Prospect and Perspective of the Seaweed Industry for Building Capacities of Local Communities to Cop

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

• Seaweed Industry Association
• of the Philippines

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Commercial Species of Seaweed in the Philippines

• Carrageenan Bearing Red Seaweed
• Eucheuma Cottonii
• Eucheuma Spinosum
• Agar-Agar Bearing Red Seaweed
• Gracilaria
• Gelidium

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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

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Products Produced by the Philippines(Eucheuma)

• Refined Carrageenan
• Semi-Refined Carrageenan Food Grade
• Semi-Refined Carrageenan Pet Food
• Alkali Treated Chips
• Raw Dried Seaweed

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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

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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

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Philippine Exports as of 2003

• Raw Dried Seaweed
• Volume, 27,540.0 M/tons
• Value, US15,067,330.00
• Refined Carrageenan
• Volume, 4,874.0 M/tons
• Value, US41,421,745.00
• Semi-Refined Carrageenan
• Volume, 22,201.0 M/tons
• Value, US87,103,214.00

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World Demand on Eucheuma Seaweed
Projected increase in demand E. Cottonii 10
Annually E. Spinosum 7 Annually
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World Supply Situation
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World Market FOB Price
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World Market FOB Price
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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.

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The Prospect of the Seaweed Industry In the
Philippines
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Supply and demand situation in the Philippines
for Cottonii.
The annual increase in demand is 10
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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.

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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.

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Non-Traditional Areas Intensive Seaweed
Production Program Chart
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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.

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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

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FINANCING COMPONENT
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ROLE OF LANDBANK QUEDANCOR
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FINANCING LOAN TO TRADERS
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SIAP ORGANIZATION AND ACREDITATION PROGRAM
Accredited
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SIAP SOCIAL PROGRAM
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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.

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PERFORMANCE TARGET
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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.

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What field of Activity in Eucheuma/Carrageenan
industry affect the Philippines?

• In terms of Community Development and environment.

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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.

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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.)

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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.

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Intensive Eucheuma Seaweed/CarrageenanIndustry
Development,

• Developed marginal fishermen capacities in facing
  the challenge of globalization in the field of
  additives.

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ON THE AGAR-AGAR PRODUCING SEAWEED
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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.

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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.

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