Agriculture.ph Blog

Roll back on Boer bucks

One piece of good news we just learned is that the major breeders of Boer goats have rolled back their prices on purebred bucks in an attempt to encourage the use of purebred animals to improve the body size and meat quality of the existing native and other imported breeds in the country.

Rene Almeda of Alaminos Goat Farm in Alaminos, Laguna, had just informed us while we were preparing this page that he had decided to reduce the price of purebred Boer bucks. What used to sell for P24,000 to P30,000 per head has been reduced by half, from P12,000 to P15,000 per head. And the other good news, he said, is that another competitor has followed suit.

He said, however, that the purebred female Boer goats are still priced at P24,000 per head.

The move to reduce the prices of purebred Boer goats is hoped to enable more goat raisers to use purebreds to upgrade their stocks. The government could then buy locally bred purebred animals instead of importing from abroad what it needs in its goat improvement program. It is very essential that purebreds should be used to improve the local animals. If a buck of mixed blood is used, the resulting progenies may not be as uniform as when a purebred animal is used.

What is needed now is to improve the weight of animals for slaughter so that the raisers will be able to increase their incomes from their animals. The native goats usually weigh an average of 18 kilos at slaughter time. If the animals could be improved to 30 to 50 kilos at maturity, the income could be doubled. At present, the live weight price of slaughter goats is P120 per kilo. And so the going average price per head is just about P2,400 to P2,800.

Almeda says that it has been proven that the Boer goat will greatly improve the size and meat quality of the offspring of the native and other breeds now raised by local farmers. In Australia, he said, theBoer goat was used to sire the feral goats there and now that country is the biggest exporter of goat’s meat to the United States.

Written by Zac Sarian

Source: Manila Bulletin

Filipino-Hawaiian investors put up first macadamia-tree plantation in Ilocos Norte

BADOC, Ilocos Norte—About 400 saplings of Hawaiian macadamia trees found a new habitat on a sprawling idle land in sitio Paratong, Saud, Badoc, Ilocos Norte, with the launching of the first macadamia demonstration farm in the country.

Attended by Filipino-Hawaiian investors, together with Mayor Mufi Hannemann of the city and county of Honolulu, Hawaii, and party on November 9, the first macadamia tree plantation in the country will serve as a demonstration farm for the production of macadamia nuts, a high-valued commercial crop in the United States and some parts of Europe.

Valued at P2,000 per seedling, the Filipino-Hawaiian investors, led by Mito Ablan, brought some seeds three years ago and started propagating macadamia in a nursery farm in Tarlac. About 200,000 macadamia seedlings are ready for planting.

Study shows that macadamia can be grown in the Ilocos region, which has a tropical climate like Hawaii.

Like mango trees that abundantly thrive in the Ilocos region, Ablan said macadamia could be harvested from six to eight years depending on the variety.

Ablan, who is also the president of the Ilocos Norte Association of Hawaii, has encouraged fellow Filipinos in Hawaii who have idle land in Ilocos to develop their vacant lots and invest in macadamia farming.

In Hawaii, he said about 19,000 acres is planted to macadamia, and it is bringing almost $700 million in income.

Macadamia nuts grown in Brazil, Australia and Hawaii consist of only 2 percent of the world consumption, Ablan added.

According to Badoc Mayor Thomas Torralba, they have identified more than 3 hectares of private lots which they initially developed as a demonstration farm. Ablan said the first Philippine macadamia demo farm in his town has been established in cooperation with Mac Nut (Phils.) Inc. and the government of Ilocos Norte under the administration of Gov. Michael Keon.

To sustain the project, Torralba said the local government of Badoc would be coordinating with technical experts from the Mariano Marcos State University and the Department of Agriculture for the proper care and maintenance of the project.

Unlike other fruit-bearing trees in Ilocos, Ablan said macadamia nuts could be harvested from June to December as it assures an all-year-round supply of quality nuts. The seeds are not perishable because it is hard.

