RP bucks Indonesia plan to ban seaweed exports

MANILA, Philippines - Cebu seaweed/carageenan exporters led by Benson Dakay are hoping to convince Indonesia’s head of fisheries, Dr. Victor not to endorse a proposal to ban the export of raw Indonesian seaweeds by 2012.

Dr. Nikijuluw visiting Cebu next month to talk with Cebu seaweed/carageenan processors. 

Some sectors in Indonesia are pushing for a ban on the export of raw seaweeds, insisting that more value-adding should be done before the seaweed is exported. 

They are pushing for more processing to be done in Indonesia.

However, while there are about 10 seaweed/carageenan processing plants in Indonesia, the quality is still not comparable to that produced by the Philippines. 

In an exclusive interview with the STAR, Dakay said export ban would not benefit Indonesian seaweed farmers who would no longer be able to shop around for the best price for their seaweed.

This would also be contrary to the provisions and spirit of the ASEAN Free Trade Agreement (AFTA), he added.

According to Dakay, Indonesia exports 80 percent of its seaweed production, mostly to China.

The Philippines also sources a portion of its seaweed requirement from Indonesia.

However, because of stiff competition from China the cost of Indonesian seaweed has risen to around P60 per kilo. Three years ago, Dakays Shemberg Marketing Corp. was buying Indonesian seaweed at only P24 per kilo.

Dakay revealed that a similar export ban was imposed on China three years ago, but did not work out since China was able to get the Indonesian seaweed anyway from Vietnam.