I. INTRODUCTION
S eaweeds in the Philippines, particularly the Eucheuma variety (commonly known as "guso") used to be gathered from the wild and exported as dried seaweed. At the height of its uncontrolled exploitation in 1966, the country exported 800 metric tons of Eucheuma seaweeds. This,however satisfied the foreign market only for a few years. Supply of seaweeds started to drop, not only because of limited areas where it has been identified as available, but more so, because of its unsystematic and uncontrolled harvesting.
T his period however, ushered that start and the evolution of the seaweed industry in the country.
T he introduction and successful application of culture techniques for seaweeds, as initiated by a leading private exporter, in cooperation with the Bureau of Fisheries and Aquatic Resources and the University of Hawaii in 1969, led to the dominance of the Philippine Eucheuma seaweed as raw material for the manufacture of carrageenan in the world market.
I n 1972, Tawi-tawi, Jolo and Zamboanga fisherman started the first Eucheuma commercial farms in the country. Then in 1978, seaweed farming reached Bohol, Cebu and the Leyte-Samar area.
I n 1990, the country's total seaweed farm production reached a high of about 400,000 metric tons of fresh Eucheuma seaweeds planted by about 80,000 seaweed farmers/families.
A n estimated 70% to 80% of carrageenan worldwide is being produced today from two species of seaweed, Eucheuma cottonii and Eucheuma spinosum. Carrageenan is produced from these species for two reasons: First, only the Eucheuma specie have thus far been cultivated successfully on a large scale in underwater seaweed farms. Other species of seaweed that can be used to produced must be gathered in their wild state from the sea. Second, by using the carrageenan produced from these particular species in different proportions, producers can easily obtain different blends with different gel strengths and textures to meet different product needs. Unlike other carrageenan- containing seaweeds, E.cottonii produces only kappa-carrageenan and E. spinosum produces only iota-carrageenan.
T he great demand for this seaweed encouraged local entrepreneurs to go into processing with the end objective of adding more value ot the exported raw materials.
I t was in 1979 that a Filipino-owned enterprise established the coutry's first carrageenan processing plant in the Province of Cebu.
T his indeed, is the start of the production of our very own Alternatively Refined Natural Grade Carrageenan (ARC) and that of the conventionally refined carrageenan.
T he Seaweed Export Industry in the Philippines has grown dramatically since then. Total export earnings during this period grew from US $1 million in 1976 to US$ 51 million in 1990.
T o date, there are a total of fourteen (14) corporations engaged in the export of seaweeds, of which eight (8) companies are in the processing of seaweeds and manufacturing of carrageenan.
T ogether, they form the backbone of the nation's seaweed industry with a plant assets reaching US$ 36.7 million in 1990, directly employing about 10,000 people.
II. THE PRODUCT (WHAT IS CARRAGEENAN?):
C arrageenan is a natural marine colloidal gum that is extracted from some species of seaweeds belonging to the Class Rhodophyceae or red algae. It is a powder derived from processed seaweeds. It is used to enhance a number of milk system and water system food products. Its functions include fat and foam stabilization, emulsion stabilization, gelation, thickening and binding.
C arrageenan is applied similarly in cosmetics, pharmaceuticals and other non-food products.
I n Poultry,hams,sausages and other meat products, it is injected with carrageenan to serve as binder, moisture holder and gelling agent. Sauces, salad dressings and dups require carrageenan to impart body, provide thickness and stabilize emulsions.
I n the dairy items and desserts greatly utilize carrageenan as an enhancer. Whipped creams and toppings have a stable foam due to carrageenan. Acid milk products such as cream cheese and cottage cheese are given body and, in the case of yogurt, improved fruit suspension of chocolate.
I n the non-food use, like shampoos, carrageenan improves foam stability and creates thickness. Carrageenan is found in lotions and creams as it imparts body, provides slip, and improves rub-out. It is also present in toothpastes, acting as a binder and improving foam stability. It is also found in gel-foam air fresheners.
C arrageenan is widely used because its functionality is found to be effective. Considering all things equal, it is comparitively cheaper compared to other groups of food additives of the same properties.
III. PERFORMANCE OF THE INDUSTRY:
T he Philippines is considered as the world's leading supplier of Eucheuma, comprising about 80% of the total world supply. Raw Eucheuma is sold according to its quality. Most Eucheuma products, however, are exported in carrageenan or processed form, comprising about 65% of total seaweed exports.
T he seaweed industry manifested a creditable growth in the international market as the dried seaweeds export volume increased by an annual average of 15.5% form 1980 to 1987. Within the same period, value of exports increased by 170% form US$ 8.4 million to US $ 22.5 million.
I n 1988, the export of seaweeds reached 52,855 metric tons for and equivalent value of US $ 30.0 million. This increased to 58,300 metric tons in 1989 for an export value of about US $ 40.0 million for an increase of 10% in volume, and a 33.% increase in value.
T he industry's output in 1990 reached a total value of $ 51.2 million for a volume of 66,495 metric tons, an increase of 28% and 15% respectively from that of the 1989 industry's performance.
