Abstract
A global shortfall in protein supply from capture fisheries has motivated the Malaysian government to revise its aquaculture strategy, focusing on three commodities: seaweed, fish and marine shrimp. However, the performance of the Malaysian aquaculture sector, particularly seaweed production, is poorly documented. This is the first empirical study to undertake a value chain analysis (VCA) of the Malaysian seaweed sector using stakeholder perceptions and secondary data that encompass members of seaweed farming cooperatives (the Semporna Area Farmers’ Association and the governments’ flagship Seaweed Cluster Project). Fieldwork was conducted between April and June 2015 among seaweed stakeholders involved in the value chain using a mixed methods approach—in-depth interviews with key informants, focus group discussions, household surveys, personal observation and secondary data. Qualitative and quantitative data were collected from both upstream (seaweed farming, marketing structure and the Malaysian Good Aquaculture Practices [MyGAP] certification programme) and downstream (seaweed processing) activities involving farmers, intermediaries/middlemen (buyers), processors and officials. Kappaphycus spp. was sold in two forms: (1) dried seaweed to be used as raw materials in carrageenan processing (approximately 90% of total harvest) and (2) fresh seaweed to be used as a source of seedlings (approximately 10% of total harvest). The value chain ended with the carrageenan form, which is exported to international markets. The price of dried seaweed varied according to a combination of seaweed quality, the strength of farmer’s relationships with intermediaries and processors and in response to demand from the carrageenan industry. The prices obtained by Malaysian farmers for dried seaweed and carrageenan remained low, US$ 0.60 and US$ 4.43 per kg, respectively, despite efforts by the government to enhance the value chain by imposing seaweed standards (via MyGAP) for farm management, dried seaweed and semi-refined carrageenan. The VCA was a useful tool to identify and map the market, with the results providing a better understanding of the seaweed sector, which could be helpful in supporting further aquaculture development in Malaysia.
Highlights
Global fish consumption from capture fishing and aquaculture exceeded 20.5 kg per capita in 2017 (FAO 2016)
The key informant interviewees (KIs) were conducted with government officials, nongovernmental organisation (NGO) representatives, community leaders and private companies, selected using nonprobability sampling through the snowball method
This section is divided into four subsections to reflect each of the four main links in the Malaysian seaweed carrageenan value chain: (1) farming activities, (2) postharvest treatment, (3) marketing and (4) carrageenan processing
Summary
Global fish consumption from capture fishing and aquaculture exceeded 20.5 kg per capita in 2017 (FAO 2016). The Malaysian government, via the Malaysian seaweed development plan (administered through the Department of Fisheries Malaysia (DOFM)), intends seaweed aquaculture to play increasingly significant roles in ensuring food security, reducing pressure from capture fisheries, generating foreign exchange income, providing employment, extending alternative livelihoods and creating opportunities for business and commercial investment (Wood and Davies 2006; PEMANDU 2013). Notwithstanding the fact that Malaysia is the third largest global seaweed carrageenan producer (20,297 t of dried seaweed in 2016 (DOFM 2019)), its seaweed sector is understudied and poorly understood and is hindered by ethnic tensions between immigrant and indigenous farmers. The increased demand for seaweed and its derivatives affords Malaysia an opportunity to further develop its position as a major global producer, with the DOFM projecting production to reach 150,000 t of dried seaweed, or more than half of global demand, by 2020 based on the availability of potential farming sites—40,500 ha (PEMANDU, 2013). This paper, a follow-up to the study by Nor and co-workers (Nor et al 2017), presents a value chain analysis (VCA) of the Malaysian seaweed aquaculture sector (completed in 2015) with the objective to focus on its governance, economic, environmental, technological and sociocultural dimensions, identifying the main problems it faces in meeting the government’s production target and outlining possible solutions
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