Creating a sustainable commercial Eucheuma cultivation

industry: the importance and necessity of the human factor

EI Ask
FMC BioPolymer; 1735 Market St, Philadelphia, PA 19103, USA.
E-mail: Erick_Ask@FMC.com
Key words: Kappaphycus alvarezii, Kappaphycus striatum, Eucheuma denticulatum, cultivation, aquaculture,
development, introduced species, cottonii, spinosum

Abstract
Despite the fact that over 50,000 families are currently engaged in cultivating the commercial eucheumoids
cottonii [Kappaphycus alvarezii var. alvarezii, K. alvarezii var. tambalang, K. alvarezii var. ajak-assi, (Doty)
Doty K. striatum var. dichotomous and K. striatum var. elkhorn (Schmitz) Doty] and spinosum [Eucheuma
denticulatum (Burman) Collins et Harvey] in Southeast Asia, the Pacific and the Western Indian Ocean, the
human factor in cultivation and cultivation development is often overlooked. As a result, the vast majority
of cultivation development projects have ended in failure. In addition to the farmers, the human factor that
impacts cultivation includes groups such as: non-farming villagers, carrageenan industry, seaweed suppliers,
fisheries departments, local government officials, national government officials, non-government organizations, academics and donor agencies.
The failure of cultivation development projects concerns the carrageenan industry since it can negatively impact the public perception of the cultivation industry, particularly from the standpoints of introduced
species, alternative sustainable livelihoods and obtaining funding for these development projects. This overshadows positive attributes of the existing and highly successful cultivation programs.
How each group approaches development and cultivation issues such as site selection, environment,
funding, business practices and sociology plays a major role in determining the success of the project. Each
groups roles are discussed and an approach is provided for dealing with the complexity of the human factor to greatly increase chances of success.

Introduction
The commercial eucheumoids cottonii [described
by Doty (1985): Kappaphycus alvarezii var.
alvarezii, K. alvarezii var. tambalang, K. alvarezii
var. ajak-assi, K. striatum var. dichotomous and K.
striatum var. elkhorn] and spinosum (Eucheuma
denticulatum) have been introduced to over 20
countries for commercial cultivation purposes in
the last 30 years (Doty & Alvarez, 1973; Doty,
1973; Parker, 1974; Soerjodinoto, 1969; Adnan &
Porse, 1987; Doty, 1985; Braud et al., 1974; Braud
& Prez, 1978; Prez & Braud, 1978; Prakash,
1990; Luxton et al., 1987; Russell, 1982; Russell,
1983; Tanaka, 1990; Luxton & Luxton, 1998;
Robertson, 1989; Gentle, 1990; Doty, 1980;

Barbaroux et al., 1984; Faanunu, 1990; Mairh et

al., 1986; Wu et al., 1988; David Luxton, pers.
comm.; de Reviers, 1989; Smith, 1990; Lirasan &
Twide, 1993; Mairh et al., 1995; Dawes, 1989;
Serpa-Madrigal et al., 1997; Ohno et al., 1995;
Ohno et al., 1996; de Paula et al., 1998; de Paula
et al., 1999; Rincones & Rubio 1999; Joseph
Wakibia, pers. comm.; Ask et al., unpublished;
Daily Express, 2000).
However, only five countries today commercially produce in excess of 1,000 dry t y1 of commercial eucheumoids (Doty & Alvarez, 1973; Doty,
1973; Parker, 1974; Soerjodinoto, 1969; Adnan &
Porse, 1987; Russell, 1982; Tanaka, 1990; Luxton
& Luxton, 1998; Robertson, 1989; Doty, 1980;
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EUCHEUMA CULTIVATION: THE HUMAN FACTOR

Lirasan & Twide, 1993). This is an appalling

record. When the reasons for the failure of these
projects are analyzed, it becomes clear that decisions by human beings, not environmental factors,
played the largest role. These introductions and
subsequent failures should be of great concern to
the carrageenan industry for three primary reasons:
1. The practice of introducing foreign species is
becoming increasingly discouraged and policies
are being created to protect and promote biodiversity in the oceans (de Fontaubert et al.,
1996). In addition, the impact of mariculture
on biodiversity is also being reviewed
(Beveridge et al., 1997). As a result, indiscriminate introduction of commercial eucheumoids,
especially when acceptable quarantine and
import procedures are not followed, can promote a negative image for the cultivation industry and, hence, the carrageenan industry. One
need look no further than the problems associated with the introduction of Caulerpa taxifolia
to the Mediterranean for an under-standing of
the attention invasive algae can receive
(Boudouresque et al., 1995).
2. The high percentage of failed projects raises the
question among government policy and decision makers as to whether or not further commercial eucheumoid farming projects should be
encouraged. Projects that fail leave a big negative impression on villagers as well. Once there
is failure, it is difficult to convince villagers to
attempt farming on a second occasion.
3. Failure also makes it difficult to source funding
for future projects. Donors will certainly question a project with a history of high failure
rates.
Given this situation, it is important to assure
that all future projects address biodiversity and
environmental concerns and are designed to ensure
the highest possibility of success. This requires a
thorough understanding of the legitimate wants
of the parties involved as well as a development
approach designed to identify problems and
address those problems, even if the solution may be
14

