Monday, February 11, 2013

Charoen Pokphand Foods Philippines Corporation---why bar a legit company from operating in RP?


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

4 comments:

  1. 7,000,000 jobs will be lost because of this

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  2. this is just so superficial. the real effect of this foreign company in to our country would
    -BUTCHER THE LOCAL HOG AND POULTRY BUSINESS
    -7,000,000 JOBS (FARMERS) WILL BE LOST
    -UNFAIR TO THE LOCAL HOG AND POULTRY industry players who never received a 7-YEAR TAX HOLIDAY OR SUBSIDY FROM THE GOVERNMENT
    -The Thai company will flood the local market with its huge production of hog and poultry that could annihilate the small and medium backyard growers in the country
    -Aside from the seven-year tax holiday, the Thai company would also enjoy tariff free importation of parent hogs, machines, corn and other feed ingredients, thus gravely affecting the corn and sugar cane farmers

    Now in what area thus this benefit the Philippines

    ReplyDelete
  3. Oh really? Do you buy fresh chicken in the market? Look at the prices now they are very high! How about the chicken vendors in the market? They are suffering from the monopolization of big farmers. Local farmers control the price. We need more investors like this so that the prices of chicken in the market will go down

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  4. Ms Tamin you I suggest you should research data from BOI. CP will only produce 1.5% of the total poultry meat demand. Moreover, the country is IMPORTING about 127,000 MT of poultry meat every year and this is increasing. By the year 2015, the ASEAN will integrate meaning poultry meat can now be imported without tariff. We will be flooded with imported poultry meat from Thailand. Which would you chose, locally produce CP chicken or imported? There is no 7 year income tax holiday incentive given by BOI as you claim. Furthermore, CP will not enjoy the full 6 year benefit because it will suffer losses during the first 2 years of commercial operation. That is how PS poultry operation works. CP is planning to contract grow corn so more local corn farmers will benefit. According to them they will also contract grow broiler chicken in the near future. They will impart new technologies to our farmers. We are far far behind in terms of poultry growing. Mr. anonymous is right, the consumers will benefit if the prices of poultry meat will go down. The 7MILLION??? farmers you claim be lost is NOT TRUE at all because the demand for poultry meat is increasing dramatically. There is enough room for additional playes like CP. Regarding the tariff free importation of corn and other feed ingredients, these will be so by 2015 in the ASEAN region so what can you do?

    ReplyDelete

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