OF GOODS SOLD 18,100.00 9,600.00 8,200.00 10,900.00 11,800.00 12,900.00 14,100.00 15,400.00 16,800.00 18,300.00
3.0 GROSS PROFIT (18,100.00) (9,600.00) (8,200.00) 32,100.00 36,200.00 39,100.00 42,900.00 47,600.00 53,200.00 58,700.00
4.1 Marketing Expenses - - - 9,600.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 17,000.00
4.2 Gen. and Admin. Expenses - - - - - - - - - -
Total Operating Expenses - - - 9,600.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 17,000.00
5.0 NET OPERATING PROFIT (18,100.00) (9,600.00) (8,200.00) 22,500.00 25,200.00 27,100.00 29,900.00 33,600.00 38,200.00 41,700.00
Pre-Operating Expenses - - 2,000.00 - -
7.0 NET PROFIT BEFORE TAX (18,100.00) (9,600.00) (8,200.00) 20,500.00 25,200.00 27,100.00 29,900.00 33,600.00 38,200.00 41,700.00
PROJECTED INCOME STATEMENT
BAMBOO PLANTATION
For the year ended



P ar t ic u l a rs Y ea rs Qt y .
S el l i n g
Pr i c e/ p o l e
T o t a l S a l es
4 1200 3 6. 00 4 3, 0 00 . 00
5 1200 39.60 4 8, 0 00 . 00
6 1200 43.56 5 2, 0 00 . 00
7 1200 47.92 5 7, 0 00 . 00
8 1200 52.71 6 3, 0 00 . 00
9 1200 57.98 7 0, 0 00 . 00
10 1200 63.78
7 7, 0 00 . 00
B A M B OO P OL E S
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Direct Materials 8,000.00 3,600.00 3,900.00 4,300.00 4,700.00 5,200.00 5,700.00 6,300.00 6,900.00 7,600.00
Direct Labor 7,800.00 4,600.00 2,900.00 5,200.00 5,700.00 6,300.00 6,900.00 7,600.00 8,400.00 7,600.00
Production Overhead 2,300.00 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00 1,500.00 1,500.00 1,500.00 1,500.00
Total Production Costs 18,100.00 9,600.00 8,200.00 10,900.00 11,800.00 12,900.00 14,100.00 15,400.00 16,800.00 16,700.00
Divide by: Prod'n Volume - - - 1,200.00 1,200.00 1,200.00 1,201.00 1,202.00 1,203.00 1,204.00
Production Cost per Unit 9.08 9.83 10.75 11.74 12.81 13.97 13.87

Schedul e 3: FARM INPUTS

Schedul e 4: LABOR COSTS

P a rt i cu l a r s Ye ar s Q u a n t i t y Co st /u n i t
T o t a l
C o st
Pr o p a g ul es /B am b o o Se ed l i n gs ( p c s )
240 2 0.00
F erti lizer (kg) 240 1 3.50
2 240 1 4.85
3,60 0. 00
3 240 1 6.34 3,90 0. 00
4 240 1 7.97
4,30 0. 00
5 240 1 9.77 4,70 0. 00
6 240 2 1.74
5,20 0. 00
7 240 2 3.92 5,70 0. 00
8 240 2 6.31
6,30 0. 00
9 240 2 8.94 6,90 0. 00
10 240 3 1.83
7,60 0. 00
8, 00 0. 00
Fertilizer (kg)
1
Task No. Rate Total Costs No Rate Total Costs No Rate Total Costs No. Rate Total Costs No Rate Total Costs No Rate Total Costs No Rate Total Costs No Rate Total Costs No Rate Total Costs No Rate Total Costs
Planting and Watering, days 48 150.00 7,200.00 24 165.00 3,960.00 12 181.50 2,178.00 - - - - - - - - - - - - - -
Weeding, days 4 150.00 600.00 4 165.00 660.00 4 181.50 726.00 2 199.65 399.30 2 219.62 439.23 2 241.58 483.15 2 265.73 531.47 2 292.31 584.62 2 321.54 643.08 2 353.69 707.38
Harvesting, days 1,200 4.00 4,800.00 1,200 4.40 5,280.00 1,200 4.84 5,808.00 1,200 5.32 6,388.80 1,200 5.86 7,027.68 1,200 6.44 7,730.45 1,200 7.09 8,503.49
Total - Direct Labor 7,800.00 4,600.00 2,900.00 5,200.00 5,700.00 6,300.00 6,900.00 7,600.00 8,400.00 9,200.00
Year 8 Year 9 Year 10 Year 5 Year 6 Year 1 Year 2 Year 3 Year 4 Year 7

