The Trust Factor

High quality seaweeds are in high demand on global markets. They are grown mostly on remote South Pacific coasts and processed as carrageenan, which is used in the food and beverage, pharma and cosmetic industries for its gelling and stabilising properties.

Despite owning such a sought-after product, seaweed farmers in the Philippines have been living a life of hardship. Far from the key international market players and facing financial hurdles, they normally sell fast to fulfil the immediate needs of their families. Intermediaries set the price: very low for the farmers, much higher for the private companies. The result is a very imbalanced supply chain, where most of the gain is concentrated in the hands of a few intermediaries while thousands of farmers lose value and stay stuck in unsecure conditions with no prospects.

In partnership with the Julius Baer Foundation, CODESPA has shown that it is possible to directly connect farmers and private companies and distribute value more equitably.   

They supported the Hinatuan farmers community through training, helped them unite in the Hinatuan Seaweed Producers Association (HSWPA) and connected them with CEAMSA, a Spanish seaweed processor based in Manila.

The human connection among the players became the real turning point in this story. 

The CEAMSA General Manager and his team started visiting the community, providing training and consultation. Then a delegation of farmers travelled to CEAMSA’s plant in Manila to learn about the company’s process and needs. Trust was built.   

Today, thanks to CEAMSA’s knowledge transfer, HSWPA’s seaweed quality is among the best in the region. Once at the plant, their seaweeds skip the sorting and cleaning steps and go straight into production, increasing efficiency. By skipping the middlemen, CEAMSA also reduced transaction costs: lower costs for them, much higher income for the farmers - up to +80%. The farmers started formalising their business and paying taxes, eventually becoming prominent citizens:  from invisible to successful. They now know that their dream is possible and there’s a future for their community.

Today, the trust factor is becoming CODESPA’S standard and enabling the human connection - a key step in all their projects.

Watch the video to hear from the players involved how it is possible to win for all across the whole supply chain.