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I.
INDUSTRY BACKGROUND
People
in the far-flung coastal communities need not anymore try their
luck in the country’s key cities to live comfortably. For sure,
there’s more "wealth" near their homes than in Manila,
for instance. This is particularly true for those who depend on
the country’s vast coastal areas for a living. The "wealth"
is in seaweed.
A
renaissance in technology has led to new discoveries on the unique
qualities of certain marine plants. One of the most talked about
marine plants today is the seaweed. Cebuanos call it "goso".
Marine biologists have another term for it – "sea lettuce".
"Irish Mosh", some seafarers call it. Chinese culinary
experts before were fond of making "gulaman" out of
seaweed, providing genial hosts with a favorite "after-dinner
mint" for their guests.
Seaweed
or halamang-dagat is a red-to-brown grass of the sea that provides
nourishment for man. Aside from being consumed as food, seaweed
is utilized as a raw material in the manufacture of industrial
products such as alginate, agar and carrageenan.
There
are five (5) species of seaweed in the country. They are Eucheuma
(usually exported fresh), Caulerpa (exported fresh or in salted
form), Sargassum (produced as meal for animal feed manufacture),
Gelidiella and Gracilaria (both exported dried and/or alkali-tested).
Eucheuma, however, has a number of uses and enjoys the heaviest
demand in the market, both here and abroad. In addition, Eucheuma
can be farmed commercially almost anywhere in the country’s coastal
areas.
It
took more than 50 years before Filipinos were able to unlock the
hidden wonders of seaweed. With the advent of modern processing
techniques, seaweed has been transformed into white powder called
"carrageenan". The wonder of carrageenan is very much
part of modern day living. In fact, many people refer to carrageenan
as the "wonder powder" derived form processed seaweed.
Food processing firms use it to enhance the quality of certain
food products such as poultry, hams, sausages, and other meat
products. Its functions as binder, moisture holder, and gelling
agent have been acclaimed by food processors all over the world.
Sauces, salad dressings and dips require carrageenan to impart
body, provide thickness and stabilize emulsions. Carrageenan,
likewise, creates a stable gel for canned meat products and shrimp
or fish gels. From food products, profound uses of carrageenan
have been established in dairy and dessert products. Whipped creams
and toppings retain their stable form due to carrageenan. The
wonder powder gives body to acid milk product such as cheese and,
in case of yogurt, improved fruit suspension. Much of the wonder
powder’s fine attributes are also found in milk products. In ice
cream, for instance, carrageenan prevents whey separation and
ice crystal formation. It is also present in puddings and pie
fillings as it creates a stable gel. Even chocolate drinks maintain
their quality with the aid of carrageenan.
But
the wonders of carrageenan are far from over. Through persistent
research, new frontiers are set. Non-food products have been added
to the list of beneficiaries of carrageenan. The list includes
beauty care product lines and pharmaceuticals that make use of
the seaweed derivative. Shampoos have acquired improved foam stability
and thickness due to carrageenan. Lotions and creams have attained
a special quality in terms of body, slip, and improved "rub-out"
sensation. Even in toothpaste, carrageenan is very much at work
acting as a binder while improving foam stability in the product.
1966
was a turning point in Philippine exports as it saw the emergence
and the eventual recognition of the Seaweed Processing as an industry
in the Philippines with a record volume of 800 metric tons (MT).
Although initially, no attempts were made to cultivate Eucheuma.
People gathered only wild species and, quite surprisingly, it
satisfied the foreign market. Each year, the demand for Eucheuma
increased but the supply dropped alarmingly in the late 60’s as
a result of over-harvesting. It was the Marine Colloid Philippines,
Inc. (MCPI), a pioneering industry leader, which took the task
of incisively studying the possibility of commercial Eucheuma
farming. The experiment was proven to be successful which led
to the sprouting of firms specializing in the manufacture of a
new grade of carrageenan from seaweed of the Eucheuma variety.
It
took exactly another two decades for the Philippine seaweed industry
to take a leap forward through Shemberg Marketing Corporation,
a Cebu-based exporter of seaweed products, which established the
first full-scale carrageenan refinery in the Philippines. In 1986,
Shemberg Marketing Corporation has penetrated the markets of Western
Europe, Japan and Australia.
Carrageenan
exports are expected to increase anywhere between 15-20% this
year (1998) as outward shipments get a boost from demand of European
countries for the product. Considered one of the country’s next
marine-based export winner after shrimps and tuna, carrageenan
is a hard-type gel popularly used as suspending agent for various
products. It usually accounts for some of product weight for processed
food like jams and syrup, baby food, ice cream and coffee creamers.
It can also be used as thickener for toothpaste, shampoos, lotions,
cream and other toiletries. In the textile industry, it is used
as stiffening and binding material for a soft finish.
Thus
far, the Philippines is now considered as one of the world’s few
which has successfully cultivated seaweeds on a commercial scale.
But the road trod by the seaweed industry was not, at all, a bed
of roses. The years 1991-1993 were the most turbulent years. It
was during this period that the raging controversy on Philippine
Natural Grade (PNG) carrageenan’s possible ban in the United States
determined the fate of the industry. The issue then was whether
PNG is safe for human consumption or not. Fortunately, the issue
has been answered in the affirmative in a letter of approval signed
by the Director of the Division of Food and Color Additives, Center
for Food and Safety and Applied Nutrition of the United States
Food and Drug Authority (FDA).
