MANILA, Philippines - The Department of Agriculture (DA) is asking the Department of Trade and Industry (DTI) to come up with measures that can level the playing field for local hog raisers who have to contend with the P2.3 billion integrated farm project of Thailand-based Charoen Pokphand Foods Philippines Corp. (CPFPC).
Hog raisers are unhappy with the grant of tax incentives to the company, warning that the grant of tax perk to the Thai firm threatens the swine industry.
The BOI has defended the grant of tax incentives for the project, saying it is consistent with the Invetsment Prioritites Plan.
CPFPC is a unit of Thailand’s Charoen Pokphand Foods Public Co. Ltd. Its projects in the country, which is expected to begin commercial operations in the first quarter of 2013 include hog parent stock farms located in the provinces of Tarlac and Bulacan as well as a hatchery in Nueva Ecija. It will also operate broiler farms in Bulacan.
The company’s parent hog stock capacity will be 25,453 heads and 3,647 metric tons slaughtered hogs.
Agriculture Secretary Proceso Alcala said his department was not properly consulted on the matter.
“This was not explained clearly to us before. The consultations were lacking,” he said.
He said the livestock industry is also upset over the provision of incentives because players have only just begun to cooperate with the government in instituting reforms within the industry.
“Although this is a big investment, they should have also considered the welfare of the local industry,” said Alcala.
“Ever since the beginning of this administration, we have appealed to livestock growers to works towards having a steady supply and a steady price. And they have kept their word. Before, there were perceived shortages that were actually false shortages done to drive up prices. This was fixed,” he added.
Alcala said he has formally communicated with the DTI to conduct consultations with the industry.
“There must be proper consultation. If they (BOI) will give incentives to foreign investments, they must also provide investments to the local industry,” he said.
The agriculture chief credited the local livestock industry for its contributions to improvements in meat safety in the country.
“We would not have attained our FMD-free (foot-and-mouth disease free) status without their cooperation,” he said. “And because of this, we now have the opportunity to export because of our own efforts. And now, here comes a giant who will try to produce everything and can compete with local industries.”
“I don’t think the playing field is fair as of now,” he said.