Latest Stories

Thai broiler firm airs concern over tax perks, protests


Charoen Pokphand Foods Philippine Corp. (CPF) on Wednesday defended the tax incentives it receives from the government, claiming that its current production is hardly making a dent in the local livestock industry.

Speaking to reporters for the first time since local livestock growers started their protest against the company, CPF senior vice president Arnnop Jeanprasert said that the current production of the company is negligible compared to the weekly meat consumption of the country, which has been pegged at 13.7 million birds.

“If the Philippine government decides to remove or reduce the incentive already given us, we cannot do anything but respect the decision. However, it would keep us seriously wondering what was our fault and where did we go wrong,” Jeanprasert said before giving reporters a tour of the company’s broiler farm in San Ildefonso, Bulacan.

CPF, a unit of the Thai multinational conglomerate, started its broiler production in October 2012. It currently produces 50,000 live chickens a week.

Jeanprasert said the company’s total investments in three projects—aqua, feed mill and livestock—has already reached P7 billion.

Because the company’s investments are way above the minimum $20 million set by the Board of Investments in qualifying for incentives, the company was granted tax perks.

The CPF was given a four-year income tax holiday for its swine project, and six years for its chicken project. In both projects, the company may enjoy duty-free importation of capital equipment although it is required to pay the compulsory 12-percent VAT.

“Our production now is not even 1 percent of the total demand for chicken. We don’t know how we are affecting the local industry,” said Eligio Val Manlongat, assistant general manager of CPF’s agro-industrial business group.

Farmers and livestock raisers have been up in arms against the company and the BOI, saying the perks granted to the Thai subsidiary will upset the local industry by flooding the market with cheaper products.

Protesting groups have called on the Department of Agriculture and Malacañang to take away the incentives.

But the official warned the Philippine government that the withdrawal of the incentives would harm the relationship of the country with foreign investors.

“It would send a very negative message to other investors thinking of putting money and doing business in this country,” Jeanprasert said.

The company maintains farms in Floridablanca, Pampanga; Gerona, Tarlac; and Guiniginto and Ildefonso, both in Bulacan. It introduced new technologies that are 10 percent more efficient compared with the usual mode of livestock production, the official said.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , foreign investments , Government , livestock , Philippines , Tax Incentives , tax perks , taxes , Thailand

  • Handiong

    BOI should just hold its ground, period.

  • http://pulse.yahoo.com/_V6JTYBZXUSXIDCD67ACZK7NUKM Joseph

    If the farmers and livestock owners are envious of the incentives, why don’t they form a corporation, take out a loan, start their own company, and get the same incentives? This is just typical and stupid.

    Instead of trying to think and be more competitive, they just blame to gov’t and the company. This is true whether the company is foreign or local, Filipino, Filipino with Chinese ancestry, etc.

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Quezon City cops carry crosses to atone for their sins
  • Tens of thousands travel by sea this Holy Week
  • Police: Dad smothered toddler to play video game
  • 7 killed in shooting in China-Vietnam border
  • Chinese trade group to mediate shoe factory strike
  • Sports

  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Can Spurs get back at Heat? Can they survive West?
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Whoopi Goldberg debuts as marijuana columnist
  • ‘X-men’ director accused of sex assault on teen boy
  • Business

  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Oil prices mixed ahead of long Easter weekend
  • Technology

  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • DoH denies Filipino nurse no longer positive for MERS virus
  • WHO warns vs spread of MERS-Cov, urges vigilance in taking precautions
  • Last call for nominations to ’14 Presidential Awards
  • San Francisco business coalition slams proposed tax on sugary drinks
  • A ‘time-travel’ production of ‘Les Miserable’ at Stanford
  • Marketplace