In an earlier interview, Governor Keon said the provincial government is looking forward to the success of the macadamia plantation in Ilocos province, as he encouraged other municipalities to do the same.

He said farmers would ultimately benefit from the project by giving them other alternative source of income with its global demand.

In his speech, Mayor Hannemann told local officials and Ilocanos here that his government hopes to establish stronger ties and better cooperation with Ilocos provinces geared toward the promotion of cultural exchanges and to solidify economic ties.

Most of the Filipinos in Hawaii are Ilocanos who trace their roots in Ilocos Norte and other neighboring provinces in northern Philippines.

Written by Leilani Adriano

Source: Business Mirror

Brunei, RP to reinforce agricultural cooperation

PHILRICE, Nueva Ecija—A bilateral agreement between the Philippines and Brunei under the Brunei Darussalam-Philippines Agricultural Cooperation Project (Brunei-RP ACP) is expected to increase the exchange of technological expertise and trade of agricultural products between the two countries, among other mutual benefits.

At a recent bilateral meeting, the status of a rice planting project in Wasan was assessed, possible agribusiness ventures in Mindanao assessed, and the possibility of using Brunei’s halal brand on Philippine products explored.

The Brunei-RP ACP is an initiative between Brunei’s Ministry of Industry and Primary Resources (MIPR) and its Department of Agriculture (DA), and the Philippines’ own DA through the DA-Philippine Rice Research Institute (PhilRice).

It aims to increase Brunei’s 3.15 percent rice self-sufficiency level to 20 percent by 2010.

His Majesty Sultan Haji Hassanal Bolkiah and Yang Di-Pertuan of Brunei inaugurated the first harvest of Brunei’s “Laila padi” at Wasan on August 3.

“We have seen a 2-percent- to 3-percent increase in productivity and we’re planning to push more production,” MIPR Secretary Dato Paduka Hj Mohd Hamid Hj Mohd Jaafar said.

Brunei’s agriculture acting director Hjh Normah Suria Hayati PJDSM DSU (Dr.) Hj Mohd Jamil Al-Sufri said harvesting “Laila” shows that the variety can be planted in Brunei, and noted   it may be the key to Brunei’s quest for increased production.

Hilario de la Cruz, team leader of the BD-RP rice technical cooperation project, said, “Brunei rice-farm soils are mostly acid sulfate, which causes yellowing of leaves, stunted growth and lower photosynthetic activity.”  He added that the Laila variety survived despite Brunei’s poor soil type.  Because of this, the rice self-sufficiency efforts will now be brought to the district level, he said.

Hanah Hazel Mavi Biag, science research specialist 1 of PhilRice, said a four-pronged two-year capacity-building program on rice production was likewise proposed for Brunei’s extension workers (EWs) and farmers.

Brunei EWs will be sent to the Philippines for a four-month capacity-enhancement training course and will be tasked to facilitate conduct of farmers’ field schools (FFS) upon their return to Brunei, Biag added.

Biag explained the DA-PhilRice experts will assist trained EWs in establishing FFS, where potential participants will be graduates from Wasan Vocational School. She added that trainings would include actual field demonstrations, focused group discussions and lectures.

Likewise, Filipino rice technical experts will be dispatched to Brunei on technology promotion, varietal development, nutrient management, farm machinery and seed production, among others. Biag noted that the two countries will enter into a standard material-transfer agreement for the exchange of seeds and other rice genetic materials for breeding, varietal testing, adaptation trials and commercial release in Brunei.

Brunei-Philippines agricultural cooperation covers the proposal for investments in agribusiness estates in Mindanao and will explore producing commercial rice and high-value crops in the region.

Brunei’s halal brand was proposed to be used on Philippine products that guarantee products meet quality, safety and sustainability standards for Muslim consumers.

Ghanim International Food Corp., a company run by Ireland-based Kerry group, and the Brunei government will market Brunei halal-branded products, Biag said.