Schedul e 5: OVERHEAD COSTS


Schedule 7: ADMINISTRATIVE EXPENSE

Schedule 8: MARKETING EXPENSE

Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Transportation 100.00 - - -
Replacement of Mortality 800.00 -
Maintenancecost 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00
Sub-total 1,500.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00
Depreciation 800.00 800.00 800.00 830.00 830.00 830.00 860.00 860.00 860.00 900.00
Total Overhead Costs 2,300.00 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00 1,500.00 1,500.00 1,500.00 1,500.00
Fi x ed A s se t s Q t y. Co s t/ Un it To t al Co st s E st. L i f e A n n u a l D ep ' n
Dug well 1 5,000.00 5,000.00 10 500.00
S hov el , R ake and Bolo 3 300.00 900.00 3 300.00
T o t a l 5 , 30 0.00 5 ,90 0. 0 0 8 00 .0 0
T otal
Amou nt (Ph p )
500.00
1,500.00
Par t ic ul a rs
Busi ness P ermit and L icensing
P lantation site preparation
2,000.0 0
Particulars Qty. Cost/pole Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Haulingand/or transport 1,200 8.00 9,600.00 10,560.00 11,616.00 12,777.60 14,055.36 15,460.90 17,006.99
Total MarketingExpenses 9,600.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 17,000.00

Annex 5.3: PROJECTED STATEMENTS OF CASH FLOWS

Pre-Op Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
1.0 CASH INFLOW
1.1 Cash Sales - - - 43,000.00 48,000.00 52,000.00 57,000.00 63,000.00 70,000.00 77,000.00
1.2 Investments
Total Cash Infl ow - - - - 43,000.00 48,000.00 52,000.00 57,000.00 63,000.00 70,000.00 77,000.00
2.0 CASH OUTFLOW
2.1 Payments for RawMaterials 8,000.00 3,600.00 3,900.00 4,300.00 4,700.00 5,200.00 5,700.00 6,300.00 6,900.00 7,600.00
2.2 Payments for Labor 7,800.00 4,600.00 2,900.00 5,200.00 5,700.00 6,300.00 6,900.00 7,600.00 8,400.00 9,200.00
2.3 Production Overhead 1,500.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00
2.4 Marketing Expenses - - - 9,600.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 17,000.00
2.5 Gen. & Admin. Expenses - - - - - - - - - -
2.6 Payment of Fixed Assets 5,900.00 - - 990.00 - - 1,089.00 - 1,197.90
2.10 Pre-Operating Expenses 2,000.00 - - - - - - - - - -
Total Cash Outflow 7,900.00 17,300.00 8,800.00 7,400.00 20,690.00 22,000.00 24,100.00 27,289.00 28,500.00 30,900.00 35,597.90
4.0 NET CASH FLOW (7,900.00) (17,300.00) (8,800.00) (7,400.00) 22,310.00 26,000.00 27,900.00 29,711.00 34,500.00 39,100.00 41,402.10
Add: Cash Balance Beginning (7,900.00) (25,200.00) (34,000.00) (41,400.00) (19,090.00) 6,900.00 35,000.00 65,000.00 100,000.00 140,000.00
5.0 CASH ENDING BALANCE (7,900.00) (25,200.00) (34,000.00) (41,400.00) (19,090.00) 6,900.00 35,000.00 65,000.00 100,000.00 140,000.00 180,000.00
PROJECTED CASH FLOW STATEMENT
For the year ended
BAMBOO PLANTATION



Particulars Amount
ROI 45%
1 (18,900.00) (18,900.00)
2 (10,400.00) (29,300.00)
3 (9,000.00) (38,300.00)
4 21,330.00 (16,970.00)
5 26,030.00 9,060.00
6 27,930.00 36,990.00
7 30,760.00 67,750.00
Less: Cummulative Income (Year 6) 36,990.00
Year 6
Month 4
0.53
Day 15 15.99
Payback Period is approximately 6 years and 4 month

Annex 6 : BAMBOO PRODUCTION (PLANTATION)

ASSUMPTIONS
1. An average of 6 poles per year in every bamboo clump can be harvested.
2. 1 gallon of wood tech could treat 2,000 pieces of bamboo slats [480,000
slats/2,000 =240 gallons or 1,200 lit.]
3. Two (2) weeks raw materials inventory is allocated.
4. Fifty (50) bamboo stem of varied species can yield an average of 1600 slats.
**A pole could produce an average of 32 slats [480,000 slats/32 slats = 15,000
poles.]
5. Cost of pole is estimated to increase by 10% yearly.
6. Workers are expected to work for 25 days per month. Rate per day will increase
by 10% annually.
7. Overhead costs are also estimated to increase by 10% annually.
8. Price of slat will increase by 5% on the 2nd year and 10% on the 3rd year.
9. Marketing and administrative costs will also increase by 10% yearly.
10. Cost of land was excluded in the computation since land valuation varies in every
region.


