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BIMP-EAGA ASEAN Coral Triangle
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   M E N U
Practical Guide
Knowledge Products - Carrageenan
Knowledge Products - Aquaculture
Information Products
Useful Tools
Practical Solutions
Links & Documents
HB2A 1008 V2 VC
HB2C 0808 V1 VA
HB2D 1108 V1 GTZ
HB2E 1008 V1 IMTA
HB2F 1008 V3 GAP
HB2I 1008 V3 REF
Structure and Development of
Tropical Red Seaweed Value Chains
With focus on the Red Algal Galactan Seaplants (RAGS)
SEAPlant.net Monograph no. HB2A 1108 V2 VC - by Iain C. Neish
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The need for understanding value chains
An effective understanding of how value chains function is essential for stakeholders in all businesses. This monograph was written as basic instructional material for seaweed farmers and other stakeholders in tropical seaweed-to-carrageenan value chains. For the most part it also applies to tropical seaweed-to-agar value chains.
The carrageenan seaweed crisis of 2008
During late 2007 and through the summer of 2008 the carrageenan industry was severely effected by unprecedented, rapid rise in cottonii (Kappaphycus spp. ) prices. This was labelled by many as a “seaweed crisis” but tropical carrageenan or agar raw materials other than cottonii were not effected. In fact cultivated spinosum (source of iota carrageenan) and Gracilaria (source of agar) were readily available and attractively priced for processors.
The “cottonii crisis” has been characterized as a supply failure caused by global warming, diseases and other phenomena but the data shown in SEAPlant.net Monograph no. HB2B 0808 V2 and field observations by Seaplant.net do not bear out that theory.
It appears that the cottonii crisis of 2008 was caused by a sudden rise in cottonii demand – mainly from China – and value chain failures caused by defective commercial linkages between farmers and processors. Specifically the failure was related to a predominance of “market governance” value chains in which there was a disconnect between most  farmers and most processors and seaweed quality standards reached record lows.
Preventing future cottonii crises
In this monograph postulated reasons for recent RAGS value chain failures are presented along with trade data. It is proposed that a shift toward “relational governance” value chains can prevent future events such as the cottonii crisis of 2008. This shift can also revive innovation in tropical-seaweed-based value chains; it can increase value added close to seaweed sources; and can broaden the income base of seaweed farmers.
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SEAPlant.net SEAPlant.net Monograph No. HB2D 1108 V1 GTZ.
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