Seaweed Industry Association of the Philippines

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

2. Legend: % Production ----- Highly-developed – 88% ----- Semi-developed – 10% ----- Under-developed – 2%

3. Commercial Species of Seaweed in the Philippines • Carrageenan Bearing Red Seaweed • Eucheuma Cottonii • Eucheuma Spinosum • Agar-Agar Bearing Red Seaweed • Gracilaria • Gelidium

4. 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

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

6. 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

7. 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%

8. 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

9. World Demand on Eucheuma Seaweed Projected increase in demand: E. Cottonii – 10% Annually E. Spinosum – 7% Annually

10. World Supply Situation

11. World Market FOB Price

12. World Market FOB Price

13. 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.

14. The Prospect of the Seaweed Industry In the Philippines

15. Supply and demand situation in the Philippines for Cottonii. The annual increase in demand is 10%

16. 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.

17. 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.

18. PSDC (Provincial Seaweed Development Council) Conduct Technology Seminar & put up one Block Module (10m. X 25m.) to PSFTA Orient LGU on Seaweed Farming Development LGU organize PSTFA Municipal Chapter Fishermen’s Group Municipal Government 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 Non-Traditional Areas Intensive Seaweed Production Program Chart

19. 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.

20. 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

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

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

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

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

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

26. 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.

27. Year Production in Metric Tons Number of Families Total Area In Hectares Value of Exports In 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 PERFORMANCE TARGET

28. 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.

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

30. 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.

31. 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.)

32. 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.

33. Intensive Eucheuma Seaweed/CarrageenanIndustry Development, Developed marginal fishermen capacities in facing the challenge of globalization in the field of additives.

34. ON THE AGAR-AGAR PRODUCING SEAWEED

35. 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.

36. 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.

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