ANNEXES

Annex I

BACKGROUND AND OBJECTIVES OF THE SEAWEED PROGRAMME

Background

The proposed Regional Workshop on the Production and Utilization of Algae is one of the recommendations of the Third National Coordinators Meeting (NCM) and the Second Tripartite Review Meeting (TPR) of the UNDP/FAO Regional Seafarming Development Project (RAS/86/024) held in Qingdao, China on 24–27 August 1989. The specific recommendation on seaweed development was as follows: Utilizing the implementation mechanism of the Seafarming Project, the proposed seaweed component should be incorporated as an additional activity.

Before the Third National Coordinators Meeting, a workshop on seaweed production and utilization was held in Qingdao from 23 May to 15 June 1987, jointly sponsored by the Chinese Government, UNDP and FAO. The workshop identified, among others, the need for increased research in cultivating and harvesting seaweed, as well as in improving the quality of phycocolloids. The workshop noted an insufficiency of trained personnel in their countries, and urged that government attention be drawn to the potential of the seaweed industry and the need to provide financial resources, incentives and training to ensure an adequate number of trained personnel.

In view of the high priority that the governments placed on the need to develop programmes for the production and utilization of seaweeds, a proposal to incorporate into the Regional Seafarming Development Project an additional activity on Seaweed Production and Utilization was formulated and submitted to UNDP and FAO. The proposal emphasized the need to intensify joint research activities on the cultivation, harvest, processing, marketing, and utilization of seaweeds and seaweed products, especially new applications and forms, as well as to establish an information exchange system and personnel training and exchange programme. It recommended a regional network of centres for research and development on seaweed production and utilization to fulfill the above objective. The project proposal on seaweed production and utilization was prepared by Prof. C.K. Tseng of the Institute of Oceanology, Qingdao. It was endorsed by the National Coordinators Meeting for inclusion as an additional component of the Regional Seafarming Development Project. Nine activities were proposed to be undertaken. The importance of these activities were prioritized according to the needs and problems of each participating country. TCDC activities related to exchange of expertise, personnel and information as well as practical attachment were found to be of common interest and high priority to all the countries. In countries that were less advanced in seaweed production and utilization, joint research as well as workshops on Gracilaria and Eucheuma production and processing were regarded as priority. Research and utilization of two microalgae (Spirulina and Dunaliella) was deemed highly important due to their high potential for human and animal food and as sources of pharmacological products.

Objectives

The seaweed development programme under the Seafarming Project is expected to achieve the following:

1. more countries will be involved in the culture of seaweeds rather than in uncontrolled exploitation of natural resources,

2. manpower for research and development will be upgraded,

3. utilization of seaweed as a source of food and industrial products will increase, and

4. it will become an additional economic activity to provide more employment in countries that are only starting to initiate research and development of seaweeds.

Annex II

WORKSHOP OBJECTIVES

The primary objective of the Workshop was to formulate a regional action programme, for subsequent implementation through Technical Cooperation among Developing Countries (TCDC), covering priority activities aimed at expanding the development of economically viable seaweed industries in the Asia-Pacific region. To achieve this primary objective, the purpose of the Workshop was to:

1. assess the status of seaweed production and utilization in selected countries of the region,

2. identify and prioritize gaps, constraints and problems related to the production, processing, utilization and marketing of seaweeds and seaweed products,

3. identify high priority research and development opportunities in production, processing, utilization and marketing of seaweeds and seaweed products,

4. formulate projects in research, training, information exchange as well as exchange of experts for collaborative implementation at the national and regional levels, and

5. recommend ways to implement the above projects, based on TCDC, to include identification of regional and national institutions/centres as well as multilateral and bilateral organizations, that will participate in the projects.

