Seaweed industry takes up woes with DA chief

CEBU, Philippines – Officials of the Seaweed Industry Association of the Philippines (SIAP) will meet today with Department of Agriculture (DA) secretary Proceso J. Alcala at the Cebu Country Club to discuss probable solutions to problems that threaten the industry’s future.

This development followed shortly after SIAP asked the help of President Noynoy Aquino’s administration to give attention to the mounting problems of the seaweed industry in the Philippines

SIAP president Benson U. Dakay announced yesterday that the industry players will push for the government’s support on increasing seaweed production “so we will not depend on Indonesia.”

The Philippines is now importing 80,000 tons of raw seaweed from Indonesia, due to the lack of supply produced by seaweed farms in the Philippines.

According to Dakay, SIAP officials will also lobby for financial support from the government, to be provided to the seaweed farmer, exporters, traders and processors, in order to expand their production.

SIAP likewise requests the Philippine government, through DA, that it will support its involvement in the joint ASEAN complaint of seaweed traders against China, to resolve several issues such as high tariff, among others.

Dakay hopes that the seaweed industry players can get support from the government this time, as the industry was not given attention by the previous administration.

SIAP will also present to Alcala the projection of the industry, which is facing a zero growth rate projection in the next three years due to the lingering effects of global crisis, and the substitution of carrageenan of other hydrocolloids.

In 2009, total demand of carrageenan in the world market was 55,000 metric tons, but it is expected to reduce this year, to 50,000 metric tons due to the crisis, and the substitution of other hydrocolloids.

The carrageenan users slowly shifted to SRC food grade and RC Gel pressed products.

On the other hand, Dakay said new applications for carrageenan-based products have given hope for the industry to post growth despite the threats.

Last year, the Philippines exported a total of 20,000 tons refined and semi-refined carrageenan, or an equivalent of US$200 million.

 Carrageenan-based hydrocolloids are only covering 18 percent or US$315 million or the US$1.75 billion food hydrocolloids market in the world. Competing it are Starch, Gelatin, Pectin, Xanthan, GumArabic, and others which are substitute to carrageenan.

On the other hand, Dakay emphasized that carrageenan suppliers have to further emphasized its strength, being a natural, organic, plant-based food ingredient. This proposition is expected to bring about turn-around of the declining carrageenan-based hydrocolloids demand.

With the help of the government, the industry is expected to weather the odds faced by the industry, Dakay said. (FREEMAN)