Business alliances Research institutes and NGOs

84 • ISO 9001: 2000, Quality Management System; • ISO 14001: 2004, Environmental Management System; • ISO 22000: 2005, Food Safety Management; • OHSAS 18001. It is recognized that many RAGS standards are “commercial standards” that are best left to definition between buyers and sellers. In such cases, standards should not be imposed but guidelines can be of use. Examples include: • PNCS – Philippine National Carrageenan Standard under development, which is proposed as the basis for a BIMP-EAGA harmonized standard; • CACGL 60-2006: Principle for Traceability Product Tracing as a Tool within a Food Inspection and Certification System; • CACGL 38-2001 Rev.1-2005: Guidelines for Generic Official Certificates Formats and the Production and Issuance of Certificate; • Basic manufacturing practices for raw-dried seaweed and semi-refined carrageenan from Eucheuma and Kappaphycus Seaplant.net Monograph no. HB2G 1008 V2 BMP. This is a starting point towards developing good manufacturing practice guidelines, especially for process steps that occur near seaweed sources and fall into the category of “post-harvest treatment” Neish, 2008b.

4.2 Business alliances

With a supply that is globally dispersed and a demand that is globally diffuse, there are compelling reasons for the formation of business alliances among seaweed- related enterprises. Strategic alliances are trusting relationships that are often the only feasible option for MSMEs building long-term competitive advantages while retaining independence. Business alliances are essential for the profitable operation of seaweed farms and other functioning MSMEs within seaweed-to-hydrocolloid value chains. Although the formation of alliances can be costly and risky, such relationships can become important unique resources for MSMEs. A guide to alliance formation was available as a free download from Seaplant.net Neish, 2008c. During farmer training programmes, it was the policy of Seaplant.net and IFC-PENSA to foster alliances between farmer groups and seaweed processors. That trend is ongoing as some kind of relational governance in seaweed value chains. Seaweed MSMEs tend to be owned and operated by close associates and family members who build long-term business relationships. Thus, bonds of personal trust, once established, can be smoothly transferred through managerial generations. The formation of trust in alliances is a function of person-to-person relationships, which entail a great deal of time, effort and expense to foster. As time and effort are among the most limited and valuable assets of MSME managers, the cost of forming trust relationships can be a major investment. In the present study, it was found that trust commitment relationships were the norm among farmers and buyers.

4.3 Research institutes and NGOs

Universities in Indonesia that have undertaken work with RAGS include UNHAS, UNSRAT and Udayana University. Government departments such as the BPPT, DKP and LIPI have provided research and education services to seaweed farmers. Much of the seaweed research in the BIMP-EAGA region has taken place in the Philippines. Business development services BDSs and financial services have been provided to seaweed farmers by several private and international organizations Seaplant.net, Swiss Contact, IFC-PENSA, GTZ, AusAID, USAID, JICA, CARE and ADB in tandem with Indonesian government organizations BPPT and DKP and government- supported associations such as APBIRLI, ASPERLI and ISSA. Similar organizations have emerged from time to time during the years of seaweed farming development. Several aid agencies have provided microfinance or other forms of financial support to farmers either directly or through Indonesian government agencies. For example, the PNM is a state-owned investment firm that has funded farmer training and provided finance products to seaweed farmers.

4.4 Farm structures