Annex III

REGIONAL WORKSHOP ON THE CULTURE AND UTILIZATION OF SEAWEEDS
CEBU CITY, PHILIPPINES
27–31 AUGUST 1990

LIST OF PARTICIPANTS

A. COUNTRY PARTICIPANTS

B. RESOURCE PERSONS

C. PHILIPPINE NATIONAL AGENCIES AND ORGANIZATIONS

Department of Science and Technology

D. PRIVATE ENTERPRISE IN OTHER COUNTRIES

E. INTERNATIONAL AND REGIONAL AGENCIES/ORGANIZATIONS

D. PARTICIPANT FROM OUTSIDE THE REGION

G. MEMBERS OF THE SECRETARIAT

Annex IV

WELCOME REMARKS

Mr. BENSON U. DAKAY

President
Seaweed Industry Association
of the Philippines

It is an honor for me, as president of the Seaweed Industry Association of the Philippines, to welcome you to the First Asia-Pacific Regional Workshop on the Culture and Utilization of Seaweeds. I would like to express our gratitude to the sponsors, the United Nations Development Programme and the Food and Agriculture Organization and its Regional Seafarming Development Project, for choosing Cebu as the site of the workshop and affording us the opportunity to host this affair. From my discussions with the officers of the Regional Seafarming Development Project, I learned that this workshop is one of the main activities that had been recommended during a seaweed workshop organized in 1987 in Qingdao, China organized under a Technical Cooperation Programme assistance from FAO. The Philippines, as well as some of the countries represented here today, attended that workshop.

It is gratifying to note that the organization this workshop has been made possible through the cooperation and collaborative efforts of the government sector, represented by the Department of Agriculture through the Bureau of Fisheries and Aquatic Resources, the private sector through the Seaweed Industry Association of the Philippines, and the academe through the Marine Science Institute of the University of the Philippines. These cooperative efforts are not only true to organizing a workshop like this but more so to the development of the Philippines seaweed industry. We can trace the development of the culture and processing of Seaweed in the country today to the unwavering tripartite support extended by these three sectors of the economy. The Government through its infrastructure facilities in trade and promotion and its fiscal policies for a favorable economic environment, the Academe through its research and development support, and the Private Sector's total support. All these factors, molded and gelled together, brought the Philippine seaweed industry to what it is at present.

On behalf of the host and sponsoring organizations, let me extend my heartfelt appreciation for the support extended by these organizations which are all part of the seaweed industry sector: MARINALG International, an international organization of seaweed processors: the European Chamber of Commerce of the Philippines, Cebu Desk; Shemberg Marketing Corporation; MCPI Corporation; BIOCON Philippines; SANOFI Bio-Industries; MARCEL Trading; and MANWEALTH Development Corporation. Also, our partners in the industry, the Eastern Shipping Lines; Yang Ming Lines; Evergreen Lines; and FilSov Shipping.

Again, our most heartfelt welcome to all of you. We hope your stay with us will be fruitful and pleasant. Thank you and Good Day.

Annex V

SPEECH

MR. CHEN FOO YAN

Coordinator
Regional Seafarming Development
and Demonstration Project

On behalf of the Seafarming Development Project of the United Nations Development Programme and the Food and Agriculture Organization of the United Nations, as well as the Governing Council of the Network of Aquaculture Centres in Asia and the Pacific (NACA), I also wish to express our warm welcome to the participants of the Workshop. A special welcome is also extended to those experts who have come all the way from Australia, Denmark, France, Italy, the United Kingdom and the United States of America to assist us in our deliberations.

The hosting of this Workshop is yet another concrete example of the leadership of the Philippine Government in its support for the practical expression of technical cooperation among developing countries or TCDC. Through the efficient coordination of the tripartite partnership of the public sector (represented by BFAR and the Department of Agriculture), the private sector (represented by the Seaweed Industry Association of the Philippines) and the academic sector (represented by the Marine Science Institute of the University of the Philippines), the best of the Philippines has been made available in the organization of this workshop. Besides the Department of Agriculture and BFAR, the network of government agencies which have assisted includes the Municipal and Provincial Governments of Cebu. I would therefore, on behalf of the Seafarming Project and the NACA Organization, wish to record our deep appreciation to all the three sectors in the Philippines for their kind assistance in organizing this Workshop. To the Honorable Senator, the Honorable Mayor of Cebu and the FAO Representative, my heartfelt gratitude goes to them for finding the time amidst their heavy commitments to grace this Opening Ceremony.

