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

Smuggling is killing local steel angle bar industry in Philippines

I just heard that the Bureau of Customs will file smuggling charges against those responsible for bringing in illegally, onions and garlic. Since late last year, upon the assumption into office of Ruffy Biazon as chief and Danilo Lim as deputy commissioner for intelligence, there has been a succession of raids against those who illegally import onions and garlic. These two agricultural products are being protected by government, that explains why it is illegal to smuggle them in. 

Good that they are filing charges, bad, in a particular way because there are lots of things being smuggled right now in the Philippines that the Bureau of Customs is intentionally leaving out as a priority.

Steel angle bars for example. Insiders from the steel industry revealed that more than government lost half a billion pesos just from smuggling illegal steel angle bars. These steel angle bars came from China, and are being priced 5 pesos per kilo lower than those locally manufactured steel angle bars.

What's worst, these steel angle bars are not at par with the industry standards here, and are expected to really affect the structural integrity of buildings built using these steel angle bars. Locally made steel angle bars have markings and are protected by government. Yet, several unscrupulous steel angle bar importers are making a killing selling unmarked, poorly made China steel angle bars.

Industry insiders have already alerted the Department of Trade and Industry (DTI), the BUreau of Customs, even the Philippine National Police (PNP), yet, until now, no big shipment of illegal steel angle bars has been confiscated. No one has even suffered imprisonment due to smuggling of steel angle bars.

Local manufacturers of steel angle bars are threatening to close down by November if government still fails to rid the country of China-made steel angle bars being smuggled through containerized vans by unscrupulous people.

Based on an internal investigation made by local steel angle bar manufacturers, several groups of Chinese mainlanders are behind the smuggling of containers with steel angle bars.

Mantika politics

Two things that people here in the Philippines are very concerned about---the rising prices of basic commodities and the increasing number of firms closing due to the recession. Prices of rice, chicken, beef and canned goods have risen to astronomically ridiculous heights. Gasoline prices, which some experts including Consumer Oil Price Watch head Raul Concepcion said were overpriced by 8 pesos, are spiralling out of control. What happened to the Senate probe? What happened to calls for these big oil companies to open their books? Nada. Our leaders are really a useless lot.

What's worst---government admits that vegetable and meat dealers are raking huge profits with these price hikes---and they're not doing anything. DZMM interviewed Department of Agriculture secretary Arthur Yap this morning and he admitted that, indeed, suppliers and sellers in the markets are making a killing. DA is not doing anything about it and surely, the Department of Trade and Industry (DTI) is likewise,inutile.

There are, however, some doubts expressed by some people, suspicion even. They say that prices of goods were artificially raised now so that come the SONA, prices will again "normalize". Mrs. Arroyo would then be able to say that job accomplished. Kumbaga, lulutuin muna tayo ng pamahalaan sa matataas na presyo ng mga bilihin ngayon para pagdating ng Hulyo 27, uutusan ng pangulo ang DTI na pipiliting maibaba ang mga presyong ito para maging accomplishment ng administrasyon. Galing ano?