An Analysis of the South Sulawesi Seaweed Industry
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COMMODITIES PILOT PROJECT REPORT An Analysis of the South Sulawesi Seaweed Industry
PAIR:
The Partnership for Australia-Indonesia Research
(PAIR), an initiative of The Australia-Indonesia Centre,
is supported by the Australian Government and run in
partnership with the Indonesian Ministry of Research
and Technology, the Indonesian Ministry of Transport,
the South Sulawesi Provincial Government and many
organisations and individuals from communities
and industry.
Authors: The Australia-Indonesia Centre:
Prof. Nunung Nuryartono, IPB Univesity The Australia-Indonesia Centre is a bilateral research
Dr Scott Waldron, The University of Queensland consortium supported by both governments, leading
Dr Kustiariyah Tarman, IPB University universities and industry. Established in 2014, the Centre
Dr Ulfah J. Siregar, IPB University works to advance the people-to-people and institutional
Dr Syamsul H. Pasaribu, IPB University links between the two nations in the fields of science,
Dr Alexandra Langford, The University of Queensland technology, education, innovation and culture. We do
Dr Muhammad Farid, Universitas Airlangga this through a research program that tackles shared
Dr Sulfahri, Universitas Hasanuddin challenges, and through our outreach activities that
promote greater understanding of contemporary Indonesia
and strengthen bilateral research linkages.
Report date: April 2021
To discover more about the Centre and its activities,
Disclaimer: This report is the result of research funded by please visit: ausindcentre.org
the Australian Government through the Australia-Indonesia
Centre under the PAIR program. The report was edited
To cite this report:
by the Australia-Indonesia Centre (AIC). The report is not
intended to provide exhaustive coverage of the topic. The
This report is the result of research funded by the
information is made available on the understanding that
Australian Government through the Australia-Indonesia
the AIC is not providing professional advice. While care
Centre under the PAIR program. Visit ausindcentre.org
has been taken to ensure the information in this report is
accurate, we do not accept any liability for any loss arising Nuryartono N., Waldron S., Tarman K., Siregar U., Pasaribu
from reliance on the information, or from any error or S., Langford A., Farid M., and Sulfahri, (2021), An Analysis
omission, in the report. We do not endorse any company of the South Sulawesi Seaweed Industry’, The Australia-
or activity referred to in the report, and do not accept Indonesia Centre.
responsibility for any losses suffered in connection with
any company or its activities.T H E PA R T N E R S H I P F O R A U S T R A L I A - I N D O N E S I A R E S E A R C H ( PA I R )
I am delighted to share our
preliminary findings from the
Partnership for Australia-Indonesia
Research (PAIR).
PAIR is a development initiative
that brings together researchers,
policymakers, business and
community groups to find solutions
to real problems. We do this in
an integrated, collaborative and
evidence-based way.
i 3
We anchor our research on a segment
of Indonesia’s ambitious Trans-
Sulawesi railway network – the new
145-kilometre railway line connecting
two major port cities: Makassar and
Parepare.
Analysis and results�����������������������������������P7
Executive summary����������������������������������������i 3.1. Seaweed industry trends�������������P7 The railway line will provide much-
needed transport for people and
3.2. A value chain analysis of the . goods. It also stands to stimulate the
1
seaweed industry�������������������������������P9 local economy, boost commodities
and transform communities. Yet,
3.3. Seaweed livelihoods���������������������P12
experience shows that investments in
3.4. Researching seaweed during connectivity do not necessarily benefit
COVID-19������������������������������������������������ P14 local communities if they are not
‘people-centric’ - that is sustainable,
4
affordable and accessible. Businesses
Introduction���������������������������������������������������������P5 are unable to realise the new railway
line’s potential without good planning
and design of infrastructure. Poor
2
intermodal connectivity, scheduling
Conclusions and and intervention are unlikely to
recommendations����������������������������������� P18 encourage use. Moreover, people are
likely to remain disadvantaged if they
4.1. Conclusion�������������������������������������������� P18 lack the knowledge needed to take
4.2. Recommendations������������������������ P19 advantage of opportunities, and if
they lack access to resources, or the
Methodology�����������������������������������������������������P6 4.3. References������������������������������������������ P20 skills required to thrive and enterprise.
Our research explores four areas:
commodities; transport, logistics and
supply chain; young people, health
and wellbeing; and young people
and development. We investigate
what the railway lines mean for local
communities, how they respond
to change, and how they can take
advantage of emerging opportunities.
Warm regards,
Dr Eugene Sebastian
PAIR Program Director
The Australia-Indonesia CentreCOMMODITIES PILOT PROJECT REPORT
EXECUTIVE SUMMARY
The Indonesian seaweed industry
has expanded rapidly over the last
20 years and now supports the
livelihoods of more than 35,000
coastal households in South
Sulawesi (BPS 2020).
The Government of Indonesia has prioritised the
industry’s development, recognising the vital role it
plays in reducing poverty in coastal communities.
But it is not all good news. The industry suffers from poor
coordination between farmers, traders and processors, limiting
farmer incomes and creating quality issues for processors. And in
common with most other industries, it has been affected by the
COVID-19 pandemic.
This pilot project takes a four-stage approach to gain a better
understanding of the industry.
Firstly, it reviews the global trends in the Indonesian seaweed
industry. It outlines how growing global demand for hydrocolloids
(often used as gelling agents in food processing) has driven the
expansion of cultivation of a narrow range of seaweed species across
the Indonesian archipelago, enabled by the unique characteristics of
coastal farming households.
Secondly, it outlines the value chain of the industry, exploring how
the phyconomic characteristics of seaweed production shape its
cultivation and the livelihoods it supports, and how these in turn
interact with domestic marketing systems, the processing sector,
and global value chains.
Thirdly, it takes a closer look at seaweed livelihoods, using a
livelihoods analysis of the industry to identify the key needs of
farmers.
Finally, it considers techniques for researching the industry during
COVID-19 and shows how satellite data can provide insights into the
industry and how it has changed during the global pandemic.
These four sections provide insights into the industry which support
the development and implementation of the Commodities Research
Group’s proposed Strategic Integrated Project (SIP) for 2021-2022.
iCOMMODITIES PILOT PROJECT REPORT
1 .0 . I N T R O D U C T I O N industry (Valderrama et al. 2013; which will support the development
Neish 2013; Salayo et al. 2012; and implementation of the SIP.
