The Economics of Kappaphycus Seaweed Cultivation in Developing Countries: A Comparative Analysis of Farming Systems

Valderrama, Diego and Junning, Cai and Hishamunda, Nathanael and Ridler, Neil and Neish, Iain C and Hurtado, Anicia Q and Msuya, Flower E and Krishnan, M and Narayanakumar, R and Kronen, Mechthild and Robledo, Daniel and Gasca-Leyva, Eucario and Fraga, Julia (2015) The Economics of Kappaphycus Seaweed Cultivation in Developing Countries: A Comparative Analysis of Farming Systems. Aquaculture Economics & Management, 19 (2). pp. 251-277.


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    The farming of the red seaweed Kappaphycus alvarezii and related species as raw material for the hydrocolloid carrageenan rapidly spread from the Philippines in the late 1960s to Indonesia, Tanzania, and other tropical countries around the world. Although numerous studies have documented positive socioeconomic impacts for seaweed farming, factors such as diseases and distance to export markets have led to an uneven development of the industry. Using standard budgeting techniques, this study adapted production and market data from a FAO-led global review of seaweed farming to develop comparative enterprise budgets for eight farming systems in six countries (Indonesia, the Philippines, Tanzania, India, Solomon Islands, and Mexico). Although the basic technology package is the same across countries, the study revealed large differences in the economic performance of systems due to wide variations in farm prices and the scale of operations. Although seaweed farming is a suitable activity for small-scale producers, a minimum of 2,000m of cultures lines are still necessary to ensure adequate economic returns. Greater farming plots may be needed if farm prices are well below the average farm prices paid in Indonesia and the Philippines. Policy recommendations are made to improve the economic potential of underperforming systems.

    Item Type: Article
    Uncontrolled Keywords: Kappaphycus alvarezii; production economics; seaweed
    Subjects: Aquaculture > Farming/Culture
    Socio Economics and Extension > Fisheries Economics
    Algae > Seaweed
    Divisions: CMFRI-Kochi > Fishery Extension
    Subject Area > CMFRI > CMFRI-Kochi > Fishery Extension
    CMFRI-Kochi > Fishery Extension
    Subject Area > CMFRI-Kochi > Fishery Extension
    Depositing User: Arun Surendran
    Date Deposited: 12 Jun 2015 09:38
    Last Modified: 09 Sep 2015 16:00

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