SECTION 7: CONSTRAINTS & OPPORTUNITIES

Table 24. Constraints and Opportunitiesof the Seaweed Value Chain

Opportunities Constraints Province
Description and Description and Indicate province having
Function
implications to implications to the constraint/
competitiveness competitiveness opportunity

• lack of nursery facilities

• new disease - resistant in growing areas
Input Provision varieties are being Bohol and Guimaras
developed • lack of supply of good
quality seedlings
• poaching (~ 5% loss)
• declining seaweed
production
• production costs are
• high demand for relatively higher
spinosum and cottonii
• poor farming practices;
• rising farm gate prices lack of info on Good
Seaweed Growing especially for spinosum Bohol and Guimaras
Aquaculture Practices
• wide potential areas for lack of providers on
expansion of seaweed •
GAqP for seaweed
production
growing
• no collective marketing;
growers are organized
but in small groups
• price incentives for
Field Processing good quality raw dried • lack of drying and Bohol and Guimaras
storage facilities
seaweed
• low volume of supply of
Trading • high demand for raw dried seaweeds Bohol and Guimaras
spinosum and cottonii
• poor road network
• outdated and inefficient
processing facilities
• underutilized
processing facilities
• large volume of raw
dried seaweed • lack of supply of raw
Processing dried seaweeds Cebu
importation; potential
for import substitution • inconsistent quality of
raw dried seaweeds
(high moisture content;
low carrageenan yield,
adulteration)
• lack of info on Good
Aquaculture Practices
Support Services • lack of providers on
GAqP for seaweed
growing

• huge area for expansion

for seaweed growing • lack of clear delineation
Enabling Environment • potential to use farm of farm boundaries
Bohol and Guimaras
registration (tax • lots of idle seaweed
declaration) as collateral farms
for financing
SECTION 8: COMPETITIVENESS DIRECTIONS
A. Competitiveness Vision

During the stakeholders workshop, industry players collectively determined the directions they
want to pursue for the next few years in terms of product formats, markets, competitiveness,
among others.

Figure 21 shows the seaweed industry stakeholders’ illustrations of their competitiveness vision.

Figure 21.

Competitiveness Vision of the

Seaweed Industry
Stakeholders

The stakeholders envisioned the industry to be more competitive in the global market for
seaweeds and carrageenan by:

• increasing the production of fresh seaweeds through GAqP

• producing good quality RDS (proper maturity and moisture content, free from contaminants)
• organizing a united, collaborative industry with good trust relations between players
• maintaining a strong performance in target domestic and export markets • improving access to
support services
B. Priority Constraints and Interventions

Table 25. Priority Constraints and Opportunities and Interventions for the Seaweeds Value Chain
 WHO CAN DO IT AND POTENTIAL
ROLES
CONSTRAINTS/ INTERVENTION
FUNCTION OPPORTUNITIES PROVINCE STRATEGY & APPROACH
Public Private

• new disease - • identify good • prepare a

resistant sites for a business
varieties are seedling plan
nursery
being developed • establish seaweed for the
• lack of nursery • coordinate proposed
Input Bohol and nurseries (collective
facilities in with
Provision Guimaras enterprises) using nursery
SEAFDEC on
growing areas improved varieties • operate the
propagating
• lack of supply of nursery as a
improved
good quality seaweed collective
seedlings varieties enterprise

• high demand • identify

for spinosum • conduct sources of
and cottonii • expand seaweed capital and
suitability
• rising farm production by setting up financing
testing in
gate prices new seaweed farms in to set up
potential
especially for highly suitable areas new
Bohol and expansion
spinosum • improve access to good areas
seaweed
Guimaras quality seedlings farms
• wide potential • support
• conduct trainings on GAqP • set up
areas for trainings for
for seaweed farming for seaweed
expansion of new seaweed farms and
new growers
seaweed farmers implement
production GAqP
Seaweed
Growing
• diagnose
farming
• declining problems of
• improve the productivity, existing
seaweed • implement
efficiency and profitability seaweed
production GAqP for
Bohol and of existing seaweed farms growers
• high production seaweed
costs Guimaras through the • support farming on
• poor farming implementation of GAqP trainings on own farms
practices for seaweed farming GAqP for
seaweed
farming
 • support the
construction of • organize
drying seaweed
platforms and farmers
storage groups who
• price incentives • construct drying platforms facilities for will manage
provided for and storage facilities for farmers’ a common
good quality seaweed farmers’ groups groups who will service post
Field raw dried Bohol and engage in harvest facility
• conduct trainings on
Processing seaweed Guimaras collective • identify
proper drying, storage and
• lack of drying marketing
sources of
post harvest handling of
and storage • support
seaweeds capital and
facilities trainings on the
financing to
set up and
operation of set up post
post harvest harvest
facilities for facilities
seaweeds