The
Philippine Seaweed Industry clinched two big wins in the American
market as the US Food and Drug Administration (FDA) reaffirmed
its 1991 pro-Philippine Natural Grade Carrageenan decision. The
development came as the U.S. FDA’s Office of Compliance rejected
the letter-request of two international seaweed-based groups to
reverse its 1991 policy decision accepting PNG as food additive
and approving the change of name in the American market. These
two groups, the US-based International Food Additives Council
(IFAC) and the France-based Marinalg, have lobbied for years against
the entry of the high fibrous carrageenan in Europe and the US.
But, the U.S. FDA has made a third pronouncement in favor of PNG.
The first and second pronouncements were issued on July 12, 1990
and July 8, 1991 respectively.
More
so, in a historic decision, the Codex Alimentarius Commission
(CAC) approved an International Numbering System (INS) - E407a-
for Philippine Natural Grade (PNG) on July 1995 in Rome. This
new number now classifies PNG as carrageenan in its food additive
list. The CAC is a joint international food hygiene agency of
the World Health Organization (WHO) and the Food and Agriculture
Organization (FAO). On the other hand, the Joint Expert on Food
Additives and Contaminants assigned to PNG a temporary allowable
daily intake (ADI) of 0-20 mg/kg of body weight.
 |
| | A
renaissance in technology has led to new discoveries on the unique
qualities of certain marine plants. One of the most talked about
marine plants today is the seaweed. Cebuanos call it "goso".
Marine biologists have another term for it – "sea lettuce".
"Irish Mosh", some seafarers call it. Chinese culinary
experts before were fond of making "gulaman" out of
seaweed, providing genial hosts with a favorite "after-dinner
mint" for their guests.
Seaweed
or halamang-dagat is a red-to-brown grass of the sea that provides
nourishment for man. Aside from being consumed as food, seaweed
is utilized as a raw material in the manufacture of industrial
products such as alginate, agar and carrageenan.
There
are five (5) species of seaweed in the country. They are Eucheuma
(usually exported fresh), Caulerpa (exported fresh or in salted
form), Sargassum (produced as meal for animal feed manufacture),
Gelidiella and Gracilaria (both exported dried and/or alkali-tested).
Eucheuma, however, has a number of uses and enjoys the heaviest
demand in the market, both here and abroad. In addition, Eucheuma
can be farmed commercially almost anywhere in the country’s coastal
areas.
It
took more than 50 years before Filipinos were able to unlock the
hidden wonders of seaweed. With the advent of modern processing
techniques, seaweed has been transformed into white powder called
"carrageenan". The wonder of carrageenan is very much
part of modern day living. In fact, many people refer to carrageenan
as the "wonder powder" derived form processed seaweed.
Food processing firms use it to enhance the quality of certain
food products such as poultry, hams, sausages, and other meat
products. Its functions as binder, moisture holder, and gelling
agent have been acclaimed by food processors all over the world.
Sauces, salad dressings and dips require carrageenan to impart
body, provide thickness and stabilize emulsions. Carrageenan,
likewise, creates a stable gel for canned meat products and shrimp
or fish gels. From food products, profound uses of carrageenan
have been established in dairy and dessert products. Whipped creams
and toppings retain their stable form due to carrageenan. The
wonder powder gives body to acid milk product such as cheese and,
in case of yogurt, improved fruit suspension. Much of the wonder
powder’s fine attributes are also found in milk products. In ice
cream, for instance, carrageenan prevents whey separation and
ice crystal formation. It is also present in puddings and pie
fillings as it creates a stable gel. Even chocolate drinks maintain
their quality with the aid of carrageenan.
But
the wonders of carrageenan are far from over. Through persistent
research, new frontiers are set. Non-food products have been added
to the list of beneficiaries of carrageenan. The list includes
beauty care product lines and pharmaceuticals that make use of
the seaweed derivative. Shampoos have acquired improved foam stability
and thickness due to carrageenan. Lotions and creams have attained
a special quality in terms of body, slip, and improved "rub-out"
sensation. Even in toothpaste, carrageenan is very much at work
acting as a binder while improving foam stability in the product.
1966
was a turning point in Philippine exports as it saw the emergence
and the eventual recognition of the Seaweed Processing as an industry
in the Philippines with a record volume of 800 metric tons (MT).
Although initially, no attempts were made to cultivate Eucheuma.
People gathered only wild species and, quite surprisingly, it
satisfied the foreign market. Each year, the demand for Eucheuma
increased but the supply dropped alarmingly in the late 60’s as
a result of over-harvesting. It was the Marine Colloid Philippines,
Inc. (MCPI), a pioneering industry leader, which took the task
of incisively studying the possibility of commercial Eucheuma
farming. The experiment was proven to be successful which led
to the sprouting of firms specializing in the manufacture of a
new grade of carrageenan from seaweed of the Eucheuma variety.
It
took exactly another two decades for the Philippine seaweed industry
to take a leap forward through Shemberg Marketing Corporation,
a Cebu-based exporter of seaweed products, which established the
first full-scale carrageenan refinery in the Philippines. In 1986,
Shemberg Marketing Corporation has penetrated the markets of Western
Europe, Japan and Australia.
Carrageenan
exports are expected to increase anywhere between 15-20% this
year (1998) as outward shipments get a boost from demand of European
countries for the product. Considered one of the country’s next
marine-based export winner after shrimps and tuna, carrageenan
is a hard-type gel popularly used as suspending agent for various
products. It usually accounts for some of product weight for processed
food like jams and syrup, baby food, ice cream and coffee creamers.
