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Espinoza: Prospects for carrageenan


Friday, September 23, 2005
Espinoza: Prospects for carrageenan
By Fred C. Espinoza

Triumph. Recent developments in the world market seem to indicate that the day of triumph for the lowly seaweed farmer is at hand. Assuming, of course, other stakeholders in the Seaweed Industries Association of the Philippines (Siap) and government policy-makers will not take the role of the farmer for granted like in several cases in the past where the poor farmer is left with barely enough for his family to survive until the next harvest.

Aside from improving prospects of economic growth for carrageenan in the United States market, the Department of Trade and Industry (DTI) has led the industry to the gateway of the vast Indian market, which could provide the key to the eventual empowering of the nation’s infant industry.

What comes to mind, at the moment, would be the “recent ninth joint working group meet between the representatives of the two countries here,” according to Trade Undersecretary Thomas Aquino, who said that the meeting “focused on evaluating the status of past cooperation and new fields for collaboration.”

“Both countries feel that there remain areas of mutual interests to explore for strengthened partnership,” said Aquino, who co-chaired the meet with Indian Commerce Secretary S. N. Menon.

This should serve as a “wake-up call” for Siap president and chief executive officer of Shemberg Marketing Corp. Benson Dakay and the rest of the stakeholders in the industry for them to be proactive in identifying and preventing problems in the workplace and work out innovative measures to promote efficiency in the entire process to maintain the competitive quality of Philippine carrageenaan in the world market.

One of the hottest topics taken up during the ninth joint working group meet was the seaweed producers’ greatest expectation, which is to be able to export carrageenan to India for the manufacture of pharmaceutical products and cosmetics.

Who knows? With carrageeenan, our country may eventually be able to share in India’s immense economic potentials. As what Aquino further emphasized in the report, “agri-related cooperation activities are poised to be undertaken through a memorandum of understanding on cooperation in agriculture that is up for signing following the previous pact’s expiration in 2001.”

What is most significant to note in the case of our seaweed producers is that the agri-related ventures include export of carrageenan to India.

The leaders of the seaweed industry had shown great interest in this venture to “provide inputs to India’s pharmaceutical industry.”

Other areas of partnership proposed by Siap leaders are in dairy production and coconut coir processing, venture financing and innovation incubation to boost the business process outsourcing sector of both sides, the DTI executive said.

What these developments seem to indicate is that the administration’s new management team is living up to the expectations of the Filipino farmer by pushing for agri-related cooperation activities for the mutual benefit of the two nations.

Now that Siap leaders are aware of the economic thrusts of the administration to develop the country’s huge agriculture potential, we expect them to start work on improving plant facilities, invest on new technologies to boost productivity, develop more seaweed farms and improve the quality of raw materials to maintain product quality and address more demand, for the product in the immediate future.

The Philippines and India established ties on Nov. 26, 1949. Bilateral trade reached $341.22 million in January to November 2004. With the tremendous success of the Confederation of Indian Industries-Goa Council’s mission in the Philippines, the Philippine embassy in New Delhi is gearing up for more plans to bring in more business delegation from India to convince Indian businessmen to invest in the Philippines,” the department said.

India’s Kare Group has expressed interest to enter into partnerships with drug distributors and is discussing with the Philippine International Trading Corp. for the sale of cheap drugs, in line with efforts to provide quality low-priced medicines.

The department also cited a recently signed memorandum of understanding between the Goa Council’s HL Nathurmal and Abra Mining to tap the growing demand for iron ore, particularly in China.

About half of India’s total 60 million iron exports, or around 37 million metric tons, come from the Goa Council, the department said.

Let’s hope recent developments will inspire Siap leaders to meet these new opportunities for economic growth so they could help the nation by spurring economic development in the countryside and by hastening the emancipation of the farmers and their families from the shackles of poverty and ignorance.

(September 23, 2005 issue)
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