Transcript Market Opportunities for Seaweed

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

Philippine Position to World
Market
Refined Carrageenan – No. 4
 Semi-Refined (Foodgrade) – No. 1
 Semi-Refined (Pet Food) – No. 2
 Alkali Treated Chips – No. 1
 Raw Dried Seaweed – No. 1

Countries Producing
Eucheuma Seaweed

Philippines – 72%
– Cottonii – 97.7%
– Spinosum – 2.3%

Indonesia – 22%
– Cottonii – 92.3%
– Spinosum – 7.7%

Malaysia – 2.7%
– Cottonii – 100%

Zanzibar – 3.3%
– Cottonii – 23%
– Spinosum – 77%
Philippine Exports as of 2003

Raw Dried Seaweed
– Volume, 27,540.0 M/tons
– Value, US$15,067,330.00

Refined Carrageenan
– Volume, 4,874.0 M/tons
– Value, US$41,421,745.00

Semi-Refined Carrageenan
– Volume, 22,201.0 M/tons
– Value, US$87,103,214.00
World Demand on Eucheuma
Seaweed
Specie of
Seaweed
Eucheuma
Cottonii
Eucheuma
Spinosum
2001
2002
2003
169,000m.t. 180,000m.t. 220,000m.t
.
15,000m.t.
18,000m.t.
Projected increase in demand:
E. Cottonii – 10% Annually
E. Spinosum – 7% Annually
22,000m.t.
World Supply Situation
Countries
2001
2002
2003
Philippines
a. Cottonii
b. Spinosum
Indonesia
a. Cottonii
b. Spinosum
Zanzibar
a. Cottonii
b. Spinosum
Malaysia
a. Cottonii
Total
a. Cottonii
b. Spinosum
118,460.0 m.t.
4,120.0 m.t.
125,254.2 m.t.
5,500.0 m.t.
127,693.2 m.t.
3,000.0 m.t.
28,797.80 m.t.
3,460.00 m.t.
35,605.35 m.t.
3,800.00 m.t.
36,834.10 m.t.
3,100.00 m.t.
741.95 m.t.
2,483.90 m.t.
921.30 m.t.
2,561.00 m.t.
1,378.00 m.t.
4,613.00 m.t.
3,225.85 m.t.
3,582.30 m.t.
4,900.00 m.t.
151,225.60 m.t.
10,063.90 m.t.
165,560.15 m.t.
11,861.00 m.t.
170,805.30 m.t.
10,713.00 m.t.
World Market FOB Price
Specie of
Seaweed
2001
2002
2003
Cottonii
US$650.00/
Metric ton
US$700.00/
Metric ton
US780.00/
Metric ton
Spinosum
US$250.00/
Metric ton
US$250.00/
Metric ton
US$230.00/
Metric ton
World Market FOB Price
PRODUCT
PRICES
PER KILO
Refined Carrageenan
US$11.00
SRC-Food Grade
US$6.00
SRC-Pet Food
US$3.25
ATC
US$2.80
World Market Trend
There is high demand on Eucheuma Cottonii
than Spinosum.
 Carrageenan Market for Kappa is big, making
eucheuma cottonii seaweed high.
 There is more available supply of spinosum
against demand.
 Demand for eucheuma seaweed continuous
when prices is competitive & quality is good.

The Prospect of the Seaweed
Industry
In the Philippines
Supply and demand situation
in the Philippines for Cottonii.
Year
Supply
Demand
Shortage
2003
127,693.22
155,000.0
27,306.78
Metric Tons
Metric Tons
Metric tons
The annual increase in demand is 10%
Philippine advantage over
other countries.
Cottonii quality is higher both in recovery and
viscosity.
 Philippine has wider coastal areas and sea water is
more suitable to eucheuma cottonii culture.
 Filipinos are used to sea type of livelihood.
 Advance technology on farming and extraction of
carrageenan.
 There are 3 Refineries and 12 Semi-Refined
Processing plants for Carrageenan.
 Philippine and private sector forged a partnership
agreement to develop the seaweed industry.
 SIAP is a member of Marinalg International that helps
solved Non-Tariff Barriers for Carrageenan.

What action to take?




Focus in seaweed production development to fill the
shortage of supply on raw eucheuma cottonii.
Research and Development program for good quality
seaweed production and more product applications
for carrageenan.
Strengthen organization of industry players, seaweed
farmers, traders and processors to maintain good
quality seaweed for carrageenan production.
Government full support to the industry needs.
Non-Traditional Areas
Intensive Seaweed
Production Program Chart
PSDC
(Provincial Seaweed
Development Council)
Orient LGU on Seaweed
Farming Development
Municipal Government
Zone Municipal Waters
& Enact Seaweed Culture
Ordinance
Issue Permit
to Culture Seaweed
to Seaweed Farmers
Conduct Technology Seminar
& put up one Block Module
(10m. X 25m.) to PSFTA
LGU organize
PSTFA
Municipal Chapter
Fishermen’s Group
Commercial Farming
Starts 60 days after
Block module was set
SIAP PROPOSAL ON BFAR
NURSERY FARMS





Use the nursery farms as techno demo module in
new municipalities targeted for development.
Award 250 square meters module to an interested
family beneficiary & operate to own.
Make this as show case to others and a good
venue for lakbay aral training once successful.
This can also serve as initial source of seedlings
for further development of the area.
BFAR training funds can be used in training
beneficiaries.
TARGETED AREAS FOR
DEVELOPMENT