Part i cul ar s Amoun t
1. FIXED ASSET S
1.2 Building/Shed 20,000.00
1.3 Machineries and Equipment 220,000.00
Sub -to tal Fi x ed As sets 240,000.00
2. WORKING CAPITAL [ 2 mont hs c y cl e]
2.1 Direct Costs
2.1.2 Direct Labor 31,500.00
2.3.1 Marketing Expenses 4,833.33
2.3.2 Gen. & Admin. Exps. 16,666.67
Sub -to tal Wor ki ng Capi t al 180,000.00
3. PRE- OPERAT ING EXPENSES
3.1 Business Permit and Licensing 8,000.00
3.2 Trial P roduction 5,000.00
3.3 Business planning and organizing 5,000.00
3.4 Canvassing 2,000.00
3.5 Shed construction processing 2,000.00
Sub -to tal Pr e- Oper ati ng Exp ens es 22,000.00
T OTAL PROJ ECT COSTS 442,000.00
TOTAL PROJECT COST
BAMB OO PRODUCTION (NODES)

Annex 6.2: PROJECTED INCOME STATEMENT

Parti cul ars Year 1 Year 2 Year 3 Year 4 Year 5
1.0 GROSS SALES 1,600,000.00 1,600,000.00 1,800,000.00 2,000,000.00 2,200,000.00
2.1.1 Raw Materials Inventory, Beg. - 28,000.00 32,000.00 35,000.00 39,000.00
2.1.2 Add: Purchases 730,000.00 800,000.00 880,000.00 970,000.00 1,100,000.00
2.1.3 Total RM Available for Use 730,000.00 828,000.00 912,000.00 1,005,000.00 1,139,000.00
2.1.4 Less: RM Inventory, End 28,000.00 32,000.00 35,000.00 39,000.00 44,000.00
2.1.5 Raw Materials Used 702,000.00 796,000.00 877,000.00 966,000.00 1,095,000.00
2.2 Direct Labor 190,000.00 210,000.00 230,000.00 250,000.00 280,000.00
2.3 Manufacturing Overhead 53,000.00 56,000.00 59,700.00 63,700.00 68,800.00
2.4 Total Manufacturing Costs 945,000.00 1,062,000.00 1,166,700.00 1,279,700.00 1,443,800.00
2.5 Add: Work-in-Process beg. - - - -
2.6 Less: Work-in-Process end - - -
2.7 Total Costs of Goods Manufactured 945,000.00 1,062,000.00 1,166,700.00 1,279,700.00 1,443,800.00
2.8 Add: Finished Goods Inventory beg. - - - - -
2.9 Total Goods Available for Sale 945,000.00 1,062,000.00 1,166,700.00 1,279,700.00 1,443,800.00
2.10 Less: Finished Goods Inventory end - - -
COST OF GOODS SOLD 945,000.00 1,062,000.00 1,166,700.00 1,279,700.00 1,443,800.00
3.0 GROSS PROFIT 655,000.00 538,000.00 633,300.00 720,300.00 756,200.00
4.1 Marketing Expenses 29,000.00 32,000.00 35,000.00 39,000.00 42,000.00
4.2 Gen. and Admin. Expenses 100,000.00 110,000.00 120,000.00 140,000.00 150,000.00
Total Operating Expenses 129,000.00 142,000.00 155,000.00 179,000.00 192,000.00
5.0 NET OPERATING PROFIT 526,000.00 396,000.00 478,300.00 541,300.00 564,200.00
Pre-Operating Expenses 22,000.00 - - - -
7.0 NET PROFIT BEFORE TAX 500,000.00 400,000.00 480,000.00 540,000.00 560,000.00
BAMBOO PRODUCTION (NODES)
PROJECTED INCOME STATEMENT
For the year ended



Schedul e 3: LABOR COST

Parti cu l ar s Year Qty . Pric e Tot al Sal es
1 480,000 3.25 1,560,000.00
2 480,000 3.41 1,638,000.00
3 480,000 3.75 1,800,000.00
4 480,000 4.13 2,000,000.00
5 480,000 4.54 2,200,000.00
Treated Slats
Direct Materials 730,000.00 800,000.00 880,000.00 970,000.00 1,100,000.00
Direct Labor 190,000.00 210,000.00 230,000.00 250,000.00 280,000.00
ManufacturingOverhead 53,000.00 56,000.00 59,700.00 63,700.00 68,800.00
Total ProductionCosts 973,000.00 1,066,000.00 1,169,700.00 1,283,700.00 1,448,800.00
Divideby: Prod'nVolume 480,000.00 480,000.00 480,000.00 48,000.00 48,000.00
Production Cost per Unit 2.03 2.22 2.44 26.74 30.18
Direct Labor (50poles/daycapacity)
Particulars Man Rate Daily Monthly Year1 Year2 Year3 Year4 Year5
cutters 2 160.00 320.00 8,000.00 96,000.00 105,600.00 116,160.00 127,776.00 140,553.60
ripper 1 160.00 160.00 4,000.00 48,000.00 52,800.00 58,080.00 63,888.00 70,276.80
utility 1 150.00 150.00 3,750.00 45,000.00 49,500.00 54,450.00 59,895.00 65,884.50
Total 630.00 15,750.00 190,000.00 210,000.00 230,000.00 250,000.00 280,000.00

