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COMMENTARY
Seaweed industry needs help

By Ernesto Ordoñez
Philippine Daily Inquirer
First Posted 14:22:00 09/05/2008

Filed Under: Food, Agriculture

MANILA, Philippines -- Last July 22, 24 government and private sector leaders met in Tawi-tawi ?to assess the current seaweed situation and develop action steps for submission to the necessary agencies assigned by the government for affirmative action.?

From this meeting emerged a 10-point agenda that called for urgent government assistance. Five key areas were addressed: production, waste management (that can minimize seaweed diseases), research and development, marketing and policy.

In a follow-up letter last August 13, Tawi-Tawi Gov. Hji. Sadikul A. Sahali asked Agriculture Secretary Arthur Yap to convene a forum of the Philippine Seaweeds Industry Council, LGUs, NGOs such as Philippine Development Assistance Programme Inc. (PDAP), and relevant government agencies ?to strengthen and develop the seaweeds industry in Tawi-Tawi.?

Why is this meeting so important?

SIGNIFICANCE OF SEAWEEDS

Of the total agriculture gross value added, fisheries account for 22 percent. This is divided into aquaculture with a 46-percent share, and municipal and commercial fisheries with 27 percent each.

For the aquaculture volume, seaweeds account for 70 percent, while milkfish and tilapia contribute 16 percent and 9 percent respectively.

But in terms of value, seaweeds account for only 12 percent.

Nevertheless, the income and potential job generation for seaweeds today is at its highest in history. This is because the farmgate price is now P75 a kilo.

We have constructed a table here using two scenarios.

Profits were not always this good.

In the early 2000s, the fluctuating Zamboanga drop-off fluctuating price of P15 to P30/kg dropped to P12/kilo, causing losses and many seaweed farms shutting down.

This was largely because Indonesia became an alternative source of seaweeds.

But because it became evident that we have superior seaweed quality, the price stabilized at P30/kg. However, during the last year, the price has increased to P100/kg at the Zamboanga drop-off point, with the corresponding P75/kg at the Tawi-Tawi farmgate.

New foreign buyers have recently entered the market, with China as the largest player. It was initially thought that this was because of the great demand from the Beijing Olympics. But the Olympics are over. South Korea has entered as a large importer, and there is no foreseeable decline in price.

This indicates that global demand for our seaweeds is increasing. Now is therefore an ideal time to give significant government support to the seaweed industry which has long been neglected.

Our seaweeds range from raw materials (raw dried seaweeds) to semi-refined or Philippine Natural Grade (PNG) carrageenan, to highly refined or conventionally purified (CP) carrageenan.

Carrageenan is used largely in the industry as a stabilizer, binder and emulsifier.

For example, it is used for many food products, instant food drinks, surgical jellies, toothpaste, break fluids, adhesive for paper bags, and coating for food packages and milk containers.

It has been reported that the best carrageenan comes from the ?Euchema? variety, where the Philippines has the best comparative advantage in the world.

This unique advantage, coupled with the increased global demand for our seaweeds, should be the twin drivers for the support the government should now give to this industry.

PDAP?s Jerry Pacturan (0918-9044457) states: ?This is about time. In carrageenan, we are No. 1 in the world, for we supply 80 percent of global carrageenan demand; and seaweed is our third largest fisheries export.?

RECOMMENDATION

The seaweed stakeholders have reported to the Alyansa Agrikultura that despite the Sitangkai municipality?s Seaweed Industry Masterplan, the government has given the seaweed farmers little support.

But with Secretary Yap?s emphasis on increasing farmer income, it is quite certain that Governor Sahali?s request for a seaweed forum will soon be granted. At this forum, it is recommended that the proper importance be given to the seaweed industry.

But the formulation of a credible and globally competitive industry master plan should also be started so that both the government and private sector seaweed stakeholders can unite and take advantage of the world seaweed situation today.

Special attention should be given to China?s current and future positioning in this plan. It is time we act with the shrewdness and sophistication of successful global economic players, especially in the seaweed industry where we are potentially the best in the world.

The author is chair of Agriwatch, former secretary for presidential flagship programs and projects, and former undersecretary for Agriculture, and Trade and Industry. For inquiries and suggestions, e-mail agriwatchphil@yahoo.com or send a fax to (02) 8522112.



Copyright 2012 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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