Perks for Thai agri giant hit

Livestock producers currently working on an industry roadmap to develop the local industry are crying foul over incentives granted by the Board of Investments (BOI) to Thai-led Charoen Pokphand (CP) Foods Corp. for an integrated poultry production project.

This was bared by Edwin Chen, a director of Bounty Fresh Food Inc. and president of the Pork Producers Federation of the Phils. Inc.

Bounty Fresh had formally expressed its objection while CP was still applying for incentives and with its registration, livestock producers have told Department of Agriculture officials about their dismay, Chen said.

“We were even asked to create a roadmap. We thought this government is different and going to help us local producers. But just as we are nearing completion of our roadmap, they granted CP Food, a Thai food conglomerate, income tax holiday for six years,” Chen said.

Granting pioneer status to CP, which makes them eligible for at least six years of income tax holidays, is “too much” considering that they are putting up a facility in Central Luzon which is well populated with many livestock farmers, including poultry raisers, Chen said.

“They are not in a remote location and they are not introducing new technology. Their investment of P2.32 billion is not big as well. Can we get the same incentives when we go to Thailand? No,” Chen said. “The playing field is not level for Filipino firms in our own country.”

The entry of foreign firms into the Philippines’ agriculture industry is seen as a double edged sword: while it brings investment and creates local jobs, it is seen as a threat to local farmers who do not have the massive capital and landholdings to compete with foreign-led operations. Even in other countries from Vietnam to Russia, CP has dominated the markets it has entered.