Schedule 4: DIRECT MATERIALS COST

Schedul e 5: OVERHEAD COST


Particulars
QuantityCost/Unit Total Cost QuantityCost/Unit Total Cost QuantityCost/Unit Total Cost QuantityCost/Unit Total Cost QuantityCost/Unit Total Cost
Direct/RawMaterials
Bamboopole 15,000 35.00 525,000.00 15,000 38.50 577,500.00 15,000 42.35 635,250.00 15,000 46.59 698,775.0015,000 51.24 768,652.50
Treatmentmaterial, lit. 1,200 170.00 204,000.00 1,200 187.00 224,400.00 1,200 205.70 246,840.00 1,200 226.27 271,524.00 1,200 248.90 298,676.40
Total Direct Materials 730,000.00 800,000.00 880,000.00 970,000.00 1,100,000.00
Year 3 Year2 Year 1
Year4 Year5
Transportation 12,000.00 13,200.00 15,000.00 17,000.00 19,000.00
Repairs andMaintenance 5,000.00 5,500.00 6,100.00 6,700.00 7,400.00
Water 3,000.00 3,300.00 3,600.00 4,000.00 4,400.00
Electricity 12,000.00 13,000.00 14,000.00 15,000.00 17,000.00
Sub-total 32,000.00 35,000.00 38,700.00 42,700.00 47,800.00
Depreciation 21,000.00 21,000.00 21,000.00 21,000.00 21,000.00
Total Overhead Costs 53,000.00 56,000.00 59,700.00 63,700.00 68,800.00
Fi xed Assets Qt y. Cost/Unit Total Costs Est. Li fe Annual Dep'n
Land 50,000.00 50,000.00
Pole cutter 1 55,000.00 55,000.00 15 3,666.67
Twin rip saw 1 120,000.00 120,000.00 10 12,000.00
Treatment vat 1 45,000.00 45,000.00 15 3,000.00
Shed 1 20,000.00 20,000.00 10 2,000.00
Total 290,000.00 21,000.00

Schedule 7: ADMINISTRATIVE EXPENSES

Schedule 8: MARKETING EXPENSE

P a r t ic u l a r s
B u si ne s s P e rm it an d L ic e ns in g
T ria l P ro du c tio n
B u si ne s s p la nn in g a nd org an iz i ng
2 2 , 0 0 0 . 0 0 T o t a l
A m o u n t ( P h p )
8 , 00 0. 0 0
5 , 00 0. 0 0
5 , 00 0. 0 0
2 , 00 0. 0 0
2 , 00 0. 0 0
C an va ss i ng
S h ed c on str uc tio n p ro c es s in g
Bookkeeper 6,000.00 6,600.00 7,260.00 7,986.00 8,784.60
Supervisor/QC 90,000.00 99,000.00 108,900.00 119,790.00 131,769.00
Communication 6,000.00 6,600.00 7,260.00 7,986.00 8,784.60
Total AdministrativeExpenses 100,000.00 110,000.00 120,000.00 140,000.00 150,000.00
Meetings 5,000.00 5,500.00 6,050.00 6,655.00 7,320.50
Delivery Expenses, batch/yr. 24,000.00 26,400.00 29,040.00 31,944.00 35,138.40
Total Marketing Expenses 29,000.00 32,000.00 35,000.00 39,000.00 42,000.00

Annex 6.3: PROJECTED STATEMENT OF CASH FLOW

Pre-Op Year 1 Year 2 Year 3 Year 4 Year 5
1.0 CASHINFLOW
1.1CashBalanceBeginning - - 520,000.00 1,500,000.00 3,500,000.00 7,600,000.00
1.2CashSales 1,600,000.00 1,600,000.00 1,800,000.00 2,000,000.00 2,200,000.00
1.3Investment 442,000.00
Total CashInflow 442,000.00 1,600,000.00 2,120,000.00 3,300,000.00 5,500,000.00 9,800,000.00
2.0 CASHOUTFLOW
2.1 Paymentsfor RawMaterials 121,666.67 730,000.00 800,000.00 880,000.00 970,000.00 1,100,000.00
2.2 Paymentsfor Labor 31,500.00 190,000.00 210,000.00 230,000.00 250,000.00 280,000.00
2.3 Paymentsfor Overhead 5,333.33 32,000.00 35,000.00 38,700.00 42,700.00 47,800.00
2.4 MarketingExpenses 4,833.33 29,000.00 32,000.00 35,000.00 39,000.00 42,000.00
2.5 Gen. &Admin. Expenses 16,666.67 100,000.00 110,000.00 120,000.00 140,000.00 150,000.00
2.6 Payment of FixedAssets 240,000.00 - - 1.00 2.00
2.10Pre-OperatingExpenses 22,000.00 - - - 1.00 2.00
Total CashOutflow 442,000.00 1,081,000.00 1,187,000.00 1,303,700.00 1,441,702.00 1,619,804.00
3.0 NETCASHFLOW - 519,000.00 933,000.00 1,996,300.00 4,058,298.00 8,180,196.00
4.0CASHENDINGBALANCE - 520,000.00 1,500,000.00 3,500,000.00 7,600,000.00 16,000,000.00
BAMBOOPRODUCTION(NODES)
PROJECTEDCASHFLOWSTATEMENT
For theyear ended