The incorporation of an enlarged seaweed component into the Seafarming Project is the result of the FAO-sponsored international workshop held in Qingdao, China, in 1987. The primary objective of the present Workshop is to formulate and subsequently implement a regional action programme covering priority activities aimed at expanding the development of economically viable seaweed industries in the Asia-Pacific region. These activities could include collaborative or joint research, training and exchange of expert personnel and information. Implementation of the regional programme, as developed, will follow the network approach of NACA, and on the basis of TCDC. The Workshop, in assessing the current status of seaweed production and utilization in selected countries in the Asia-Pacific region, is expected to identify constraints, problems and needs, and to prioritize activities for implementation aimed at alleviating the problems in the production, processing, utilization and marketing of seaweeds and seaweed products. As the economic aspect of marketing and trade plays a crucial role in the development of seaweed industry, the Workshop will devote a session on this area.

Much importance has been placed on seaweed culture and processing by the Seafarming Project. Besides this Workshop, the Project has organized three regional training courses on seaweed culture. These include the culture of Eucheuma held in 1988 and hosted by the Philippines, the culture of Laminaria and its polyculture with abalone and scallops held in 1989 in China, and the culture of Gracilaria at present being conducted in China for 18 participants in the region. Next April, the Republic of Korea will host a seminar-workshop on the culture and processing of Undaria in Pusan.

As you know, the Asia-Pacific produces most of the cultured seaweeds in the world, with the Philippines, China, Japan and Korea among the largest producers. However, this status of the region as the major producer of seaweed does not reveal the fact that the culture and processing technology is not equally shared among the countries. It is therefore the aim of the Seafarming Project, as with NACA and any UNDP-assisted regional project, to promote aquaculture development at the national level through the sharing of resources and technologies at the regional level on the basis of TCDC. Besides narrowing the gap between aquaculturally more advanced developing countries and aquaculturally less advanced countries, the sharing of responsibilities and the pooling of resources and technical expertise will also foster closer ties and cooperation among participating governments in all other spheres of endeavour, a benefit by no means insignificant in the light of recent and current geo-political events in other parts of the globe.

You may know that the UNDP/FAO regional project for seafarming development is one of the priority activities under the umbrella of the newly established intergovernmental organization of the Network of Aquaculture Centres in Asia and the Pacific region, an aquaculture network commonly known by its acronym, NACA. Though not as glamorous as some regional organizations supported by well-endowed donor governments and well-placed friends, NACA has contributed in no small way to aquaculture development in the region through implementing mutually beneficial and TCDC activities, including technology transfer and exchange of information and technical personnel -- a strategy aimed at creating an early impact on increasing aquaculture production in the region as a whole. As NACA has been born out of an UNDP/FAO regional project, UNDP through the Seafarming Project continues to provide assistance to supplement NACA's effort in its first two years of operation as an independent, self-reliant organization, with member governments contributing to its core activities. Nine governments have acceded to the NACA Agreement, and several more are expected to follow suit. With the governments taking full responsibility for making policy decision and bearing the cost of its core activities, some donor agencies have been attracted to support the regional, self-reliant intergovernmental NACA organization. Besides FAO and UNDP, these agencies include IFREMER of the French Government, ODA of the United Kingdom, and the Asian Development Bank. Several other agencies have also expressed interest in collaborating with NACA in the implementation of its field programme, and with more governments participating in the management of NACA, I am confident that more collaborative assistance will be forthcoming.

Mr. Senator, Sir, as the Philippines has been one of the original participants in the NACA Project, as well host to one of the four regional lead centres and one national nodal centre, I hope, through your good office, the Philippine Government would consider joining the intergovernmental NACA organization. The Philippines has undoubtedly high level of technical capability. This and the strong inter-sectoral collaboration within the country that we now witness in this Workshop are the factors that could make the Philippines assume the leading role and contribute to the collective effort at developing aquaculture for the benefit of the peoples in the region.

With these remarks, I wish all participants a fruitful and successful workshop, and an enjoyable stay in the beautiful island of Cebu.

Annex VI

SPEECH

TENGKU UBAIDILLAH

FAO Representative, Philippines

It is an honour to be here among seaweed scientists, producers and processors on the occasion of this Regional Workshop. I am pleased to participate in this regional activity, which I recall has been the offshoot of a recommendation from a seaweed workshop organized in 1987 in Qingdao, China with a Technical Cooperation Programme (TCP) assistance from FAO. That particular workshop was hosted by the Chinese Government and attended also by seaweed experts from the Philippines as well as some of the countries now represented here. One of the outcomes of the Qingdao Workshop was a proposal for a regional seaweed project under the auspices of the FAO and UNDP. This recommendation was subsequently realized by incorporating the proposed seaweed project into the Regional Seafarming Development Project being assisted by FAO with Mr. Chen Foo Yan as the Project Coordinator. This has effectively expanded the seaweed development component of the Seafarming Project, a clear indication of the importance placed by countries of the region and the UNDP and FAO on the development of the seaweed industry.