to forgo the project altogether. Legitimate wants

can be defined as the particular partys official mandate, if a formal organization, e.g. the fisheries
department or donor agency, or meeting its basic
needs if an informal group such as seaweed farmers
or non-farmer villagers.

The human factor

There are basically ten parties that make up the
human factor in the development of a commercial
eucheumoid cultivation industry. For success to
occur, each partys legitimate wants must be met.
Illegitimate wants, those that are illegal or inappropriate such as kick-backs, bribes or collusion, can
destroy seaweed cultivation development projects.
For example, a fisheries officer, representing a governments fisheries department, may have a mandate to provide extension service and process documents regarding the operation of a seaweed farm
in a timely manner. These are legitimate wants. If
the officer uses his position for personal gain by
accepting (or requiring!) bribes, this may adversely
affect the project and can prevent it from succeeding. Below is a list of suggested legitimate wants for
each party.
1. Commercial eucheumoid farmers:
1.1. Sustainable livelihood which provides
greater income for effort than alternative
livelihood
1.2. Livelihood that fits cultural requirements
1.3. Livelihood that improves personal condition (education, health, safety, culture,
etc.)
2. Non-farmers: Not to be adversely affected by
seaweed farming (do not compete with terrestrial or aquatic resources such as navi-gation
and boat anchoring areas, land for drying
tables, trees for farm material)
3. Local government officials: Take credit for
introduction of new, sustainable, alternative
livelihood = votes at next election
4. National government officials: If a small country, approach as for local government politicians. If a large country, these officials probably

EUCHEUMA CULTIVATION: THE HUMAN FACTOR

do not want to be bothered with problems,

therefore cultivation industry should not cause
problems
5. Fisheries department: Successful projects that
fulfil their mandate (coastal resource management, poverty alleviation, sustainable livelihoods, etc.)
6. Suppliers: Make an attractive profit on investment over long period of time without too
many problems
7. Carrageenan industry: Obtain seaweed of high
quality, correct volumes every month and at a
competitive price
8. Non-government organizations: Be involved
with successful projects in line with their mandate
9. Donors: Fund a successful project in which
money is used properly to create an industry
with return on that investment
10.Academe: Conduct interesting, significant and
funded research
To assure that the legitimate wants of the interested parties are met, it is vital to utilize a development approach that is designed to achieve this goal.

The development approach

Based on FMC BioPolymers 35-year history in
commercial Eucheuma farming development, a
project should only proceed if five prerequisites are
met:
1. A thorough survey including environment,
demography, logistics, politics, socio-economics, farm material supplies and domestic and
foreign transport and shipping costs
2. Political support
3. Adequate funding for the life of the project
(three to four years to obtain a farmer base
capable of producing at least 80 t mo-1, a commercial volume of interest to carrageenan companies)
4. Qualified project management
5. A guaranteed market for the seaweed produced
by the project

The following development approach takes

these prerequisites into account.
Step One: Find funding for, and conduct, a survey.
The survey should cover:
1. Environmental parameters (seasonal rainfall,
wind patterns, water temperature, humidity,
light levels, coastal ecology and habitat, bottom
type, water depth, marine flora and fauna). Are
commercial eucheumoids indigenous to the targeted country?
2. Sociology What are the habits, mores and
belief system of the people who would be targeted for cultivation, as well as their neighbours
who may be indirectly impacted by cultivation?
3. Economics What do the villagers do for a living? When do they do it? Who does it? How
much do they earn? What do they want from
life? What motivates them? Do they have a history of farming or hunting/gathering? What is
the current price of the commercial
eucheumoids on the world market and can the
FOB price (beach price + supplier operating
costs + other supplier costs + profit margin)
compete?
4. Politics What is the national and local political system? Who regulates coastal activity and
how? Who is powerful in the areas of interest
and are they allies or adversaries to a seaweed
project? Is the national government businessfriendly? What are the laws regarding introducing foreign species and quarantine procedures?
Can a cultivation industry management plan be
put in place to protect the investment in development?
5. Logistics How will seaweed be transported
from villages to a port city and how will cash, or
goods for bartering, be brought to villages for
purchasing? What are communications and
infrastructure like? How much do transport
and communications cost?
6. Shipping costs What are the shipping costs
from the international port to the market? Is
15

