Prospect and Perspective of the Seaweed Industry for Building Capacities of Local Communities to Cope with Globalization

Seaweed Industry Association of the Philippines

Legend:

% Production

----- Highly-developed – 88% ----- Semi-developed – 10% ----- Under-developed – 2%

Commercial Species of Seaweed in the Philippines

Carrageenan Bearing Red Seaweed
– Eucheuma Cottonii – Eucheuma Spinosum

Agar-Agar Bearing Red Seaweed
– Gracilaria – Gelidium

Types of Carrageenan Extracted  Eucheuma Cottonii – Kappa – Applications       Dairy Products Meat and Poultry Water gels Processed Human foods & Pet Foods Pharmaceutical Personal Care  Eucheuma Spinosum – Iota – Applications    Toothpaste Other Dairy Products Pharmaceutical .

Products Produced by the Philippines(Eucheuma) Refined Carrageenan  Semi-Refined Carrageenan Food Grade  Semi-Refined Carrageenan Pet Food  Alkali Treated Chips  Raw Dried Seaweed  .

1  Semi-Refined (Pet Food) – No.Philippine Position to World Market Refined Carrageenan – No. 1  Raw Dried Seaweed – No. 2  Alkali Treated Chips – No. 1  . 4  Semi-Refined (Foodgrade) – No.

3%  Indonesia – 22% – Cottonii – 92.Countries Producing Eucheuma Seaweed  Philippines – 72% – Cottonii – 97.7% – Spinosum – 2.3% – Spinosum – 7.3% – Cottonii – 23% – Spinosum – 77% .7% – Cottonii – 100% Zanzibar – 3.7%   Malaysia – 2.

US$15.103.745. US$87.201.330. 22.00  Semi-Refined Carrageenan – Volume.Philippine Exports as of 2003  Raw Dried Seaweed – Volume.421.874.00 . 27.067.0 M/tons – Value.0 M/tons – Value. 4.540.00  Refined Carrageenan – Volume.0 M/tons – Value. US$41.214.

000m.World Demand on Eucheuma Seaweed Specie of Seaweed Eucheuma Cottonii Eucheuma Spinosum 2001 2002 2003 169.000m.000m.000m. 15. 18.t. 220. 22.t.t. Cottonii – 10% Annually E. Spinosum – 7% Annually .t .t. Projected increase in demand: E.000m.t. 180.000m.

t.00 m.00 m.800.30 m. 35. 165. 125.t. 5.0 m.00 m. 2. 36.t. Cottonii b.t. 3.120.2 m.713. Spinosum 151.00 m.560. 10.00 m.90 m. 741. Cottonii b.t.t.t. Cottonii b. Spinosum Malaysia a.483.t.500.613. Spinosum 118.t.900. Cottonii b.00 m.t.t.t. 921.0 m.t.t.80 m. 3. 127. 2. 11.85 m.t. 4.100.35 m.t.t.t.90 m.15 m.834.797.693.10 m. 4.063. .000. Cottonii Total a.861.00 m.30 m.t.00 m.World Supply Situation Countries Philippines a.t. 1. 3.460.60 m.t.t. 170. Spinosum 28.378.2 m.00 m.225.460.225.30 m.t.582.605. 3.t.0 m. Zanzibar a.561.t. 4.805. 3. 10. 2001 2002 2003 Indonesia a.t.95 m.t.254. 3.0 m.

00/ Metric ton 2002 US$700.World Market FOB Price Specie of Seaweed 2001 US$650.00/ Metric ton US$250.00/ Metric ton Cottonii Spinosum US$250.00/ Metric ton US$230.00/ Metric ton 2003 US780.00/ Metric ton .

80 .25 US$2.00 US$3.World Market FOB Price PRODUCT Refined Carrageenan SRC-Food Grade SRC-Pet Food ATC PRICES PER KILO US$11.00 US$6.

making eucheuma cottonii seaweed high.  Carrageenan Market for Kappa is big.  Demand for eucheuma seaweed continuous when prices is competitive & quality is good.  There is more available supply of spinosum against demand.World Market Trend There is high demand on Eucheuma Cottonii than Spinosum.  .