Written by Ramon Efren R. Lazaro

Source: Business Mirror

The bamboo is as popular as ever

Cultivating bamboos as garden trees is becoming more widespread in the Philippines. More landscapers are incorporating this multipurpose plant in their designs to provide an Asiatic look into gardens.  Dr. Merdelyn T. Caasi-Lit of the Institute of Plant Breeding of UP Los Banos has been actively advocating for the revival of the Philippine bamboo industry. She says bamboo has great potential in alleviating poverty and providing livelihood opportunities in the countryside.

The plant is also environmentally-friendly, as it rejuvenates soil fertility. Its root system also controls soil erosion, and it is a very good wind breaker.

The bamboos are a group of woody perennial evergreen plants in the true grass family Poaceae. Some are giant bamboos, which are the largest members of the grass family.  Bamboos are the fastest growing woody plants in the world.   Due to a unique rhizome-dependent system, bamboos manage a growth rate of about 24 inches per day.

In the bamboo species, there are two general patterns of growth: the “clumping” (sympodial) and “running” (monopodial). Clumping bamboo species tend to spread slowly, as the growth pattern of the rhizomes or root mass gradually expand, which is similar to how ornamental grass grows.

“Running” bamboos, on the other hand, need careful attention during cultivation because of the roots’ tendency to spread widely underground and send up new culms to break through the surface. Running bamboo species are highly variable in their tendency to spread; this is related to both the species and the soil and climate conditions. Some can send out runners of several meters a year, while others can stay in the same general area for long periods. If neglected, over time they can cause problems by moving into adjacent areas.

Some of the plants available in the market include the Pole Bamboo, Taiwan Bamboo, Australian Bamboo, Yellow Bamboo, Buddha’s Belly Bamboo, Wamin Bamboo, Variegated Bamboo, Golden Bamboo and the Black Bamboo. These plants are very tolerant and persistent, and will thrive in areas with minimal care, watering or soil fertility.

Aside from landscaping, bamboos have other uses. Culinary experts use edible bamboo shoots (labong) in various Chinese and Filipino dishes.  Bamboos are used as in construction as scaffolding and can reach great heights compared to other wood material.

When properly treated, bamboo forms a very hard wood which is both lightweight and exceptionally durable unlike many other woods. It’s the reason why our Filipino ancestors used it as a building material for houses. It is no longer considered the poor man’s timber but a multi-purpose crop with so many uses.

Cultural Requirements:

Light. Bamboos require full sun or direct exposure to light in order to fully grow and develop. However, some may tolerate partial shade.

Watering. Mature bamboos don’t require too much water.  They have culms or rhizomes which absorb and store water during the rainy season. Thus, they get to have enough supply during summer.  Young plants and newly established plants require regular watering, however. For indoor planting, bamboos are very sensitive to the very dry air-conditioned environment and will require daily watering.  Bamboos are at their fastest rate of growth during the rainy season.

Soil. Bamboos can thrive in almost any type of soil, be it in upland or lowland areas. For urban and indoor gardening, small bamboo species can be planted on large polyethylene or hard plastic pots, which can be moved in and out of the house or office building.

Fertilization. Bamboos also don’t require too much fertilization. The plant also recycles soil nutrients by shedding a lot of leaves, which easily becomes compost fertilizer for itself.

Pest and diseases. As of now, the bamboo has no serious pest and disease problems in the country. Those who import the plants from abroad should be very careful in choosing the quality of plants they bring in and quarantine them first before mixing them with other local plants.

Propagation. Bamboos are often times propagated by division of their culms or through rooting of stem nodal sections, though some species can produce seeds.  However, bamboos seldom and unpredictably flower, and the frequency of flowering varies greatly from species to species. Once flowering takes place, a plant will decline and often die entirely. Collectors desiring to grow specific bamboo can typically obtain their plants as divisions of already-growing plants, rather than waiting for seeds to be produced.