EUCHEUMA CULTIVATION: THE HUMAN FACTOR

the total cost delivered to the factory competitive with other supplies in the world?
7. Demographics What are the populations of
the villages in the area you wish to work?
8. Health and Safety Is the country stable? Are
there kidnappings or other such activities in the
region you wish to work? Are there public
health hazards, poisonous animals and plants?
What is the health system like? Are the villagers
healthy? If not, what specifically do they suffer
from and can it be solved in the context of a
development project?
There are other questions that could be asked
and that will make themselves apparent during a
site visit.
Much of the information for the survey is available on the internet, from various reference books
at the library, through government agencies and
through shipping companies so that decisions to
continue the survey with a site visit can be made
early on. If the literature review indicates the target
country or region has potential, then a trip to gather remaining information (ground proofing) must
be planned, financed and carried out.
Step Two. Assess results. If positive, write a proposal.
The information gathered during the literature
review and the site visit needs to be written up and
assessed. If the site visit indicates the project is not
feasible, it should end at this stage. If the project
looks feasible, then proceed.
Step Three. Assure a market.
Approach carrageenan companies to obtain commitments to purchase the cottonii or spinosum
that the project would produce. There should be a
price criterion as well to indicate if the plan makes
economic sense. A few of the larger companies
have employees who work on developing new raw
material supplies and can provide invaluable assistance based on decades of field experience if they
agree to purchase the future production.

16

Step Four. Find Funding

This is probably the most difficult step. Numerous
projects have failed because of inadequate funding.
One can expect numerous setbacks during the
development process, extending the time it takes to
create an 80 dry t mo-1 farmer base up to four years.
The goal of development is to obtain an 80 dry t
mo-1 farmer base or roughly 1,000 t y-1, a volume
that is economically viable to carrageenan companies. Therefore, it is important to factor in the setbacks into the time line and fund the project
accordingly. Funding, depending on overhead and
location, should be between US$0.5 and US$1.5
million; anything less risks failure due to lack of
funds.
Step Five. Assure experienced and qualified project
management
Commercial eucheumoid cultivation development
is unique work involving many skills. A project
manager must be able to:
1. work with villagers doing basic development
that can include public health and nutrition,
2. do applied phycology and understand tropical
marine ecology and farm ecology
3. ensure that all parties are having their legitimate
wants met and are not pursuing illegitimate
wants
4. train and manage local field operators
5. manage the project budget
6. understand how to take 10 kg of seedstock to 80
dry t mo-1 in the shortest period of time possible
7. work in local villages, taking into account varied religious and cultural beliefs, perhaps learning a language or two and eating local food
8. maintain good mental health and avoid disease
and injury while working for extended periods
of time in remote areas with minimal comforts.
It is best to obtain a project manager who has
successful experience in commercial eucheumoid
development, otherwise the project is effectively paying for someones education, with a greatly increased chance of failure.

EUCHEUMA CULTIVATION: THE HUMAN FACTOR

Step Six:
Assure maintenance of the project after commercial
volumes are obtained in order to prevent collapse.
Until a large farmer base exists and has over five
years of experience many things can go wrong that
will destroy the project.

Conclusion
Growing environmental awareness is putting new
pressures on the aquaculture industry to address
the issues above. The carrageenan industry has
been fortunate to date in that only the social, economic, environmental and political benefits of the
culti-vation industry have been highlighted (Ask,
1999; Trono, 1990). To sustain this situation, the
carrageenan industry should discourage any further
development projects that do not follow the development approach, in this way assuring that the
human factor is managed appropriately and
chances of success are greatly increased. In addition, research on the environmental impact of
commercial eucheumoid cultivation must continue. Although there are obvious environmental benefits, such as farms being nutrient sinks, providing
a habitat for other organisms, increasing primary
production, providing a sustainable livelihood as
an alternative to destructive livelihoods such as
dynamite fishing and promoting a sense of stewardship among coastal villagers (Ask, 1999), there
is always room for improvement. The carrageenan
industry should encourage research that leads to an
even more environmentally beneficial cultivation
industry.

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