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Foundation links of seaplant value
chains (below) connect the "grow" function with post-harvest treatment
(PHT) functions and the series of collecting, trading and export
functions that get seaplant raw materials to processors. |
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As crops leave the hands of farmers they
go first to individuals or enterprises that undertake the "collect"
function and (in some cases) other core functions. As value chains
"mature" in particular geographic regions there is a tendency for
complexity to develop. Some of the more frequently observed trends
include the following: |
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1. |
Successful farmers become
collectors and/or branch into trading and transportation
functions. |
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2. |
Enterprises that are successful
in performing one function (e.g. trading) tend to expand
vertically downward (into collecting) and/or upward (into
exporting and processing). |
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3. |
There is a proliferation of
seaplant types and farming methods. |
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4. |
"PHT trading games" proliferate
and the imposition of quality standards becomes difficult. |
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5. |
Traders assume a significant
role in manipulating supply. |
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6. |
Process plants proliferate near
seaplant sources. |
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7. |
Opportunistic farmers go in and
out of farming depending on market conditions. |
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Eucheuma seaplant
value chains are unusual with respect to the rapid rate at which
expansion and contraction can occur in response to market forces. Lack
of transparency in eucheuma seaplant markets can cause "false signals"
that induce market oscillations and lead to value-chain "noise". |
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Collector Alex Yusof strikes a deal
(right) using his "picul stick" on a beach near Zamboanga, R.P. He
buys fresh cottonii from farms in front of the beach then salts it
down (below, foreground), dries it and sells the dry, sacked material
to Zamboanga traders. This collector is also a substantial farmer and
finances other farmers. |
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In some regions farmer groups (e.g. "kelompok
petani" in Indonesia) collect rather than individuals or commercial
enterprises. Successful farmers commonly expand into treatment, collection
and trading functions. |
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Sad to say, some
collectors are accused of playing "PHT trading games" and of lending
money on unfair terms. As in many industries "the middleman" is
accused of a multitude of sins but the fact is that the "collection"
function is essential and trustworthy collectors are a crucial link in
the value chain. |
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