Table of Contents

1. BACKGROUND
2. CURRENT MARKET SITUATION, SISAL AND HENEQUEN, ABACA AND COIR
3. LONGER TERM OUTLOOK
4. DEVELOPMENTS REGARDING PROJECTS AND PROJECT PROPOSALS
5. ARRANGEMENTS FOR FUTURE MEETINGS OF THE GROUP

I. BACKGROUND

1. The Twenty-eighth Session of the Intergovernmental Group on Hard Fibres, in April 1995, requested that the Secretariat facilitate informal consultations among interested representatives of trade and industry from hard fibres producing and consuming countries in the interval between its regular sessions, which would now be held only every two years, rather than annually. The First Informal Consultation was held in London in November 1995.

2. The Second Informal Consultation was convened in Amsterdam on 1 - 2 December 1997. It was attended by 29 participants from 12 countries (list of participants attached) and was chaired by Mr J. Cope of the United Kingdom. The Consultation provided an opportunity for exchanging market intelligence between producers and consumers and reviewing ongoing commodity development activities.

II. CURRENT MARKET SITUATION, SISAL AND HENEQUEN, ABACA AND COIR

3. The Consultation reviewed current market trends and the short and longer term outlook for the three fibres, as well as sisal twine, and a useful exchange of views took place.

4. Participants noted that prices of sisal remained generally buoyant, although there had been some weakening in recent months. Demand remained sound, but producers had been unable, for different reasons, to increase supply in response to the improved prices. It was noted that the duty applied by the EU to imports of sisal twine, applicable mainly to shipments from Brazil, had been reduced in November 1997 from 25 percent to the former level of 12 percent.

5. Carpets represent an important outlet for higher quality fibre. Some concern was expressed at the weakening of demand for carpets which had occurred during 1997, and at competition at the lower end of the market. Good quality sisal yarn required for carpet making had been in short supply, which added to the difficulties faced by carpet makers. Demand for other products such as sisal dartboards was stable.

6. The Consultation reviewed the situation in the various producing countries. Production in Tanzania in 1997 was estimated at 18 000 tonnes, most of which would be used for higher-value products rather than for traditional baler twine. Privatization of the industry in Tanzania had been completed, and a small regulatory body was to be established by the end of 1997.

7. Production in Kenya had been affected by climatic extremes, and was expected to be around 22 000 tonnes, while production in Madagascar was also likely to be a little lower than the previous year. It was confirmed that Brazil produced 120 000 tonnes in 1997, and was working to increase its production. Brazilian production is directed towards the baler twine market in the United States. Colombia produces around 25 000 tonnes of fique fibre annually, of which 80 percent is used for packaging, mainly on the domestic market.

8. The outlook for abaca was seen to depend heavily on the impact which the El Niño phenomenon might have on weather in the Philippines, and it was stated that market operators had been reluctant to enter into forward contracts because of this uncertainty. Import demand for abaca in 1997 had been lower in the United States and the United Kingdom than in 1996, but stronger in Japan.

9. It was noted that the capacity to produce coir far exceeded the demand. The export market for coir fibre had weakened in 1997, and prices had fallen. The use of brown fibre in mattresses in the United States, as well as in Europe, had contracted considerably. Demand for coir yarn was also reported to have weakened, although sales of some products, such as PVC-backed coir mats, had expanded.

10. In discussing commercial aspects of trade in hard fibres, some participants felt that the provision to potential importers of better information on the properties of various fibres would enable them to make purchases of fibre with greater confidence. The Consultation requested that the Secretariat investigate ways by which a directory of fibre properties might be produced.

III. LONGER TERM OUTLOOK

11. In reviewing longer term market prospects for hard fibres, the Consultation expressed concern at the continuing erosion of sisal's traditional markets by polypropylene, and stressed that there was a need to develop alternative outlets for fibre. It was agreed that the fibre industry should widen its product base in order to address the long term decline in demand. Utilization of the whole plant should also be an objective, as this would increase returns to producers. Pulp for paper, particularly in applications such as the reinforcing of recycled paper, possibly offers the best prospect for the use of large quantities of sisal. Virtually the whole of the sisal plant could be utilized in the production of cellulose. Other applications, such as carpets, were, by themselves, unlikely to absorb sufficient quantities to halt the global decline in consumption of fibre, although they did return a high unit value. There was also potential for fibre to be used in the automotive industry, and some is now employed in the reinforcing of plastics in motor vehicles, although the quantity used at present is too small to have any significant impact on the industry.

