Volume 13 • October 2020

Volume 13 · October 2020 · ISSN 2449-4399

International Peer Reviewed Journal
This journal is produced by the International Association
of Scholarly Publishers, Editors and Reviewers, Inc.
Registered in the Philippines' Securities
and Exchange Commission (CN201433407)

Supply Chain of Seaweeds

in Surigao Del Sur, Philippines
BERNARDITA G. QUEVEDO
http://orcid.org/0000-0003-2738-7105
[email protected]
Surigao del Sur State University- Lianga Campus
Philippines

FABIO C. RUAZA JR.

http://orcid.org/0000-0003-4154-3071
[email protected]
Surigao del Sur State University- Lianga Campus
Philippines

MARICEL MATURAN
https://orcid.org/0000-0002-0906-5789
Bureau of Fisheries and Aquatic Resources- Caraga
Philippines

LINDON GARAY
http://orcid.org/0000-0001-9187-7083
Bureau of Fisheries and Aquatic Resources - Caraga
Philippines

ABSTRACT

The Province of Surigao del Sur, Philippines, is blessed with abundant

marine resources that offer tourism and food industries. One of the resources
that provide food and livelihood to the coastal stakeholders is the seaweed
farming industry in the selected municipalities where seaweeds farming is
viable. This study aimed to trace the supply chain of seaweeds in the Province

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of Surigao del Sur. It includes the socio-economic and demographic profile

of the seaweed farmers and the seaweed production capacity of the volume
harvested per cycle; it identified problems encountered by farmer/grower,
producer, and processor. The study employed qualitative and quantitative
methods in generating data. The study revealed that the seaweed farmers/
growers in the Province have direct intervention in selling their product to
the trader and local processor while the exporter is not directly related to the
farmers/grower. The trader also sells their product to the exporter, retailer,
and wholesaler. Likewise, the retailer, local processor, and wholesaler also
sell their product on their own and vice-versa. The retailer also sells its
product to direct consumers. Growers also engaged in seaweed drying.
Seaweed products are traded within barangays, municipalities, provinces,
and the region. Responses on environmental management on farming and
harvesting, marketing are all favorable; however, some responded that
marine pollution increased due to farmers failed to follow good aquaculture
practices. The LGU’s and BFAR should work hand in hand to support the
seaweed farmers in terms of capital, trainings, technical assistance, and
provision of inputs and post-harvest facilities so that seaweed farmers/
growers could continue to produce more good quality seaweeds, dried
seaweeds, and minimize post-harvest losses, and expand seaweed farm to
increase the volume of seaweed production.

KEYWORDS

Seaweed, coastal stakeholders, seaweed farming, mixed-method research

design, Philippines

INTRODUCTION

Over the past decades, the integration of developing countries in global

markets has accelerated with increased participation in international trade
and growing inflows of foreign direct investment. As a result, there have
been swift changes in the Agri-food systems of developing countries and a
rapid expansion of the so-called modern supply chain. These modern food
supply chains comprise the production and trade of high-value produce,
usually destined for export to high-income markets or supermarket retail
in high-income urban market segments. They are also characterized by high
standards to govern quality and food safety throughout the chains, high
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levels of vertical coordination – including contract-farming- in the chains,

and a high degree of consolidation of the supply base and agro-industrial
processing. This is in contrast to more traditional food supply chains that
are governed through spot market transactions involving a large number of
small traders (Maertens, et al., 2012).
A supply chain is a network of retailers, distributors, transporters,
storage facilities, and suppliers that participate in the production, delivery,
and sale of a product to the consumer (Harland, 1996 as cited by De Silva,
2011). According to De Silva (2011), the supply chain is typically made up
of multiple companies who coordinate activities to set themselves apart
from the competition. A supply chain has three key parts. These are the
supply which focuses on providing the raw materials to marketing units,
including how, when, and from what location, manufacturing which focuses
on converting these raw materials into semi-finished or finished products
and Distribution focuses on ensuring these products reach the consumers
to an organized network of distributors, warehouses and retailers. Supply
chains are concerned with what it costs and how long it takes to present the
product for sale. The main objectives of supply chain management are to
reduce the number of links and friction, such as bottlenecks, costs incurred,
time to market etc. A good supply chain is essential to developing a value
chain.
One of the resources that provided food and livelihood to the coastal
stakeholders is the seaweed through seaweed farming in the selected
municipalities that seaweeds’ farming is very viable. Many of the coastal
residents opted for seaweed farming for they believed that after several
months of culture, if not hindered by bad weather, seaweed income is
definitely feasible. The most common and popular species of seaweeds used
in farming are the Kappaphycus alvarezii and Eucheuma cottonii because of
their good growth and easy-to-culture species. It provides many benefits,
such as being environmentally friendly and contributing to revenues (The
Philippine Seaweed Industry, 2011).
Caraga Region has a total area of 531.80 hectares for seaweed
production. The provinces of Surigao del Sur and Surigao del Norte are the
major seaweed-producing provinces, with existing production areas of 350.8
hectares and 58.7 hectares, respectively. In 2003, the region ranked third in
Mindanao in seaweed Production with 16,701.50 metric tons. The officers
and representatives of the different associations of seaweed producers and
the local buyers and traders make up the seaweed cluster. There are 495
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seaweed growers region-wide, which are concentrated in the province of

