Government inaction stalls SL Agritech expansion

MANILA, Philippines — SL Agritech Corp., the largest producer of hybrid rice and seeds in the country, is experiencing difficulty in expanding its market particularly in China due to still unresolved quarantine protocols supposed to be fixed by the government.

SL Agritech chairman and chief executive officer CEO Henry Lim said its plan to expand its rice mill facilities would largely depend on its ability to tap the Chinese market for high-quality rice varieties.

“It all depends if we can supply China with rice because the procedure with China for rice quarantine protocol is still not done. Hopefully, it will be finished within the year,” Lim told reporters.

The agency Bureau of Plant Industry is tasked with resolving the quarantine protocol with China.

“I don’t know what’s taking them long. We still have to ask BPI. They told me before it would only take one and a half years (to resolve it),” Lim said.

“There are a lot of prospective clients in China. They can buy as much as 100 containers per month because China is importing high quality rice at the moment,” he said.

SL Agritech is expected to finish by June a new rice mill in Victoria in Tarlac, which will add to the existing mills in Laguna and Nueva Ecija.

 If it gets the Chinese market, Lim said another rice mill might be in the works to meet the new demand.

Right now, less than 10 percent of the company’s production goes to export. Tapping the Chinese market, as well as the US market will allow SL Agritech to increase its exports share.

“If we will be allowed to export to China, it can increase to as much as 30 percent,” Lim said.

Meanwhile, SL Agritech is planning to list P2 billion to P2.5 billion worth of commercial papers  in July or August to fund its expansion plans.

SL Agritech produces the Dona Maria brand of premium rice in Miponica and Jasponica varieties. It holds about 70 percent of the total market share of hybrid variety in the Philippines.

The company has various partnerships for hybrid rice seed production in Asian nations such as India, Vietnam, Bangladesh, Indonesia and Cambodia.