12. The Consultation discussed possible ways by which the use of natural fibres could be expanded, and it was felt that a promotional activity might be undertaken to introduce potential new uses to relevant industries. Members of the three London-based hard fibre associations (the London Sisal Association, the Manila Hemp Association and the Coir Association) agreed that they would instigate discussion within their associations, in order to explore the potential for an appropriate activity to be organized in conjunction with FAO and possibly with the support of a donor organization.

IV. DEVELOPMENTS REGARDING PROJECTS AND PROJECT PROPOSALS

13. The Consultation reviewed developments with the various projects being undertaken with finance from the Common Fund for Commodities under the supervision of the Intergovernmental Group on Hard Fibres.

14. The Consultation noted that the project Improvement in Drying, Softening, Bleaching, Dyeing Coir Fibre/Yarn and Printing Coir Fibre was nearing completion, but that an extension to mid-1998 would be required. Similarly, the project Product and market development of high value-added coir products now appeared to be making good progress after some delays, but it would also require an extension into 1998. The Consultation endorsed proposals to extend both projects to June 1998, and urged that they be effectively concluded by that time.

15. The Consultation noted that work was commencing on the project Product and Market Development of Sisal and Henequen Products, and it expressed concern at the difficulties experienced in obtaining agreement of the countries involved in the project Abaca: Improvement of Fibre Extraction and Identification of Higher Yielding Varieties. It looked forward to the signing of agreements and the commencement of activities in the new project Coir-based Building and Packaging Material, although the Secretariat was asked to ensure that this project did not duplicate previous work of a similar nature. It was noted that he Intergovernmental Group has responsibility for supervision of projects, and that arrangements would need to be made for supervision of the new projects on abaca and coir.

16. A participant from Brazil introduced a new project proposal on the development of sisal production in the state of Bahia. A suggestion was made for the inclusion of an additional element on using sisal in conjunction with other natural materials in mouldings. The Consultation felt that funding might be sought from the Common Fund for some components of this project and suggested it be considered in more detail by the next session of the IGG.

V. ARRANGEMENTS FOR FUTURE MEETINGS OF THE GROUP

17. It was recalled that the Intergovernmental Group had, at its 29th Session in 1997, felt it would be highly desirable to convene its 30th Session in a sisal or henequen producing country, and that the representative of Brazil had extended an invitation to hold the Session in Bahia. Participants in the Consultation from Brazil, including a representative of the Embassy of Brazil in The Hague, reaffirmed that their country was studying possibilities for the next Session of the IGG on Hard Fibres to meet in Brazil late in 1998, and the Consultation welcomed this proposal. The Brazilian authorities would be prepared to include the IGG on Jute, Kenaf and Allied Fibres in the arrangements, in order for a joint session of the two Groups to be held.

18. The participants thanked Messrs Peter and Leo de Man of Horman Drainage filter BV for arranging the Consultation and for providing facilities. They also thanked Kwekerij Andes Athurium and Institute ATO-DLO for their assistance in hosting part of the field trip, as well as Enkev BV, Red Star Fibre Co BV and Haylex BV for the support they provided. They agreed that the informal Consultation had been of great value, and requested that similar meetings be convened in the future during the periods between formal sessions of the Group.

BELGIUM

Mr & Mrs Pierre Tack
Tasibel nv
K. Albertplein 3
B - 9220 Hamme
Tel. (32-52) 475211
Fax (32-52) 475262

BRAZIL

Mr Wilson Andrade
SINDIFIBRAS
Rua Oito de Dezembro 201
40150-000 Salvador BA
Tel. (55-71) 2414401
Fax (55-71) 2370442
E-mail: [email protected]

Mr Ricardo Eysen -
Director, Cresal Exportadora
Trav. F. Gonçalves 0-1
Salvador, BA 40015
Fax (55-71) 2439877

Mr M.L. da S. Vasconcelos
Minister Counsellor
Embassy of Brazil in The Hague

COLOMBIA

Mr Regis M. Benitez Vargas
Director General, Desarrollo Productivo
Ministerio de Agricultura y Desarrollo Rural
Av. Jiménez 7-65
Santafé de Bogotá
Tel. (57-1) 3341199
Fax (57-1) 2842649

FRANCE

Mr Patrice Brochier
SANGAM
6, les Basiles
34790 Grabels (Montpellier)
Tel. (33) 67108888
Fax (33) 67108188 E-mail: [email protected]