Written by Justin Morelos

Source: Manila Bulletin

Farmers begin to see value in crop insurance

YUCHENGCO-LED Malayan Insurance Co. is expecting to book millions in insurance premiums from its crop insurance offering as more farmers realize the value of protecting themselves against losses from typhoons.

Enofre G. Manuel, vice-president for retail lines at Malayan Insurance, said the company is expecting as much P7 million in insurance premiums from its Agri-Asenso product by yearend.

This is a weather index-based insurance that provides protection to farmers in case typhoons ravage their crops.

The product offering was made in partnership with Micro Insurance Associates Agency, Inc., the Philippine unit of global insurance intermediary MicroEnsure.

MicroEnsure uses global positioning system (GPS) technology to see whether a typhoon has hit insured farms.

Insurance premiums are priced at 8-10% of cost of production. This means that a farmer will have to pay about P100 in premium per P1,000 in his production cost.

Mr. Manuel said Malayan will offer the product to several provinces in the Central Luzon region as well as the Caraga Administrative Region in Mindanao, after it was first sold in Iloilo in May.

He said Malayan collected P2 million in insurance premiums from some 1,000 farmers in May, and 2,000-3,000 more farmers are expected to avail of the product as the second planting season begins in in September.

“We expect other farmers to come in. We also expect those who have previously availed to renew [contracts with us],” Mr. Manuel said last week.

Malayan Insurance is the largest non-life insurer in the country with assets amounting to P11.57 billion as of end-2008. — Gerard S. dela Peña

Source: Business World Online

Next crises: Food and water

REGARDED as the country’s “Prophet of Boom,” Dr. Bernardo Villegas of the University of Asia and the Pacific (UA&P) on Thursday sounded a surprisingly ominous tone. He warned that the next crises the country will face in the next few years would be on food and water.

In a presentation at the Mapfre Insular and Insular Life CEO Forum and Economic Briefing, Villegas warned that the growing number of people, particularly in China, could pose a threat to food security and water
resources.

With this, the country and private businesses must adopt a proagricultural investment stance that will increase funds to help farmers drum up production, improve their access to farm implements and postharvest facilities, modernize their processes, improve irrigation facilities and create farm-to-market roads.

“The next crisis will be food and water. This is why we need to fix our farm-to-market roads and irrigation facilities. We can become an important source of food for China,” Villegas said in his presentation, titled “The Philippine Economy on the Road to Recovery,” delivered in Makati City.

“China will turn to its neighbors in Southeast Asia for food. We need to have a surplus of food to be able to [meet the demand],” he added.

Villegas said, however, that when the government, businesses or the next administration formulate programs and projects to help the agriculture sector, there is a need to focus on high-value commercial crops  such as bananas, mangoes, pineapples and all kinds of vegetables.

He also said “large-scale” investments in agriculture are not necessary since some crops like rice “do very well” even in small tracts of land.

Villegas said this is also the argument against the common misconception that the Comprehensive Agrarian Reform Program (CARP) failed due to fragmentation.

He said CARP could have been more successful if the government only provided support or extension services
to farmers who were recipients of the program. He said the failure of the CARP was due to the government’s neglect in providing post-harvest facilities, irrigation and others to assist farmers.

“The failure of CARP is that we gave farmers a hectare of land and told him, ‘D’yan ka na, ikaw na bahala [It’s yours; fend for yourself],” Villegas stressed.

Villegas said the government’s neglect of agriculture has set back the country in agricultural development by 20 years. He said it was only during the time of President Estrada, through his agriculture secretary and now Sen. Edgardo Angara, that the government started to reinvest in agriculture.

He said under the term of President Aquino, the government was busy defending democracy through the seven coup d’états that rocked her administration, while the Ramos years focused on the government’s struggle to put “light” back to the streets of Metro Manila.