Surigao del Sur and Surigao del Norte (BFAR Caraga, 2018). Through this, the
present study aims to assess the supply chain of seaweed in the Province of
Surigao del Sur as the benchmark in the successful production of seaweed
and to meet customer demand. In addition, the supply chain will also help
optimize the activities of each chain that lead to competition in the global
market.

OBJECTIVES OF THE STUDY

The main objective of the study is to trace the supply chain of the
seaweed industry in Surigao del Sur, Philippines. Specifically, the study aims
to determine the socio-economic and demographic profile of the actors of
seaweed (farmer/grower, traders, and processor). The seaweed production
capacity in terms of the volume harvested per cycle and the problems
encountered by the actors of seaweeds (farmer/grower, producer, and
processor) are identified and mapped the seaweed supply chain in the
Province.

METHODOLOGY

The Locale of the Study

The study was conducted in the Province of Surigao del Sur, specifically
in the Cities of Bislig and Tandag and Municipalities of Barobo, Lianga,
Cagwait, and San Agustin. The Province of Surigao del Sur is the 56th
Philippine province and is located in the Northeastern coast of Mindanao
facing the Pacific Ocean between 125°40ʹ to 126°20ʹ East Longitudes and 7°55ʹ
and 9°20ʹ North latitude.

Data collection
The data consisted of interviews of the key informants and a structured
questionnaire. The structured questionnaires were administered to
respondents like growers, traders, and processors. A survey tool was used
in this study and was prepared in the English language; however, responses
in Visayan dialect were considered for a better understanding of the issue.

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BISLIG CITY TANDAG CITY SAN AGUSTIN CAGWAIT BAROBO LIANGA

BMPC - Britania Aras-asan Kamayo Bul-anon,
Seaweed Farmers Mabua Fisherfolk
Multipurpose Fisherfolk Marine
Association Association
Cooperative Association Association NONE
Talisay small fishers
Womens Organization CFARMC Single Proprietor
Organization
Caguyao Seaweed Farmers
NETOSFO
Association

Figure 1. Map of the study area showing the six (6)

municipalities in Surigao del Sur

RESULTS AND DISCUSSION

SOCIO-ECONOMIC AND DEMOGRAPHIC PROFILE OF SEAWEEDS FARMERS

The respondents were randomly interviewed from the communities
of the four (4) municipalities of Lianga, Barobo, Cagwait, San Agustin,
and two (2) cities in Tandag and Bislig in the Province of Surigao del Sur
wherein seaweeds farming has existed in the area. Their socio-economic and
demographic profiles were determined (Table 1).

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Table 1. Socio-Economic and Demographic Profile of Seaweed Farmers in

Surigao del Sur
Profile Percentage
Male 87.7
Sex
Female 12.3
Elementary Level 12.3
Elem. Graduate 25.3
Educational Attainment High School Level 17.5
High School Graduate 33.8
College Level 11.2
2-5 Years 41.7
6-10 Years 33.8
Years in Business
11-15 Years 15.1
20 Years & Above 18.6
Own Savings 36.3
Partnership 4.7
Main Source of Capital Family 11.4
NGO/LGU 35.0
Others (BFAR Dispersal) 13.9
Yes 71.7
Technical Assistance Received
No 24.9
Eucheuma cottonii 70.1
Species Preference
Eucheuma alvarezii 29.9
1-5 Monolines 29.9