FAO's involvement in seaweed development activities in the region includes those under the Bay of Bengal Programme. The Programme's efforts in developing and promoting Gracilaria culture in several areas around the Bay of Bengal culminated in the Gracilaria workshop held in Thailand in October last year. Seaweed development as a means to improve the income of coastal families also figures prominently in the activities of the ASEAN Small-scale Coastal Fisheries Development Project which is based in the Philippines.

It is under the Seafarming Project, however, where the seaweed activities are wide-ranging and integrated, in terms of species covered and scope of concern. I note that it covers both temperate, subtropical and tropical species; it introduces species of microalgae that have great potential, which is a timely move; it includes the processing and utilization aspects, and it comes to grips with the critical issues that include the environmental and socio-economics. As I understand form the organizers of this Workshop, the primary aim here is to formulate a Regional Action Plan and initiate a programme, based on TCDC, to develop the seaweed industries of the Asia-Pacific region.

From FAO records available on seaweeds production through farming in this region, it is shown that in 1987 there were only nine countries including those of the Pacific Islands which contributed to a total production of 3, 126,626 metric tons equivalent to 99% of the world production of seaweeds. The Peoples Republic of China is the top producer of seaweeds (1.3 tons) followed by the Democratic Peoples Republic of Korea (620,000 tons), Japan (494,232 tons), the Republic of Korea (398,113 tons), the Philippines (200,839 tons), Indonesia (60,000 tons), Taiwan Province (5,532 tons), Vietnam (1,700 tons) and the Pacific Islands (1,700 tons).

Scientific farming of seaweeds in the Indo-Pacific region is quite recent. In Japan and China, this dates back to the 1940s. In the Philippines, Eucheuma farming was initiated in the late 1960s while Indonesia developed seaweed farming as a consequence of technical assistance through the South China Sea Programme in the 1980s. Malaysia initiated their seaweed farming demonstrations at about the same period. While Northeast Asia (Japan and Korea) and China are the world's biggest producers, Southeast Asia is the world's largest tropical seaweed producer.

At this point I would like to make a few observations and suggestions which you may wish to consider in your Workshop. As you are aware, the seaweed farming industry in Southeast Asia is confronted with several problems which should be given appropriate solutions in order to stabilize the industry. In the Philippines, for instance, seaweed farming has sometimes become a very unstable means of livelihood due to periods of oversupply or sudden rise of high demand. The seaweed producers suffer from successive periods of low prices for their products, thus leading to neglect of their farms. This happens on account of dependence on foreign markets only. There should be studies to distinguish the domestic from international market structures so that raw material producers could adjust their production activities. For the benefit of other countries in Southeast Asia, the marketing aspects of seaweeds and seaweed products must be looked into. This would avoid a rush into seaweed farming in the desire to tap foreign markets, just like the experience on shrimp farming which practically resulted in the collapse of the shrimp farming industry in the region. Unlike shrimps, seaweeds have several uses other than food.

One area of consideration that this Workshop should look into is the use of seaweeds for animal feeds and fertilizers. Fishmeal is becoming more expensive due to shortage of fresh fish resulting from overfishing. Whether or not seaweeds could substitute fishmeal to a considerable extent so that the pressure on marine resources could be minimized on account of the increasing demand for animal feeds is a task that the scientists assembled here should investigate.

As fertilizer, there is no doubt that seaweeds make a good organic fertilizer. One of the seaweed processors in Cebu, I understand, the Datingbayan Agro-Industrial Corporation is already marketing a seaweed-based liquid plant food. It is good to note that the private sector is picking up in this field.

The farming technique for Eucheuma and to some extent for Gracilaria in ponds, for instance, is already a mature technology, and no doubt refinements of the technology under various geographic situations in the region are being made. However, it would perhaps be appropriate that your research endeavour focus on the genetic improvement of locally available seaweeds so that better quality agar of the stocks could be obtained in the long term. Furthermore, techniques of seedling production by spore method should be developed to provide farmers with better control in seaweed farming. This would be akin to the germination of orchids in nurseries which could develop a specialized aspect of seaweed farming.

