RP likely to miss seaweed export targets this year

The country is likely to miss its seaweed export targets this year because local seaweed processors are losing out in the scramble for limited raw seaweed with processors and traders from mainland China.

"Processors and traders from mainland China are gobbling up raw seaweed coming from the Philippines and this has led to prohibitive prices, local seaweed processors have difficulty matching such prices. If they could match it, there is no available supply," said Seaweed Industry Association of the Philippines (SIAP) president Benson Dakay.

SIAP sought to address the supply deficit concerns and earlier this year began a three-year seaweed production roadmap that targeted to raise seaweed production to 168,014 metric tons (MT) for 2004, 227,937 MT in 2005 and 261,184 MT in 2006.

Revenues from exports is targeted to reach $185.7 million in 2004, $252 million in 2004 and $310.78 million by 2006.

Dakay noted that China began aggressively buying raw seaweed in southern Philippines in 2002 at historic-high prices of P50 a kilo, against the prevailing price of only P30 a kilo.

"Consequently, China’s huge need for such seaweed triggered an unprecedented shortage of dried raw seaweed among the Philippine-based carrageenan processors," he said.

He said most raw materials are now being absorbed by China, where there are more than 200 small and medium carrageenan processing plants.

Dakay said because of the limited supply of seaweed in the local market, most carrageenan processors in Cebu are running at half their capacity

Aside from competing for the short supply with Chinese traders, local seaweed processors also have to contend with the low yield in seaweed farms.

SIAP was supposed to get backing from the Bureau of Fisheries and Aquatic Resources through the establishment of nurseries and the output of which will be dispersed to seaweed farmers covered by the seaweed production program.

Dakay said SIAP has identified 14 non-traditional seaweed areas in order for the industry to raise local production. These areas are Sultan Kudarat, South Cotabato, Sarangani, Agusan del Norte, Misamis Oriental, Siquijor, Biliran, Capiz, Aklan, Romblon, Oriental Mindoro, Catanduanes, Albay, and Aurora.

Aside from these new areas to be developed, the project will also expand production in 36 provinces such as 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, Eastern Samar, Western Samar, Northern Samar, Iolilo, Guimaras, Antique, Negros Occidental, Masbate, Sorsogon, Camarines Sur, Camarines Norte, Quezon, Marinduque, Occidental Mindoro, Palawan, Batangas and Pangasinan.

"This hardly materialized however, and right now there is very little contribution from the government in terms of seed dispersal," added Dakay.

Dakay said local seaweed processors will continue to be in a tight bind if the industry fails to support the industry in terms of finding ways to regulate the exports of raw seaweed to China.