By MELODY M. AGUIBA
February 14, 2010, 1:05pm
An agreement to expand production of seaweeds and the establishment of marine culture (mariculture) parks is being entered by the Bureau of Fisheries and Aquatic Resources (BFAR) and Land Bank of the Philippines (LBP) to help raise fishery production which accounts for a sizable 25 percent of Philippines' total farm output.
A memorandum of agreement (MOA) will be signed by the two agencies as part of LBP's move to raise its fishery lending which as of 2009 had zero growth at P718.7 million, according to LBP First Vice President Liduvino S. Geron.
"We want to increase our exposure to fisheries. We will soon be signing a MOA with BFAR for the establishment of mariculture parks and for lending to those hard-to-reach areas.
In this program, we're not strictly following the regimen of (regular) accreditation. What is important is there should be a buyer for the agricultural production," said Geron.
LBP is deploying business development specialists to help cooperatives and other conduits to facilitate loan processing.
LBP Senior Vice President Wilfredo S. Maldia said that while LBP is committed to lending for countryside development, LBP cannot arbitrarily lend without any system which is why the bank has also opened a way for the market, the buyer of the agricultural produce, to become its conduit.
"Even if there's no cooperative in an area, we can use the market outet as our conduit. We don't want to lend without a sure market," he said.
On seaweed lending, Maldia said there may be complications as seaweed production from Tawi-Tawi is reportedly being shipped to Malaysia, although that must show how big the opportunity is for seaweed farming.. Without an identified legal entity as market, there may not be an agreement that can be concluded.
The establishment of mariculture parks is also the way to go for fisheries which is supposedly a major niche of the Philippines being an archipelagic country whose shoreline is considered second largest in the world.
BFAR Asst. Director Benjamin F. Tabios said it is unfortunate that while the fishery sector brings in the substantial 25 percent of total agricultural production, BFAR only receives five percent of the agriculture budget.
Seaweed production in the country dropped by a substantial 50 percent to 60,000-70,000 metric tons (MT) as of 2009 compared to around 120,000 MT five years ago, according to the Seaweed Industry Association of the Philippines (SIAP). But the carrageenan market, which is dependent on seaweed production, is growing at seven to eight percent yearly.
Potential areas for LBP credit are seaweed-producing provinces like Tawi-Tawi, which yielded 13,740 MT as of 2008; Jolo, 12,360 MT; South Cotabato and other Mindanao provinces, 10,990 MT; Palawan and Calamian islands, 8,200 MT; Cebu and other Visayas provinces, 8,900 MT; Sorsogon and other Bicol REgion provinces, 3,500 MT; and Mindoro and other Luzon provinces, 4,200 MT.
http://www.mb.com.ph/articles/243434/bfar-lbp-sign-pact-seaweed-production-