These are quite basic research in nature but the results would have a significant impact on their future practical application in seaweed farming. There are a number of diverse approaches to farming of seaweeds but there is a need to have adequate information on the variety of production ecology to develop various farming methods, effects of environmental quality on gel production, and nutrient metabolism of seaweeds are some technical information that need research.

Studies on the potential markets for seaweed extracts, both domestic and foreign, would be useful for the producers and processors. At present only the foreign market is mainly considered on account of foreign exchange revenue generation. On the other hand, bio-economic information on seaweed farming has yet to be established. There has been no economic investigation addressed to answer the question of variability of production and net income among seaweed farms and within individual farms from year to year. The problem will persist and the role of small farms in the seaweed farming industry will remain unclear.

At this Workshop, it is also appreciated that the private sector is cooperating in our effort to exchange experiences in seaweed farming and processing. This collaboration is a welcome sign to foster closer rapport between scientists, farmers and processors. With this collaboration, I am sure that the plan of action for the development of the seaweed industry could be more realistic.

As Representative of FAO in the Philippines, I am especially gratified to note the strong tripartite support and involvement of the government, the private sector and the academe in this activity. If the seaweed culture and processing industry in this country has reached the stage of development that it has achieved so far, it is largely due to this powerful collaborative impetus that it is receiving from the three sectors of the economy. FAO considers it a great privilege to participate in an activity that enjoys this kind of strong and full national support. I am sure it would also encourage the collaborative participation of other international assistance organizations and governments.

On behalf of FAO, I congratulate the organizers and the hosts of this activity. I should like to assure the participating governments of this Regional Project of FAO's continuing interest in the development of seaweed culture and utilization in particular, and of seafarming as well as other aquaculture development programmes, in general.

I hope this Workshop will contribute toward better understanding of the status and potentials of the seaweed industries in the respective countries in the region and the priority problems which need attention and further collaboration within the country as well as among countries in this region on the basis of technical cooperation among developing countries.

Annex VII

SPEECH

Mr. YVES HENOCQUE

Regional Manager
Direction of Economic Affairs
and International Cooperation
IFREMER, France

In the name of our French delegation and my colleagues from the French scientific institutions, I would like first of all to thank the coordination and organizing committee of this workshop for inviting us as resource persons.

As a matter of fact, because we think that regional cooperation will be more and more effective in the years to come, we have already become involved in several UNDP/FAO regional projects in which the NACA played a great part as initiator and coordinator. One of these is the Regional Seafarming Development and Demonstration Project.

After a strong interest in the production and utilization of seaweeds was reported at the Third National Coordinators Meeting of the Project, a group of French specialists decided to propose their contribution since some of them had already had exchanges with the participating countries.

Besides being one of the largest producers of carrageenan and alginate, France is now pioneering the diversification of the seaweed market in Europe. After relying for centuries on natural collection, culture technologies for seaweed is now being developed for health, agriculture, feeding and cosmetics purposes. Thus a great deal of research is now devoted to seaweed in the fields of physiology, biochemistry, molecular biology and biotechnology not only to improve their culture but to diversify their potential uses.

Through our pooled experiences, I am sure that this workshop will be a full success for the implementation of a collaborative research and development programme in the Asia-Pacific which is the foremost seaweed producing and consuming region in the world.

Annex VIII

KEYNOTE SPEECH

MR. AGAPITO AQUINO

Member of the Senate and
Chairman of the Senate Committee on Agriculture
Republic of the Philippines

Let me express my sincerest gratitude for your invitation to speak before you today on this historic occasion -- the first Asia-Pacific Regional Workshop on Seaweeds. Your task is to develop a concrete action programme for the culture and utilization of seaweeds, upgrade manpower for research and development and enlarge economic activities in the seaweed industry. These are lofty and admirable tasks.