This is why, Villegas said, the government was only able to start reinvesting in agriculture during the brief term of President Estrada. He said in the two years that President Estrada was in office, the government embarked on developing or rehabilitating irrigation facilities and constructing farm-to-market roads.

This, Villegas said, was continued in the Arroyo administration but should not stop in 2010 when the President steps down. The next administration should continue these investments as well as increase investments in education.

Investing in education could allow the local business-process outsourcing (BPO) industry to move from just being call centers to being knowledge-based centers, according to Villegas. He said China is already preparing to invade the call-center industry by teaching English in schools.

When that time comes, Villegas said, there would be more Chinese who speak very good English than Filipinos. He thinks shifting to a knowledge-based BPO industry like higher-value services, such as animation and architecture, could be a more stable source of BPO growth.

It would also do well for the next administration to focus on allowing the peso to depreciate to around P52 to $1—in order, he explained, to drive domestic consumption through overseas Filipino workers’ (OFW) remittances, as well as provide some incentive to exporters who may be prejudiced by a strong peso.

This year, he expects OFW remittances to reach P17 billion, and projects that the peso-dollar exchange rate will be at P50 to $1. This will mean that OFW families will have enough to spend and boost domestic consumption toward the end of the year.

A depreciated peso, Villegas added, will also encourage food manufacturers to start looking for new markets, particularly in Indonesia where there are at least 220 million people.

He said companies like Nestlé have already started this trend and such can continue, especially if the next administration also boosts agriculture production.

Written by Cai U. Ordinario

Source: Business Mirror

Agriculture in Lanao del Norte

Lanao del Norte is rich in agricultural and fisheries resources. The problem is that although the province is very peaceful, there is that persistent perception by outsiders that the province is war-torn like some other places in southern Mindanao.

This wrong perception has somehow affected the progress in agriculture in this part of Mindanao. Gov. Mohamad Khalid Dimaporo, the youthful provincial executive (29 years old), is doing his best to erase that perception so that investors will go to his province.

The province is a major rice producer in Mindanao. It has 15,000 hectares of irrigated and upland rice farms that produce relatively high yields. However, most of the harvested grains, 60 to 70 percent, is bought by outsiders. What the governor would like to happen is that the grains should be milled right in Lanao del Norte and the byproducts used for the manufacture of animal feeds. That would provide more income and employment for the farmers and local entrepreneurs.

The locally manufactured feeds could enhance livestock and poultry production in the province.

Fortunately, a grains processing center funded by the Department of Agriculture and the local government is under way. That will provide the farmers a place where their harvests could be processed into products of higher quality which could command better prices. There are also two other grains processing centers under way fully financed by the provincial and municipal governments.

The One Town One Product (OTOP) program is also being implemented now. And the various products of the different towns were showcased in an agri-fair during the weeklong celebration of the 50th anniversary of Lanao del Norte. Tubod, the capital town, is known as the banana capital of the province. No less than 27 varieties of banana are found in the town. Of course, the commercially-produced varieties are cardaba and lakatan. These are shipped to other commercial centers like Cebu, Cagayan de Oro and others.

The cardaba is made into banana chips and other preparations.

Of course, Lanao del Norte produces a lot of seafoods, particularly crabs and prawns. The crab capital of the province is the town of Lala where some 3,000 hectares of fishponds are devoted to crabs and prawns. For several eyars now, Lala has been staging the yearly Alimango Festival initiated by Mayor Santiago Bontilao about nine years ago. This is held every March 22, the foundation anniversary of the town.

More about the agricultural projects in Lanao in our future writings.

Written by Zac Sarian

Source: Manila Bulletin

Philippine Tobacco Flue-Curing okays additional loan to subsidiary

LISTED Philippine Tobacco Flue-Curing and Redrying Corp. (PTFCRC) in increasing its loan to subsidiary Baesa Redevelopment Corp. (BRC) for the development of its warehouses in Quezon City into a commercial center.

In a filing to the stock exchange, PTFCRC inked a supplemental loan agreement with BRC to increase its loan from P40 million to P75 million.

