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; 13

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 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

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

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.

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.

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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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