UN names RP as world's top processed seaweed producer

CEBU, Philippines - Despite the series of calamities that hit the country coupled with infertility issues hounding seaweed farms, the United Nations still consider the Philippines as the number one processed seaweed producer in the world.

A recent study commissioned by UN specified that the Philippines has strong capacity to produce processed seaweed or carrageenan than any other country worldwide.

“We used to dominate the market as a major raw seaweed exporter but because of the advance technology adopted by industry players, we have now become a net importer of seaweed,” said Seaweed Industry Association of the Philippine President Benson Dakay.

An analysis made by the UN showed that the country has now become a net seaweed importer as indicated by increase capacity in seaweed processing in the country in the last nine years.

Dakay cited a study made by the UN Food and Agriculture Organization that sought to review world production and trade in tropical red seaweeds, focusing on the Philippines’ and Indonesia’s seaweed industries.

The report indicated that while the Philippines used to export raw seaweeds, the industry is now inclined to export carrageenan since the year 2000.

Carrageenan, a gelatin-like extracts from seaweed is a thickener, emulsifier, stabilizer and gelling agent in food, beverages, cosmetics and pharmaceuticals. It is extracted from the Euchema seaweed or native “guso.”

It is used in the manufacture of toothpaste, ice cream, some dairy products, shampoo and cosmetic creams, among others. The Philippines is considered as the largest producer of carrageenan.

Dakay stressed that volatile weather conditions resulting from the effects of the global warming triggered the reduction of raw seaweed exports.

He said that while the Philippines used to produce 120,000 tons of seaweed in 2006, the figure has now dropped to 80,000.

In the Philippines, 60 percent of the seaweed supply is sourced from seaweed farms in Southern Mindanao, particularly Zamboanga, Jolo, and Tawi-Tawi.

Dakay said low production supply has prompted industry players to import raw seaweeds from Indonesia, Cambodia, India and Vietnam.

“This means 40,000 metric tons additional supply of seaweeds in the country,” Dakay said, who is also chief executive officer of carrageenan manufacturing company, Shemberg Marketing Corp. (Shemberg).

While, there were a lot of seaweed processors, and exporters folded up in the last few years because of foreign exchange problems, declining supply and weakening global demand, he said the Philippines still has the largest number of seaweed processing plants.

Amid stiff competition, Dakay noted the Philippine carrageenan remained competitive in terms of costs since the prices are still about 50 percent less compared with other producers.

At the end of 2008, carrageenan was priced at $10 per kilo, while semi-refined variants were sold at US$7 per kilo.

The present rate for carrageenan is US$14 per kilo and US$9 per kilo for the semi-refined ones.