Since the year 2000, seaweed Suyo et al. 2020) and varying
benefits to different community The results of this pilot project
farming has expanded rapidly
and household members (eg are organised in four parts:
across coastal Indonesia. Although
many species of seaweed are De la Torre-Castro et al. 2017;
• Section 1.4.1. reviews the
commercially cultivated, just Henríquez-Antipa & Cárcamo 2019;
global trends in the Indonesian
seven represent over 95 per cent Larson et al. 2020).
seaweed industry and outlines
of the value of global aquatic how growing global demand
Recognising the increasingly
plants (FAO 2020). Of these, four for hydrocolloids has driven
important role of seaweed in
are high-value food products the expansion of seaweed
coastal livelihoods, the Indonesian
grown primarily in China, Korea cultivation across the Indonesian
government has prioritised industry
and Japan. The remaining three – archipelago. This is important
development, most recently in
species of Gracilaria, Eucheuma for understanding the current
Presidential Decree 33-2019
and Kappaphycus – are used to patterns of production and
(Peraturan Presiden Republik
produce carrageenan and agar, processing, as well as for
Indonesia Nomor 33 Tahun
which are hydrocolloids used identifying future opportunities
2019 tentang Peta Panduan
as gelling agents in a range of and risks in the industry.
Pengembangan Industri Rumput
applications. Indonesia produces • Section 1.4.2. undertakes an
Laut Nasional Tahun 2018-2021).
66 per cent of the global supply initial characterisation of the
This provides a road map for the
of these hydrocolloid seaweeds seaweed value chain, looking
development of the seaweed
(Figure 2). at phyconomy, cultivation and
industry from 2018 to 2021 and
outlines opportunities for increased livelihoods, domestic marketing,
Hydrocolloid seaweeds are
seaweed production and increased processing, global value chains,
much lower in value than food
domestic value-adding processing. and policies and institutions.
seaweeds, so Indonesian seaweed
Efforts to improve value adding • Section 1.4.3. is a livelihoods
production is undertaken mainly by
have targeted food products, analysis of seaweed farming and
low-income smallholder farmers,
animal feed products, fertilisers, introduces an initial household
primarily in Eastern Indonesia. They
cosmetics and bioethanol (eg Aji budget for use in characterising
can work around seasonal and tidal
et al. 2019; Mantri et al. 2017; seaweed farming households.
changes and have limited other
Munandar et al. 2019; Nurjana et • Section 1.4.4. introduces initial
income generation opportunities
al 2016; Rasyid 2017; Sulfahri et work using satellite data for
(Langford et al. 2020a; 2020b;
al. 2020a; 2020b; Tarman et al. researching the industry during
2021).
2020; Yusuf et al. 2020). COVID-19.
Seaweed farming is an important
income source for more than Attempts to improve production
267,000 rural households in focus on growth rates and quality
Indonesia (Presidential Decree improvements but the industry
33-2019, p.17), who earn profits faces multiple issues, such as
of around US$2,000 annually high transportation and logistics
(Presidential Decree 33-2019, costs and a lack of infrastructure
p.16). Farmers frequently perceive development (Presidential Decree
seaweed farming as more lucrative 33-2019 p. 30).
than more established industries
The needs of farmers, traders and
such as copra, cocoa and other
processors are poorly understood
marine industries (Arsyad et al.
– limiting the design of effective
2014; Aslan et al. 2018; Mariño et
policy. More informed data
al. 2019; Steenbergen et al. 2017).
is needed.
Farmers also report a range of
South Sulawesi is Indonesia’s
other benefits from seaweed
largest seaweed-producing
farming, such as an increased
province, producing over a third of
ability to manage their income
the nation’s seaweed, and more
and save for large purchases
than 20 per cent of the global
(Mariño et al. 2019; Steenbergen
supply of carrageenan seaweeds.
et al. 2017). These sit alongside a
This pilot project seeks to provide
variety of other environmental and
insights into the seaweed industry
social changes associated with the
T H E A U S T R A L I A - I N D O N E S I A C E N T R E | PA R T N E R S H I P F O R A U S T R A L I A - I N D O N E S I A R E S E A R C H 5COMMODITIES PILOT PROJECT REPORT
2 .0 . M E T H O D O L O G Y
Due to the restrictions on travel and fieldwork created by
the COVID-19 pandemic, this research relies substantially
on secondary data and review of literature.
Secondary data was sought from both publicly available
and non-publicly available sources (such as government
departments).
This included customs data Basemaps are mosaics of images taken across the month and pieced
disaggregated at a level beyond that together to account for cloud cover. Available monthly from PlanetLabs,
which is publicly available, quarterly they make immediate analysis of changes in the industry possible. We used
seaweed production estimates them to identify plots of farmed seaweed in Pangkep Regency. Shapefiles
from the South Sulawesi Fisheries were created in ArcGIS Pro using rectangles to represent each seaweed
department, global and national plot, and maps were generated to show the area under seaweed production
production estimates, rainfall in each month. The area of these rectangles was aggregated to calculate
records and price information. We the total area under seaweed production in each month. This satellite data
also used remote interviews with was triangulated with rainfall data (obtained from the Badan Meteorologi,
farmers and industry stakeholders Klimatologi, dan Geofisika (BMKG), online data service records from the
to interpret and supplement this Stasium Klimatologi Maros), price data (obtained from JaSuDa, an industry
data. information portal managed by Coordinating Ministry for Economic Affairs/
Kemenko Ekonomi), and informal interview data.
Remote sensing data has
been used to monitor seaweed As such, we have proposed developing this methodology in the SIP. We
production patterns. Satellite data have also shared initial results from this study with the South Sulawesi
provides an extremely useful, low- DKP, who have expressed interest in accessing an expanded version of this
cost tool for monitoring the industry. dataset, and in working with us to interpret this data and refine systems for
It is typically low resolution and not collecting production data.
suitable for identifying seaweed
culture sites (Hossain et al. 2016).
However, they are clearly visible
on high-resolution (~3m) satellite
imagery (Figure 1) such as that
available on Google Earth. High-
resolution, high-frequency satellite
data has only recently become
available but provides a potentially
very useful, up-to-date insight into
the seaweed industry.
Figure 1 Seaweed plots visible on PlanetLabs basemap for May
2020. 119.5683687°E 4.5996097°S
T H E A U S T R A L I A - I N D O N E S I A C E N T R E | PA R T N E R S H I P F O R A U S T R A L I A - I N D O N E S I A R E S E A R C H 6COMMODITIES PILOT PROJECT REPORT
20000000 China
3 .0 . A N A L Y S I S A N D R E S U L T S 18000000 Indonesia
16000000 Republic of Korea
Philippines
14000000
This pilot project involved four key study Korea, Dem. People’s Rep
Production (tonnes)
12000000
areas, the results of which are presented Japan
10000000
below. 8000000
Rest of the world
6000000
4000000
2000000
3 .1 . S E A W E E D I N D U S T R Y 0
TRENDS 1950 1960 1970 1980 1990 2000 2010 2020
Year
Seaweed is rich in nutrients1 and has Figure 2 Global aquatic plant production by country (Source: FAO stats)
been used as a food source for centuries.
