Over the past two months, several stakeholders in the livestock industry raised the issues of allowing a foreign company to compete with local firms in the chicken and pig industries. They questioned the Board of Investments’ (BOI), an agency attached to the Department of Trade and Industry (DTI), granting of fiscal incentives to Charoen Pokphand Foods Philippines Corporation (CP).
Charoen Pokphand Group is a Thai multi-national conglomerate, with businesses in about 15 countries. Known to be primarily in agro-industry and food, the CP group is relatively large, employing over 288,000 workers worldwide and generating US$33 billion annually.
CP currently has three (3) projects registered with the BOI: The aqua feeds project which was granted pioneer status with non-pioneer incentives; the new producer of breeder stocks which was granted pioneer status with non-pioneer incentives; and, the integrated broiler project which was granted pioneer status with pioneer incentives.
• BOI’s granting of incentives to CP are lawful and legal and within the purview of the Omnibus Investment Code (E.O. 226) implemented by BOI.
• BOI is fair, granting the same incentives to both local and foreign firms. To date, there are 49 BOI-registered projects on aqua feeds, hogs and poultry from 2004-2012. Of these projects, 46 are Filipino-owned firms.
• CP’s investments will benefit the country.
o There is still room for new industry players, which can stabilize the supply of broiler chicken in the market as demand for chicken meat increases.
o CP introduces technology that will help hog growers minimize the diseases, improve the gene pool, and reduce mortality of the stocks including less antibiotics. The pork products will have better health benefits to the end consumers.
o CP’s feed project will help ensure adequate supply of feeds for aquaculturists and possibly more exports of aquaculture products (e.g. shrimps)
o CP will utilize non-GMO corn for their poultry and aqua feed production. This will benefit local farmers that are advocates of organic and natural methods of farm