BOI okays US firm's P960-million agri facility

MANILA, Philippines - The Board of Investments (BOI) has approved the grant of incentives to the P960-million agriculture project of American firm Pioneer Hi-Bred Philippines Inc.

The firm will be planting hybrid rice and corn seeds in Tarlac. The hybrid rice seeds can potentially yield 11 metric tons per hectare compared to the five million per hectare of ordinary rice. Likewise, its hybrid corn will be able to produce eight to 11 metric tons per hectare as against ordinary seeds with only two metric tons per hectare.

This application for the 4,147 hectares of land in Tarlac is similar to the firm’s existing hybrid rice and corn seeds project in Polomolok, South Cotabato.

Pioneer Hi-Bred will establish a complete hybrid rice and corn seeds production integrated with seeds processing facility.

The firm will enter into contract growing agreements with various farmers and farm owners in Tarlac with individual land possession of 0.6 hectares on the average. At full capacity, the firm will need around 4,147 hectares of land to be planted with grandparent stocks of hybrid rice seeds and hybrid corn seeds alternately. The seed processing will be done in the Luisita Industrial Park in San Miguel, Tarlac City.

For its planting operations, the firm will employ almost 7,000 contract growers who will have an income of at least P20,000 per crop per cropping cycle per contracted party. Also, the firm will employ 435 people in its hybrid seeds processing plant.

The rice and corn seeds will be sold locally to rice and corn farmers, farmer associations and various dealers and wholesalers in Luzon. The demand in Visayas and Mindanao will be served by their Cotabato operations.

The firm will be given pioneer status but with non-pioneer incentives. The start of commercial operations for this project is March 2012.