Industries

As the most successful fishery product of the Philippines in recent years, seaweeds, essentially a small grower industry at the production side provide livelihood in poor coastal communities.

The increasing international demand for seaweeds opened up more opportunities for new investments in the country, as it is one of the major market suppliers. Among seaweed species found in the Philippines, Eucheuma accounts for 98% of the total production. It is the source of carageenan, utilized as one of the world’s foremost food and industrial additive and a valuable substance used in gelling, suspending, thickening; its water-holding properties is also utilized in various products. Eucheuma grows well in clear marine water with sufficient current systeim in intertidal or subtidal zones. Other varieties cultured are Caulerpa, Sargassum, Gelidiella and Garilaria.

Processed seaweeds produce carrageenan, a yellowish or tan to white powder that is practically odorless with a mucilage taste. It has the unique ability to form an almost infinite variety of gels at room temperature, rigid or compliant, tough or tender with high or low melting point.

PRODUCTION
In 2004, seaweeds production in the Philippines was recorded at 1,204,807.6mt with 56.9% or 685,440.7mt coming from Mindanao. The ARMM is the top-producing region at 68.93% of the Mindanao output, followed by Region 9 at 22.58%, Region 10 at 5.71% and CARAGA Region at 2.60%.

PROCESSING
Seaweeds processed into semi-refined carrageenan involve simple technology. With some exceptions, the industry has limited itself to the production and export of semi-refined carrageenan where quality control is not as stringent and demanding as refined carrageenan.

SUPPLY AND DEMAND TRENDS
With bright export market ahead, especially with the higher demand from China, the country is targeting a doable 10% per year increase in seaweed production.

FOREIGN MARKETS
In the international market, Japan, USA and China are the largest importers of seaweeds. China, Japan and the Philippines are the major export countries. The industry generated about $158 million on export to the US in 2004.

PRICE TRENDS
The average domestic price of seaweeds showed an increasing trend with prices ranging from p30 to P37. Fluctuations in price take place as a result of the supply and demand in the market. Export of carrageenan was recorded at $4.50/kg in 2004, which is lower, by $0.18/kg from the price in 2003.

INVESTMENT OPPORTUNITIES
With the increasing international markets and new uses for carrageenan, investments in seaweeds are in demand. Areas along seaweeds farming or culture, seaweeds nurseries, and processing, whether village level or more sophisticated methods, are among the favorable investments in the region.

EXPANSION AREAS (2004-2012)
Carved from the notes of Dr. Rodel Maghirang, DA Central Office