semp siap summary compatibility mode

8/8/2019 SEMP SIAP Summary Compatibility Mode

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SECTOR EXPORT

MARKETING PLAN

SEAWEED INDUSTRY OF THE PHILIPPINES


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Philippine Seaweed Industry Value Chain Map


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Raw Dried Seaweed as Raw Material

Supply /Market ChainAnalysis

Improvements Needed

Value Required

Seedling

Farmer Good Quality Seedling Stable Source

Local/Big Trader

Importing Country:InternationalProcessor

35-38% MC

Clean/Low Impurities

Mature/High G.S.

Sustainable

Provide Drying Facilities

Education of Trader orFarmer

Improve Tracing/Labeling

Improve FarmingPractices

Develop other Areas for

Source

High Yield


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Carrageenan as Natural Ingredients

Supply Analysis Improvements NeededValue Required

Seedling

Farmer Good Quality Selection of Source

Local/Big Trader

Processor

Sustainable Source

Unadulterated RDS

Clean Source

On-time Delivery

Audit Source Area

Accredit Farms

Accredit Traders


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Carrageenan as Natural Ingredients

Market Chain Analysis Improvements NeededValue Required

Manufacturer Product Safety Certifications

Education ofTrader/Farmer

Distributor/Retailer

End User

Healthy

Healthy

Organic/Natural

Highlight in Packaging

Education of

Trader/Farmer

Organic/Natural

Highlight in Packaging

Product Safety


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Current MarketCurrent MarketCurrent MarketCurrent MarketPositionPositionPositionPosition


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PRODUCT

Raw Dried Seaweeds

Net seaweed importer by 2007. (trade data). By 2008, over 15,000 tons seaweed imports,

exports less than 11,000 tons.

Im orts mainl from Chile and Indonesia.

(included raw seaweed)


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PRODUCT

Carrageenan

Includes ATC, SRC and refined carrageenan. Decline in exports tonnage from almost 10,000

tons in 2000 to slightly over 80,000 tons in 2008.

2000-2006 values fairl stead but increasin

cottonii prices drove values up from 72M US$ in2006 to over 122M US$ in 2008.


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PLACE

Raw Dried Seaweeds

Exported directly by Big Traders to InternationalProcessors in USA (21%), France (17%), Thailand

(14%) and China (10%). (IMR,2009 )


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PLACE

Carrageenan

Carrageenan products are distributed to other countriesthrough international blenders food ingredientdistributors, and direct to manufacturer of the different

applications.


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PRICE

Dry Euchema Cottonii Prices Comparison

(Philippines vs Indonesia)

$2,500

$3,000

Philippines

Indonesia

Price perMT

Before 2008, Philippine raw cottonii seaweeds arepriced higher than Indonesia. This price trendencouraged international processors to source fromIndonesia rather than Philippines.

$0

$500

$1,000

$1,500

$2,000

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PROMOTION

Raw Dried Seaweed

RDS Exporters use online market portals such as Alibaba,and other sites.

Some are already established and has put-up offices in. , .

Carrageenan

Direct communication to blenders and end-user are doneby individual companies to reach their markets.

Some companies participate Trade Fairs or visit theirprospects to promote products.


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SWOT ANALYSISSWOT ANALYSISSWOT ANALYSISSWOT ANALYSIS


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STRENGTHS WEAKNESSESFUNCTION

Good Quality Seaweedsfrom the Philippines

Presence of Some of the BiggestProcessors in the World

ProcessingExporting

Unhealthy Pricing Competition within theIndustry Players

SWOT Analysis (Philippine Seaweed Industry)SWOT Analysis (Philippine Seaweed Industry)

Strong GovernmentSupport, specifically

Region 7

Seaweed

Farming

Enablers

ExperiencedSeaweed Farmers

Available Innovative TechnicalManpower for Product Development in

Processing.

Pioneer in Seaweed Farm Developmentin all Seaweed Producing Areas in the

World

Large AvailableAreas for

Seaweed Farming

oca an

Big Trading

Aging FarmerDecreasingSeaweed

Production

Limited Financial Investment & Supportin Seaweed Farming

Inconsistent Awareness and Lack ofCoordination among LGUs and OtherAgencies

Adulterated RDS


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SWOT Analysis (Philippine Seaweed Industry)SWOT Analysis (Philippine Seaweed Industry)

OPPORTUNITIES THREATSFUNCTION

ProcessingExporting

Consumer prefers natural ingredients

Increasing demand of raw dried

Increasing numbers of processors in

other countries particularly china

Presence of chea er substitute roducts

Brain drain of technical people going

to competitor countries

Seaweed

Farming

Enablers

oca an

Big Trading

New applications for carrageenan

Increasing number of seaweedproducers in other countries

Global warming

for carrageenanNew market entry requirements ofmajor importing countries like EU/US


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Sector ObjectivesSector ObjectivesSector ObjectivesSector Objectives


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Sector Five-Year Plan (2010-2015)

Priority 1: Increase RDS Production by 10% -15% annually

Priority 2: Develop non-traditional carrageenan applicationssuch as fresh/dried food, pharmaceutical,cosmetics and other food in redient a lications

Priority 3: Penetrate emerging markets on natural foodingredient in Europe and other parts of the worldfocusing such as South Africa, South America and

Asia.


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In conclusion, it is true that the demand side of the

Value Chain is GROWING but at the same time thesupply is DECREASING!

Therefore the sector has to prioritize addressing supply

challenges, because if not, focusing on (new) markets

will not make sense!


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