Particulars Amount
ROI 112%
Year NI +Depreciation Cumulative Total Payback Period
1 521,000.00 521,000.00
Less: CummulativeIncome(Year 1)
Amount tobeRecovered 0.85
Year
Month
10.18
Day 5.41
Payback Periodis approximately1 year

Annex 7 : BAMBOO NODE (Pr imar y pr ocessing)

ASSUMPTIONS
1. The number of slats extracted from one bamboo pole depends on the specie as
follows:
Tinik: 4 cuts of 4ft length x 8 slats =32 slats
Botong and Giant bamboo: 6 cuts of 4ft. length x 8 slats =48
2. Fifty [50] bamboo poles of varied species can yield an average of 1,600 slats.
3. An average of .05kg of glue per square foot of tile, plank and laminated board is
needed.
4. An average of 10ml of lacquer per square foot of tile, plank laminated board is
needed.
5. One square foot of tile, plank, plybo and laminated board with inch thickness
requires 6 slats of 5mm X 1 inch x 4 ft.
6. With 1,600 slats [or 267 sq.ft./day] for 25 days operation per month in 12 months,
a hub can produce 80,000 sq.ft. of bamboo tiles/planks/plybo/laminated board
with inch thickness.
7. The cost of land was excluded in the computation since land valuation varies in
every region.


P A RTI CUL A RS A MOUNT
1 . FI XE D A S S ET S
1.1 Machi neries and E quipmemt 2,010,000.00
1.2 Buil di ng 300,000.00
S u b -t o t al Fi x ed A s se t s 2 ,3 10 , 00 0. 0 0
2 . WO RK I NG CA P I TA L ( 2 m o s . )
2.1 Direct Costs
2.1.1 Di rect Materi als 350,000.00
2.1.2 Di rect Labor 55,000.00
2.2 Producti on Overhead 51,000.00
2.3 Operati ng Expenses
2.3.1 M arketing E xpenses 22,000.00
2.3.2 G en. & Admi n. E xps. 36,000.00
S u b -t o t al W o r ki n g C ap i t al 5 14 , 00 0. 0 0
3 . PRE - OP E RA T IN G E X P ENS E S
3.1 Business Permit and L icensi ng 10,000.00
3.2 Tri al P roduction 10,000.00
3.3 Business Pl anni ng &Organizi ng 20,000.00
3.4 Canvassi ng 5,000.00
3.5 Buil di ng construction 20,000.00
S ub- total pre-operating exps. 6 5, 0 00 . 00
T OTA L P ROJ EC T COS T 2 ,8 89 , 00 0. 0 0
B A MB O O H UB
I NVE S TM EN T COS T

Annex 7.2: PROJECTED INCOME STATEMENTS

Particulars Year 1 Year2 Year 3 Year 4 Year 5
1.0 SALES 4,800,000.00 5,800,000.00 7,000,000.00 8,500,000.00 10,000,000.00
2.0 Less: Cost of GoodsSold
2.1.1 Raw Materials Inventory, Beg. 82,000.00 100,000.00 120,000.00 140,000.00
2.1.2 Add: Purchases 2,100,000.00 2,500,000.00 3,000,000.00 3,500,000.00 4,200,000.00
2.1.3 Total RM Availablefor Use 2,100,000.00 2,582,000.00 3,100,000.00 3,620,000.00 4,340,000.00
2.1.4 Less: RM Inventory, End 82,000.00 100,000.00 120,000.00 140,000.00 170,000.00
2.1.5 Raw Materials Used 2,018,000.00 2,482,000.00 2,980,000.00 3,480,000.00 4,170,000.00
2.2 Direct Labor 330,000.00 360,000.00 400,000.00 440,000.00 480,000.00
2.3 ManufacturingOverhead 330,000.00 340,000.00 350,000.00 370,000.00 380,000.00
2.4 Total ManufacturingCosts 2,678,000.00 3,182,000.00 3,730,000.00 4,290,000.00 5,030,000.00
2.5 Add: Work-in-Process beg. - - - - -
2.6 Less: Work-in-Process end - - - - -
2.7 Total Costs of Goods Manufactured 2,678,000.00 3,182,000.00 3,730,000.00 4,290,000.00 5,030,000.00
2.8 Add: Finished Goods Inventory beg. - - - - -
2.9 Total Goods Available for Sale 2,678,000.00 3,182,000.00 3,730,000.00 4,290,000.00 5,030,000.00
2.10Less: Finished Goods Inventory end - - - - -
COSTOFGOODS SOLD 2,678,000.00 3,182,000.00 3,730,000.00 4,290,000.00 5,030,000.00
3.0 GROSSPROFIT 2,122,000.00 2,618,000.00 3,270,000.00 4,210,000.00 4,970,000.00
4.1MarketingExpenses 130,000.00 143,000.00 157,300.00 157,300.00 170,000.00
4.2Gen. and Admin. Expenses 72,000.00 79,000.00 87,000.00 96,000.00 110,000.00
Total OperatingExpenses 200,000.00 220,000.00 240,000.00 250,000.00 280,000.00
5.0 NETOPERATINGPROFIT 1,922,000.00 2,398,000.00 3,030,000.00 3,960,000.00 4,690,000.00
Pre-Operating Expenses 65,000.00 - - - -
7.0 NETPROFITBEFORETAX 1,857,000.00 2,398,000.00 3,030,000.00 3,960,000.00 4,690,000.00
BAMBOOHUB
PROJECTEDINCOMESTATEMENT
For theyear ended __

