Economics of Kappaphycus spp. Seaweed Farming with Special Reference to the Central Philippines

Abstract

The farming of Kappaphycus spp. in coastal marine waters has brought significant socio-economic benefits to coastal communities and fishermen. Seaweed farming, along with tourism and fishing, is considered an important direct-use value for coastal and marine ecosystems generating positive, net present values. In addition, there is increasing economic dependence of local coastal families on seaweed farming making farmers important stakeholders in the judicious management of coastal and marine resources. The investment required for 2,500 m² (0.25 ha) fixed off-bottom and raft long-line methods were valued at USD561 and USD1,051, respectively. Net farm income was estimated to be USD 565 per crop for the fixed off-bottom method and USD 739 per crop for the raft long-line method. Higher net farm income to gross returns was obtained from the fixed off-bottom method (56%), as compared to the raft long-line method (44%). It was estimated that the economic rate of return on investment in seaweed farming could be relatively high (14–20 months), the pay-back period for this activity on most farms surveyed was less than a year (6–9 months). Information on the relative values and investments in, and contributions of seaweed farming to, coastal and marine resources are essential in policy-making as this information can be used in the cost analysis of management interventions, programs and investments required.