In early June this year, the Seaweed Industry Association of the Philippines or the SIAP through its president, Mr. Benson Dakay and the board of directors, invited me as chairman of the senate committee on agriculture, and my staff, to a two-day workshop on seaweed culture, processing, financing, exports and its many uses to modern man. The workshop lessons were many and varied. It provided us an insight into an industry that is worth more than 2 billion (Philippine) pesos in assets and provides a steady income to more than half-a-million Filipino farmers and other skilled workers. After that summer learning in Cebu and Bohol, I can categorically state here that the local seaweed sector is the country's brightest sunrise industry. As a public official, I am emboldened to give priority to the development of this emerging seaweed industry since it has an enormous impact on many a poor Filipino farmer, particularly in the Visayas and Mindanao. I believe this is true in other Southeast Asian countries. I have personally seen such tremendous economic changes in a small island, some two hours by speed boat from this conference hall.

Today, I am delighted to participate again in another workshop on seaweed. It makes me proud to know that your workshop is sponsored by the United Nations Development Programme and the Food and Agriculture Organization. We are in safe hands. And the future of seaweed farming is assured.

You are the experts on marine algae in the Asia- Pacific area and other parts of the world. I am told that your agenda shall focus on many phases of the seaweed industry both in the Philippines and in 11 other countries in the region.

These include the identification and prioritization of gaps, constraints and problems related to the production, processing, utilization and marketing of seaweed and seaweed products. I am confident that your workshop shall mount these problems on a higher plane where solutions shall go beyond national interests and boundaries. For in today's world, technology must serve all men.

The Philippine seaweed industry is relatively developed vis-a-vis other countries in the Asia-Pacific region. I recognize the significant role played by Filipino private entrepreneurs in shaping the industry into what it is now. It has many achievements; it has many problems, too. The official Filipino participants shall discuss these with you during your workshop. Let me share with you my programme to provide the necessary incentives to the industry.

This early, I believe government must now lay down the structures for such incentives. My congressional staff is now working on this programme. The proposed incentives are necessary to fast-track the research technician in his search for new algae varieties and new uses; protect the lowly farmer that he may produce more and earn more; make credit more accessible to the processor that he may expand his facilities and acquire new state-of-the-art technology; and equip the exporter with trade tools that he may conquer new world markets in spite of trade barriers.

We shall work closely with the officers and members of the SIAP in fine-tuning the features of this programme which I hope shall ultimately become the national code of the seaweed industry.

By the way, I am happy to report that the Quedan Guarantee Financing Board under the Department of Agriculture, has approved the inclusion of dried seaweeds in its financing programme. This is a big boost to both farmer and processor. The farmer's produce shall always be purchased on cash basis while the processor can convert into cash his inventory cost for maintaining his regular plant stocks of dried seaweeds through the Quedan Board financing programme.

Also, the SIAP Board has submitted to my office a draft agreement for the establishment of a purely seaweed research center in Cebu City. The government through the Department of Agriculture and the Department of Science and Technology, shall implement the proposed seaweed research institute with the help of the SIAP members and the academic world. We shall review the project and iron out its kinks before final approval and implementation. This purely seaweed research center shall strengthen and backstop the excellent work being done now by the University of the Philippines Marine Science Institute in Quezon City and Pangasinan in Luzon, Bohol in the Visayas and Camiguin Island in Mindanao. Many positive things are perking up in the industry.

What you achieve in this workshop shall help us attain the many objectives we have set for ourselves such as priority joint research projects, more training activities and information exchange programmes. We need to have a regional collaborative mechanism to implement these programmes. Through such cooperation, seaweed farming and utilization shall benefit us all.

Annex IX

LUNCHEON SPEECH

Mr. SENEN C. BACANI

Secretary, Department of Agriculture
Republic of the Philippines

Thank you for inviting me to this regional workshop on culture and utilization of seaweeds. Because the Asia-Pacific region produces over half of the world's supply of seaweed, there is a strong need for venues like this where regional issues can be discussed, common problems dissected and given possible solutions, and grievances aired. More importantly, these workshops lay down the basis for future cooperation and agreement among the region's seaweed producers, and may lead to regional collaborations that should develop larger markets for the industry and enhance the productivity of its farmers. I congratulate the United Nations Development Programme and the Food and Agriculture Organization for sponsoring the Workshop, the various local agencies for hosting it, and I heartily welcome its participants.