Schedule 1: PRODUCTION COST PER UNIT

Schedule 2: LABOR COST

Schedule 3: OVERHEAD COST

Particulars Amount
Direct materials 2,128,751.50
Direct labor 330,000.00
Production Overhead 306,266.67
Total Production Cost 2,765,018.17
Production Volume 80,000
Production cost/unit 34.56
LaborRequirements(Hub[267sq.ft./daycapacity)
Particulars
Labor
Required
Rate/day
[Php]
Monthly Year1 Year 2 Year3 Year4 Year5
Supervisor 1 300.00 7,500.00 90,000.00 99,000.00 108,900.00 119,790.00 131,769.00
Workers 4 200.00 20,000.00 240,000.00 264,000.00 290,400.00 319,440.00 351,384.00
Total 330,000.00 360,000.00 400,000.00 440,000.00 480,000.00
Particulars Year1 Year2 Year3 Year4 Year5
Transportation 48,000.00 52,800.00 58,080.00 63,888.00 70,276.80
RepairsandMaintenance 12,000.00 13,200.00 14,520.00 15,972.00 17,569.20
Water 3,000.00 3,300.00 3,630.00 3,993.00 4,392.30
Electricity 48,000.00 52,800.00 58,080.00 63,888.00 70,276.80
Sub-total 110,000.00 120,000.00 130,000.00 150,000.00 160,000.00
Depreciation 220,000.00 220,000.00 220,000.00 220,000.00 220,000.00
Total OverheadCosts 330,000.00 340,000.00 350,000.00 370,000.00 380,000.00

Schedule 4: ANNUAL DEPRECIATION

Particulars Qty. Cost/Unit Total Costs Est. Life Annual Dep'n
Kilndryer 1 300,000.00 300,000.00 15 20,000.00
Jointerplaner 1 150,000.00 150,000.00 10 15,000.00
Thicknessplaner 1 200,000.00 200,000.00 10 20,000.00
Singlespindlemoulder 1 180,000.00 180,000.00 10 18,000.00
Manual rollerswithfunnel 2 1,000.00 2,000.00 3 666.67
Tablepresswithpneumaticpress 1 120,000.00 120,000.00 10 12,000.00
Armsaw 1 120,000.00 120,000.00 15 8,000.00
Circularsawslidingtable 1 150,000.00 150,000.00 15 10,000.00
Widebeltsander 1 430,000.00 430,000.00 10 43,000.00
Aircompressorwithspraygun 1 30,000.00 30,000.00 10 3,000.00
Sharpeningforcircularsaw 1 150,000.00 150,000.00 10 15,000.00
Grinderforplanerknives 1 150,000.00 150,000.00 10 15,000.00
Toolsandotherequipment, set 1 28,000.00 28,000.00 5 5,600.00
Building 1 300,000.00 300,000.00 10 30,000.00
Total 2,310,000.00 220,000.00

Annex 7.3: PROJECTED STATEMENT OF CASH FLOW

Particulars Pre-Op Year1 Year2 Year3 Year4 Year5
1.0 CASHINFLOW
1.1 CashSales 4,800,000.005,800,000.007,000,000.008,500,000.00 10,000,000.00
1.2Investment 2,889,000.00
Total CashInflow 2,889,000.004,800,000.005,800,000.007,000,000.008,500,000.00 10,000,000.00
2.0 CASHOUTFLOW
2.1 Paymentsfor RawMaterials 2,100,000.002,500,000.003,000,000.00 3,500,000.00 4,200,000.00
2.2 Paymentsfor Labor 330,000.00 360,000.00 400,000.00 440,000.00 480,000.00
2.3 ManufacturingOverhead 110,000.00 120,000.00 130,000.00 150,000.00 160,000.00
2.4 MarketingExpenses 130,000.00 143,000.00 157,300.00 157,300.00 170,000.00
2.5 Gen. &Admin. Expenses 72,000.00 79,000.00 87,000.00 96,000.00 110,000.00
2.6 Payment of FixedAssets 2,310,000.00 - - - -
2.7Pre-OperatingExpenses 65,000.00 - - - - -
Total CashOutflow 2,375,000.002,742,000.003,202,000.003,774,300.004,343,300.00 5,120,000.00
3.0 NETCASHFLOW 514,000.002,058,000.002,598,000.003,225,700.004,156,700.00 4,880,000.00
Add: CashBalanceBeginning 514,000.002,572,000.005,170,000.00 8,400,000.00 13,000,000.00
4.0CASHENDINGBALANCE 514,000.002,572,000.005,170,000.008,400,000.0013,000,000.00 18,000,000.00
BAMBOOHUB
PROJECTEDCASHFLOWS
Fortheyearended

