December 21, 2012
Philippines' local hog groups express fear over Thai firm's agricultural control
Local hog groups in the Philippines expressed fear that Charoen Pokphand Foods (CP Foods) may soon control the agricultural sector in the country as the government endorsed the Thai company's plan to build a PHP2.32 billion (US$56.5 million) integrated production project, complete with tax holidays and incentives.
Rosendo So, director of the Swine Development Council, said CP Foods is already operating PHP7.14 billion (US$174 million) worth of agribusiness projects in the country, such as animal and fish feed mills, and swine parent stock production farms in Central Luzon.
"Aside from the newly approved PHP2.32 billion (US$56.5 million) project, there is a document indicating that it is requesting for inspection for importation of dressed chicken. With these projects, it is not farfetched that the agricultural sector, including vegetable production, would soon be controlled by a foreign company," said So.
He sought the help of the Philippine President, Benigno Aquino III, saying since CP Foods is not bringing a "pioneering industry" in the country, the President should rescind the tax incentives given to the Thai agricultural giant.
The Board of Investments (BOI) granted a six-year tax holiday to CP Foods and a 30% tax incentive on importation of corn and other raw materials.
"Granting of tax holiday and tax incentives to a foreign company, which has been operating in the country for years, is not only detrimental to the local commercial players but will serve as a knockout punch to the livelihood of backyard and small and medium commercial raisers," So said.
He lamented how CP Foods' integrated production project was granted tax incentives by the BOI without consultation with the Department of Agriculture (DA) and local industry players. He also said local players were surprised when the BOI approved the CP Foods project because the DA rejected its application three years ago.
He appealed to President Aquino to protect the interests of local hog and poultry growers, farmers and feed manufacturers. Earlier, lawmakers asked the BOI to suspend the grant of tax incentives to CP Foods.