The Workshop comes at an auspicious time for the Philippine seaweed industry. Several days ago, the U.S. Ambassador to the Philippines officially announced the lifting of the US Food and Drug Administration ban on Philippine Natural Grade Carrageenan (PNG) as a table food additive. The FDA action effectively opens up the American market to PNG, and disarms the outcry in several European Community nations for similar restrictions. As a result, Philippine seaweed exports to the US will significantly increase in the next few years. Moreover, we do not envision any slowdown in PNG exports to the EEC, which is its major market.

I have been asked to talk about the thrust of Government in relation to the development of the seaweed industry in the Philippines. I believe that policy support is the principal thrust of Government in the development of the industry. The lifting of the USFDA ban on PNG is a concrete example of Government's supportive efforts on behalf of private enterprise, and a clear triumph of the free market principles that government, for the most part, advocates. We continue to feel as the SIAP does, that the 2% limit on acid insoluble matter in carrageenan constitutes a non-tariff restriction on the product which violates the spirit of international trade and tariff concordance. In reversing its earlier ban, the USFDA apparently agrees with us, and while there are alarming reports that some U.S. seaweed firms persist in their campaign against PNG, let me assure you that we shall oppose these moves as they come.

In another area of trade policy, a one-year ban on fresh Eucheuma has taken effect on August 1 of this year. The ban attempts to balance, on the one hand, industry fears that Philippine Eucheuma seedlings are being used to germinate competitive seaweed industries, and, on the other hand, dissenting fears that a protracted ban on fresh Eucheuma exportation would deprive local growers of an established market. As the Philippines controls a significant portion of the world Eucheuma supply, the fear that its good seedlings may be used against it is valid indeed. Yet because it is a pioneer and a giant in Eucheuma farming, it would be safe to assume that the Philippine seaweed industry can survive, and even thrive, in the competition. The year-long duration of the ban is therefore a reasonable interval in which the industry could enhance its production capabilities and adequately prepare for whatever challenges may lie ahead.

Naturally, Government is prepared to assist the local seaweed industry in its efforts to stay ahead of the tide. It could be said that SIAP and the Department, in particular, have productive, satisfying and cordial relations with each other. I think our willingness to work together is now crucial to the sector, as we embark on a long-term development plan until the year 2000.

Under the Plan, we hope to focus on seaweed R & D, as well as on post-harvest and extension. BFAR and SEAFDEC will be our principal institutional agents for research and development, and we shall likewise actively engage the participation of state universities and colleges (SUC), particularly the UP Marine Science Institute. Areas of R & D concentration will be seaweed processing and extraction methods; stock assessment; post-harvest technology; mariculture practices and techniques; seed production, improvement and selection, especially of species other than Eucheuma; disease control; and the ecology of seaweed farming. Seedling banks will be established for experimentation and distribution purposes. In cooperation with SIAP and other institutions, we plan to establish a seaweed research institute.

The development plan shall also assist seaweed farmers in the procurement of effective and appropriate post-harvest technology. In particular, emphasis will be placed on proper drying techniques and low-cost, efficient dryers that would cut down on waste and post-harvest loss. The improvement of seaweed handling and transport methods will assure higher quality and longer-lasting products for processors. The plan will address transport and marketing problems in the more isolated seaweed farming communities. Pricing is another perennial concern which the plan hopes to resolve by encouraging farmers to be more consistent in their farming practices to produce high quality raw materials.

Extension is particularly difficult because of the geography of seaweed farming in the Philippines, as well as a decided lack in qualified and capable extension workers in the regions where seaweed farming is prevalent. Breakthroughs in R & D are rarely passed on to farmers. Our development plan seeks to directly address this shortcoming -- partly through demonstration farms and farmer-to-farmer exchange programmes. In addition, seaweed farmers are strongly encouraged to form themselves into farmer groups and cooperatives, so they may avail of greater credit opportunities. It would also be helpful if the private sector involved itself through more investments and linkages within the sector.

The lead programme of the Department of Agriculture has several on-going projects in seaweed farming, which are structured exactly as farmer group/private sector partnerships for livelihood generation and agricultural development. It would be gratifying if more SIAP members studied the lead closely and involved themselves in the programme.

In closing, let me state that as a major export earner and a predominant source of agricultural livelihood for the Southern Philippines, seaweed is an extremely important sub-sector in fishery, The Department recognizes this, and is indisputably committed to the industry. It is in great expectations of immediate and bountiful consequences to the seaweed industry, therefore, that I wish your workshop happy and productive discussions.