The Prospect of the Seaweed Industry In the Philippines .

000.0 Metric Tons Shortage 27. Year Supply 127.306.693.78 Metric tons 2003 The annual increase in demand is 10% .22 Metric Tons Demand 155.Supply and demand situation in the Philippines for Cottonii.

Cottonii quality is higher both in recovery and viscosity.  Philippine has wider coastal areas and sea water is more suitable to eucheuma cottonii culture.  Advance technology on farming and extraction of carrageenan.  There are 3 Refineries and 12 Semi-Refined Processing plants for Carrageenan.  Filipinos are used to sea type of livelihood.  SIAP is a member of Marinalg International that helps solved Non-Tariff Barriers for Carrageenan.  .  Philippine and private sector forged a partnership agreement to develop the seaweed industry.Philippine advantage over other countries.

What action to take?     Focus in seaweed production development to fill the shortage of supply on raw eucheuma cottonii. traders and processors to maintain good quality seaweed for carrageenan production. Strengthen organization of industry players. . Government full support to the industry needs. seaweed farmers. Research and Development program for good quality seaweed production and more product applications for carrageenan.

Non-Traditional Areas Intensive Seaweed Production Program Chart PSDC (Provincial Seaweed Development Council) Orient LGU on Seaweed Farming Development Conduct Technology Seminar & put up one Block Module (10m. X 25m.) to PSFTA Municipal Government LGU organize PSTFA Municipal Chapter Fishermen’s Group Commercial Farming Starts 60 days after Block module was set Zone Municipal Waters & Enact Seaweed Culture Ordinance Issue Permit to Culture Seaweed to Seaweed Farmers .

SIAP PROPOSAL ON BFAR NURSERY FARMS  Use the nursery farms as techno demo module in new municipalities targeted for development. .  This can also serve as initial source of seedlings for further development of the area.  Make this as show case to others and a good venue for lakbay aral training once successful.  BFAR training funds can be used in training beneficiaries.  Award 250 square meters module to an interested family beneficiary & operate to own.

Aklan. Davao Oriental. Iloilo. Siquijor. Camarines Norte. Leyte. Occidental Mindoro. Basilan. Davao City. Surigao del Norte. Albay & Aurora  36 Provinces for Expansion Sulu. Palawan. Agusan del Sur. Agusan del Norte. Northern Samar. Capiz. Surigao del Sur. Guimaras. Misamis Occidental. South Cotabato. Southern Leyte. Misamis Oriental. Romblon. Zamboanga del Sur & Pangasinan . Western Samar. Negros Occidental. Catanduanes. Negros Oriental. Batangas. Lanao del Norte. Sorsogon. Cebu. Biliran. Quezon. Sarangani. Antique. Eastern Samar. Bohol.TARGETED AREAS FOR DEVELOPMENT  14 New Provinces Sultan Kudarat. Davao del Sur. Marinduque. Oriental Mindoro. Camarines Sur. Maguindanao. Masbate. Camiguin. Zamboanga del Norte.

FINANCING COMPONENT LBP QUEDANCOR Initiate Loan Application (Loan issued not in cash but materials) Issue Permit to operate business Leader/ Trader SIAP Prepare farmers’ information sheet for loan application Issue Accreditation Papers & Market Linkage to Processors LGU Issue Permit on Seaweed Culture FARMERS .

ROLE OF LANDBANK & QUEDANCOR LANDBANK Process & Release Loan Rediscount Loans QUEDANCOR Process & Release Loan COOP Prepares Application & Release Loan (Materials not cash) LEADER/ MUNICIPAL TRADER Prepares Application & Release Loan (Materials not cash) FARMERS FARMERS .

FINANCING LOAN TO TRADERS Payment of deliveries Directly paid LAND BANK QUEDANCOR Excess from Loan Is returned PROCESSORS Raw Exporters Delivers Seaweed under Marketing Agreement And Purchase Order Inspect Inventory of seaweed TRADERS .

