INVESTMENT OPPORTUNITY

DEPARTMENT OF TRADE AND INDUSTRY
ZAMBOANCA CITY OFFICE

 INDUSTRY PRIORITY AREAS
For ZAMBOANGA CITY CY 2002
 

PRIORITY SECTORS

    1.   PROCESSED FISH (Plus 1 Project)
    2.   SEAWEED
    3    MANGO
 

PROFILE OF THE SEAWEEDS INDUSTRY
ZAMBOANGA CITY

Introduction
 

The Philippines is the world's largest producer 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 the processes form comprising of about 65% of the total Philippine seaweeds exports. In 1993 and 1999, the country exported US$64.2 million and US$95.6 million respectively of seaweeds of all types. Eucheuma seaweeds and its processed form have been identified one of the 14 export winners of the Philippines having contributed significantly to the country's exports.

Mindanao accounts for 71% of the seaweeds production of the entire Philippines. It was estimated in 1996, that some 100,000 families are engaged in seaweeds farming and about 72% of these families are located in Mindanao particularly in the ARMM provinces and the Zamboanga Peninsula.

Zamboanga City has more that 2,000 hectares devoted to the seaweeds farming providing livelihood to more that 3,000 families. At present, there are three processing plants in Zamboanga City producing semi-refine carrageenan and alkali treated chips. Another processing plant will operate in year 2001 also to produce semi-refined carrageenan. Presently processed and dried seaweeds are exported to numerous international markets, shipped to Cebu or Manila in the dried form for further processing into carrageenan.

THE SEAWEEDS INDUSTRY SITUATION

Production
 In the early days of the seaweeds industry, the Philippines became the leading producer of Eucheuma seaweeds accounting for 80% of the total world supply. The Eucheuma species serves as a raw material in the manufacture of carrageenan.

The country has an estimated 8,300 hectares of marine areas that have potential for Eucheuma seaweeds farming. About 96% of these areas are located in Mindanao. Zamboanga Peninsula and Sulu have been found to have the widest seaweeds farming area with farming expansion of more that 7,000 hectares of potential sites. Sulu, Tawi-Tawi  and Western Mindanao have a decided advantage over other potential areas.

Seaweeds are mainly cultures and gathered in the ARMM Provinces (Sulu and Tawi-Tawi) and western Mindanao (mainly Zamboanga City) and southern Tagalog (mainly Palawan) accounting got 57%, 14% and 23% of production output respectively. For the period 1993-1997, the volume of seaweeds produced registered an average annual growth rate of 16%. Over the same period, ARMM and Western Mindanao accounted for an average 71% of the total national production output.
 

In value of terms, the seaweeds industry hit the billion mark in the early 1990's and continues at the same pace today registering average growth of 4.73% for the period 1993-1997. From PhP1.1989 Billion in 1993, the industry grew to PhP1.623 billion in 1996 slightly tapering to Php 1.395 billion in 1997. The rather disappointing performance in 1997 was the effect of El Niņo phenomenon that hit the production areas resulting in the drop in production. This production loss and the loss in value of the peso owing to the Asean financial crisis were responsible for the 14% decrease in the value of seaweeds. The industry however, started to pick up and registered remarkable performance since then.

On the regional scale, Western Mindanao (mainly Zamboanga City) registered a high 13.84% average growth rate in the value of seaweeds produced for the period 1993-1997. While ARMM only registered a 2.43% growth in the value terms over the same period.

The seaweed industry has manifested a remarkable performance in the international market. In 1999, the Philippines exported a total of US& 95.653 Million worth of seaweeds in all forms up from US$ 64.211 Million in 1998 or an increase of 49%. Zamboanga City contributes an average rate of 21% to the total Philippine seaweeds export over the last 4 years.

Zamboanga City has over ten (10) key players in the seaweeds industry comprising of processors, traders and exporters. Two of the largest processing plants are located in Zamboanga City: Marcel Trading Corporation and Polysaccharide Corporation. A company which is currently producing alkali-treated chips will soon operation a plant that will produce semi-refined carrageenan. At least 10 companies are exporters of seaweeds in the dried form.

 

Dried Seaweeds Warehouse
 

Carrageenan Processing Plant

Zamboanga Carrageenan Manufacturing

There are eleven (11) associations/cooperatives and one development council in Zamboanga City. The main private sector partner is the Western Mindanao Seaweed Industry Development Association. The following government agencies and private sector groups were organized into a cluster known as the Seaweed Industry Cluster Inter-Agency Task Force.

National Agencies

1. Department of Trade and Industry
2. Department of Science and Technology
3. Department of Agriculture
4. Department of Environment and Natural resources
5. Bureau of Fisheries and Aquatic Resources
6. Regional Fisheries Training Center

Private Sector/Academe
1. Zamboanga City State College of Marine Science and Technology
2. Growth With Equity in Mindanao
 

SEAWEED INDUSTRY VALUE CHAIN FLOWCHART
 

SEAWEED INDUSTRY VALUE CHAIN