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Impact Assessment Study on Seedstock Improvement of Kappaphycus, Eucheuma and Gracilaria in Calatagan, Batangas

Montes, Nimfa D.

1*, Panabang, Maritess B.

1, Zapata, Normito R.

1, Carambas, Nora D.

2, Buenafe,

Marinelle A.1 and Narvaez, Teresita A.

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1 Department of Agribusiness Management and Entrepreneurship, College of Economics and

Management, U. P. Los Baos; 2 Department of Agricultural Economics, College of Economics and

Management, U.P. Los Baos 3 College of Agriculture, Western Mindanao State University;

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Corresponding author: Contact No.: (049) 536-2846, Email: ndmontes89@yahoo.com.ph I. INTRODUCTION The Philippines as the leading world supplier of Eucheuma/Kappaphycus (raw dried seaweeds/RDS) contributed a substantial share of 88% of the total world supply (Hayashi, 2013). The countrys production volume increased from 785,795 metric tons (MT) valued at Php 2.96 billion in 2001 to 1,751,070.64 MT valued at Php 9.77 billion in 2012, attaining an annual average growth rate (AAGR) of 10.24% and 19.19%, respectively. Seaweed harvest area increased from 16,422 hectares to 41,881 hectares in 2001-2010, indicating AAGR of 15.55% (Bureau of Agricultural Statistics (BAS), 2012). Tawi-Tawi obtained the highest average yield of 68.86 MT per hectare in 2010. The Philippines is the largest manufacturer of semi-refined carrageenan (Philippine Natural Grade (PNG)) and the third leading supplier of carrageenan in the world, next to China and Indonesia. The most valuable commercial use of seaweeds is as raw material bases for extraction of phycocolloids (seaweed gels) such as agar, alginate and carrageenan which could be applied to various food and non-food products and liquids. Philippine carrageenan was initially used as a gelling agent for canned pet foods but consumer demand shifted toward human food uses and industrial uses. Carrageenan is now being used for dairy products, bakery products, processed meats, confectionary, cosmetic and personal care products, paints, and pharmaceutical products among others. The countrys total exports of seaweeds (raw, PNG, and refined seaweeds) increased from 40,231,03 MT valued at US$ 71,163,843 in 2001 to 46,108.73 MT valued at US$ 210,774,977 in 2011, exhibiting an AAGR of 1.3% and 17.83%, respectively (BAS, 2001- 2011). However, despite the strong demand, the Philippines has been suffering from raw dried seaweeds shortage supply in the last few years. As evidence, seaweed import increased from 3,704.61 MT worth US$ 5,535,719 in 2001 to 12,740.74 MT valued at US$ 30,091,461 in 2012, showing AAGR 20.32% and 36.96%, respectively in a span of 12 years (BAS, 2001-2012). China remains to be a strong competitor, in terms of buying, producing and processing seaweeds. Whereas, Indonesia is continuously expanding seaweed production to 10 million tons by 2015, making it number one producing country, replacing the Philippines (Embassy of Indonesia, 2010). Cognizant of the threat in the countrys capacity to export seaweeds, the government adopted an action programme aimed at helping the small and medium scale enterprises acquire the necessary technological capabilities for production, cost reduction, output quality improvement and sustainable environment-responsiveness (Pagdilao, 2004).