It can also be used as thickener for toothpaste, shampoos, lotions,
cream and other toiletries. In the textile industry, it is used
as stiffening and binding material for a soft finish.
Thus
far, the Philippines is now considered as one of the world’s few
which has successfully cultivated seaweeds on a commercial scale.
But the road trod by the seaweed industry was not, at all, a bed
of roses. The years 1991-1993 were the most turbulent years. It
was during this period that the raging controversy on Philippine
Natural Grade (PNG) carrageenan’s possible ban in the United States
determined the fate of the industry. The issue then was whether
PNG is safe for human consumption or not. Fortunately, the issue
has been answered in the affirmative in a letter of approval signed
by the Director of the Division of Food and Color Additives, Center
for Food and Safety and Applied Nutrition of the United States
Food and Drug Authority (FDA).
The
Philippine Seaweed Industry clinched two big wins in the American
market as the US Food and Drug Administration (FDA) reaffirmed
its 1991 pro-Philippine Natural Grade Carrageenan decision. The
development came as the U.S. FDA’s Office of Compliance rejected
the letter-request of two international seaweed-based groups to
reverse its 1991 policy decision accepting PNG as food additive
and approving the change of name in the American market. These
two groups, the US-based International Food Additives Council
(IFAC) and the France-based Marinalg, have lobbied for years against
the entry of the high fibrous carrageenan in Europe and the US.
But, the U.S. FDA has made a third pronouncement in favor of PNG.
The first and second pronouncements were issued on July 12, 1990
and July 8, 1991 respectively.
More
so, in a historic decision, the Codex Alimentarius Commission
(CAC) approved an International Numbering System (INS) - E407a-
for Philippine Natural Grade (PNG) on July 1995 in Rome. This
new number now classifies PNG as carrageenan in its food additive
list. The CAC is a joint international food hygiene agency of
the World Health Organization (WHO) and the Food and Agriculture
Organization (FAO). On the other hand, the Joint Expert on Food
Additives and Contaminants assigned to PNG a temporary allowable
daily intake (ADI) of 0-20 mg/kg of body weight.
|
| | | | A
renaissance in technology has led to new discoveries on the unique
qualities of certain marine plants. One of the most talked about
marine plants today is the seaweed. Cebuanos call it "goso".
Marine biologists have another term for it – "sea lettuce".
"Irish Mosh", some seafarers call it. Chinese culinary
experts before were fond of making "gulaman" out of
seaweed, providing genial hosts with a favorite "after-dinner
mint" for their guests.
Seaweed
or halamang-dagat is a red-to-brown grass of the sea that provides
nourishment for man. Aside from being consumed as food, seaweed
is utilized as a raw material in the manufacture of industrial
products such as alginate, agar and carrageenan.
There
are five (5) species of seaweed in the country. They are Eucheuma
(usually exported fresh), Caulerpa (exported fresh or in salted
form), Sargassum (produced as meal for animal feed manufacture),
Gelidiella and Gracilaria (both exported dried and/or alkali-tested).
Eucheuma, however, has a number of uses and enjoys the heaviest
demand in the market, both here and abroad. In addition, Eucheuma
can be farmed commercially almost anywhere in the country’s coastal
areas.
It
took more than 50 years before Filipinos were able to unlock the
hidden wonders of seaweed. With the advent of modern processing
techniques, seaweed has been transformed into white powder called
"carrageenan". The wonder of carrageenan is very much
part of modern day living. In fact, many people refer to carrageenan
as the "wonder powder" derived form processed seaweed.
Food processing firms use it to enhance the quality of certain
food products such as poultry, hams, sausages, and other meat
products. Its functions as binder, moisture holder, and gelling
agent have been acclaimed by food processors all over the world.
Sauces, salad dressings and dips require carrageenan to impart
body, provide thickness and stabilize emulsions. Carrageenan,
likewise, creates a stable gel for canned meat products and shrimp
or fish gels. From food products, profound uses of carrageenan
have been established in dairy and dessert products. Whipped creams
and toppings retain their stable form due to carrageenan. The
wonder powder gives body to acid milk product such as cheese and,
in case of yogurt, improved fruit suspension. Much of the wonder
powder’s fine attributes are also found in milk products. In ice
cream, for instance, carrageenan prevents whey separation and
ice crystal formation. It is also present in puddings and pie
fillings as it creates a stable gel. Even chocolate drinks maintain
their quality with the aid of carrageenan.
But
the wonders of carrageenan are far from over. Through persistent
research, new frontiers are set. Non-food products have been added
to the list of beneficiaries of carrageenan. The list includes
beauty care product lines and pharmaceuticals that make use of
the seaweed derivative. Shampoos have acquired improved foam stability
and thickness due to carrageenan. Lotions and creams have attained
a special quality in terms of body, slip, and improved "rub-out"
sensation. Even in toothpaste, carrageenan is very much at work
acting as a binder while improving foam stability in the product.
1966
was a turning point in Philippine exports as it saw the emergence
and the eventual recognition of the Seaweed Processing as an industry
in the Philippines with a record volume of 800 metric tons (MT).
Although initially, no attempts were made to cultivate Eucheuma.
People gathered only wild species and, quite surprisingly, it
satisfied the foreign market. Each year, the demand for Eucheuma
increased but the supply dropped alarmingly in the late 60’s as
a result of over-harvesting. It was the Marine Colloid Philippines,
Inc. (MCPI), a pioneering industry leader, which took the task
of incisively studying the possibility of commercial Eucheuma
farming. The experiment was proven to be successful which led
to the sprouting of firms specializing in the manufacture of a
new grade of carrageenan from seaweed of the Eucheuma variety.