No. of Monolines Employed by 6-10 Monolines 19.6

the Seaweed Farmer 11-15 Monolines 17.8
16-25 Monolines and above 36.3
Every Week 6.0
Every Month 35.3
No.of Days Farmers Harvested
3 Months 6.2
Seaweeds
2 Months 16.2
45 Days 35.4

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For farmers’ active participation in the industry, the majority responded

their engagement already lasted for more than five (5) years. Their roles
in the seaweeds industry helped and made the Province of Surigao del Sur
one of the major seaweeds producers in the Caraga Region. In terms of
their monetary start-up investment, seaweeds farmers got their source of
capital through their initiatives and efforts, from their own pocket and from
their family supports. While others like seaweeds, farmers from Bislig City
and Tandag City, were lucky because they got financial support from Non-
Government Organizations and Local Government Units through PDAP/
CODESPA and from the Bureau of Fisheries and Aquatic Resources (BFAR)
for seedlings dispersals. With the concerted efforts of the NGO, LGU, and
other partner agencies, seaweed farming has become more sustainable,
provided livelihood to the families, and made Surigao del Sur one of the
major producers of seaweeds.
Most of the respondents received technical assistance because most
of them are recipients of the seaweed development program implemented
by the BFAR in coordination with the Local Government Unit-Municipal
Agriculture Office of each municipality. Technical assistance was given
through seedling dispersal and validation of the area. If it is possible,
seaweed farming and the management of culturing seaweed will be
recommended. With the two (2) identified seaweeds Eucheuma cottonii was
mentioned to be the most common species used in planting may be due to
its excellent growth and yield seaweeds’ characteristics. Seaweed farmers
cultured Eucheuma cottonii and Kappaphycus alvarezii because these species
are highly valued in market price and easy to culture and in-demand in the
global market.
For monolines used, responses vary, perhaps due to limitations given
to each grower and the area of the seaweed farming allocated to every
operator by each municipality. Monolines technique is used in the cultivation
of seaweed growing by the seaweed farmers in the Province of Surigao del
Sur. Per observation and encounters with seaweeds growers, harvesting of
seaweed is very 45 days. Fully matured seaweeds are usually 45 days old
but used for drying. Some seaweed farmers waited for 2-3 months before
harvesting their seaweeds to get a higher volume of harvest. Excellent
quality of seaweeds is obtained in this period. This implies that seaweed
farmers harvested their seaweed depending upon the number of days and
weather conditions. On the other hand, in Tandag City, some of the farmers

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were not satisfied and discouraged by the prevalence of ice-ice disease and
the lack of capital. Some of them, while farming seaweed ventures, also go
fishing for additional income.

Table 2. Farmers’ Income and Harvest flow of Seaweeds

Farmers’ Income and Harvest flow Percentage
5,000-10,000 81.2
11,000-15,000 9.7
Income Per Harvest 16,000-20,000 3.8
21,000 and above 5.3
Within the Barangay 35.8
Within the Municipality 11.7
No. of Seaweed Market/ Out-
let of Selling The Seaweed Within Province 42.5
Within the Region 10.0
Wholesaler 51.0
Retailer 28.2
Buyer of Seaweed Importer 0.0
Exporter 20.8

The income of most seaweeds farmers ranges from 5,000-10,000 per

cropping. According to the seaweed farmers, the income generated from
farming can already support the families. However, when challenged on the
occurrence of the ice-ice disease and typhoon, these can be their rival in the
means of living. With regards to their markets and outlets of the seaweeds,
farmers traded their yields to the local traders, retailers, wholesalers, and to
exporters in the province and in the region. In the case of Bislig growers, their
seaweeds are immediately brought to the local buyer, their organization,
the Seaweeds Farmers Association, and become a wholesaler. Buyers also
differ from each municipality, maybe due to the numbers of entrepreneurs,
accessibility, and the bulk of supply. Forming and engaging in an organization
is also advantageous in a business like this. If the organization is sustained,
funding from an outside source is possible. Support from private and public
partnerships is accessible. So that seaweed farmers formed their association
to acquire support from each other and from an outside source. Financial,
materials, and technical supports are possible when the association is
sustained.

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Lianga is the only municipality in the province that processed seaweeds

to “Seaweed Pickles” INDOG Lianga delights. The product was already
distributed/ marketed within the province, in the region, and outside the
country. The industry is managed by the INDOG Lianga, supported by the
Bureau of Fisheries and Aquatic Resources (BFAR) and the Surigao del Sur
State University- Lianga Campus for technical support.