mailto:ndmontes89@yahoo.com.ph

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With the great economic contribution of the seaweed industry in the Philippines, the government through the Philippine Council for Aquatic and Marine Research and Development (PCAMRD-, now Marine Research Division of the Philippine Council for Agriculture, Aquatic, Forestry and Natural Resource Research and Development, MRD PCAARRD-DOST) had undertaken two major research and development (R&D) projects on seaweed production technologies. UP Marine Science Institute (UP MSI) through the GAINEX Program implemented on April 1997-July 2001 a project entitled Seedstock Improvement of Kappaphycus, Eucheuma and Gracilaria to address the problems of low productivity of the seaweed farming caused by poor cropping management of the cultivars and the deterioration of the environment (Terminal Report, 2001). The project aimed to improve the productivity of presently used seedstocks of seaweeds through the introduction of highly productive strains of Kappaphycus alvarezii, Eucheuma denticulatum and Gracilaria species. Specifically, the objectives were (1) to arrest the deteriorating quality of seaweeds that resulted in continuous vegetative propagation by improving the quality of seedstocks or cultivars from a reproductive process; and (2) to assist a large number of small scale seaweeds farmers/growers in acquiring the necessary technological capabilities for production, cost reduction, output quality improvement and sustainable environment responsiveness. This project was complemented by another project entitled, Biotechnology of Kappaphycus and Gracilaria II which applied the technique of protoplast fusion using cells from seaweed strains with desirable traits to produce a new strain of seedstock that has all the best qualities (Terminal Report, 2005). It aimed to improve the genetic make-up of economically important seaweeds in the Philippines. II. OBJECTIVES Currently, PCAARRD-DOST provided fund support and project supervision for the conduct of an impact assessment of the previously joint UNDP-GAINEX and PCAMRD-funded seedstock and biotechnology projects related to seaweed production. This is now called the Impact Assessment of Seedstock Improvement of Kappaphycus, Eucheuma, and Gracilaria, February 2013 to February 2014. The general objective of this study is to assess the impacts and benefits of these projects. It aims to determine, describe and analyze the impact pathway of the projects. The impact assessment will provide the national government and PCAARRD as a funding agency and decision maker, national research and development (R&D) / science and technology (S&T) system and other international funding agencies, research managers and policy makers with significant information and documented evidences of the impacts of its R&D programs/projects, in terms of productivity, welfare gains and economic benefits as well as the contribution of various entities involved in the R&D projects. Moreover, the impact assessment will provide more complete understanding of what has been achieved from the R&D investments to help the Council direct its courses of future work. III. METHODOLOGY Primary data were collected through key informant interviews (KIIs), farmers survey and farmers focus group discussions (FGDs). KIIs were carried out with personnel who were involved in the implementation of the UNDP-GAINEX Project, key staff from concerned government agencies such as BFAR and Calatagan LGU-MAO, nursery operators (2) and traders (4). Thirty-five (35) randomly-selected seaweed farmers from three (3) seaweed producing barangays in Calatagan, Batangas participated in the farmers survey. Farmers from Poblacion Dos were classified as adoptors, while farmers from Poblacion Uno and Balitoc were spill-overs. A focus group discussion consisting of six (6) seaweed farmers were also carried out in Balitoc. Another follow-up survey of nine (9) seaweed farmers among those earlier surveyed was carried out in August, 2013 to reassess farming practices before and after introduction of the technology. Hence, there was a total of 41 farmers: 35 under the survey and six under FGDs. Secondary data and industry statistics were gathered from the Bureau of Agricultural Statistics (BAS) and Bureau of Fisheries and Aquatic Resources (BFAR). Other researches and journals were also sourced from FAO, SEAFDEC, WORLDFISH, PCAARRD Aquaculture Unit and UP-MSI and other institutions actively engaged in education/training and R&D in seaweed production technologies.

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The analytical approach included the following: (1) identification and mapping of inputs to benefits; (2) examination of adoption characteristics; and (3) estimation of impact through Benefit Cost Analysis. Following the ACIAR guidelines, project inputs were mapped with the benefits using the results frame. The frame consists of sequential identification and assessment of inputs, outputs, outcomes, impacts and benefits and the issues to consider in each step in the process. The mapping was done in such a way that the results were clearly identified and causal links were made explicit, intended as well as unintended results were included, preconditions and/or additional investments required to realize results were identified, absolute results were measured and comparisons were made between these and the baseline. The impact assessment study on improved seaweed farming technologies used specific tools of analysis such as production function (e.g. relating technical efficiency to the R&D intervention) and farm business analysis (known also as cost and return analysis) at the micro/farm enterprise level. The method used at the meso/community level was highly descriptive whereas surplus estimation will be required at the sectoral/industry level. Economic surplus approach was used to examine the welfare impact of the project. The change in economic surplus was used as the measure of social benefits generated by the research intervention. The benefit-cost analysis was employed in quantifying inputs and impact valued in monetary term, analyzing the streams of cost and benefit and bringing them into their present values through discounting. Among others, the impact of the project can be represented in terms of changes in certain summary measures or indicators (e.g. BCR, NPV, IRR, etc.) that can be attributed to the project. IV. DISCUSSION OF RESULTS AND FINDINGS A. PROJECT INPUT 1. DOST-UNDP GAINEX Project The Seedstock Improvement of Kappaphycus, Eucheu