It
took exactly another two decades for the Philippine seaweed industry
to take a leap forward through Shemberg Marketing Corporation,
a Cebu-based exporter of seaweed products, which established the
first full-scale carrageenan refinery in the Philippines. In 1986,
Shemberg Marketing Corporation has penetrated the markets of Western
Europe, Japan and Australia.
Carrageenan
exports are expected to increase anywhere between 15-20% this
year (1998) as outward shipments get a boost from demand of European
countries for the product. Considered one of the country’s next
marine-based export winner after shrimps and tuna, carrageenan
is a hard-type gel popularly used as suspending agent for various
products. It usually accounts for some of product weight for processed
food like jams and syrup, baby food, ice cream and coffee creamers.
It can also be used as thickener for toothpaste, shampoos, lotions,
cream and other toiletries. In the textile industry, it is used
as stiffening and binding material for a soft finish.
Thus
far, the Philippines is now considered as one of the world’s few
which has successfully cultivated seaweeds on a commercial scale.
But the road trod by the seaweed industry was not, at all, a bed
of roses. The years 1991-1993 were the most turbulent years. It
was during this period that the raging controversy on Philippine
Natural Grade (PNG) carrageenan’s possible ban in the United States
determined the fate of the industry. The issue then was whether
PNG is safe for human consumption or not. Fortunately, the issue
has been answered in the affirmative in a letter of approval signed
by the Director of the Division of Food and Color Additives, Center
for Food and Safety and Applied Nutrition of the United States
Food and Drug Authority (FDA).
The
Philippine Seaweed Industry clinched two big wins in the American
market as the US Food and Drug Administration (FDA) reaffirmed
its 1991 pro-Philippine Natural Grade Carrageenan decision. The
development came as the U.S. FDA’s Office of Compliance rejected
the letter-request of two international seaweed-based groups to
reverse its 1991 policy decision accepting PNG as food additive
and approving the change of name in the American market. These
two groups, the US-based International Food Additives Council
(IFAC) and the France-based Marinalg, have lobbied for years against
the entry of the high fibrous carrageenan in Europe and the US.
But, the U.S. FDA has made a third pronouncement in favor of PNG.
The first and second pronouncements were issued on July 12, 1990
and July 8, 1991 respectively.
More
so, in a historic decision, the Codex Alimentarius Commission
(CAC) approved an International Numbering System (INS) - E407a-
for Philippine Natural Grade (PNG) on July 1995 in Rome. This
new number now classifies PNG as carrageenan in its food additive
list. The CAC is a joint international food hygiene agency of
the World Health Organization (WHO) and the Food and Agriculture
Organization (FAO). On the other hand, the Joint Expert on Food
Additives and Contaminants assigned to PNG a temporary allowable
daily intake (ADI) of 0-20 mg/kg of body weight.
|
| | | | A
renaissance in technology has led to new discoveries on the unique
qualities of certain marine plants. One of the most talked about
marine plants today is the seaweed. Cebuanos call it "goso".
Marine biologists have another term for it – "sea lettuce".
"Irish Mosh", some seafarers call it. Chinese culinary
experts before were fond of making "gulaman" out of
seaweed, providing genial hosts with a favorite "after-dinner
mint" for their guests.
Seaweed
or halamang-dagat is a red-to-brown grass of the sea that provides
nourishment for man. Aside from being consumed as food, seaweed
is utilized as a raw material in the manufacture of industrial
products such as alginate, agar and carrageenan.
There
are five (5) species of seaweed in the country. They are Eucheuma
(usually exported fresh), Caulerpa (exported fresh or in salted
form), Sargassum (produced as meal for animal feed manufacture),
Gelidiella and Gracilaria (both exported dried and/or alkali-tested).
Eucheuma, however, has a number of uses and enjoys the heaviest
demand in the market, both here and abroad. In addition, Eucheuma
can be farmed commercially almost anywhere in the country’s coastal
areas.
It
took more than 50 years before Filipinos were able to unlock the
hidden wonders of seaweed. With the advent of modern processing
techniques, seaweed has been transformed into white powder called
"carrageenan". The wonder of carrageenan is very much
part of modern day living. In fact, many people refer to carrageenan
as the "wonder powder" derived form processed seaweed.
Food processing firms use it to enhance the quality of certain
food products such as poultry, hams, sausages, and other meat
products. Its functions as binder, moisture holder, and gelling
agent have been acclaimed by food processors all over the world.
Sauces, salad dressings and dips require carrageenan to impart
body, provide thickness and stabilize emulsions. Carrageenan,
likewise, creates a stable gel for canned meat products and shrimp
or fish gels. From food products, profound uses of carrageenan
have been established in dairy and dessert products. Whipped creams
and toppings retain their stable form due to carrageenan. The
wonder powder gives body to acid milk product such as cheese and,
in case of yogurt, improved fruit suspension. Much of the wonder
powder’s fine attributes are also found in milk products. In ice
cream, for instance, carrageenan prevents whey separation and
ice crystal formation. It is also present in puddings and pie
fillings as it creates a stable gel. Even chocolate drinks maintain
their quality with the aid of carrageenan.