A very interesting development in the industry is the apparent growth of the Alternatively Refined Natural Grade Carrageenan as manifested by the increasing contribution of ARC to the total export sales of the industry and the declining contribution of raw materials sales to total industry output. This only means that the industry is indeed more concerned on adding more value to our indigenous raw materials - Eucheuma Seaweeds.
IV. ECONOMIC IMPACT:
S eaweed farming is the source of livelihood of at least 80,000 farmers and families, or over 350,000 people dependent on it. They farm and grow the seaweeds (eucheumaO in Bohol, Leyte, Samar, Palawan, Zamboanga del Norte and Sur, Sulu, Jolo, and Tawi-tawi.
S eaweed farming has become the alternative source of income of the people in the Mindanao areas. About 70% to 80% of the seaweed raw material requirements of the industry are sourced from Mindanao.
I t is noteworthy to mention that one of the key contributions of seaweed farming to the community is the apparent reduction in the use of blast and cyanide fishing, and the relative peace and order situation in these areas.
T o date, the processing industry directly employs 6,500 workers. These workers are spread out all over the country.
A s the seaweed industry grows and expands, so are the number of farmers and families involved in seaweed farming and the direct employment that will be generated. Allied and support (both backward and forward linkages) industries such as shipping, stevedoring, hauling, trucking, and plastic manufacturers shall also correspondingly increase.
V. OPPORTUNITIES:
I nspite of tough competition, the Philippines looks at the Americas (North, including Canada, and South) markets as the new gold mine for its carrageenan exports. The U.S Food and Drug Administration officially reaffirmed its 1990 policy decision accepting the Philippines` Alternatively Refined Natural carrageenan (ARC) as a food additive last June 12, 1991.
L ast month,Canada also accepted the country's ARC into its rich market as a non toxic food additive. South America (Argentina, Mexico and others) now buys Philippine ARC.
T here are no official restrictions against the Philippine conventionally refined (CR) carrageenan in the Americas. And in the world.
T he U.S. and Canadian acceptance of the ARC Carrageenan opened unlimited doors to Philippine exports in the Americas markets. Sales success depends mainly now on competitive Filipino marketing skills and budgets.
G iant American multinationals with subsidiaries in Europe, face Filipino processor-exporters. It is a tough job.
O f course, the Filipino's marketing ace is the lower product pricing. Eucheuma is indigenous of the Philippines.
A ctually, Philippine-processed ARC successfully entered into the multi- million dollar American meat market. Original U.S. users of ARC were the pet food and dairy industry.
T he marketing of ARC in the Americas is currently done through tie-ups with sales networks of U.S. firms or the industry's own marketing agencies in the continent.
W ith high tech advances in food science and health restrictions against high fat and cholesterol, the use of the lower-priced Philippine processed ARC as a fat replacement food additive, increases everyday.
T hus, Filipino processor-exporters look forward to a $150 million export income from North and South American sales within the next five years period.
M ost importantly, higher dollar earnings means higher farm-to-plant prices for the eucheuma produce of the Filipino seafarmers.
VI. PROBLEMS:
S ome European countries are old-time importers of Philippine-processed Alternatively Refined Natural Grade carrageenan (ARC), conventionally refined carrageenan and dried raw materials.
T hese include England, Denmark, France, Germany. And lately, Italy and Spain. Collectively, these countries absorb at least 60 percent of the total Philippine exports or $35 million in 1990.
I n the nineties, Filipino processor-exporters looked at dramatic increases of carrageenan exports to the European market. But the opposite happened.
T hrough representations made by European-based competitors, the European Community (EC) amended its food additives rules in October, 1990.
T his new European Commission Directive 90/612/EEC of 26 October 1990 - suspends Council Directive 78/663/EEC laying down specific purity criteria for emulsifiers, stabilizers, thickeners and gelling agents for use in foodstuffs. This include also carrageenan.
T his new ruling amended the old rules on carrageenan by imposing new purity specifications on carrageenan which will effectively exclude the Philippine ARC product from the EC market.
I f this directive will be allowed to take effect in the EC Member States, the Philippine ARC loses the opportunity to continually service the rich European markets and to offer substantial savings to food processors and consumers.
T he European market loss means a big cut in the country's foreign exchange earnings. Which ultimately reduces eucheuma farm production and depresses the market prices of dried seaweeds.
W ith the total industry exports to Europe reaching a high of US$ 30.0 million in 1990, this makes the industry one of the most important exort products for our country, next to coconuts and fishery products.
O ver the next five years period, the growth potential of ARC exports worldwide is estimated to be US$ 700 million.
T he growth potential of the EEC market, assuming absence of any trade barriers, for ARC exports is estimated to be US$ 350 million for the next five years period.
F ilipino processors may be able to absorb such actual and potential loss. In a way. But the marginalized Filipino seafishers in the southern Philippines may not. Their common weal depends largely on increased carrageenan exports which will not provide for higher foreign exchange earnings for the country but more so make a higher farm-to-plant prices for the Filipino farmers possible.
T he Filipino-processed ARC needs the European market. It is today's and the futures` imperative.
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