Charoen Pokphand Food Philippines Corp., a wholly-owned unit of agro-industrial giant Charoen Pokphand Group of Thailand, will produce an estimated P1.5 billion in net benefits to the economy yearly, the Board of Investments said Friday.
Trade Undersecretary and BoI director Adrian Cristobal Jr. said CP’s projects would help stabilize the supply of livestock in the Philippines and reduce the prices of hogs and poultry products.
The BoI registered three Charoen projects. Its aqua feeds operations started in January this year while those of integrated broiler began this month. The breeder hogs and slaughter hogs project is set to start in November this year.
The aqua feed and hog projects both obtained non-pioneer incentives while the broiler operations, which were registered under the 2012 Investment Priorities Plan, received pioneer perks.
The board said the incentives of the projects were consistent with the rules of the agency.
“The P2.3-billion broiler project is compliant with the requirements of registration under EO 226 [Omnibus Investment Code of 1987] and the 2012 IPP, which provides that agriculture projects that cost at least the Philippine peso equivalent of $20 million may be granted pioneer status,” Cristobal said.
All three projects will require almost P6 billion in new investments, with the aqua feeds and hogs operations costing P2.26 billion and P1.35 billion, respectively.
The board said that aside from reducing the price of chicken meat, the Charoen project will provide benefits to suppliers of corn, fish meal, cassava chips and other raw materials, as the company will secure majority of its requirements locally.
CP Foods has also committed to introduce efficiency in industry logistics and operations and provide technology transfer and technical improvements to the local industry.
The board stressed that agriculture had always been a priority sector and that it did not discriminate against the local industry.
The BoI approved 49 feeds, hogs and broiler projects from 2004 t0 2012, with 46 of them Filipino-owned.
The hog project of Monterey Foods Corp. in Bukidnon and two feed projects of Pilimico Foods Corp. in Lanao del Norte received pioneer incentives with a six-year income tax holiday, similar to the CP broiler project.