The Department of Agriculture said there is a need for new investments to put up additional production capacity to meet with the increasing demand for chicken.
This certification was issued by the DA in relation to the project of Primepoint Resources Corp., which is seeking income tax holiday incentives with the Board of Investments, for the production of a broiler day-old chicks under a contract agreement with San Miguel Corp.
Primepoint Resources’ plant to be located in barangay San Juan, Samal, Bataan, will have total capacity of 96 million egg sets per annum or 6.4 million per month.
“The Department of Agriculture favorably endorses the project to the Board of Investments for registration and possible availment of incentives,” stated the certification signed by DA Regional Executive Director Andrew B. Villacorta.
The certification cited the project for being in line with the DA’s policy to encourage agriculture production and food processing activities and services in relational to the government’s goal in achieving a national food and agricultural program for self-sufficiency.
“There is increasing domestic demand for chicken and therefore the need for new investments to put up the additional production capacity from the proposed project,” stated the certificated dated February 21, 2013.
It could be recalled that the BOI and the DA were at loggerheads over the BOI’s decision to grant incentives to the $20 million integrated broiler, hogs and feeds project of Thai-owned Charoen Pokphand Foods Philippines Corp. (CPFP), which is going to serve the domestic market.
The DA certification belies claims from the private sector, which also raised howls over the CPFP project stressing there is a supply glut in the domestic market, which is largely composed of backyard producers that do not enjoy incentives.
In 2012, the BOI registered three CPFP projects, namely, Aqua Feeds project (P2.26 billion) which started operations in January 2013, the Integrated Broiler Production (P2.326 billion) which started operations in February 2013, and Breeder Hogs and Slaughter Hogs project (P1.35 billion) scheduled to start operations in November, 2013.
All three projects have been granted pioneer status by the BOI, though the aqua feeds and hog projects are enjoying non-pioneer incentives. On the other hand, CPFP’s broiler project, which was registered under the 2012 Investments Priorities Plan, has been granted entitlement to pioneer incentives.
The BOI said that CPFP’s P2.3 billion broiler project is compliant with the requirements for registration under Omnibus Investments Code of 1987 and the 2012 IPP, which provides that agriculture projects that cost at least $20 million may be granted pioneer status. (BCM)