Annex 7.4: RETURN ON INVESTMENT


Particulars Amount
AverageIncome 3,187,000.00
Investment Cost 2,889,000.00
ROI 110%
1 2,077,000.00 2,077,000.00
2 2,618,000.00 4,695,000.00
Investment Cost 2,889,000.00
Less: Cummulative Income (Year 6) 2,077,000.00
Year 1
Month 2
2.08
Day 3 2.26
Payback Period is approximately 1 years and 2 months

ANNEX 8: Bamboo HUB - ENGINEERED BAMBOO PRODUCTION
COST (FOR MEDIUM ENTREPRISES)

Based on the data gathered from National Statistics Office (NSO) database,
there are total of 92,107, 99,010, 117,086 building constructions for the years 2007,
2008, 2009 respectively. The building construction increased by an average of 12.88%
yearly. The completeness of the number of buildings registered relies on the
applications filed and approved by the Local Building Officials (LBOs) in all cities and
municipalities nationwide. Building constructions without approved building permits are
not included in the statistics gathered.

With the data mentioned above, it is assumed that 40% will be the market for
engineered bamboo products. Thus, a total of 52,867 building constructions will be the
target market of this project and it is expected to increase by an average of 12.88% per
annum. Products to be produced are the following:

1. Bamboo plank is resistant to any kind of damage from dampness and is
faultlessly durable. This quality to resist moisture makes it dependable and hard-
wearing. The maintenance and cleaning is very easy and does not require
harmful chemicals. In fact, study had shown that bamboo flooring which is 13%
harder than Maple and 26% harder than Oak, makes it longer lasting.

2. Bamboo composed laminated boards has high density and low formaldehyde
emission. It is extremely hard, durable and dent-resistant. And because bamboo
is treated during manufacturing, it does not attract termites or ants. It is fire and
warp-resistant, essentially slip-proof, and really easy to clean. Bamboo
composed laminated boards is a naturally water resistant material so it does not
expand or contract as much when exposed to moisture. And the lamination
makes it stronger and resilient.

3. Bamboo cabinet doors also offer an alternative to the mass-produced stock
cabinets made with a good percentage of particle board and medium density
fiberboard (MDF). That's because most bamboo cabinet doors are made with
solid bamboo and/or bamboo plywood. Bamboo cabinet door has no harmful
chemical treatment and is naturally resistant from wood borers and termites.
The figure below shows the process of manufacturing bamboo-based products.

Milling and Boiling
Kiln Drying
Final QC / Packaging
Finished Product:
Bamboo Planks, Laminated Boards
and Cabinet Doors
Bamboo
Milling and Color Matching
Lamination
Planning and Milling

Shaping / Ripping and
Assembling
Operation -
- Inspection
- Transport
- Delay
- Storage
Legend:

Financial Assumptions:

Botong and apos are the identified species of bamboo. They are the species
being considered for engineered bamboo because of their tenacity and
thickness;
Production area is measured at 2,000 sq. meters;
Given an eight-hour and six days a week production, the business has the rated
capacity to produce 200,000 square meters of engineered bamboo yearly based
on the capacity of the set of equipment that they will be acquired from Shanghai,
China.
The production will require 780,250 poles in a year [1 pole =88 slats (11 3 ft
round pole x 8 slats per round pole)];
Capacity utilization is 50% and will increase by 20% on the succeeding years.
Working capital cycle is one (1) month.
Products will be priced based on production costs. An average of 50% mark-up
on cost will be implemented and the scheme of payment is cash basis, FOB
shipping point;
Production ratio: Bamboo Planks=50%, Bamboo Laminated Board=10%,
Bamboo Cabinet Doors=40%
Number of slats needed per product: planks=24; laminated boards=9; cabinet
doors=34
Two production supervisors will be hired to oversee the daily operations of the
business;
There are 74 production workers needed in the operation;
The business will incur an estimated promotional cost of PhP 100,000.00
monthly;
All expenses will increase by 10% per annum


Annex 8.1 Total Project Cost
ENGINEERED BAMBOO PRODUCTION
TOTAL PROJECT COST

Particulars Amount
Fixed Assets
Building 1,000,000.00
Machinery and Equipment 20,670,000.00
Total Fixed Assets 21,669,950.00

Working Capital (1 month)
Direct Materials 2,355,000.00
Direct Labor 2,227,000.00
Overhead Expenses 1,042,000.00
Selling and Administrative Expenses 231,000.00
Total Working Capital 5,855,000.00