WHO CAN DO IT AND POTENTIAL

CONSTRAINTS/ INTERVENTION ROLES
FUNCTION PROVINCE
OPPORTUNITIES STRATEGY & APPROACH
Public Private

• prepare a
business plan
• organize for the
seaweed collective
growers for marketing of
• high demand for
• capacitate seaweed collective
spinosum and RDS
farming clusters and marketing of
cottonii
farmers groups to engage • identify
raw dried
• low volume of in collective marketing of
sources of
seaweeds
supply of raw capital and
dried seaweeds Bohol and
RDS • support financing for
• facilitate access to trainings for
• no collective Guimaras the collective
capital, roll – over fund for strategic marketing of
marketing;
Trading marketing of raw dried business
growers are RDS
seaweeds to organized planning and
organized but in • manage a
group management of
small groups collective
a collective
marketing
enterprise for
enterprise
RDS
(trading post)
for RDS
• prioritize FMRs • cooperate with
that would have the government
• poor road Bohol and • rehabilitation/upgrading of
a positive in the
network Guimaras access roads impact on the construction of
VC FMRs
 • large volume of
raw dried
seaweed
importation;
potential for • provide • identify
import incentives for sources of
• provide incentives for
substitution processors capital and
processors who will
• outdated and Cebu who will financing for
upgrade their processing upgrade their
inefficient upgrading
facilities processing processing
processing
facilities facilities facilities
• underutilized
processing
Processing facilities

• lack of supply of • support • support

raw dried activities upgrading of
seaweeds seaweed
where
• inconsistent growers
• collaborate with processors
quality of raw • provide price
stakeholders on and other
dried seaweeds Cebu
increasing production of stakeholders and other
(high moisture
content; low good quality seaweeds can interact incentives for
carrageenan and volume and
yield, collaborate good quality
adulteration) with each other deliveries

WHO CAN DO IT AND POTENTIAL

CONSTRAINTS/ INTERVENTION ROLES
FUNCTION PROVINCE
OPPORTUNITIES STRATEGY & APPROACH
Public Private

• lack of info
on
Good • support • identify
Aquaculture trainers farmers
Practices • develop community - training for
Support Bohol and leaders who
based seaweed and
Services • lack of Guimaras GAqP on can be
GAqP experts developed as
providers on seaweed
GAqP for farming GAqP experts
seaweed
growing
• Use GPS for
• lack of clear managing
delineation of seaweed • design and
farm areas implement
boundaries • Issuance of schemes with
• lots of idle • Use of GPS for site Tax government
Enabling Declaration as
seaweed farms Bohol and planning, development, and farm
Environme owners
• potential to use Guimaras monitoring and farm owners to
nt farm security of
registration make idle
registration (tax tenure which seaweed
declaration) as can be farms
collateral for negotiated as productive
financing collateral for
financing
The key opportunity is the high demand for RDS and carrageenan in both the export and local
markets. And key constraints like lack of seaweed supply and inconsistent quality of RDS among
others, are preventing the whole chain from taking advantage of this opportunity.

The following interventions are focused on resolving these constraints:

Interventions:

1. Establish seaweed nurseries (collective enterprises) using improved varieties


Good quality seedlings can be produced year round in a network of nurseries. This will allow
seaweed farmers to immediately fully replant farms damaged by bad weather, or those that
suffered from failed croppings.

Suitability testings can be done to identify good areas and match them with the appropriate
seaweed varieties. SEAFDEC has a collection of high - yielding seaweeds that are more resistant
to diseases.

Nurseries can be managed as a collective enterprise that would supply the seedlings needed by
growers in their respective areas. A 0.5 hectare nursery can serve 25 hectares of seaweed farms.

2. Expand seaweed production by setting up new seaweed farms in highly suitable areas,
improving access to good quality seedlings and the conduct of trainings for GAqP on seaweed
farming


A processor - exporter repeatedly said that if you solve the seaweed supply problem, you will be
solving 80% of the problems of the industry. The Philippines belong to the coral triangle and is
currently cultivating only 30% of the total area suitable for seaweed growing. Setting up new
seaweed farms in expansion areas will not just provide sustainable income for poor coastal
households, but also solve the supply problem of the industry. Bohol and Guimaras have been
identified as having at least 3,000 hectares of potential seaweed expansion areas.

Numerous small seaweed farms can be spread over a large geographical area to effectively lower
risks associated with seaweed farming. More successful farmers usually maintain several
seaweed farms in different locations so they would have enough sources of planting materials
whenever one farm is severely damaged by bad weather or by disease.