Figure 2. Total kilograms harvested by seaweed farmer per Cycle.

Figure 2 presents the kilograms harvested by seaweed farmers per

cycle. This figure shows that Tandag City (87.5%) has the highest average
volume of seaweed harvested per cycle and sold the product of about 100
kgs above, followed by Barobo (50.80%) and Lianga (45%). This is because
most of the seaweed farmers employed a greater number of monolines
from 16-25 monolines and 26 monolines and above that helped greater
harvest volume.

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Table 3. Perceptions of Seaweeds Farmers in Marketing

The dried seaweed is kept at home before being sold
Agree 47.7
Disagree 16.7
Neutral 2.3
The price of dried seaweed conforms with the expectations
of farmers
Agree 23.4
Disagree 39.9
Neutral 3.4
The marketing system for dried seaweed is still useful
Agree 58.1
Disagree 8.3
Neutral 0.3
The price of dried seaweed is always fluctuating
Agree 50.2
Disagree 12.8
Neutral 1.4

Table 3 shows the perceptions of seaweed farmer respondents in

marketing. The result shows that most respondents agreed that the dried
seaweed is kept at home before being sold, especially if there were no
available buyers and they can be sold into a greater volume, that the price
of dried seaweed conformed with the expectations of farmers, that the
marketing system for dried is still useful since there were direct traders that
buy their products, and that the price of dried seaweed is always fluctuating
because just like any other world commodity, the prices are dictated by the
world market.

Table 4. Challenges on Seaweed Farming

Challenges Mean Adjectival Rating
Changes in two monsoon Seasons 4.2 Extreme challenge
Seed availability at the farm level 1.2 No challenge
The quality of seaweed seeds 3.4 Moderate challenge
Occupation by seaweed farms by farmers 3.4 Significant challenge
Predators and/or diseases 4.7 Extreme challenge

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Challenges Mean Adjectival Rating

Financial Capital 4.7 Extreme challenge
Farming Method 1.2 No challenge
Post-Harvest Processing 2.3 Slight challenge
The Price of Dried Seaweed 2.3 Slight challenge
Marketing Channel for Dried Seaweed 2.6 Slight challenge
Fishermen’s Training 2.2 Slight challenge

Table 4 shows the challenges in developing seaweed farming. Results

revealed that the changes in two monsoon seasons is one of the rivals of
seaweeds farmers since this will occur the ice-ice disease of the seaweed.
Other challenges also differ from municipality to municipality for some
reasons. One is the geographic location of the farm area, where the area
may be characterized by less freshwater tributaries, and the area is secured
to heavy waves that damage the plantation.
The seed availability at the farm level was not a major challenge during
the harvest. They left seaweed seedlings for them to use in the second
cycle, and there were also seaweed farmers in their area to buy the seaweed
seedling. The quality of the seaweeds seeds majority is not a problem for
them since BFAR/NGO (PDAP/CODESPA) and DTI give them quality seeds,
and some are a moderate challenge for them because they are not following
good aquaculture practices. The occupation of seaweed farms, for farmers,
the majority are not a test to them since they were benefited already of the
farming activity. The willingness of the growers to develop their coastal area
was is not a challenge, for they also wanted to improve and increase their
production.
The predators and diseases were extremely challenged to them
because some predators like Siganid and barnacles ate the seaweeds and
the barnacles attached to the seaweeds. Ice-ice disease and epiphytes will
affect the growth of seaweed. The additional bigger financial capital of the
seaweed farmers is another challenge to them because usually, they are
dependent on their own savings, and some seaweed farmers were given by
the BFAR through seaweed seedlings dispersal. The farming method was
not an obstacle for them since the method used was the monoline which
was easy for them to operate, and the materials were already available in
the area.

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The postharvest processing was a slight challenge for them, especially

in Barobo and Lianga since their products were bought by the INDOG Lianga
seaweed pickles delights. The price of dried seaweed and marketing channel
for the dried seaweeds are not such a challenge to them since there were
traders who buy the products, and fishermen’s training was not a problem as
well because the BFAR has conducted trainings to the seaweed beneficiaries
prior to the seaweed farming and the fluctuating price was a slight problem.
Among the challenges encountered in the processing of seaweeds are
the changes in monsoon seasons, supply availability, duration in processing,
machines/ equipment, financial capital, manpower, storage facilities, pricing
system, marketing system but still the processing is continued, which
helped the seaweed farmer in Lianga and neighbouring municipalities in the
Province of Surigao del Sur. The BFAR also helped them in the procurement
of machines and equipment used in the processing and the BFAR in the
purchase and display during the agri-aqua fair and exhibits for product
promotion and marketing. Only Lianga engaged in seaweed processing
because they were strongly supported by the SDSSU, LGU, and BFAR Caraga
Region.

