THE seaweed processing and carrageenan manufacturing industry in the country is on a “rollercoaster” ride, a major industry player said.
Benson Dakay, chief executive officer of Shemberg Marketing Corp., said abnormal weather conditions has affected the local production of seaweeds, the main ingredient in the manufacture of carrageenan.
“The seeweed sector is on a rollercoaster (ride),” said Dakay, adding that unfavorable weather—high temperature on certain days and the occurrence of typhoons—has caused local seaweed production to drop to 60,000 from 120,000 tons a year.
The decline prompted Shemberg to import seaweed from Indonesia.
Dakay said the insufficient supply has caused prices of seaweeds to go up. Current prices range from P65 to P75 per kilo.
On hold
He said some seaweed buyers have put their orders on hold, in the hope that prices would go down to P40 per kilo. “But this will never happen this time,” he added.
Carrageenan 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.
Bureau of Fisheries and Aquatic Resources (BFAR) 7 Director Allan Poquita said, though, that the volume of production by local seaweed growers is not the problem.
He said local growers have difficulties in directly marketing their produce to processors.
“There have been interventions by middlemen that’s why small farmers cannot produce by volume,” he said.
BFAR also pointed out that the imported seaweeds are cheaper than locally produced ones, which is why local seaweed growers are less competitive than their foreign counterparts.
Poquita said that although local seaweeds have high carrageenan content many farmers do not know how to produce high quality seaweeds. “Most likely, they don’t meet the standards of processors,” he added.
BFAR also revealed that foreign countries are lobbying for tariff exemptions on seaweed products.
“This will likely affect the prices of local seaweeds and the income of small farmers,” Poquita said.
Source; The Sunstar Cebu Daily