Increasingly, seaweeds are used to Type Species Main Products USD/kg Main producers
produce hydrocolloids – gelling agents Food – kombu, China, South Korea,
Saccharina japonica 4
$373
widely used in food manufacturing as well alginate North Korea
Brown
as cosmetics and the pharmaceutical Undaria pinnatifida5 Food – wakame $667 China, South Korea, Japan
industry. Sargassum fusiforme 6 Food – hiziki $759 China, South Korea
Porphyra spp.7 Food – nori $905 China, Japan, South Korea
Global seaweed production Red
Eucheuma spp.8 Carrageenan $108 Indonesia, Philippines
Kappaphycus alvarezii9 Carrageenan $110 Indonesia, Philippines
In 2017, just six countries produced 96 per Gracilaria spp.10 Agar $420 Indonesia, China
cent of the world’s aquatic plants (mostly
seaweed). China and Indonesia are the Table 1 Intensively cultivated commercial seaweed
largest producers, producing 54 per cent
and 30 per cent of the world’s supply Edible Seaweeds Hydrocolloid Seaweeds
respectively (Figure 2).
Global seaweed production by value and weight
Seaweeds are classified into three 12000000
groups – red, brown and green. There are 10000000
221 species of commercially produced 8000000
seaweed, but just seven of these (Table 1)
6000000
comprise 95 per cent of the global value of
aquatic plants (Figure 3). Of these species, 4000000
four are primarily consumed as food 2000000
products, while three are used primarily to
0
produce the hydrocolloids carrageenan and Saccharina
Japonica
Undaria
pinnatifida
Sargassum
fusiforme
Porphyra
spp.
Eucheuma Kappaphycus Gracilaria
spp. alvarezii spp.
All other
agar. Indonesia, China and the Philippines Tonnes USD
produce most of the world’s hydrocolloid
seaweeds, while China, North Korea, South Figure 3 Global aquatic plant production by species11 (Source: FAO Stats)
Korea and Japan produce the world’s entire
supply of edible seaweeds. 1. Including macronutrients such as sodium, calcium, magnesium, potassium, chlorine,
sulphur and phosphorus, micronutrients such as iodine, iron, zinc, copper, selenium,
molybdenum, fluoride, manganese, boron, nickel and cobalt, and vitamins such as B12, A,
Food seaweeds and K (Ferdouse et al. 2018: 1). 2. 97 per cent of the world supply of Kappaphycus alvarezzi,
Gracilaria spp and Eucheuma spp. 3. Based on FAO reported 2017 value and weight for each
The food species Saccharina japonica, species 4. Saccharina Japonica (Japanese kelp). Formerly known as Laminaria japonica 5.
Undaria pinnatifida, Sargassum fusiforme Undaria pinnatifida (wakame) 6. Sargassum fusiforme (Fusiform sargassum) 7. Porphyra
and Porphyra spp are produced exclusively spp includes Porphyra tenera (Laver (Nori)), Porphyra spp (Nori Nei) Does not include
Porphyra columbina as there is no production of this 8. Eucheuma spp – includes Eucheuma
by China, Japan, North Korea and South spp (Eucheuma spp Nnei) and Eucheuma denticulatum (spiny Eucheuma) formerly known
Korea. Some 62 per cent of this is as Eucheuma spinosum 9. Kappaphycus alvarezii (Elkhorn sea moss) formerly known as
Chinese-produced Saccharina Japonica. Eucheuma cottoni 10. Gracilaria spp includes Gracilaria verrucosa (warty Gracilaria), Gracilaria
gracilis (slender wart weed), Gracilaria spp (Gracilaria seaweeds) 11. Eucheuma spp and
Saccharina Japonica is also used to Kappaphycus alvarezii are included in the category of carrageenan seaweeds. Kappaphycus
produce the hydrocolloid alginate, but alvarezii was previously known as Eucheuma cottoni and appears to be included under
alginate production competes with the Eucheuma spp for some country’s datasets, including Indonesia.
higher-value use of Saccharina Japonica
for direct consumption and so is minimally
viable.
T H E A U S T R A L I A - I N D O N E S I A C E N T R E | PA R T N E R S H I P F O R A U S T R A L I A - I N D O N E S I A R E S E A R C H 7COMMODITIES PILOT PROJECT REPORT
Carrageenan seaweeds 12000000 Indonesia
Philippines
The carrageenan seaweeds Eucheuma 10000000
Rest of World
denticulatum (formerly known as
Eucheuma spinosum) and Kappaphycus 8000000
Production (tonnes)
alvarezii (formerly known as Eucheuma
cottoni) are produced primarily in 6000000
Indonesia and the Philippines, which
contribute 82 per cent and 14 per cent 4000000
of global supply respectively (Figure
2000000
4). These carrageenan seaweeds are
significantly lower value than other species 0
(Table 1, Figure 3).
1950 1960 1970 1980 1990 2000 2010 2020
Demand for carrageenan has risen Year
with demand for processed foods. In Figure 4 Global carrageenan seaweed production (Source: FAO Stats)
the late 1960s, it was discovered that
Eucheuma seaweeds in the Philippines 3500000
could produce high-quality carrageenan.
Indonesia
The first Eucheuma seaweed farm there 3000000
China
was established in 1969, and thrived due All other
2500000
to low labour costs. Efforts to establish
Production (tonnes)
plantation-style farms in the Philippines 2000000
failed: smallholders fared better due to
the low-cost barriers to entry and the 1500000
need for a highly flexible workforce that
1000000
could work according to moon and tide
times. Carrageenan seaweeds were soon 500000
introduced to Indonesia, which is now the
world’s largest producer. (Figure 4). 0
1950 1960 1970 1980 1990 2000 2010 2020
Agar seaweeds Year
Figure 5 Global Gracilaria spp seaweed production (Source: FAO stats)
Gracilaria spp are widely used to produce
agar, another important colloid in food
manufacturing. Together, China and
Indonesia produce virtually all of the
world’s Gracilaria (72 per cent and 28
per cent of global supply respectively)
(Figure 5). The Gracilaria spp group, native Kappaphycus alvarezii Eucheuma deniculatum Gracilaria verrucose
(formerly Euchema cottonii) (formerly Euchema spinosum)
to China, includes over 100 species.