But
the wonders of carrageenan are far from over. Through persistent
research, new frontiers are set. Non-food products have been added
to the list of beneficiaries of carrageenan. The list includes
beauty care product lines and pharmaceuticals that make use of
the seaweed derivative. Shampoos have acquired improved foam stability
and thickness due to carrageenan. Lotions and creams have attained
a special quality in terms of body, slip, and improved "rub-out"
sensation. Even in toothpaste, carrageenan is very much at work
acting as a binder while improving foam stability in the product.
1966
was a turning point in Philippine exports as it saw the emergence
and the eventual recognition of the Seaweed Processing as an industry
in the Philippines with a record volume of 800 metric tons (MT).
Although initially, no attempts were made to cultivate Eucheuma.
People gathered only wild species and, quite surprisingly, it
satisfied the foreign market. Each year, the demand for Eucheuma
increased but the supply dropped alarmingly in the late 60’s as
a result of over-harvesting. It was the Marine Colloid Philippines,
Inc. (MCPI), a pioneering industry leader, which took the task
of incisively studying the possibility of commercial Eucheuma
farming. The experiment was proven to be successful which led
to the sprouting of firms specializing in the manufacture of a
new grade of carrageenan from seaweed of the Eucheuma variety.
It
took exactly another two decades for the Philippine seaweed industry
to take a leap forward through Shemberg Marketing Corporation,
a Cebu-based exporter of seaweed products, which established the
first full-scale carrageenan refinery in the Philippines. In 1986,
Shemberg Marketing Corporation has penetrated the markets of Western
Europe, Japan and Australia.
Carrageenan
exports are expected to increase anywhere between 15-20% this
year (1998) as outward shipments get a boost from demand of European
countries for the product. Considered one of the country’s next
marine-based export winner after shrimps and tuna, carrageenan
is a hard-type gel popularly used as suspending agent for various
products. It usually accounts for some of product weight for processed
food like jams and syrup, baby food, ice cream and coffee creamers.
It can also be used as thickener for toothpaste, shampoos, lotions,
cream and other toiletries. In the textile industry, it is used
as stiffening and binding material for a soft finish.
Thus
far, the Philippines is now considered as one of the world’s few
which has successfully cultivated seaweeds on a commercial scale.
But the road trod by the seaweed industry was not, at all, a bed
of roses. The years 1991-1993 were the most turbulent years. It
was during this period that the raging controversy on Philippine
Natural Grade (PNG) carrageenan’s possible ban in the United States
determined the fate of the industry. The issue then was whether
PNG is safe for human consumption or not. Fortunately, the issue
has been answered in the affirmative in a letter of approval signed
by the Director of the Division of Food and Color Additives, Center
for Food and Safety and Applied Nutrition of the United States
Food and Drug Authority (FDA).
The
Philippine Seaweed Industry clinched two big wins in the American
market as the US Food and Drug Administration (FDA) reaffirmed
its 1991 pro-Philippine Natural Grade Carrageenan decision. The
development came as the U.S. FDA’s Office of Compliance rejected
the letter-request of two international seaweed-based groups to
reverse its 1991 policy decision accepting PNG as food additive
and approving the change of name in the American market. These
two groups, the US-based International Food Additives Council
(IFAC) and the France-based Marinalg, have lobbied for years against
the entry of the high fibrous carrageenan in Europe and the US.
But, the U.S. FDA has made a third pronouncement in favor of PNG.
The first and second pronouncements were issued on July 12, 1990
and July 8, 1991 respectively.
More
so, in a historic decision, the Codex Alimentarius Commission
(CAC) approved an International Numbering System (INS) - E407a-
for Philippine Natural Grade (PNG) on July 1995 in Rome. This
new number now classifies PNG as carrageenan in its food additive
list. The CAC is a joint international food hygiene agency of
the World Health Organization (WHO) and the Food and Agriculture
Organization (FAO). On the other hand, the Joint Expert on Food
Additives and Contaminants assigned to PNG a temporary allowable
daily intake (ADI) of 0-20 mg/kg of body weight.
II.
INDUSTRY
STRUCTURE
A. Products
Manufactured Under the Industry:
The
Philippines offers a wide product range, from the raw dried
seaweed and semi-refined or PNG carrageenan, to highly-refined
carrageenan otherwise known as conventionally purified (CP)
carrageenan. Generally, however, there are four (4) main groups
of marine seaweed on the basis of pigmentation: red algae (botanical
class Rhodophycae), brown algae (Phaeophycae), green algae (Chlorophycae)
and, blue-green algae (Cyanophycae). The red and brown seaweeds
which are grown in large are utilized to manufacture four seaweed
colloids. These include: agar, alginate, carrageenan and furcellaran.
Agar
is a dried colloid obtained from the hot water extraction of
red seaweeds. It is produced mainly in Japan (where it is called
kanten) and is used in the following;
- preparation
of food
- to
thicken jams
- manufacture
of sweets
- mixed
with gelatin
- pharmaceutical
products
- preparation
of suppositories
- cosmetic
and dental products
- industrial
products
- used
in small quantities to give resilience to gelatin in photographic
films
- biological
and medicinal research
- agriculture
On
the other hand, carrageenan is a jelly-like substance obtained
by extraction with alkaline of red seaweed which grow abundantly
in warm waters. Carrageenan is a yellowish or tan to white, coarse
to fine powder that is practically odorless and has mucilaginous
taste. It is a valuable substance used mainly in products that
need gelling, suspending, thickening or water-holding properties.
The various end-uses of carrageenan may be classified into two
main headings --- food and non-food --- wherein the former accounts
for nearly 70% of the world market demand for the product. The
main food uses are as follows:
| 1.
instant breakfast foods |
-
bodying, suspending baby foods |
| 2.
dietary foods |
|
| 3.
jams |
|
| 4.
syrups and gravy preparations |
|
| 5.
whipped creams, toppings |
|
| 6.
desserts |
-
fat and foam stabilization |
| 7.
acidified cream, cottage |
-
bodying |
| 8.
fluid skim milk |
|
| 9.
filled milk |
-
emulsion stabilization, bodying |
| 10.
ice cream, ice milk |
-
preventing whey separation, control
meltdown |
| 11.
low calorie diet drinks |
-
suspension, bodying |
| 12.
evaporated milk |
-
fat stabilization |
| 13.
chocolate drinks |
-
suspension, stabilization |
| 14.
coffee creamers |
|
| 15.
yogurt |
|
| 16.
peanut butter |
|
| 17.
baked foods |
|
| 18.
canned and frozen foods |
|
| 19.
pudding |
|
| 20.
pie filling |
-
gelling agent |
| 21.
relishes, pizza and barbecue
sauces |
|
| 22.
fruit drink powders |
-
bodying, pulpy mouth feel |
| 23.
frozen concentrates |
-
bodying, pulpy mouth feel |
| 24.
jellies and dessert gels |
-
gelling agent |
| 25.
ham and sausage |
-
gel binder, fat stabilization |
| 26.
pet foods |
-
gelation, fat stabilization, thickening |
| 27.
salad dressings |
-
emulsion stabilization |
| 28.
fish gel |
-
gelling agent |
|
It
can also be used for non-food products like;
| 1.
toothpaste |
- improves
texture and rinseability |
| 2.
lotion |
- as
hydrating agent |
| 3.
cream |
- provides
greater viscosity |
| 4.
cosmetics |
- provides
greater viscosity |
| 5.
textiles |
|
| 6.
paints |
- thickener |
| 7.
air freshener |
- as
a gelatinizing agent |
| 8.
soap |
|
| 9.
shampoo |
- foam
stabilization, thickening, gelling
brake
fluid for 747 jet |
| 10.
rubber products |
|
| 11.
electronic wire coatings |
|
| 12.
greaseproof paper |
|
| 13.
foam cushions |
|
| 14.
fertilizer |
|
| 15.
pigments |
- dispersion
and suspension |
| 16.
salves |
- bodying,
binder |
| 17.
medicinal |
- suspension
of insoluble ingredients |
| 18.
artificial food for fishes |
- binder |
|
B.
Firms Comprising the Industry:
Some
18 small to medium-sized companies have bonded together to form
the Seaweed Industry Association of the Philippines. The SIAP
is an organization geared towards the promotion of the seaweed
and carrageenan industry. Out of the 18 companies, 13 are BOI-registered.
At present, there are 11 seaweeds processing companies in the
country, foremost of which is the Shemberg Marketing Corporation.
Records from the Department of Trade and Industry show that
the rest of the seaweed companies in the country today belong
to the top 20 exporters.

TOP CARRAGEENAN AND SEAWEEDS EXPORTERS
1.
SHEMBERG MARKETING CORPORATION
Paknaan, Mandaue
City, Cebu 6014
Tel Nos. (63-32) 346-0866
Fax No. (63-32) 346-1892; 346-0863
Product Lines: Jellies, Icebar, Juices,
Carrageenan
Contact Person: Mr. Benson U. Dakay, Chief
Executive Officer
2.
MARINE COLLOIDS PHILIPPINES, INC.
Ouano compound,
Looc, Mandaue City, Cebu
Tel Nos. (63-32) 82611; 346-1811; 86763
Fax No. (63-32) 346-1812; 346-1887
Product Lines: Seaweeds
3.
SHEMBERG BIOTECH CORP.
Paknaan, Mandaue
City, Cebu, 6014
Tel. No. (63-32) 346-0866
Fax No. (63-32) 346-1892; 346-0863
Product Lines: Jellies, Icebar, Juices,
Carrageenan
Contact Person: Mr. Benson U. Dakay, Chief
Executive Officer
4.
SHEMBERG FOOD INGREDIENTS CORP.
Paknaan, Mandaue
City, Cebu, 6014
Tel. Nos. (63-32) 346-0866
Fax Nos. (63-32) 346-1892; 346-0863
Product Lines: Carrageenan
Contact Person: Mr. Benson U. Dakay, Chief
Executive Officer
5.
MCPI CORP.
Tugbongan, Consolacion,
Cebu City
Tel. Nos. (63-32) 346-0376; 346-3566
Fax Nos. (63-32) 346-0138; 346-0588
Product Lines: Seaweeds/Carrageenan
Contact Person: Mr. Maximo A. Ricohermoso, President
6. BIOCON
PHILIPPINES, INC.
G/F
SFB PT. 1, Mactan Export Processing Zone, Lapu-lapu City
Tel. Nos. (63-32) 400-328; 400-319; 400-322
Product Lines: (Seaweeds, Bread Improvers
and Stilling Additives
Contact Person: Ms. Ernestina Elizalde,
Managing Director

III. PRODUCTION FACTORS
A.
Profile of the Workforce:
In
Region VII, seaweed farming is the source of livelihood of at
least 20,000 farmer families or over 50,000 people, 70% of which
is unskilled. They farm and grow seaweed in Bohol, Cebu and Negros.
Seaweed farming has been the alternative source of income of the
people in the farm. On the other hand, the seaweed processing
industry directly employs 4,000. These workers are spread out
all over the region.
B.
Qualifications for Employment in the Industry
In
seaweed raising, farmers utilize several methods. Most of them
use the bottom farm method because it is easier to harvest while
others use the broadcast method, the most expensive but the most
profitable. Other methods used by some seaweed farmers are mangrove
stakes and nets or floating bamboo and tubular nets.
Labor
operations for seaweed farming include seed preparations, cleaning
of farm, plot layout/farm installation, planting/replanting, harvesting,
sorting/cleaning, and drying.
The
processing of seaweed into semi-refined carrageenan involves simple
technology. With the exception of Shemberg Marketing Corporation,
the industry has limited itself to the production and export of
semi-refined product where quality control is not as stringent
and demanding as refined carrageenan.
Refined
carrageenan products are manufactured either through non-extractive
or extractive methods.
C.
Raw Material Needs and Sources:
Seaweeds
are grown in abundance in Philippine waters. The biggest natural
ground and the best sources of Eucheuma seaweed are the wide shallow
water areas located particularly in the provinces of Cebu, Bohol
and Negros Oriental for Region VII and are also present in the
provinces of Palawan, Leyte, Zamboanga del Norte and Tawi-tawi.

IV. INDUSTRY PERFORMANCE AND TASKS
A.
Marketing Practices
Expenditures
incurred in seaweed production are: material inputs (pesticides,
fuel, oil, nylon-line ropes and seeds); labor (caretaker, hired
workers, operator and family labor) and fixed costs/payments (farmhouse
and drying platform, pump boat, dugout, hand tools such as crowbar
and sledge-hammer), interest on loans, depreciation charges, municipal
fees/other fishing permits and maintenance/repair of equipment.
Initial
planting of seaweed is costly because planting materials are bought
involving high transport cost. However, in the succeeding plant
seasons, the operating costs become smaller. Fixed costs constitute
mostly of operator and family labor with hired caretaker(s) and
some workers.
Based
on the findings of a study conducted by the Bureau of Agricultural
Statistics on seaweed farms in Cebu and Bohol, seaweed production,
especially large-scale production, is a profitable venture and
a worthy investment. For an investment of P60,960 for one-hectare
seaweed farm, a producer could easily attain a net return of P29,040
for each harvest.
B.
Market Structure
Seaweed or seaweed
products for export are produced in tremendous quantities by thousands
of fishermen. The market structure through which the produce are
channeled starts from:
- the
farmer-producer who may also double as collector or assembler;
- to
the small traders who act as middlemen or at the same time as
small-scale assemblers or wholesalers;
- to
the large traders who are mainly agents;
- to
the exporters or the processor and/or exporter.
The
produce of the more progressive farmers may pass through a shorter
route compared to the small-scale farmer. The progressive farmers
have the means to transport and, therefore, can sell direct to
the big exporters and/or processors. The produce of the small-scale
farmer, on the other hand, has to pass through a series of middlemen
before these reach the exporters and/or the processors. Because
the buying price is determined by the exporters or processors,
the small-scale farmers who represent the majority of the producers
receive only a small part of the profit. A large chunk goes to
the middlemen, assembler or wholesaler. The large-scale exporters/processors
may be subsidiaries of foreign processors or independent exporters
or processors/exporters.
The Seaweed Industry
Association of the Philippines or SIAP has signed a memorandum
of agreement with Land Bank of the Philippines for the organization
of farmers’ cooperatives in Eucheuma plantations.
The SIAP, the national
association of processors and farmers, believe that the farmers
cooperative can effectively reduce the clout of middlemen in the
marketing of dried seaweed. The main objective is to give the
marine farmers a bigger share of profits in the sale of dried
seaweeds.
C.
Major Markets
C.1
Foreign
By market,
Philippine exports in 1997 had the following markets:
France - 19.01%
United Kingdom & G. Britain & N. Ireland - 15.48%
Denmark - 14.93%
United States of America - 14.67%
Germany -
9.14%
Spain -
5.82%
Australia -
4.48%
China, People’s Republic of (Mainland) -
4.19%
Mexico -
2.93%
Hongkong -
2.14%
Others -
7.21%
Figure
1 
PHILIPPINE
EXPORT PERFORMANCE
TOP 10 MARKETS, 1997

C.2 Domestic
For most Filipinos,
seaweed is considered a seaweed delicacy which is eaten raw. Data
on actual local demand and consumption of seaweeds/carrageenan
are not available.

D. Export Performance
EXPORT
PERFORMANCE
|
Philippine Merchandise
Export of Export Winners (Carrageenan & Seaweeds)
January – December 1996-1995
FOB Value in US Dollars
|
|
PRODUCT
|
1996 Value
|
% Share
|
1995 Value
|
% Share
|
|
TOTAL PHILS.
|
20,542,546,399
|
100.00
|
17,447,186,135
|
100.00
|
|
OTHERS
|
4,282,083,485
|
20.84
|
4,099,848,379
|
23.50
|
|
TOTAL EXPORT
WINNERS
|
16,260,462,914
|
79.16
|
13,347,337,756
|
76.50
|
|
OTHER Export
Winners Products
|
16,166,474,286
|
78.70
|
13,264,187,700
|
76.02
|
|
CARRAGEENAN/Seaweeds
|
93,988,628
|
0.46
|
83,150,056
|
.048
|
Source:BETP
The
1996 export performance of the Philippine Seaweed Industry recorded
a total of US$93.98 million, 70% of which comes from Region VII.
This shows a 13.03% increase from 1995 export performance.
Distribution
of World Carrageenan Usaged by Industry Sector

Source: FAO Fisheries Technical Paper,1997
By
product breakdown of Philippine exports of seaweeds in1996 was
as follows: semi-refined carrageenan, 55%; semi-refined carrageenan,
24%; and raw seaweeds, 21%.
COMPARATIVE
ANNUAL EXPORTS
1993-1997
Cebu Port, MEPZ, PhilExport & Negros Port
|
COMMODITY
|
1993
|
1994
|
1995
|
1996
|
1997
|
|
Marine
Products
|
|
|
|
37,258,932
|
42,914,921
|
|
Carrageenan:
|
|
|
|
17,007,303
|
18,047,818
|
|
Processed
seaweeds
|
28,418,861
|
11,920,484
|
28,807,222
|
|
|
|
Frozen
Seaweeds
|
495,758
|
619,698
|
758,633
|
|
|
|
Dried
Seaweeds
|
3,570,690
|
5,752,920
|
3,729,340
|
|
|
Source:
DTI-7 InfoNet

E. Industry Prospects:
With
the advances in food science technology and with health restrictions
against high fat and cholesterol, the use of the lower priced
carrageenan as a fat replacement food additive is very practical.
Further, increasingly diversified applications have expanded the
market for seaweed and carrageenan.
A
breakthrough in carrageenan utility is in medical syrups. It provides
not only body but also suspends the antibiotic ingredients. The
gel form air fresheners have been added to the list of carrageenan’s
industrial uses. At this point in time, it is too early to conclude
that carrageenan has reached its limit as enhancer and stabilizer
of consumer products in the lines mentioned earlier.
Data
gathered by AT Business Monthly show that should its export receipts
post $100 million in the next two years, Shemberg Marketing Corporation,
owned by the Dakay family, shall become Cebu’s largest export
earner. Owing to the wide usage of carrageenan, Shemberg Marketing
Corporation accounts for only 10% of the total global market,
an ironic twist considering that seaweed is extensively grown
in the country.
With
the present demand, the country’s carrageenan exports will easily
double or even triple in the next two years as outward shipments
get a boost from demand of Eastern European countries for the
product. The approval of the European Union market of the PNG
carrageenan has propped up market growth. Some years back, the
European blocked the entry of the natural grade carrageenan because
of its classification as unfit for human consumption type. Though
there were rumors that the move was to protect the interest of
major European firms which are involved in the seaweed business,
the government together with SIAP successfully lobbied against
the anti-PNG carrageenan rule.
As
this developed, industry insiders see brighter prospects for the
industry, an improvement over the difficulties faced by the industry
in the past several years due to the opposition of carrageenan
producers in the United States.
The
carrageenan industry has likewise proven to be relatively immune
from the recent currency depreciation. Imported chemicals like
potassium hydroxide and other bleaching agents used in carrageenan
processing comprise merely 5% of the total finished product.
Last
year (1997), the Philippine total carrageenan harvest reached
120,000 tons. To meet the growing demand this year, the Philippines
has to increase its harvest up to 150,000 tons. There is no problem
in increasing seaweed harvest since the strong demand for carrageenan
has triggered a surge in the price of seaweed. Fresh seaweeds
now sell between P20 – P30 per kilo, up from the previous price
of P10 per kilo. With a higher income from seaweed farming, more
and more families are encouraged to become seaweed farmers.
In
addition to the growing export market, the domestic market for
carrageenan is also increasing. Many local food and toothpaste
companies have already shifted to the use of local carrageenan.
Food experts estimate the annual requirements of the ham industry
for Philippine carrageenan to reach some 2,000 metric tons or
conservatively P375 million. Carrageenan is used as a binder in
ham-making.

V. INDUSTRY PROBLEMS AND RECOMMENDATIONS
1.
The Alleged Environmental Effects of Seaweed Farming
The
increasing interest in the open reef farming of seaweed has
generated both favorable and unfavorable responses from various
quarters. For those who are engaged in farming as a livelihood,
the activity is a boon. Because farming is generally sited in
open reef areas, it is feared by some quarters that the activities
will have some adverse effects on the coral reef environment,
i.e., that the influx of farmers in the site and their activities
will have negative environmental effects on the local flora
and fauna.
The
understanding of what seaweed is and its ecological role in
the marine environment, and the farming processes are important
in order to put the question of the effects on the environment
on the correct perspective. Seaweed is one of the main primary
producers in the shallow water coastal environment. As such,
it is one of the primary agents responsible for the production
of organic matter and energy on which the other members and
phytoplankton provide the base on which the productivity of
the marine communities is built on. As primary producer, it
utilizes and dissolves carbon dioxide and water as raw materials
in the production of organic matter through the process of photosynthesis.
It also absorbs nutrients directly from seawater for their growth
and development. Oxygen is a by-product it evolves during the
process of photosynthesis which is essential in the process
of respiration. The presence of seaweed also enhances the environmental
condition for the other members of the community, i.e. , it
serves as shelter and habitat for many associated fauna.
2.
RP Faces Seaweed Industry Competitors
The
highly profitable seaweed export industry is facing stiff competition
from other Asian countries, particularly Indonesia, due to the
illegal export of dried seaweed and the export of seedlings.
The
Philippines, whose annual production of 120,000 metric tons
is second only to China’s 275,000 metric tons, might be overtaken
by Indonesia. Indonesia’s exports of seaweed is still relatively
modest but it can become the second largest producer in the
near future if smuggl | |