14 New Provinces
Sultan Kudarat, South Cotabato, Sarangani, Agusan del Norte,
Misamis Oriental, Siquijor, Biliran, Capiz, Aklan, Romblon,
Oriental Mindoro, Catanduanes, Albay & Aurora

36 Provinces for Expansion
Sulu, Basilan, Maguindanao, Davao del Sur, Davao City, Davao
Oriental, Agusan del Sur, Surigao del Sur, Surigao del Norte,
Camiguin, Lanao del Norte, Misamis Occidental, Zamboanga
del Norte, Bohol, Cebu, Negros Oriental, Southern Leyte,
Leyte, Eastern Samar, Western Samar, Northern Samar, Iloilo,
Guimaras, Antique, Negros Occidental, Masbate, Sorsogon,
Camarines Sur, Camarines Norte, Quezon, Marinduque,
Occidental Mindoro, Palawan, Batangas, Zamboanga del Sur &
Pangasinan
FINANCING COMPONENT
LBP
QUEDANCOR
Initiate Loan Application
(Loan issued not in cash but materials)
Issue Permit to
operate business
Leader/
Trader
SIAP
LGU
Prepare farmers’ information sheet
for loan application
Issue Permit on
Seaweed Culture
FARMERS
Issue Accreditation
Papers & Market
Linkage to Processors
ROLE OF LANDBANK &
QUEDANCOR
LANDBANK
Rediscount
Loans
QUEDANCOR
Process &
Release Loan
Process &
Release Loan
COOP
LEADER/
MUNICIPAL TRADER
Prepares Application
& Release Loan
(Materials not cash)
FARMERS
Prepares Application
& Release Loan
(Materials not cash)
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
Accredited
Accredited
Raw Seaweed
Exporter
Provincial
Traders
Municipal
Traders
Farmers
Certifying Office
SIAP
Certifying Office
PSFTA
Certifying Office
Municipal Chapter
PSTFA
SIAP SOCIAL PROGRAM
Force Savings
PHILHEALTH
Land Bank
Authorize to collect deposits
Individual Farmer’s
Savings Account
Register Farmers
& Remit Monthly Premium
Municipal
Traders
Deduct 10% of farmers’ sales
for deposit
Farmers
Collect Monthly
Premiums
S.S.S.
As a result….




Philippines will be the major leader supplier of raw
dried cottonii seaweed and Kappa Carrageenan
worldwide.
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.
More coastal areas are protected from Illegal Fishing.
PERFORMANCE TARGET
Year
Production
in
Metric Tons
Number of
Families
Total Area
In
Hectares
2004
168,014.00
152,740.0
76,370.00
185,699,297.00
2005
227,937.00
207,216.0
103,608.00
251,930,466.00
2006
281,184.OO
309,303.0
154,651.00
310,782,444.00
Value of Exports
In US$
GOALS
In 2004, to fill the requirement of
Philippine Carrageenan Processors and
in 2006 to fill the world demand of Dried
Eucheuma Cottonii Seaweed.
 Increase livelihood opportunities among
marginal fishermen and exports.
 Minimize Illegal Fishing Activities.

What field of Activity in
Eucheuma/Carrageenan
industry affect the Philippines?
In terms of Community Development
and environment.
PROCESSING

It generates employment.
 It opens the market for raw dried seaweed
produced by farmers.
 It can contribute to the Philippine economy
by increasing exports.
 It adds a higher value to seaweed.
TRADING
It generates employment in the country
side.
 It links farmers to the processors and
even world market for seaweed.
 It directly help farmers in term of their
domestic needs (either foods or cash
advances for healthcare or farming.)

FARMING





Over a million marginal fishermen are engage in
seaweed farming with an average annual income of
P120,000.00.
Opening of new markets increase the shortage of raw
supply by as much as 45,000 metric tons annually in
2004 and is an opportunity for 23,000 families of new
and unemployed marginal fishermen to engaged in
seaweed farming livelihood.
Contract farming scheme developed fishermen into
an entrepreneur.
More coastal areas are protected from illegal fishing.
It improves the economic condition of the
community.
Intensive Eucheuma
Seaweed/Carrageenan
Industry Development,
Developed marginal
fishermen capacities in facing
the challenge of globalization
in the field of additives.
ON THE AGAR-AGAR
PRODUCING SEAWEED
Present Situation

Gelidium Seaweed
– High Commercial value and dried seaweed is exported to
Japan, Korea and even Taiwan.
– Agar-Agar produced locally is in demand in the local market.
– Gathered wild, there is no commercial farming technology
that invite fishermen to engage into the activity.

Gracilaria Seaweed
– Commercial farming technology has been adopted.
– Lower commercial value that farmers are discouraged to
culture.
– Agar-Agar content has lower viscosity compared to other
countries.
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.
– 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.
More research on how to blend agar increasing its 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.
PROSPECTS OF THE
SEAWEED
INDUSTRY TO COPE WITH
GLOBALIZATION IS ATTAINABLE
“IF”
GOVERNMENT AND PRIVATE
SECTOR COOPERATES
HONESTLY
(WITHOUT CORRUPTION)
Thank you !!!!!!