$500-M ADB fund eyed for bamboo industry
The Department of Agriculture (DA) is hoping to obtain next year up to $500 million in funding from the Asian Development Bank (ADB) or other multilateral banks, to develop the Philippine bamboo industry.
Agriculture Assistant Secretary Arnel de Mesa said on Monday that the agency was looking to avail of $300 million to $500 million from international financial institutions, citing the huge potential for engineered bamboo as an alternative material for construction.
“The purpose of our bamboo project is to explore its potential … to maximize it for all possible usage,” he said in an interview.
De Mesa, also the DA’s spokesperson, said that the ADB and other global financial banks have expressed their willingness to support the proposed project, which, if approved, would run for five years.
He cited a “big demand” for engineered bamboo, alongside a strong potential to boost investments and farmers’ incomes.
“It’s not bamboo as food per se, but the potential of bamboo, because they see that it can serve as a replacement in construction, especially engineered bamboo and for other purposes,” de Mesa said on the sidelines of the Hand in Hand National Investment Forum in Pasig City.
De Mesa noted that the country imports engineered bamboo, adding that China was the world’s leading exporter of this material.
Engineered bamboo refers to a range of high-performance composite products created by cutting the round bamboo culms into smaller pieces. It is commonly used in flooring and furniture.
De Mesa also said that the country has significant bamboo production, particularly giant bamboo, which can be used for soil erosion and reforestation.
The DA expects to obtain the funding by 2027. To date, the agency is still in the conceptual preparation stage.
The agency estimated that the country has a potential area of 1.5 million hectares for bamboo cultivation.
The global bamboo market was valued at $72.10 billion in 2023. The industry is estimated to grow at a compounded rate of 7.9 percent between 2024 and 2031.
Aside from helping restore degraded land, improve soil health and water retention, the DA aims to support smallholder farmers through income diversification and carbon credit revenue generation.
But despite the huge potential, the DA has identified risks to bamboo planting: farmer disengagement due to delayed economic returns; limited technical expertise leading to poor yield and inefficient land use; price volatility and inconsistent demand for bamboo products; and regulatory and certification challenges.
