Profit and Loss Analysis of Euchema Seaweed Farming in Green Island, Palawan, Philippines1

Abstract

Introduction- One of the Philippines most productive producers- Green Island in Palawan is well known to produce only top quality seaweed. Data and Methodology- We visited Green Island to collect primary data on investment –revenue for 1-ha area belongs to different farmers. Information on marketing i.e. business relationships between middlemen - seaweed farmers were collated from interviews with seaweed traders in Puerto Princess. Results- Profit –Loss was calculated based on 3 harvests per year. At the end of round(R) 1, farm incurred loss deficit PhP 200. End of R2, farm reached Break Even and made Profit PhP15, 600. Pay Back Period is at least four good months and Internal Rate of Returns on Investment (ROI) was at 101%. Seaweed cultivation cannot be done during rough weather of Amihan - August to December. Availability of abundance cheap labor is a necessary precondition but not sufficient for explaining why the entire 600 households not into seaweed farming despite the fact that it has been there for more than three decades. Seaweed farming in Green Island have been growing slowly because poor fishermen are borrowing from the limited capital pool in the absent of fund injection from either government or outside aid.

DOI: 10.5901/mjss.2015.v6n5s5p125