prospect and perspective of the seaweed industry for building capacities of local communities to...
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Prospect and Perspective of Prospect and Perspective of the Seaweed Industry for the Seaweed Industry for
Building Capacities of Local Building Capacities of Local Communities to Cope with Communities to Cope with
GlobalizationGlobalization
Seaweed Industry Association
of the Philippines
Legend: % Production
----- Highly-developed – 88%
----- Semi-developed – 10%----- Under-developed – 2%
Commercial Species of Commercial Species of Seaweed in the PhilippinesSeaweed in the Philippines
Carrageenan Bearing Red Seaweed– Eucheuma Cottonii– Eucheuma Spinosum
Agar-Agar Bearing Red Seaweed– Gracilaria– Gelidium
Types of Carrageenan Types of Carrageenan ExtractedExtracted
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 Products Produced by the Philippines(Eucheuma)Philippines(Eucheuma)
Refined CarrageenanSemi-Refined Carrageenan Food
GradeSemi-Refined Carrageenan Pet
FoodAlkali Treated ChipsRaw Dried Seaweed
Philippine Position to World Philippine Position to World MarketMarket
Refined Carrageenan – No. 4Semi-Refined (Foodgrade) – No. 1Semi-Refined (Pet Food) – No. 2Alkali Treated Chips – No. 1Raw Dried Seaweed – No. 1
Countries Producing Countries Producing Eucheuma SeaweedEucheuma 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 2003Philippine 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 World Demand on Eucheuma SeaweedSeaweed
Specie of Seaweed 2001 2002 2003EucheumaCottonii 169,000m.
t.180,000m.
t.220,000m
.t.
Eucheuma Spinosum 15,000m.t. 18,000m.t. 22,000m.t
.
Projected increase in demand:E. Cottonii – 10% AnnuallyE. Spinosum – 7% Annually
World Supply SituationWorld Supply Situation
Countries 2001 2002 2003
Philippines 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.
Indonesia a. Cottonii b. Spinosum
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.
Zanzibar a. Cottonii b. Spinosum
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.
Malaysia a. Cottonii 3,225.85 m.t. 3,582.30 m.t. 4,900.00 m.t.
Total a. Cottonii b. Spinosum
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 PriceWorld Market FOB Price
Specie ofSeaweed 2001 2002 2003
CottoniiUS$650.00/
Metric tonUS$700.00/
Metric tonUS780.00/Metric ton
SpinosumUS$250.00/
Metric tonUS$250.00/
Metric tonUS$230.00/
Metric ton
World Market FOB PriceWorld Market FOB Price
PRODUCTPRICES
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 TrendWorld 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 Supply and demand situation in the Philippines for Cottonii.in the Philippines for Cottonii.
Year Supply Demand
Shortage
2003 127,693.22Metric Tons
155,000.0Metric Tons
27,306.78Metric tons
The annual increase in demand is 10%
Philippine advantage over Philippine advantage over other countries.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?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
Fishermen’s Group
Commercial FarmingStarts 60 days after
Block module was set
PSDC(Provincial Seaweed
Development Council)
Municipal Government
Orient LGU on SeaweedFarming Development
LGU organizePSTFA
Municipal Chapter
Zone Municipal Waters& Enact Seaweed Culture
Ordinance
Issue Permitto Culture Seaweedto Seaweed Farmers
Conduct Technology Seminar& put up one Block Module
(10m. X 25m.) to PSFTA
SIAP PROPOSAL ON BFAR SIAP PROPOSAL ON BFAR NURSERY FARMSNURSERY 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 TARGETED AREAS FOR DEVELOPMENTFOR DEVELOPMENT
14 New ProvincesSultan Kudarat, South Cotabato, Sarangani, Agusan del Norte, Misamis Oriental, Siquijor, Biliran, Capiz, Aklan, Romblon, Oriental Mindoro, Catanduanes, Albay & Aurora
36 Provinces for ExpansionSulu, 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
Leader/Trader
LBPQUEDANCOR
Initiate Loan Application(Loan issued not in cash but materials)
Issue Permit onSeaweed Culture
Issue Permit tooperate business
FARMERS
LGUIssue AccreditationPapers & Market
Linkage to Processors
SIAPPrepare farmers’ information sheet
for loan application
ROLE OF LANDBANK & QUEDANCOR
LANDBANK
COOP
FARMERS
Process &Release Loan
Prepares Application& Release Loan
(Materials not cash)
QUEDANCOR
LEADER/MUNICIPAL TRADER
FARMERS
Process &Release Loan
Prepares Application& Release Loan
(Materials not cash)
RediscountLoans
FINANCING LOAN TO TRADERS
TRADERS
LAND BANKQUEDANCOR
Inspect Inventory of seaweedPROCESSORSRaw Exporters
Delivers Seaweed under Marketing AgreementAnd Purchase Order
Payment of deliveries Directly paid
Excess from LoanIs returned
SIAP ORGANIZATION AND ACREDITATION PROGRAM
Accredited
SIAP
Carrageenan Processors
Raw SeaweedExporter
ProvincialTraders
MunicipalTraders
Farmers
Certifying OfficeSIAP
Certifying OfficePSFTA
Certifying OfficeMunicipal Chapter
PSTFA
Accredited
Accredited
SIAP SOCIAL PROGRAM
Force Savings
Land Bank
MunicipalTraders
Farmers
Authorize to collect deposits
Deduct 10% of farmers’ salesfor deposit
Individual Farmer’s Savings Account
PHILHEALTH
Register Farmers& Remit Monthly Premium
Collect Monthly Premiums
S.S.S.
As a result….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 ofFamilies
Total Area In
Hectares
Value of ExportsIn US$
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
GOALSGOALS
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 What field of Activity in Eucheuma/Carrageenan Eucheuma/Carrageenan
industry affect the Philippines?industry affect the Philippines?
In terms of Community Development and environment.
PROCESSINGPROCESSING
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.
TRADINGTRADING
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.)
FARMINGFARMING 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 Intensive Eucheuma Seaweed/CarrageenanSeaweed/CarrageenanIndustry Development,Industry Development,
Developed marginal fishermen capacities in facing the challenge of
globalization in the field of additives.
ON THE AGAR-AGARPRODUCING SEAWEED
Present SituationPresent 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 Is there a future for the agar industry?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.
“IF” GOVERNMENT AND PRIVATE GOVERNMENT AND PRIVATE
SECTOR COOPERATESSECTOR COOPERATESHONESTLYHONESTLY
(WITHOUT CORRUPTION)
PROSPECTS OF THE SEAWEED
INDUSTRY TO COPE WITH GLOBALIZATION IS ATTAINABLE
Thank you !!!!!!