The growing industry of carrageenan continues to be characterized by small-scale farmer producers whose collective production of agar is the major supply source of the marine produce in the city.  However, the multiplicity of farmers engaged in the production contributes to what is an emerging industry in the city as it is in many southern islands.  The aggregate production of the agar farmers in the city is sufficient to make local farmers potentially competitive and a major source of supply for the marine product. Thus, the study aims to identify and evaluate the various factors to the market conditions of carrageenan in the southern Philippine area – production, price, and distribution channels – and to design solutions that would reduce the cost of distribution in the seaweed supply chain.  The process involved the conduct of a survey and interviews of several stakeholders in the industry who acted as the study’s key informants.  Statistical tools and other analytical tools were likewise employed to further identify the factors that contribute to the current supply chain of the carrageenan industry in the country. Statistical tools were employed in the analyses to identify the factors and optimal distribution cost and based on the results.  Three specific areas were considered for the farmer-producers: quality standards, growth and maintenance, and harvest conditions.  As with the buyers: quality, transport, and selling.  The final group – the assemblers - the areas include quality, transport and selling.  However, the least two groups seemed almost identical, the specifics in each of the areas covered had varied operational conditions.  As with the farmers, 77% was lopsided for E. espinosum variety; 1005 for the use of the floating planting method, and 85% for water movement as a special maintenance concern of the plants.  In reference to growth and maintenance, a majority over 80% opted for planting of cultivars within the 1.5-2 meters deep and of cultivars within 15 to 20 centimeters in length.  Farmers opt to do once a day inspection of the farms and there is almost 100% preference for still water conditions in the planting area; a significant 81% of framers prefer water temperature of around 25 degrees Celsius, salinity of 20-25 parts per million and all opt for sandy sea bottom. For the buyers, in reference to quality, a high 80% prefer agar to be sold to them with 25% moisture content; note that most sold to them are combined with sand; and prefer E. espinosum and E. cottonii.  In reference to transport, distance from farm to buying station is on the 16-km. distance on the average; the use of truck by all of them; and prefer that seaweeds be covered in the course of transport. With the assemblers and bodegas, all have shown preference for 25% moisture content of the agar and have noted the mix of sand in most of them; there is a very high preference for E. espinosum over other species; and their storage areas are 0ver 800 square meters.  In reference to distance, the similar 16 kilometers average is noted; the trucks are generally covered during transport; and the movement of produce is done daily.  As with selling, storage prior to actual sale takes between 2 to 3 weeks; these are sacked; sale is preferably done during the drier days and frequency of sale is done twice to thrice a week.