TOTAL PROJECT COST 27,525,000.00

Annex 8.2 Projected Income Statements


Schedule 1: Cost of Direct Materials
Particulars
Total Capacity
Volume (in Bd ft.)
Number of
Strips Per BF
Unit Cost Year 1 Year 2 Year 3
Bamboo Planks 538,195.52 24 1.00 12,857,490.99 16,971,888.11 31,115,128.20
Bamboo Composed
Laminated Board
107,639.10 9 1.00 919,237.95 1,213,394.09 1,601,680.20
Bamboo Cabinet Doors 430,556.42 34 1.00 14,483,917.86 19,118,771.57 25,236,778.47
Total

28,260,646.80 37,304,053.77 57,953,586.88

Schedule 2: Direct Labor= 74 Production Workers Including Machine Operators
Particulars Number of Units Cost of Labor Per Unit Year 1 Year 2 Year 3
Bamboo Planks 854,279 23.00 19,648,000.00 25,935,000.00 34,234,000.00
Bamboo Composed
Laminated Board
4,489 329.00 1,476,800.00 1,949,400.00 2,573,200.00
Bamboo Cabinet Doors 254,767

Processing

10.00 2,547,700.00 3,363,000.00 4,439,200.00
Assembling

12.00 3,057,200.00 4,035,500.00 5,326,900.00
Total

26,729,700.00 35,282,900.00 46,573,300.00

Schedule 3: Overhead Expenses
Particulars Monthly Year 1 Year 2 Year 3
Indirect Labor (2
Supervisor @ Php
15,000.00 per month plus
50 cents incentives to
every unit produce)
586,767.21 916,800.00 1,095,000.00 1,330,000.00
Utilities 355,000.00 4,260,000.00 4,686,000.00 5,154,600.00
Repairs and Maintenance 100,000.00 1,200,000.00 1,320,000.00 1,452,000.00
Depreciation 165,550.00 1,986,600.00 1,986,600.00 1,986,600.00
Total 1,207,317.21 8,363,400.00 9,087,600.00 9,923,200.00


Schedule 4: Selling and Administrative Expense
Particulars Monthly Year 1 Year 2 Year 3
Communication Expense 50,000.00 600,000.00 660,000.00 726,000.00
Salaries and Wages 81,000.00 81,000.00 1,069,200.00 1,176,120.00
Promotion expense 100,000.00 1,200,000.00 1,320,000.00 1,452,000.00
Total 231,000.00 1,881,000.00 3,049,200.00 3,354,120.00

Particulars
Production
Percentage
Rate
Total Volume (in
m)
Total Rated
Capacity Volume
(in Bd ft.)
Capacity
Utilization
Board
Feet
Required
per Unit
Total Units Per
Product Line
Bamboo Planks 50% 100,000 1,076,391.04 50% 0.63 854,279
Bamboo Composed
Laminated Board 10% 20,000 215,278.21
50%
23.98 4,489
Bamboo Cabinet Doors 40% 80,000 861,112.83 50% 1.69 254,767
Total 100% 200,000 2,152,782.08


TOTAL SALES
Particulars Number of Units Selling Price Year 1
Bamboo Planks 854,279 64.42 55,030,800.00
Bamboo Composed Laminated Board
4,489 1,080.17 4,848,600.00
Bamboo Cabinet Doors 254,767 137.97 35,151,300.00
Total 95,030,700.00

Bamboo Planks 1,025,134 69.43 71,176,000.00
5,386 1,133.83 6,107,300.00
Total - 122,511,800.00

Bamboo Planks 1,230,161 85.73 105,466,000.00
6,464 1,199.12 7,750,800.00
Total 171,675,000.00

REFERENCES
National Economic Research and Business Assistance Center (NERBAC) Region XII, Bamboo
Profile
Ben G. Bajera, Bamboo Production and Propagation Method 2010
PCCARD Department of Science and Technology, Philippine Bamboo Manufacturers 2002
Master Garden, Growing Bamboo 2011
National Economic Research and Business Assistance Center (NERBAC) Region XII,
Engineered Bamboo
Merlyn N. Rivera, Philippine National Report on Bamboo and Rattan 1999
Carmelita B. Bersalona, Community Bamboo Nursery
Ernesto Casiple Jr., Bamboo Industry Value Chain
Department of Trade and Industry Region III, Bamboo Industry Updates
Department of Trade and Industry Region 5, Bamboo Industry Cluster
Felipe M. de Leon, Jr., Bamboo: The Elegant Grass
Cristina A. Roxas, Bamboo Research in the Philippines
International Network for Bamboo and Rattan
Gijsbert Koren, New Bamboo Product for the Global Market
Industrialization of the Bamboo sector: Challenges and Opportunities, Amir Ullah Khan and
Arnab Hazra
Food and Agriculture Organization (FAO)
Azmy H.J. Mohamed et al., 2007; A. C. Sekhar et al, 1962; Limaye, V.D., 1952
Indonesia Kompas newpaper, August 2009

Bamboo Industry Study Rod G

Uploaded by

Copyright:

Available Formats

Bamboo Industry Study Rod G

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bamboo Industry Study Rod G

Uploaded by

Copyright:

Available Formats

qwertyuiopasdfghjklzxcvbnmqwertyui

You might also like