Phl seaweed industry threatened by China

CEBU, Philippines - After the US government banned carrageenan as additive to organic food, seaweed farmers are again facing another battle as China starts to penetrate the industry’s major markets.

"China emerged as the most aggressive competitor in the carrageenan world market to the point of even underpricing traditional carrageenan suppliers," said Seaweed Industry Association of the Philippines (SIAP) president Max Ricohermoso in an interview yesterday.

Ricohermoso said that because of China's generous support to seaweed processors such as export tax rebates and subsidized energy costs, it managed to slash its rates in the world market.

Amid these challenges, industry players are starting  to expand carrageenan's new applications to expand its market coverage, now that the food-based application is banned in the United States.

Ricohermoso said that the industry is now looking at the beauty and cosmetics sectors as the next "big thing" for the seaweed industry.

Recently, DTI chief Ramon Lopez encouraged seaweed processors and exporters to explore other markets other than United States, as well as study other seaweed or carrageenan applications.

Carrageenan, a processed seaweed, is known to have valuable commercial ingredient because of its advantageous properties. When used as an ingredient in beverages, carrageenan preserves texture, structure and stability, enabling the export of countless shelf-stable beverage products. It is particularly suitable for shelf-stable dairy beverages and protein-enriched drinks.

Specifically, carrageenan has continued to be used in dairy-based and enriched beverages, mainly in chocolate milk and chocolate milk applications such as syrups and powdered mix.

Despite its use, carrageenan has been a questionable ingredient because it has been loosely linked to digestive inflammation, an evidence that some researchers dispute. Those who defend the use of carrageenan boast about its benefits, including its effectiveness in adding texture and stability to beverages, ice cream and infant formula.

Seaweed, like most oceanic materials is believed to naturally absorb its nourishment from the sea and therefore contains a considerably high content of minerals, trace minerals such as iodine, calcium, potassium, iron, amino acids and vitamins. This makes it an extremely attractive and marketable natural ingredient for beauty companies.

Seaweed is frequently harvested by hand and then processed into an extract so that it can be incorporated into beauty products. Whether much or all of the valuable nutrients found in seaweed are lost during the extraction process is uncertain.

Beauty companies are nevertheless keen on touting the supposed benefits of seaweed in their products – which include collagen enhancing, rejuvenating, skin firming, antioxidant and hydrating. (FREEMAN)