SIAP ORGANIZATION AND ACREDITATION PROGRAM SIAP Carrageenan Processors Accredited Raw Seaweed Exporter Certifying Office PSFTA Certifying Office SIAP Provincial Traders Municipal Traders Farmers Accredited Certifying Office Municipal Chapter PSTFA Accredited .

Municipal Traders Deduct 10% of farmers’ sales for deposit Collect Monthly Premiums Farmers .SIAP SOCIAL PROGRAM Force Savings Land Bank Authorize to collect deposits Individual Farmer’s Savings Account Register Farmers & Remit Monthly Premium PHILHEALTH S.S.S.

    Philippines will be the major leader supplier of raw dried cottonii seaweed and Kappa Carrageenan worldwide. . More coastal areas are protected from Illegal Fishing. There is a ready and continuous market for all seaweed produced by marginal fishermen or seaweed farmers whereby providing them a lucrative and sustainable livelihood. Seaweed will be the major dollar earner for the country.As a result….

00 Value of Exports In US$ 2004 152.00 207.444.466.699.00 2005 227.608.00 310.303.00 .00 251.0 154.740.OO 309.297.00 2006 281.370.216.782.0 103.651.937.PERFORMANCE TARGET Year Production in Metric Tons 168.930.014.00 Number of Families Total Area In Hectares 76.0 185.184.

 Increase livelihood opportunities among marginal fishermen and exports.  Minimize Illegal Fishing Activities.  . to fill the requirement of Philippine Carrageenan Processors and in 2006 to fill the world demand of Dried Eucheuma Cottonii Seaweed.GOALS In 2004.

What field of Activity in Eucheuma/Carrageenan industry affect the Philippines? In terms of Community Development and environment. .

.  It can contribute to the Philippine economy by increasing exports.PROCESSING  It generates employment.  It adds a higher value to seaweed.  It opens the market for raw dried seaweed produced by farmers.

)  .  It links farmers to the processors and even world market for seaweed.TRADING It generates employment in the country side.  It directly help farmers in term of their domestic needs (either foods or cash advances for healthcare or farming.

000 families of new and unemployed marginal fishermen to engaged in seaweed farming livelihood. . It improves the economic condition of the community. Contract farming scheme developed fishermen into an entrepreneur.000.FARMING      Over a million marginal fishermen are engage in seaweed farming with an average annual income of P120.000 metric tons annually in 2004 and is an opportunity for 23. More coastal areas are protected from illegal fishing. Opening of new markets increase the shortage of raw supply by as much as 45.00.

. Developed marginal fishermen capacities in facing the challenge of globalization in the field of additives.Intensive Eucheuma Seaweed/Carrageenan Industry Development.

ON THE AGAR-AGAR PRODUCING SEAWEED .

 Gracilaria Seaweed – Commercial farming technology has been adopted. there is no commercial farming technology that invite fishermen to engage into the activity. – Agar-Agar content has lower viscosity compared to other countries. Korea and even Taiwan. – Agar-Agar produced locally is in demand in the local market. – Gathered wild.Present Situation  Gelidium Seaweed – High Commercial value and dried seaweed is exported to Japan. . – Lower commercial value that farmers are discouraged to culture.

– Intensive product applications both in the local and foreign market.  Gracilaria – – – – Culture of gracilaria can be done in Bangus or shrimp ponds. Identify the best specie of gracilaria with higher viscosity. The trend for agar uses is now focused on soft gel than the traditional hard gel produced by South America and other European or Asian Countries. More research on how to blend agar increasing its viscosity. .Is there a future for the agar industry?  Gelidium – More research for farming technology that is lucrative to fishermen in terms of income. – The market for dried gelidium seaweed is big.

PROSPECTS OF THE SEAWEED INDUSTRY TO COPE WITH GLOBALIZATION IS ATTAINABLE “IF” GOVERNMENT AND PRIVATE SECTOR COOPERATES HONESTLY (WITHOUT CORRUPTION) Thank you !!!!!! .

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