Shemberg sees Nestle recognition to pave way for bullish prospects

CEBU, Philippines - Carrageenan exporter Shemberg Manufacturing Corporation (SMC) hopes to increase its share in the competitive world market, following the recognition given by Nestle Philippines for its Green Supply Chain Program.

While environmental programs and green operation is now part of world market’s primary requirement, SMC president and chief executive officer (CEO) Benson U. Dakay said yesterday that the company is committed to invest further in the entire company’s operation to achieve ultimate “green operation” system.

For its waste water treatment maintenance alone, the company spends about P2 million a month to maintain the world’s standard of Biological Oxygen Level (BOD) on waste water extracted from manufacturing plants.

“The world market is now very sensitive about green operations among suppliers. We are continuously investing on the green operations of each of our plants,” said Dakay in a press conference yesterday.

Shemberg was honored for its environmental performance and having implemented exemplary programs within the company and its community. The company has been in compliant to the Department of Environment and Natural Resources (DENR) standards in wastewater, air, and dust, noise, and other parameters.

Seaweed processing, which is a highly industrialized plant operations, should take extra attention on the environmental issues, and Shemberg has been committed in this aspect, Dakay said.

Besides, the demand for multinational companies (MNCs) like Nestle, wherein Shemberg is one of the biggest suppliers for carrageenan requirement, Dakay said investment on green operation is one of the company’s top priorities.

Already, Shemberg has gotten ISO 90001 certification, a family of standards for quality management systems. Likewise, the company maintained its certification on Hazard Analysis Critical Control Point (HACCP), and currently working on the compliant for ISO 22000—a global standard for food safety.

Although battered by several crises and challenges, Dakay said Shemberg, being the leader in the carrageenan export industry in the Philippines, should insist for the survival of the seaweed industry in the country.

Complying with several requirements for the changing consumer preferences is one of its primary focuses, as it modernized the plants’ operational system.

Over-all, the seaweed producing countries, especially in the Philippines is facing a zero growth rate projection in the next two years, due to the lingering effects of global crisis, coupled with the threat of war in Middle East, and civil unrest in Libya.

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.

Carrageenan-based hydrocolloids only covers 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. (FREEMAN)