The government should finance expansion of seaweed farming in the Philippines to boost its production.

The Philippines stands to lose its position as the largest producer of seaweed-based carrageenan in the world for lack of raw material due to the absence of government financing.

The country's seaweed production plunged to 60,000 to 70,000 metric tons (MT) last year, down by a sizable 50 percent from 120,000 MT production level five years ago.

"The key is to give credit to farmers. Give them money in advance for planting. If they don't pay, the government should not be too hard on them," said Seaweed Industry Association of the Philippines (SIAP) President Benson U. Dakay in a press briefing.

Dakay is also chairman of Shemberg, Philippines' largest carrageenan producer.