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Ceb Philippines - Global Processing Center for Seaweed or Carrageenan

CEBU CITY, Philippines - Cebu is now the home of the world's processing center for carrageenan.

Cebu hosts the world's three major suppliers of processed seaweed or carrageenan -- CP Kelco Philippines in Sibonga and FMC Marine Colloids Philippines, and Shemberg Marketing Corporation, both located in Mandaue City.

The combined production capacity of the three Cebu-based processors exceeds 14,000 metric tons (MT), accounting for 61 percent of the world's combined capacity (23,000 MT) per year, according to the Seaweed Industry Association of the Philippines (SIAP).

The Philippines remains the world's top producer of seaweed, according to SIAP president Benson U. Dakay, reaching 115,000 MT in 2004.

In 2005, CP Kelco's carrageenan exports reached over 5,000 MT (US$ 41 million), Shemberg exported over 7,000 MT (US$ 39 million), while FMC Marine Colloids exported over 12,000 MT of raw seaweed and carrageenan (US$ 27 million).

Overall, the country's total seaweed exports last year reached US$ 153 million, up over 6 percent from 2004.

With its humble beginnings in Cebu, Bohol and Leyte, the Philippine seaweed industry started with the unprocessed seaweed exports. Later, the rising demand for raw seaweed encouraged the establishment of commercial farms.

Recognized as the father of the seaweed processing industry, Dakay decided to start processing seaweed into more value-added carageenan.

At present, there are 27 seaweed processors/exporters and over 100,000 families as seaweed farmers all over the country. Working together, the processors are encouraging farmers to improve the quality of dried seaweed to increase product yield.

As a major contributor to the government's job creation program, the SIAP has developed the "Adopt-an-Island" program as a way of encouraging more seaweed farmers and exploring more production sources, as well as urging other agencies to come up with a financing program to help farmers increase the production areas.


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