DBP boosts seaweed industry in poor Tawi-Tawi town
By Amy R. Remo
Philippine Daily Inquirer
First Posted 22:33:00 06/09/2008
MANILA, Philippines – The Development Bank of the Philippines has extended an initial P5-million revolving credit line to Sitangkai-based exporter Sitexports, giving the seaweed industry of Tawi-Tawi a much-needed boost, the Philippine Development Assistance Program said.
In a statement, PDAP noted that Sitangkai, one of the poorest towns in the Philippines, is the single biggest source of seaweeds in the country, accounting for half of the country’s total production.
Seaweed is processed to produce carageenan, a major component in the manufacture of food products, such as gelatin. Carageenan is also used in making toothpaste and for coating medicine.
“Extended under the One Town One Product window, Sitexports will use the DBP credit line to boost its working capital and increase trade with importers from France in behalf of the seaweed farmers of Sitangkai, Tawi-Tawi,” PDAP explained.
PDAP had started to assist Sitexports in 2006 and has been instrumental in the formulation of the Sitangkai Seaweeds Industry Master Plan, a medium-term development plan that will increase the income of seaweed farmers and improve their standard of living.
The Master Plan calls for the increase in seaweed production area in Sitangkai to 10,000 hectares by 2010 from the current 2,500 hectares; in total seaweed production to 27,000 tons a month from the current 3,000 tons; and in average farm income to P300,000 annually from P60,000.
Because seaweed can only grow in clean water, Sitangkai enjoys a comparative advantage over other areas in the Philippines and is in a unique position to take advantage of the growing global demand for carageenan, PDAP said.
Due to this growing demand, Sitexports’ deliveries to France have recently increased to 120 metric tons a month from the previous 80 tons, despite the doubling of the farmgate price per kilo of raw, dried seaweeds.
According to PDAP executive director Jerry Pacturan, the price of raw, dried seaweeds has now reached as much as P50 a kilo, double the price two years ago when PDAP began assisting Sitexports.
The loan signing and check release with Sitexports have been scheduled for June 12 in Zamboanga City as part of the festivities marking Independence Day.
In addition to the DBP credit line, Sitexports has also availed itself of guarantee financing worth P4.5 million through PDAP’s Promoting Rural Industries and Market Enhancement (Prime) program, which is supported by the Canadian International Development Agency.
The guarantee financing for Sitexports is administered by MASS-SPECC, a Mindanao-wide secondary cooperative federation.
“The check turnover of both DBP and PDAP is a symbolic gesture of Philippines-Canada development cooperation for the development of Mindanao, particularly for the Autonomous Region of Muslim Mindanao,” Pacturan said.
Pacturan added that these developments manifest PDAP’s role in facilitating the access of rural industries to mainstream financing institutions like DBP.
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