CEBU CITY – The prospect of the country’s carrageenan industry remains upbeat following the decision of the Department of Agriculture in the United States (US) to renew the inclusion of Philippine-produced carrageenan within the United States’ natural organic list.

“Even if the industry faced a tough year, given bad weather conditions, this recognition from the Agriculture Department in the US will be big boost for the carrageenan industry,” enthused Seaweed Industry Association of the Philippines (SIAP) President Benson Dakay. “This will ensure us that US-based food manufacturers will still continue to use our carrageenan.”

Dakay said US Secretary of Agriculture Tom Vilsalk made this announcement during the latter’s visit to Manila last month. Dakay recalled Vilsalk saying that the US Government has renewed the classification of country’s carrageenan as among those included in the natural organic list for the next five years, effective November 3.

Carrageenan is a thickener, emulsifier, stabilizer and gelling agent in food, beverages, cosmetics and pharmaceuticals.

It is extracted from the euchema seaweed or native “guso.”

Citing official records, Dakay said the over-all carrageenan market in the United States is worth $80-million. Dakay is Chief Executive Officer of Shemberg Marketing Corp., the country’s biggest seaweed processor and exporter which accounts for $30-million of the entire US market, while the whole Philippines accounts for between $50-60 million.

“We are optimistic that being a recognized organic product, this will further revive the Philippine seaweed industry. As in other export sectors, the seaweed industry have been hugely affected by the economic crisis,” Dakay said.

He cited SIAP reports showing that the country’s seaweed industry registered a 30-percent decline in supply in the first three quarters of this year. Industry players pinned the blame on climate change, particularly global warming.