Mr Michel Camerman
SANGAM
6, les Basiles
34790 Grabels (Montpellier)
Tel. (33) 67108888
Fax (33) 67108188
E-mail: [email protected]

GERMANY

Mr Peter Clasen
Wilhelm G. Clasen
Glockengiesserwall 1
D - 200095 Hamburg
Fax (49-40) 321916

Mr Rainer Rüppell
Wilhelm G. Clasen
Glockengiesserwall 1
D - 200095 Hamburg
Fax (49-40) 321916

Mr Henner Schürholz
Managing Director
DEKOWE Schürholz GMBH
Marienstrasse 51-53
D - 46284 Dorsten
Fax (49-236) 2600142

NETHERLANDS

Mr Peter de Man
Horman Drainagefilter BV
Postbus 5240
3295 ZJ `s-Gravendeel
Tel. (31-78) 6731400
Fax (31-78) 6732379
E-mail: [email protected]

Mr Leo de Man
Horman Drainagefilter BV
Postbus 5240
3295 ZJ `s-Gravendeel
Tel. (31-78) 6731400
Fax (31-78) 6732379
E-mail: [email protected]

Mr S. Holvoet
Lugongo Estate
c/o Nv Remit
PO Box 30156
3001 DD Rotterdam

Mr Rob Kolkman
International Trading Department
Heidemij Materials
PO Box 704
5140 AS Waalwijk
Tel. (31-416) 672350
Fax (31-416) 672390

Mr John van der Hout
ENKEV B.V.
De Toek 2, Postbus 3
1130 AA Volendam
Tel. (31-299) 364355
Fax (31-299) 368409

Mr Leo van der Pol
Haylex BV
PO Box 132
2990 AC Barendrecht
Tel. (31-180) 615555
Fax (31-180) 621399
E-mail: [email protected]

Mr Geert-Jan Verkade
CUR
Büchnerweg 1
Postbus 420
2800 AK Gouda
Tel. (31-182) 540630
Fax (31-182) 540601
E-mail: [email protected]
http://www.bouwweb.nl/cur

POLAND

Prof. R. Kozlowski
Institute of Natural Fibres
ul. Wojska Polskiego 71b
60-630 Poznan
Tel. (48-61) 8480061
Fax (48-61) 8417830
E-mail: [email protected]

SRI LANKA

Mr U. Senaratne
Chairman
Coconut Development Authority
PO Box 1572, Nawala Rd.
Colombo 5
Fax (94-1) 508729/447603

SWITZERLAND

Mr H. Brüninghaus
Director
Fybron
Postfach 1412
CH - 6002 Lucerne
Fax (41-41) 2104516

TANZANIA

Mr Salum Shamte
Managing Director
Katani Ltd.
PO Box 123
Tanga
Tel. (255-53) 44401
Fax (255-53) 42409

UNITED KINGDOM

Mr John Cope
Vendcord Ltd.
`Old Searchlights'
Runwick Lane, Farnham
Surrey GU10 5EF
Tel. (44-1252) 727272
Fax (44-1252) 719045

Mr Oliver Cox
Landauer Fibres
25 Beaufort Court, Admirals Way
London E14 9XL
Tel. (44-171) 5385383
Fax (44-171) 5382007

Mr J. Harris
Wigglesworth & Co.
69 Southwark Bridge Rd.
London SE 1 0NG
Tel. (44-171) 9751919
Fax (44-171) 4033232

Mr L.M. Horowitz
Gover, Horowitz & Blunt Ltd.
35/37 Grosvenor Gardens
London SW1W 0BS
Tel. (44-171) 6307777
Fax (44-171) 8283867

Mr Terry Keeping
Gover, Horowitz & Blunt Ltd.
35/37 Grosvenor Gardens
London SW1W 0BS
Tel. (44-171) 6307777
Fax (44-171) 8283867

Mr Vivian Landon
Wigglesworth & Co.
69 Southwark Bridge Rd.
London SE 1 0NG
Tel. (44-171) 9751919
Fax (44-171) 4033232

ITC UNCTAD/WTO

Mr A. Sandana
Market Development Officer
ITC UNCTAD/WTO
Palais des Nations
1211 Geneva 10
SWITZERLAND
Tel. (41-22) 730 01 11
Fax (41-22) 733 44 39

UNIDO

Ms R. Viegas Assumpçao
Senior Industrial Development Officer
Chemical Industries Branch/ISED
PO Box 300
A - 1400 Vienna
AUSTRIA
Tel. (43-1) 211313694
Fax (43-1) 211316819

FAO SECRETARIAT

Brian Moir