Commercial cultivation of Gracilaria began Figure 6 Widely cultivated Indonesian species
in China in the late 1950s, and in the
1980s cultivation on suspended lines was
developed. Production expanded rapidly 12000000
Carrageenan seaweeds
in the early 2000s, mostly with Gracilaria Gracilaria seaweeds
10000000 Other red seaweeds
verrucose. Gracilaria production is now
highly concentrated in Indonesia and
Production weight (tonnes)
China, and demand continues to increase 8000000
with demand for processed foods.
6000000
Indonesian seaweed production
4000000
Indonesia produces primarily carrageenan
seaweeds (87 per cent of national
2000000
production), but also the agar-producing
variety Gracilaria verrucose (12 per cent 0
of national production) and small amounts 1950 1960 1970 1980 1990 2000 2010 2020
of other red seaweed species (Figures 6 Year
& 7). Figure 7 Indonesian seaweed production by species (Source: FAO stats)
T H E A U S T R A L I A - I N D O N E S I A C E N T R E | PA R T N E R S H I P F O R A U S T R A L I A - I N D O N E S I A R E S E A R C H 8COMMODITIES PILOT PROJECT REPORT
Production is concentrated in Eastern
Indonesia, particularly in Sulawesi, NTB
and NTT (Figure 8). South Sulawesi alone
produces 3.66 million tonnes of seaweed
a year – over a third of Indonesia’s total
seaweed supply and 11 per cent of global
supply. South Sulawesi has been named
a priority region for seaweed farming
expansion, with up to 250,000 ha of
farms possible (Presidential Decree 33-
2019). Seaweed production in South
Sulawesi is concentrated along the South
Figure 8 2017 Seaweed Production Distribution in Indonesia by weight
Eastern coastlines, although Pangkep
district has more than doubled production Source – 2017 production data
in the last five years (Figure 9).
These factors show how global demand for
hydrocolloids has fuelled the development
of what has become a highly significant
industry.
3 .2 . A V A L U E C H A I N
A N A LY S I S O F T H E S E A W E E D
INDUSTRY
Value chain analyses can generate
a range of insights into the seaweed
industry to support development of
stronger policy (see Neish 2013b; 2015;
Mulyati 2015; Mulyati & Geldermann
2017; Teniwut et al. 2017; Teniwut 2019;
Suadi & Kusano 2019; Ramirez, Narvaz Figure 9 Seaweed production in South Sulawesi
& Santos-Ramirez 2010; Puspita & Azis
2019; Cuaton 2019; Nor et al. 2019). Source – 2017 production data
In this section we examine the value
chain in six parts: phyconomy, cultivation Significant advances have been made in farming techniques (Hurtado et al. 2013;
and livelihoods; domestic marketing; Hurtado, Neish & Critchley 2015). Numerous factors affect seaweed growth rate,
processing; international marketing and including water temperature, irradiance, salinity, nutrients, pH, seed size and genetic
policies and institutions (see Figure 10). material, sedimentation levels, water oxygen levels, fish grazing, epiphyte growth and
disease infection (Ateweberhan, Rougier & Rakotomahazo 2015; Azanza & Ask 2017).
Salinity appears particularly significant. The optimal salinity for growth of Kappaphycus
3 .2 .1 . P H Y C O N O M Y spp. and Kappaphycus alvarezii is 30-33 and 25-35 psu respectively (Azanza &
Ask 2017). Seawater has a salinity of 35 psu, so reduced salinity due to rainfall in
Phyconomy is the commercial farming of certain seasons can significantly increase seaweed production. The growth rate and
marine algae (Hurtado, Neish & Critchley carrageenan production of seaweeds are related, so seasonal differences in both are
2019). Three main species of seaweed significant (Wakibia et al. 2006; de Góes & Reis 2012; Hayashi et al. 2007; 2011;
are grown in Indonesia. Two are used 2017).
to produce carrageenan (Eucheuma
deniculatum, formerly known as Cultivation & Domestic International
Phyconomy Processing
Eucheuma spinosum, and Kappaphycus Livelihoods marketing marketing
alvarezii, formerly known as Eucheuma
cottoni), while one is used to produce agar Policies and Institutions
(Gracilaria spp).
Figure 10 Seaweed industry value chain
T H E A U S T R A L I A - I N D O N E S I A C E N T R E | PA R T N E R S H I P F O R A U S T R A L I A - I N D O N E S I A R E S E A R C H 9South Sulawesi alone
produces 3.66 million
tonnes of seaweed
a year – over a third
of Indonesia’s total
seaweed supply and 11
per cent of global supply.
It’s been named a priority
region for seaweed
farming expansion, with
up to 250,000 ha of
farms possible.COMMODITIES PILOT PROJECT REPORT
Nitrogen fertiliser run off from reproduction (Msuya & Porter 2014; back times are still an important
rainfall on land is another factor. Largo et al. 2017). consideration – one study in the
Nutrient levels affect seaweed Philippines suggested six to nine
growth rate and it appears that This all indicates a need for further months was typical (Samonte
nitrogen insufficiency may limit applied studies of seaweed growth 2017).
growth rates (Li, Li & Wu 1990) rates, carrageenan yields and
or lead to substantial increases environmental impacts. These The economic benefits from
(Nursidi et al. 2017; Forero 2017). studies should be grounded in seaweed farming may be prioritised
particular geographical contexts, over environmental concerns
Acidic seawater conditions (Zitta et such as South Sulawesi, and (Akrim, Dirawan & Rauf 2019), and
al. 2012) and planting distances mapped against farmer responses rapid livelihood transitions can be
(Febriyanti et al. 2019) also affect to changing environments to unsustainable (eg Steenbergen,
growth rates. Understanding more understand the interplay of Marlessy & Holle 2017). In addition,
about the factors affecting seaweed biological, social and economic transition to seaweed farming
growth rates and carrageenan processes. can generate social changes
production could increase (Rahim 2019; Mariño et al. 2019;
productivity, and may also help with Mirera et al. 2020). In seaweed
planning seaweed farming sites farming villages, internal support
(Teniwut, Marimin & Djatna 2018; 3. 2. 2. C U L T I V A T I O N A N D mechanisms (such as family) are
Utama & Handayani 2018). LIVELIHOODS extremely important (Suyo et al.
2020).
