Cross Subsidies on Seaweed Export Selling Price, an React upon Current Weather Impact

Seaweed (Cottoni, Glacilaria, Sargassum, etc ), which records USD 144.6 million export value (or 5,6 % percentage) and ranks 5th in terms of export volume, reports having some increase on selling prices. Seaweed – a group of plant-like organisms that grow in the sea- hinged on traditional ways of sun-dried process in order to get 10-20% (as required production specs) moisture content. Hence, the occurring rainy season at most of the Indonesian regions has made 10-15% adjustment on raw material buying at fishmen side.

Given that seaweed consists of both low and high price products, packers have made the increase of the current price just to a 5% level instead of 10-15%. The idea of quoting a lower price for the seaweed is due to compensations for cross-subsidy between the higher selling price of seaweed Cottoni and the lower selling price of sargassum.