INTRODUCTION Social and economic dimensions of carrageenan seaweed farming

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1. INTRODUCTION

Seaweed is a versatile product that can be used for direct human consumption or processed into food additives, pet food, feeds, fertilizers, biofuel, cosmetics, and medicines, among others McHugh, 2003; Bixler and Porse, 2011. According to FAO statistics FishStat, 1 global production of seaweed increased from less than 4 million wet tonnes 2 in 1980 to almost 20 million wet tonnes in 2010 Figure 1. Not only has production increased but the source has also changed. Increasingly, seaweed is cultivated rather than collected from the wild. According to FAO statistics, the share of wild seaweed in global seaweed production fell from 28 percent in 1980 to 4.5 percent in 2010. This declining share reflects both the increased volume of cultivated seaweed and an absolute decrease in wild seaweed tonnage Figure 1. 3 Cultivation of red seaweeds Rhodophyceae contributed to most of the recent expansion in global seaweed production Figure 1. According to FAO statistics, red seaweed farming production worldwide increased from 2 million wet tonnes in 2000 21 percent of the production of all cultivated seaweeds to almost 9 million wet tonnes in 2010 47 percent. Major red seaweed species under cultivation include Kappaphycus and Eucheuma, which are primary raw materials for carrageenan, Gracilaria primary raw materials for agar and nori mainly for direct human consumption Figure 2. Agar and carrageenan are thickening and gelling agents called hydrocolloids 4 primarily used as food additives. Demand for hydrocolloids has grown with increased consumption of processed food. There was also an insufficient supply of wild seaweed. 1 Unless specified otherwise, the FAO statistics cited in this synthesis paper were obtained from the FishStat data set on “Aquaculture Production Quantities and values 1950-2010” released by the FAO Fisheries and Aquaculture Department in March 2012. 2 Wet tonne measures the weight of fresh seaweed; whereas dry tonne measures the weight of raw dry seaweed. Unless specified otherwise, the weight of seaweed is measured in dry tonnes. 3 World production of wild seaweed in 2010 886 000 wet tonnes was only two-thirds of the production in 1990 1.3 million wet tonnes. 4 Alginate, which is mainly extracted from wild brown seaweeds, is another major hydrocolloid McHugh, 2003. Note: Red seaweeds include species belonging to Rhodophyceae; brown seaweeds include species belonging to Phaeophyceae; miscellaneous seaweeds include species belonging to Chlorophyceae and Cyanophyceae as well as species unspecified. Source: FAO Fishstat FIGURE 1 World seaweed production 2 4 6 8 10 12 14 16 18 20 All Cultivated, red Cultivated, miscellaneous Cultivated, brown Wild 2010 2005 2000 1995 1990 1985 1980 Million wet tonnes This motivated experimentation of cultivating carrageenan seaweeds in tropical waters and resulted in rapid expansion of Kappaphycus and Eucheuma cultivation Figure 2 from 944 000 wet tonnes in 2000 48 percent of total red seaweed cultivation to 5.6 million wet tonnes in 2010 63 percent. 5 A comprehensive study of the socio-economic impacts of such an expanding sector is opportune. The six case studies included in this technical paper cover not only countries that have an established carrageenan seaweed industry Indonesia, the Philippines and the United Republic of Tanzania but also newcomers India, Mexico and Solomon Islands. Information and insights provided by the studies indicate that carrageenan seaweed farming is a profitable activity with great potential, especially for coastal communities with abundant labour and few alternative activities e.g. fisheries or tourism. A short production cycle, low capital requirement, and relatively simple farming technology are among the factors that make carrageenan seaweed farming a means of poverty alleviation particularly attractive to smallholder farmers or fishers. However, future development of the carrageenan seaweed industry faces various challenges such as inclement weather conditions, disease outbreaks, uncertain and fluctuating market conditions, competition from other sectors e.g. fisheries, tourism and urban development, a lack of value-added products and value-adding activities in seaweed farming countries, low incomes of seaweed farmers in some countries, and occupational health hazards. Based on the six case studies as well as other existing literature, this synthesis chapter is intended to provide a global review of the socio-economic performance of carrageenan seaweed farming. In the next section, the status and trends of seaweed- carrageenan value chains are reviewed based on official statistics primarily FAO FishStat and UN COMTRADE on the production and trade of seaweeds and seaweed products, specific data and information on seaweed value chains in individual countries provided by the six case studies, and those provided by other existing literature e.g. McHugh, 2003; Panlibuton, Porse and Nadela, 2007; Neish, 2008a; Bixler and 5 According to FishStat, world cultivation of Gracilaria seaweeds increased from 73 000 wet tonnes in 2000 3.7 percent of red seaweed cultivation to 1.7 million wet tonnes in 2010 17 percent of red seaweed cultivation. World cultivation of nori seaweeds increased from 954 000 wet tonnes in 2000 to 1.6 million wet tonnes in 2010, but its share in red seaweed cultivation declined from 48 percent to 18 percent during the period. FIGURE 2 World red seaweed farming production Note: Kappaphycus and Eucheuma includes species belonging to Solieriaceae. Gracilaria includes species belonging to Gracilariaceae; nori includes species belonging to Bangiaceae. Source: FAO FishStat. 2 4 6 8 10 All Nori Gracilaria Kappaphycus and Eucheuma 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 Million wet tonnes 8 Porse, 2011. Various issues at different stages of the carrageenan seaweed value chain identified in the six case studies are highlighted in Section 2.4. In Section 3, the economic performance of carrageenan seaweed farming is assessed based on the data and information provided by the six case studies. Various performance indicators e.g. productivity, efficiency and profitability are used to compare the economic costs and benefits of 23 cases of carrageenan seaweed farming examined in the six case studies. The cases vary in terms of farming systems, scales, production cycles and other technical parameters. The assessment also consults other literature on carrageenan seaweed farming practices and technology e.g. Neish, 2008b. In Section 4, the social performance of carrageenan seaweed farming is reviewed based primarily on the survey results discussed in the six case studies. The assessment covers the contributions of carrageenan seaweed farming to various social aspects such as employment, income, gender equality and community development. The assessment also highlights some negative social impacts of carrageenan seaweed farming e.g. low income and occupational health hazards based on the six case studies as well as other literature e.g. Fröcklin et al., 2012. Section 5 focuses on issues related to governance and institutions in carrageenan seaweed farming. Governance structures and institutions in both the private sector e.g. market governance, contract farming and farmers organizations and the public sector e.g. legal and policy frameworks, licensing, quality standards and public assistance are discussed based on the experiences of the six case study countries. Some controversial issues are highlighted. In addition to the data and information provided by the six case studies, the discussion also consults the FAO’s National Aquaculture Legislation Overview NALO and FAOLEX for legal issues and utilizes much information from various countries policy and planning reports. Section 6 concludes the paper. Although the six case studies and other existing literature provide extensive information on the carrageenan seaweed industry, there are still substantial knowledge and information gaps to be filled in order to obtain better understanding of the development trends of carrageenan seaweed farming in the future and propose specific policy recommendations. Some of these gaps are discussed in this section; based on which areas for further study are suggested.

2. CARRAGEENAN SEAWEED PRODUCTION AND VALUE CHAIN