Seaweed is clonally propagated
Farmers typically purchase seeds
using cuttings and due to the short Women dominate seaweed farming
from other farmers or from
season and reuse of seedlings, in some areas (Mirera et al. 2020);
government, and then tie the
genetic material quality has declined it can be an important income
seaweed propagules onto ropes
rapidly, leading to lower yields and source for rural women (Periyasamy,
which are hung in the ocean for
quality and more disease (Hurtado, Anantharaman & Balasubramanian
around 40 days. They then harvest
Magdugo & Critchley 2020). Some 2014; Cuaton 2019). It appears
and dry the seaweed before selling
projects have sought to improve common for women to be involved
to traders.
seaweed cultivation through in all stages of preparation, on-farm,
distributing improved genetic In South Sulawesi, seaweed farmers processing and marketing activities
material (eg. Galon 2019; Halling et typically also produce other products (Msuya & Hurtado 2017; Ramirez,
al. 2013). Maintaining and improving (Aslan et al. 2015). Coastal people Narvaez & Santos-Ramirez 2020).
the quality of genetic material is often report earning higher incomes However, women may have reduced
a major challenge for the industry from seaweed farming than other access to external support (Suyo et
(Hurtado, Magdugo & Critchley activities (Aslan et al. 2018; al. 2020).
2020). Poeloengasih et al. 2014; Sitompul
The comparatively high but variable
& Matasik 2019; Sunadji & Lusiana
The environmental sustainability income earned from seaweed
2019), although the profitability of
of the industry affects productivity farming, reliance on capital inputs
different systems varies significantly
locally, as well as having broader and access to sea areas, different
(FAO 2013; Valderrama et al. 2015;
impacts. Seaweed farming can labour requirements and different
Dos Santos et al. 2018).
alter fish assemblages and income return patterns all shape the
ecological processes in surrounding Several studies discuss the benefits daily activities and social relations of
areas (Chacin et al. 2020) and of income diversification through those in the industry. For example,
negatively affect biodiversity of seaweed farming (eg FAO 2013; farmers often use the frequent small
native species (Tano et al. 2015). Salayo et al. 2012; Yarish et al. amounts they earn from fishing to
The environmental impacts 2014; Shanmugam et al. 2017), meet daily needs, and the larger,
vary significantly with location but many farmers continue to live infrequent payments from seaweed
(Castelar et al. 2015). In addition, under the poverty line (Aslan et al. to fund items such as children’s
pests and disease are a major 2018). Often low uptake of new school fees (Aslan et al. 2018).
challenge (Pang et al. 2015). And technologies limits productivity Close attention to how engaging
while climate change apparently and income generation (eg Yusuf, in this cash crop shapes social
increases the area suitable for Arsyad & Nuddin 2018). Farmers relations is needed.
carrageenan seaweed farming, can lack access to information
it also creates higher surface about technologies and marketing
seawater temperatures and may opportunities (Nuryadi et al. 2019).
have negative effects on seaweed Capital costs are low, but pay
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3 .2 .3 . D O M E S T I C Makassar handles seaweed from Indonesian red seaweeds show
MARKETING South Sulawesi and around eastern promise for developing cosmetic
Indonesia (Sutinah et al. 2018). or pharmaceutical products
Traders are important in the There is a need to map the work (Khatulistiani et al. 2020; Puspita
seaweed industry (Mulyati 2015; of local traders and profit margins et al. 2020). Research into food
Sutinah et al. 2018) but their across the value chain, and target products is popular, but there
profitability varies (Sutinah et seaweed drying issues. are concerns about heavy metal
al. 2018). Some are local-level contamination (Afiah, Supartono &
traders who sell to larger traders Suwondo 2019).
or processors; others operate
3. 2. 4. P R O C E S S I N G Realistically, the industry is
regionally to repack seaweed and
likely to remain centered around
resell it to exporters or processors.
carrageenan production for some
Often multiple marketing channels Indonesia’s seaweed processing
time. European markets increasingly
exist with different proportions of industry is primarily focused on
demand high-quality carrageenan
profits going to farmers, small-scale creating carrageenan products,
blends with particular attributes
traders and regional traders (Tumiwa used in food processing (see
(Centre for the Promotion of Imports
et al. 2017; Sutinah et al. 2018). Pereira 2016; Loureiro et al. 2017).
from Developing Countries 2019).
At the village level, traders are Global carrageenan prices typically
Multiple factors, determined earlier
often the only source of marketing follow those in Indonesia since
in the supply chain, affect quality.
information for farmers (Nor 2016) Indonesia dominates world supply
As such, better integration between
and can set the local price because (Campbell & Hotchkiss 2017),
seaweed farmers and processors
they provide other services such as while demand for processed foods
could significantly improve the
informal credit and transportation and the operations of the major
quality of the inputs into the
(Nor 2016). Farmer cooperatives Chinese carrageenan processor BLG
processing industry, to mutual
may be beneficial (Nor et al. 2016; affect prices significantly. However,
benefit.
2017), and seaweed information relatively little of Indonesia’s RDS
centres and extension programs is processed into value-added Waste streams from carrageenan
may provide crucial support to products such as carrageenan, production represent a major
farmers (Teniwut 2019). and the domestic processing environmental hazard (Mulyati
industry has generally struggled to 2015). This is a priority area for
The poor quality of raw dried compete with Chinese processors, future research.
seaweed (RDS) is a major challenge partly because processing relies
for traders. Drying is a particular on chemical imports from China The Multi-Stream Zero Effluent
issue: it affects quality for traders (Centre for the Promotion of Imports (MUZE) process is promising (Neish
(Katili, Dali & Yusuf 2019; Vairappan from Developing Countries, 2019). 2013 a; 2013b; 2015; Neish &
et al. 2014), while farmers often The 2019 Presidential Decree Suryanarayan 2017) – it aims to
struggle to dry their seaweed in the emphasised the importance of increase the range of seaweed
wet season. Seaweed is dried by developing new value-added products and improving efficiency
either hanging or lying on tarpaulins products from seaweed such by skipping drying and using raw
or on the ground for up to a week as food, animal feed, fertilisers, seaweed juice as an input. However,
to reduce the moisture content cosmetics and bioethanol. Many the need for quick transport of
to an optimal 35 per cent. The research projects are now targeting the perishable juice would require
drying method affects the moisture these goals (eg Aji et al. 2019; reorganisation of supply chains.
content, as well as the presence Mantri et al. 2017; Munandar et al. That may not be feasible in some
of contaminants such as salt, dirt 2019; Nurjana et al. 2016; Rasyid locations.
and sand. RDS with high moisture, 2017; Sulfahri et al. 2020a; 2020b;
sand and salt content is cheaper for Tarman et al, 2020; Yusuf et al.
traders, since the RDS may shrink 2020).
