BoI, DA to address controversial granting of incentives to Thai firm

The Department of Agriculture and the Board of Investments will meet with stakeholders from the local poultry, hog, and feeds industry this week to discuss the BoI’s granting of incentives to Thai firm Charoen Pokphand Foods Philippines Corp.

The move has been criticized by local hog and poultry raisers and feed producers as being detrimental to the agricultural sector.

While maintaining that granting fiscal incentives to Charoen Pokphand for its P2.3-billion integrated project in the country is consistent with national policy and rules, Trade Undersecretary and BoI managing head Adrian Cristobal Jr. welcomed the opportunity for dialogue with the stakeholders.

“The outcomes of these discussions will help us review and study closely the opportunities and gaps in the industry,” Cristobal said.

Cristobal said the Thai firm’s registration was consistent with the BoI’s Investments Priorities Plan, which includes agriculture or agribusiness as a preferred investment activity.

The Thai project includes parent stock farms in Tarlac and Bulacan as well as a hatchery in Nueva Ecija and broiler farms in Bulacan. The farms, which are set to begin operations in February, are expected to produce up to 21,847 metric tons annually.

Cristobal said the BoI continues to approve, register and grant incentives to qualified agri-projects. These projects include, among others, feed, hog and poultry projects, which range from micro to large-sized projects.

From 2004 to September 2012, BoI has registered 45 feed, hog and poultry projects. Of these, three are owned by CPFPC while the rest are Filipino-owned enterprises.