Start-up optimistic on algal paste
THE co-founder of the start-up company that won the P1-million grand prize in the Agri-Aqua Innovation Challenge will boost the use of algal paste in aquaculture hatcheries.
The Agri-Aqua Innovation Challenge is a project of the Department of Science and Technology (DoST)Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development, Asian Institute of Management (AIM), and Management Association of the Philippines (MAP).
In an interview with The Manila Times, Kamino Algae Technologies Inc. co-founder and president Milo Alejo said that the award will be the company’s assurance to clients on the reliability of the algae paste technology.
“We plan to reach out to our customers, both the private and public institutions, now that we have the AIM, the DoST and MAP CERTIfiCATION SAYING THIS IS A GOOD business, it’s a viable business, it out to help you as well so we are hoping to establish our contacts back with them using the prize money and say, ‘Kamino is here to change your business, to boost your production and hopefully to boost food security in our country,’” Alejo said.
He said the operation of Kamino Algae Technologies was affected by the pandemic.
“We have to downsize because of the pandemic, so now we are less than seven people because we have to part ways with some of our friends. But at its height, we were almost at 30 people. So, with this, it’s a tipping point, we get back on track and get back our friends,” he added.
Alejo said the company started in 2017 with various research and development efforts to develop its algal paste product.
“We constructed our facility in 2019 and commercialized in 2020. Our main facility is in Guimaras actually, it has better waters and very accessible to our clients as well,” he noted.
Alejo said their algal paste was conceived after he saw an article about it and learned about micro algae biomass.
“Originally, it was for biofuels and soon enough, we saw there was versality in the technology, so WE fiRST TARGETED WHAT WE FELT WAS a good market to handle, which is the agriculture sector because a lot of people [are] handling gas, oil and energy, but nobody is handling food security. So, we were really attracted to it and we know that aqua feed is JUST A fiRST OF MANY PRODUCTS THAT WE can make,” Alejo said.
He said that his company started with less than P5-million capital.
“It has grown already with some of our investors today,” he added.
He said the company’s primary market are aquaculture hatcheries.
“We have two markets, the private and the public institutions, we contacted them already and there is the DA (Department of Agriculture), under the Bureau of Fisheries and Aquatic Resources (BFAR). They have many hatcheries, about 90 today, they plan to grow to 200, and we are contacting them and slowly, we are getting more and more of them to buy our product,” he noted. Alejo said the P1-million grand prize will be used to expand and reach out to the company’s old customers.
“It will be a big help for our expansion and to reach back to our customers because most of our customers retracted and came silent during the pandemic, but now that we are seeing our economy going back, this is our chance to knock on their doors again and have our website, and have more focus efforts to know them and say hey, we are here and lets help each other to rebuild,” Alejo said.
Alejo said the six-month training conducted by the AIM and members of the MAP helped his company a lot.
“First, we have to humble ourselves as we started earlier, maybe there is something we can learn. A lot of it is adjusting to our customers, changing our pricing approach, changing on how we communicate,” he noted.
Alejo said the interaction with other contestants of the Agri-Aqua Innovation Challenge also helped them in many ways.
“We were changing ideas, networks and contacts as well, this works, this doesn’t work, this is the permit you need, so there is a lot of learning on that one but really for us is tightening, what is our priority, especially we were affected by pandemic. So, that is our priority, that’s what we learned,” he said.
Alejo admitted that while he was expecting to be included in the top three, he never expected to be named the grand winner.
“My message to those who want TO START A BUSINESS IS fiRST OF ALL THERE’S a lot of opportunity out there, listen, there are many businesses around, there are customers around that will have a requirement, will have a problem and there is a solution out there,” he added.