(as it dries further in transit) or be 3.2.5. I N T E R N A T I O N A L
cleaned by purchasers. The drying Attempts are being made to expand TRADE
of seaweed is therefore key to the range of products from seaweed
improving the value chain. The use (Álvarez et al. 2019) and to reduce We used Revealed Comparative
of solar ‘greenhouse’ drying is an waste (Ortiz-Tena, Schieder & Advantage (RCA) and input-output
important development (Hurtado et Sieber 2017). Efforts to develop analysis to analyse the importance
al. 2013; Pangan, Ampo & Barredo macroalgae-based biofuels have of Indonesian seaweed in the global
2020) although it is yet to be widely been promising (Meinita et al 2015; market.
adopted and is subject to weather Gao 2020, and see PAIR outputs
fluctuations. Sulfahri et al. 2020a; 2020b).
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Seaweed production in Indonesia demands on capital, technology considers the interaction between
increased from 6.5 million tons in and management capacities. One seaweed farmers capital assets,
2012 to 10.5 million tons in 2017, approach to this is through foreign vulnerability context, policies and
and accounted for on average investment in Indonesia, notably the institutions, livelihood strategies and
69 per cent of total aquaculture development of a major processing livelihood outcomes (Figure 3.3.1).
in Indonesia from 2012-2017 facility by the Chinese carrageenan This framework will be used to
(KKP Statistics 2019). More than producer BLG. Indonesian conceptualise and conduct research
139,500 households were involved policymakers and industry must in the SIP.
in seaweed aquaculture in Indonesia develop a feasible strategy on the
in 2016 and Indonesian seaweed most beneficial place for Indonesia Due to COVID-19, we largely
exports increased from US$134 and South Sulawesi in the global focused on desktop analysis, and
million in 2012 to US$219 million in seaweed value chain, which can be the development of a household
2019 (UN Comtrade 2020). Using accompanied by appropriate policy seaweed budget described here.
average RCA scores to examine and technological measures. The model is primarily concerned
export competitiveness from with the economics of seaweed
2012 to 2019, it was found that cultivation, including cash income
Indonesia was ranked second after and (gendered) labour use,
the Republic of Korea as seaweed 3. 2. 6. P O L I C I E S A N D which are central to household
exporters to the global market for INSTITUTIONS livelihoods, but also incorporates
“seaweeds and other algae; fit for most dimensions identified by Serrat
human consumption” (HS code: (2017) above.
International trade policy has
121221) and second after Chile an important impact on the The bio-economic model of a
for “seaweeds and other algae; competitiveness of seaweed value seaweed household is designed
not fit for human consumption” chains (Tombolotutu et al. 2019) to simulate household seaweed
(HS code: 121229). Our input- and Value Added Tax exemptions production systems, so that they
output analysis undertaken using are designed to support the industry can be understood, quantified and
the IO database in 2010 found (Anugrahayu, Darwanto, & Jamhari improved. Improvements can include
that 61 per cent of Indonesian 2017). More strategic distribution of those in productivity, profitability
seaweed production went into input/ collection and processing activities and – importantly – labour
intermediate demand for other could reduce risks in supply allocation of all family members
sectors of production, while only chains (Mulyati 2015; Mulyati & with different roles. The findings can
39 per cent went to final demand, Geldermann 2017). Studies of the be used directly by households or
such as household consumption and organisation of seaweed farming incorporated into provincial and local
exports. Furthermore, by comparing support coastal zone management policy and extension systems. The
to other aquatic products such as planning (Rameshkumar & Rajaram structure of the model is presented
fish, shrimp, other crustaceans 2018), while developing appropriate below.
and other aquatic biota, seaweed biosecurity legislation is a challenge
had the highest performance in (Campbell et al. 2019; Kambey et The model, built in Excel, is based
total forward linkages at 1.775, al. 2020 Mateo 2020). The impact on a representative household
compared to fish for example at of Indonesia’s public institutions in Pangkep Sub-district. Model
1.630, reflecting the substantial on the seaweed industry vary, and design and parameters were
value adding that occurs. For output research to support close integration obtained from studies on household
and income, seaweed produced between policymakers, industry seaweed cultivation (see above) and
multipliers at 1.167 and 0.123 stakeholders and farmers could cross-checked with local experts.
respectively in 2010. Based on improve outcomes. The model extends on previous
our initial results, we conclude that approaches in several ways. First, it
the seaweed sector is becoming These challenges can be has a strong seasonality dimension,
more important to the Indonesian approached through strategic, based on seaweed production
economy. targeted interdisciplinary research, cycles (45-90 days). This allows
as outlined in Section 4.2. examination of model results
Indonesia is seeking ways to move
(productivity, labour use, prices and
global value chains up toward the
profitability) at different times of the
“driving points” of the chains where
year, which can guide household
more value can be accrued. As 3. 3. S E A W E E D decisions and extension. Second,
discussed above (1.4.2.4), this is LIVELIHOODS
the model uses the performance
especially through further processing
indicator of “returns to labour”
to semi-refined seaweeds and final A sustainable livelihoods approach (based on income and labour
products within Indonesia, including to researching the seaweed industry use recorded in labour diaries).
South Sulawesi. This places high
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Households can then make decisions Capital assets
about how best to use their time for
seaweed cultivation (by season) and
compare with other activities.
Human
Simulations run by the model will provide
recommendations for households to
Policies and institutions Livelihood outcomes
adjust production by season, the length Social Natural
of the production cycle, use their own • Structures • Sustainable use of
seedlings or buy in, use fertiliser, replace • Government natural resources
or prune seaweed, conduct different • Private sector • Income
post-harvest management processes, or • Processes • Well-being
change the time of selling to maximise Physical Financial • Laws • Vulnerability
prices. • Policies • Food security
• Culture
The budgets will be populated in the SIP • Institutions
through surveys, online data collection Vulnerability context
methods (for example labour diaries,
• Shocks
price information) and through more
• Seasonalities Livelihood strategies
qualitative means (household videos and
• Critical trends
chat groups). This process aims to develop
and share the economic and production
management skills of the households
involved in the research.
Figure 3.3.1. The Sustainable Livelihoods Approach. Reproduced from Serrat (2017)
3 .3 .1 . R E S E A R C H I N G
SEAWEED DURING COVID-19 Household seaweed production system
By production cycles
COVID-19 has created new and significant Farm equipment
challenges for seaweed farming
communities, and limited the ability of • Upfront investment
researchers to enter these communities • Depreciation costs
and explore these challenges. To counter Revenues
this, we used remote sensing data to • Seaweed sales
Variable costs incl.
monitor seaweed production (see Section • Cuttings
2.0). The following sections describe the • Cuttings
results of the analysis and consider the • Hired labour
opportunities for expanding the use of this
data.