The government with the help of the academe can conduct suitability testing to verify the potential
of these sites for seaweed production and to identify what seaweed variety will best thrive in these
areas. Good quality planting materials can be sources from existing growers or from the seaweed
nurseries to be set up.

Trainings on GAqP for seaweed farming will be conducted so the new growers will have the
knowledge and skills needed to produce good quality seaweeds.

As needed sources of capital and financing can be identified and accessed for the investment
needs of the new seaweed growers.


3. Improve the productivity, efficiency and profitability of existing seaweed farms through the
implementation of GAqP for seaweed farming


Many seaweed growers still could not maximize the productivity and profitability of their farms
because they are not implementing GAqP for seaweed farming.

Improved production/culture techniques like the Lantay Farming System can be evaluated as a
better alternative for seaweed growing in each area.

Setting up community - based providers that can deliver technical support services to these
seaweed growers on - site is a tested strategy to improve farm performance. Instead of depending
on government extension workers, successful farmers are just as effective in providing their fellow
farmers with the support services and the motivation to upgrade their farming practices.

There are already a lot of references and training materials on the subject and these can be
immediately used for the trainings of existing seaweed growers.

4. Improve post harvest practices and organization of a collective farming system for RDS among
farming clusters or farmers’ groups, 


Farming clusters or farmers’ groups will be organized and capacitated to engage in collective
marketing of RDS. Support will be provided in the:

• conduct of strategic business planning for a collected marketing enterprise for RDS
• construction of drying platforms and storage facilities
• conduct of trainings on proper drying, storage and post harvest handling of seaweeds
• access to capital, roll – over fund for marketing of raw dried seaweeds

These community - based buying stations can also be the conduit for support services. Trainings
on seaweed production can be one of the support services provided by those operating the buying
station. These buying stations can also arrange for the pick up of RDS from production sites.
Processors, exporters and big traders can provide volume and quality - based price incentives for
suppliers who can provide them with huge volumes of good quality RDS.


5. Rehabilitation and upgrading of access roads


The government, in partnership with seaweed industry stakeholders, can identify and prioritize
Farm - to - Market Roads that would have a huge, immediate, positive impact on the seaweed
value chain, particularly those that would improve the flow of seaweed/RDS.

6. Provide incentives for processors who will upgrade their processing facilities 


Seaweed processors in the Philippines are at a disadvantage to their Chinese and Indonesian
competitors who are using the latest equipment on seaweed processing, that are more efficient
and result to higher yields.
Incentives can be provided to processors who are interested to upgrade their processing facilities.

The government can also facilitated access to better financing opportunities to seaweed
processors for upgrading, as they will also be generating substantial economic and social impact
among growers and traders.

7. Improved management of seaweed growing sites

The management of seaweed growing areas can be improved with the Use of GPS for site
planning, development, monitoring and farm registration. Farm boundaries can be easily
identified and conflicts related to this can be effectively avoided.

The LGU can also facilitate the design of schemes between growers and registered owners of
idle farms. Leasing agreements can also be revisit to encourage growers to maximize their
registered farms.

The government can also work with existing financial institutions on recognising and accepting
farm registration, tax declaration, or any similar instrument, as a collateral for financing seaweed
farming activities. Risks are relatively lower in seaweed farming because of its relatively short 45
- 60 day cropping cycle. Farming can also be programmed to produce a steady weekly cashflow
for the household.
SECTION 9: CONCLUSIONS AND
RECOMMENDATIONS
There is a huge demand for RDS and carrageenan in the local and export markets. Local
seaweed processors are in fact just operating at 55% of their capacities.

The Philippines may no longer be the top seaweed producer in the world, but it is still the top
supplier of good quality Semi Refined Carrageenan/RC. The country is in a strong position to
continue dominating the market for carrageenan provided that local seaweed production can be
increased.

The following interventions are focused on increasing the production of good quality RDS:

1. Establish seaweed nurseries (collective enterprises) using improved varieties


2. Expand seaweed production by setting up new seaweed farms in highly suitable areas,
improving access to good quality seedlings and the conduct of trainings for GAqP on seaweed
farming


3. Improve the productivity, efficiency and profitability of existing seaweed farms through the
implementation of GAqP for seaweed farming

4. Improve post harvest practices and organization of a collective farming system for RDS among
farming clusters or farmers’ groups, 

5. Rehabilitation and upgrading of access roads

6. Provide incentives for processors who will upgrade their processing facilities

7. Improved management of seaweed growing sites

This Value Chain Analysis was prepared and submitted by JONAH S. NOBLEZA as I-PLAN
Consultant for the Philippine Rural Development Project.

Submitted by: