SECTOR EXPORT

MARKETING PLAN

SEAWEED INDUSTRY OF THE PHILIPPINES

Philippine Seaweed Industry Value Chain Map
Raw Dried Seaweed as Raw Material
Supply /Market Chain
Analysis Value Required Improvements Needed

Seedling

Farmer Good Quality Seedling Stable Source

35-38% MC Provide Drying Facilities

Local/Big Trader
Clean/Low Impurities Education of Trader or
Farmer

Mature/High G.S. Improve Tracing/Labeling

Importing Country:
International Sustainable Improve Farming
Processor Practices

High Yield Develop other Areas for

Source
Carrageenan as Natural Ingredients
Supply Analysis Value Required Improvements Needed

Seedling

Farmer Good Quality Selection of Source

Local/Big Trader Sustainable Source Audit Source Area

Unadulterated RDS Accredit Farms

Processor Clean Source Accredit Traders

On-time Delivery
Carrageenan as Natural Ingredients
Market Chain Analysis Value Required Improvements Needed

Manufacturer Product Safety Certifications

Education of
Trader/Farmer

Distributor/Retailer Healthy

Organic/Natural Highlight in Packaging

Product Safety Education of

Trader/Farmer

End User Healthy Highlight in Packaging

Organic/Natural
Current Market
Position
PRODUCT

Two main product categories:

• Raw Dried Seaweeds

• Carrageenan
PRODUCT
Raw Dried Seaweeds

– Net seaweed importer by 2007. (trade data).

– By 2008, over 15,000 tons seaweed imports,
exports less than 11,000 tons.
– Imports mainly from Chile and Indonesia.
(included raw seaweed)
PRODUCT
Carrageenan

– Includes ATC, SRC and refined carrageenan.

– Decline in exports tonnage from almost 10,000
tons in 2000 to slightly over 80,000 tons in 2008.
– 2000-2006, values fairly steady but increasing
cottonii prices drove values up from 72M US$ in
2006 to over 122M US$ in 2008.
 PRODUCT TRENDS

• Organic and Natural Food Ingredients

• Convenient and Easy-to-Prepare Foods
• Stricter Product Safety Requirements
• Sustainable Source and Environment Friendly Agricultural Practices
PLACE
Raw Dried Seaweeds

Exported directly by Big Traders to International

Processors in USA (21%), France (17%), Thailand
(14%) and China (10%). (IMR,2009 )
PLACE
Carrageenan

Carrageenan products are distributed to other countries

through international blenders food ingredient
distributors, and direct to manufacturer of the different
applications.
PRICE
Dry Euchema Cottonii Prices Comparison
(Philippines vs Indonesia)

Price per
MT

$3,000

$2,500 Philippines
Indonesia
$2,000

$1,500

$1,000

$500

$0
Feb

Jun

Sep

Feb

Jun

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Jan '04

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Jan '05

Jan '07

Aug

Jan '08
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Sept
Nov
Jan'06
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Mar
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May

Nov
Before 2008, Philippine raw cottonii seaweeds are
priced higher than Indonesia. This price trend
encouraged international processors to source from
Indonesia rather than Philippines.
PROMOTION
Raw Dried Seaweed

• RDS Exporters use online market portals such as Alibaba,

and other sites.
• Some are already established and has put-up offices in
their target markets. Example, China.

Carrageenan

• Direct communication to blenders and end-user are done

by individual companies to reach their markets.
• Some companies participate Trade Fairs or visit their
prospects to promote products.
SWOT ANALYSIS
 SWOT Analysis (Philippine Seaweed Industry)
STRENGTHS FUNCTION WEAKNESSES

Presence of Some of the Biggest Processing

Processors in the World Exporting

Good Quality Seaweeds Unhealthy Pricing Competition within the

from the Philippines Industry Players

Large Available Local and

Experienced Adulterated RDS
Areas for Big Trading
Seaweed Farmers
Seaweed Farming
Decreasing
Pioneer in Seaweed Farm Development Aging Farmer Seaweed
in all Seaweed Producing Areas in the Production
World
Seaweed
Available Innovative Technical Inconsistent Awareness and Lack of
Farming Coordination among LGUs and Other
Manpower for Product Development in
Processing. Agencies

Strong Government
Support, specifically Enablers Limited Financial Investment & Support
Region 7 in Seaweed Farming
 SWOT Analysis (Philippine Seaweed Industry)
OPPORTUNITIES FUNCTION THREATS

Increasing numbers of processors in

Consumer prefers natural ingredients
Increasing demand of raw dried
seaweed and carrageenan worldwide
New applications for carrageenan
Processing other countries particularly china
Exporting
Brain drain of technical people going
to competitor countries
Presence of cheaper substitute products
Local and
Big Trading for carrageenan
New market entry requirements of
major importing countries like EU/US

Seaweed
Farming Global warming

Increasing number of seaweed

producers in other countries
Enablers
Sector Objectives
Sector Five-Year Plan (2010-2015)

Priority 1: Increase RDS Production by 10% -15% annually

Priority 2: Develop non-traditional carrageenan applications

such as fresh/dried food, pharmaceutical,
cosmetics, and other food ingredient applications

Priority 3: Penetrate emerging markets on natural food

ingredient in Europe and other parts of the world
focusing such as South Africa, South America and
Asia.
 In conclusion, it is true that the demand side of the
Value Chain is GROWING but at the same time the
supply is DECREASING!

Therefore the sector has to prioritize addressing supply

challenges, because if not, focusing on (new) markets
will not make sense!
THANK YOU