= Gross profit
3 .3 .2 . S P A T I A L L Y A N D
– Finance cost (loans)
T E M P O R A L LY D E T A I L E D
PRODUCTION ESTIMATES = Net profit
/ Labour days by household
Figure 1.4.4.1a shows the results of
And cash-flow statement
the mapping exercise for 2018. 2018
was selected as a typical year, as For seaweed
2019’s atypical rainfall resulted in lower
production, and the pandemic affected
production dynamics in 2020. The image Compared to other activities
shows the very extreme seasonality of
• Rice
seaweed farming, with over two-thirds of
• Other ag
production occurring in just three months
• Off-farm work
of that year (Feb-April), and 90 per cent of
production occurring in the first six months
of that year (Figure 11). Figure 3.3.1a. Structure of a bio-economic model of a seaweed household in
South Sulawesi
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Mapping the area under seaweed suggests either an increase in seaweed planting, or a decrease in seaweed harvesting. An
production as viewed on satellite data increase in seaweed is likely due to a range of environmental, socio-economic and policy
against rainfall patterns yields the factors. Environmentally, 2020 is a La Niña year, and as a result, variations in rainfall and
results shown in Figure 12. Seaweed water temperature are expected.
growth rates are strongly affected
by seasonal variations in salinity, In addition, the impact of the pandemic on employment across Indonesia could
light intensity and sea waves. Neish see increased labour availability to seaweed farming, particularly among people
(2015) reports that growth rates at (especially youth) who were previously working or studying in urban areas. Furthermore,
favourable times of year are as much agricultural extension policy, such as the government seed distribution programs
as five times higher than in less implemented in Pangkep in 2020, may make seaweed farming more favourable.
favourable times. Seaweed growth Alternatively, it is possible that seaweed harvesting has decreased in response to low
rates are strongly affected by salinity
levels in the water, which are closely
linked to regional rainfall patterns
(Bahiyah et al. 2019). The hydrocolloid
seaweeds grown in Indonesia grow
best at salinities of 29-34 ppt
(Presidential Decree 33-2019, p. 22).
This is slightly lower than the average
seawater salinity, 35 ppt. From March
to May, salinity in the Java sea off
South Sulawesi is substantially lower
than at other times due to high rainfall January February March April May June
in surrounding areas (Bahiyah et al.
2019). Rainfall in South Sulawesi also
increases river flows that transport
nutrients to the sea (Fendi et al.
2019), although excessive rainfall may
inhibit seaweed growth. During periods
of favourable freshwater flows in the
first half of the year, seaweed farming
expands to cover offshore areas, and
contracts again as river flows reduce
and seawater enters the Java sea later
in the year. July August September October November December
Figure 11 The area of seaweed planted along the mainland coastline of Pangkep in 2018
3 .3 .3 . M O N I T O R I N G T H E
SEAWEED INDUSTRY
DURING COVID-19 6 Area
Rainfall 800
The travel restrictions associated with 5
COVID-19 have limited the ability of 600
researchers and government to explore 4
Rainfall (mm)
Area (km2)
the impacts of the pandemic. The
3
use of satellite data offered a partial 400
solution to this. 2
In 2020, the area under seaweed 200
1
production from May to August was
on average more than double that in 0 0
previous years (Figure 14). No increase
April
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
March
April
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
April
March
May
June
July
Aug
Sept
Oct
Nov
Dec
March
April
Jan
May
Sept
Feb
June
July
Aug
was observed from February to April, 2018 2019 2020
2017
likely because the area suitable for
seaweed farming was already close Figure 12 Area under seaweed production is highly seasonal and linked to rainfall patterns
to capacity in these months. The
Data Sources: BMKG (2020); Planet Team (2020)
higher area under seaweed cultivation
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prices, either as a storage technique 3. 3. 4. I N S I G H T S
or due to insufficient returns to labour.
However, we have not found reports The results of this analysis suggest that there is significant potential for newly
to suggest this. On the contrary, most available, high-resolution, high-frequency satellite data to be usefully employed
reports suggest an increase in production in the seaweed industry to monitor production and inform policy. An accurate,
during the pandemic, despite reduced spatially and temporally detailed understanding of seaweed farming patterns is
government production targets (Ambari important for a range of purposes, such as land and sea use planning and zoning,
2020). identifying technical issues in the industry, and improving industry integration, and
for national and international statistical reporting processes.
A clear effect of COVID-19 has been a
decline in seaweed prices alongside a By mapping and quantifying the area under seaweed production monthly, it has
decrease in the cost of labour. In Bali, been possible to generate disaggregated production estimates that illustrate the
reports suggest that many tourism very dramatic changes in seaweed production patterns throughout the year. This
operators affected by the pandemic have data makes possible a range of analyses with important policy implications.
returned to seaweed farming, which
many had left seeking better returns Firstly, detailed production data for the province would enable analysis of the
(BBC 2020; Pratiwi 2020). This is despite impact of various environmental factors on seaweed growth rates. Some studies
significant declines in seaweed farmgate
prices (Figure 154. On average, prices 7
have declined by 33 per cent in the South
Sulawesi locations for which data is 6
available since the start of the pandemic.
This trend is reflected throughout the
country, with average prices dropping 5
from IDR 22,286 to IDR 13,961 since
the pandemic began (Figure 8). As
4
seaweed farming was already a marginally
Area (km2)
productive activity, such a decline could
completely erase its profitability after 3
accounting for input, capital depreciation,
and labour costs. A report from Sulawesi
2
suggested that in one region, prices fell
from IDR 22,000 to IDR 13,000 while
seed costs remained constant. This saw 1
farmers reporting losses after accounting
for seaweed seed and labour costs
(Febriady 2020). Such an increase in 0
production alongside a decrease in price Jan Feb March April May June July Aug Sept Oct Nov Dec
is the inverse of the normal response.