Figure 4. Supply Chain of Seaweed in the Province of Surigao del Sur

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 Volume 13 • October 2020

Figure 4 shows the supply chain of seaweeds in the Province of Surigao

del Sur. This indicates that there were several stages in the supply chain like
the input supply, primary production, trading, processing, and final sale.
Each range has its own functions and with the assistance of the operators
and enablers. The input provision includes the sourcing of seedling/ cultivars,
monolines, posts, and floaters in which seaweed farmers sourced out
their seaweed seedlings, ropes/styro/tie-wires, and floaters and it was still
procured by farmers from junk yards. These input provisions were useful
in preparation for seaweed farming. Then primary production was done,
and this includes planting, cleaning/disease control, harvesting, drying, and
transporting. The production was operated by different cooperatives and
associations. In trading, it includes drying and re-drying, storage, and delivery
and these were done by the active traders. In the processing, seaweed
pickles were done by INDOG Lianga and they have directly collected, and
procured the seaweeds from the seaweed farmers.
The final sale includes re-selling, retailing, and others were consumed
by families as salad and other homemade food preparations. For the
input provision and primary production, the LGU, DA-BFAR, and NGO are
the concerned agencies and organizations that helped and supported
the primary needs such as ropes, soft-ties, seaweed seedlings, posts and
floaters. Likewise, the DTI is the concerned agency in support of trading,
processing and final sale of the product. The DTI helps in marketing and
market promotion.

CONCLUSIONS

The seaweed farmers/growers in the Province of Surigao del Sur,

Philippines has direct intervention in selling their product to the trader and
local processor while the exporter is not directly related to the farmers/
grower. The trader also sells their product to the exporter, retailer and
wholesaler. Likewise, the retailer, local processor and wholesaler also sell
their product on their own and vice-versa. The retailer also sells its product
to direct consumers.

RECOMMENDATIONS

Based on the result of the study, the following recommendations are

made. A disease-resistant seedling must be developed in the Province. The
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IASPER Interdisciplinary Research Journal

LGU’s and BFAR should work hand in hand to support the seaweed farmers
in terms of capital, trainings, technical assistance, and provision of inputs
and post-harvest facilities so that seaweed farmers/growers could continue
to produce more good quality seaweeds, dried seaweed and minimize
post-harvest losses, and expand seaweed farm to increase the volume of
seaweeds production. Encourage the Cooperatives and Association to be a
consolidator so that seaweed farmers/growers could have a direct buyer of
their product and controller of the price of seaweed aquaculture practices in
seaweed farming and follow the desired method to be able to harvest good
quality seaweeds. Aside, enablers in the supply chain of seaweed in order to
have strong coordination with other partner agencies to be committed to
the success of the seaweeds industry in the Province.

LITERATURE CITED

BFARCaraga. (2018). https://caraga.bfar.da.gov.ph/cmsFiles/regionCaraga/

homepageleft/pdf/e 3e806b-f3e5-428a-8872-d975d84bf018(06-21-2018).
pdf

De Silva, D. A. M. (2011). Value chain of fish and fishery products: origin,

functions and application in developed and developing country markets.
Food and Agriculture Organization. 63pp, 1-53. Retrieved on January 18,
2018 from https://bit.ly/3n241Va

Maertens, M., & Swinnen, J. F. (2012). Gender and modern supply chains in
developing countries. The Journal of Development Studies, 48(10), 1412-
1430. Retrieved on March 7, 2018 from https://www.tandfonline.com/
doi/abs/10.1080/00220388.2012.663902

The Philippine Seaweed Industry. (2011). Board of Investmen. Retrieved

on April 18, 2018 from https://www.yumpu.com/en/document/
read/11403354/seaweeds-board-of-investments.

Gunning Fog Index: 12.79

Flesch Reading Ease: 41.63
Grammar Checking: 93/100
Plagiarism: 4%

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