One explanation for this is lower input 2017 2018 2019 2020
costs, in this case likely that of labour. It is
Figure 13 Area under seaweed production from May – August 2020 is significantly higher
suggested the decrease in seaweed prices
than in previous years (satellite data)
is linked to temporary export suspensions
during the pandemic, leading to a lack
30000
of storage facilities and falling prices
Raw dried seaweed price (Rp/kg)
(Kementerian Perdagangan Republik
Indonesia 2020). These factors suggest
20000
significant disruption to the seaweed
industry since the onset of the pandemic, Bali
Central Sulawesi
with some suggesting the need for policy Kalimantan
10000
intervention to stabilise falling prices Maluku
NTT
(Warta Ekonomi 2020). South East Sulawesi
COVID-19 Public Health Emergency of
South Sulawesi International Concern declared
0
Jan Feb Mar April May June July Aug Sept Oct Nov Dec Jan Feb Mar April May J une July Aug Sept Oct Nov Dec
2019 2020
Figure 14 Purchase price for dried Cottoni (Kappaphycus alvarezii) across Indonesia
have declined an average of 37 per cent from January to September 2020. Data Source:
Average monthly price reported on JaSuDa (2020)
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potential for newly
available, high-resolution,
high-frequency satellite
data to be usefully
employed in the seaweed
industry to monitor
production and inform
policy... This data
provides a very useful
source of information for
refining official estimate.COMMODITIES PILOT PROJECT REPORT
have attempted to assess the not available). Both the satellite 4.0. C O N C L U S I O N A N D
relative importance of these factors data and the quarterly production RECOMMENDATIONS
(Geromel de Góes & Perpetuo estimates generate estimates of
Reis 2012) but have been limited production based on area under
by constraints on the size of the cultivation, and do not account for
study and the number of locations losses prior to harvest or during
4.1. C O N C L U S I O N
considered. Understanding seasonal drying or storage.
patterns of seaweed farming
Despite these limitations, the data This pilot project contributes new
across a large area – for example,
presented in this paper provides knowledge in four key areas: 1)
if satellite data were analysed for
an additional source for mapping an in-depth and comprehensive
the whole of South Sulawesi, or at
seaweed cultivation which is understanding of change in seaweed
a number of locations throughout
easy to generate across large production worldwide, in Indonesia
Indonesia – this data could be
areas to a high level of detail. It and South Sulawesi; 2) an in-
used to generate robust models
could be usefully employed to depth and comprehensive review
of the likely impact of a range of
benchmark other government of seaweed value chains, including
environmental factors on seaweed
production estimates and improve lessons from previous studies and
farming.
their accuracy, and as a point of other areas; 3) a framework and
Secondly, this data could be used to comparison for a range of farming tools from which to analyse the
undertake logistics modelling across locations. This data therefore livelihoods of seaweed farmers;
the province, and would vastly provides a very useful source of and 4) an introduction to the use of
increase the accuracy of logistics information for refining official remote sensing data for monitoring
models. This would prove useful estimates, as a cross-verification the seaweed industry.
in planning policy interventions to of sources is expected to lead to a
Overall, this provides important
support sustainable development of more accurate picture.
insights which support the
the seaweed industry.
Finally, this data can provide very development and implementation of
The satellite data provided here fast and up-to-date information on the SIP.
has limitations. The accuracy of the impact on farmers of significant
the assessment is limited by the environmental and socio-economic
resolution of the imagery, and events, such as the COVID-19
the presence of cloud cover. This pandemic. 4.2. R E C O M M E N D A T I O N S
study used monthly basemaps
that represent a range rather We have developed a series of
than a point of time. And while recommended areas for further
seaweed plots can be identified investigation, which underpin
with reasonable accuracy in shallow the design of our SIP. These are
water, this is harder in deeper structured around the same sections
water. The colour gradient in coastal as used in the value chain analysis
waters introduces challenges for in Section 1.4.2.
automated image processing and
makes processing of imagery over
large areas difficult, since plots
are identified by shape more than 4.2.1. S U P P O R T
by colour. In addition, the variable IMPROVED,
measured is area under production SUSTAINABLE
rather than weight produced. Since PHYCONOMIC PRACTICES
the growth rate often varies by
up to five times between seasons The first key area of research is to
(Neish 2015), seasonal production further the development of improved
differences may be more or less and sustainable phyconomic
pronounced than estimated by this practices. This should involve,
data, depending on whether farmers firstly, comprehensive mapping
respond to lower growth rates by of seaweed production patterns
reducing production (and perhaps around the province, using satellite
diverting their labour to more data as described in Section 1.4.4.
productive activities) or increasing Secondly, characterisation of the
production (as may occur if other factors affecting seaweed growth
income-generation activities are rate and carrageenan yield should
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be undertaken, and these should be locations. It should also involve 4.2.6. S U P P O R T
mapped against production patterns a logistics analysis of seasonal THE SUSTAINABLE
to develop a better understanding seaweed trade flows around the DEVELOPMENT OF THE
of the seasonality of production. province, which could be supported INDUSTRY THROUGH
Thirdly, the environmental effects by satellite data as indicated in EFFECTIVE POLICY
of seaweed cultivation should be Section 1.4.4. In addition, research
examined, including the effect on to improve seaweed drying practices Finally, research from the above
marine biodiversity (particularly should be undertaken, including the five agendas should by analysed
in Marine Protected Areas off the development of a low-cost design to provide recommendations
coastline of Pangkep) and on ocean for constructing a dryer from local into industry policies, laws
plastics. materials. Tests on the effects of and institutions; to develop
changed drying practices on the communication technologies and
domestic marketing system should recommendations to develop
be undertaken. industry information and technical
4 .2 .2 . S U P P O R T information systems; and to provide
SUSTAINABLE AND recommendations on marine
JUST LIVELIHOOD planning and zoning.
TRANSITIONS 4. 2. 4. S U P P O R T
AN EFFICIENT
The next key area of research AND PROFITABLE
is to understand the social and PROCESSING SECTOR
economic effects of transitions
to seaweed farming. This should Further research to support
include a thorough investigation of technical innovation in processing
seaweed livelihoods, including both is needed. This includes efforts
quantitative methods (to benchmark to develop new products (such as
seaweed producers against a range food, pharmaceuticals, fertilisers
of other Indonesian households with and biofuels) from seaweed, as
different livelihood strategies) and well as innovation to reduce waste
qualitative methods (to understand streams, and develop more efficient
the drivers and motivations of processes such as using Multi-
seaweed farmers and the range Stream Zero Effluent processing.
of social effects associated with
seaweed farming). This should be
supported by modelling of household
budgets such as that initially 4. 2. 5. S U P P O R T
developed in Section 1.4.3. I N D O N E S I A’ S
COMPETITIVENESS IN
G L O B A L S U P P LY C H A I N S
4 .2 .3 . S U P P O R T A N The fifth key research priority
EQUITABLE AND identified is the characterisation
EFFICIENT DOMESTIC of global value chains. The pilot
MARKETING SYSTEM project highlighted the increasing
importance of the seaweed industry
Research is required to understand to Indonesia’s economy and the
the domestic marketing system, important role Indonesian seaweed
including the role of traders of plays in global trade flows. Further
different scales operating in different research should expand this analysis
locations. This should involve a by mapping and quantifying global
range of qualitative and quantitative trade flows of seaweed products,
methods to characterise the characterising international
marketing systems, the margins carrageenan markets and further
captured by different actors and developing our analysis of
the drivers of different benefits Indonesia’s competitive advantage
to different actors in different in the global seaweed value chain.
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