“It was determined by [BRC] that the aforementioned amount is not sufficient to cover the costs for the redevelopment of [the] warehouse properties,” said the company in a statement.

Also included in the agreement is an option for PTFCRC to increase the amount beyond P75 million should the subsidiary deem the funding insufficient. Interest on the loan, originally pegged at 8 percent per annum, was reduced to 6 percent.

PTFCRC owns the property which currently houses five warehouses BRC and is covered by a lease contract. In its most recent filing, the parent firm said renovation for Warehouse 1 is ongoing and is estimated to cost P116 million. Negotiations for potential clients are “underway,” said the company.

Last year, PTFCRC said a primary client for the redevelopment, located in along Quirino Highway in Baesa, Quezon City, will be a Robinsons Supermarket.

PTFCRC said the planned commercial project is expected to serve nearby areas of Caloocan, the northern part of Quezon City, and even up to Valenzuela.

Up to May 31, PTFCRC reported a 16.9-percent increase in net income to P6.96 million. Revenues rose 2.4 percent to P51.27 million, the bulk of which were generated from rental income from the warehouses.

PTFCRC was incorporated in March 1951. In 1994, it consolidated its tobacco operations in Candon, Ilocos Sur. The company’s tobacco operations had been incurring losses primarily due to declining export and domestic prices, both in terms of volume and price.

Since there were no prospects of a turnaround in the near future, the company decided to phase out the tobacco business in 2002. The facilities are currently offered short-term lease agreements and tolling deals.

Written by Miguel R. Camus

Source: Business Mirror

Toward Agricultural Sustainability

THE development of the Filipino agricultural sector is central to the economic and social progression of the country, especially considering the potential impact the industry can have on poverty and unemployment. In 2007 agriculture activity already employed nearly 12 million people, equating approximately to one-third of the country’s entire labor force, while also accounting for nearly one-fifth of gross domestic product (GDP) at 18 percent.

The government’s primary focus is on food security for the country’s growing population. In order to accomplish this goal, the Department of Agriculture has set its eyes on maintaining at least 5 percent annual growth in the sector over the long term.

Underlining the importance of agriculture in the Philippines is the fact that the country’s population growth rate has hovered over 2 percent for the last two decades—during which time the population has jumped from 60.7 million in 1990 to over 90 million today. The agricultural sector—unable to provide food for the country’s swelling population—has been forced to import rice and other staple foods from neighboring countries such as Vietnam and posted a $1.75-billion agricultural trade deficit in 2007. Moreover, agricultural production, in particular the growing of rice, provides a considerable number of jobs due to its labor-intensive requirements and will likely play a large role in stemming growing unemployment.

Arthur Yap, the secretary of agriculture, highlighted the government’s strategy in a recent interview, stating that, “In the short term, the Department of Agriculture’s primary goal, as set by President Gloria Magapacal-Arroyo, will be to achieve food security…. We are aiming to increase production and lower costs as a hedge against rising international prices.”

The year 2008 saw the Philippines’ agricultural production grow by 3.92 percent in the face of harsh economic conditions produced by the ongoing global financial turmoil. Though the industry failed to achieve its targeted 5-percent growth, last year’s performance seems to have maintained the industry’s forward momentum. However, a slow start to 2009 will certainly raise a few eyebrows as agriculture slowed even further to 2.02 percent in the first quarter of 2009.

The crop subsector, which expanded by 4.05 percent in 2008, fell sharply in the first quarter of 2009, posting near-flat growth of 0.61 percent. While the country’s production of one of its largest crops, rice, increased by 5.13 percent, production of its other primary crop, corn, fell by 3.39 percent—partially offsetting gains in other areas. The news of near-flat growth in the beginning of the year is particularly worrying as crop production represents 49 percent of total agricultural production.

Meanwhile, the livestock segment, which represents 12 percent of total agricultural production, has turned around last year’s 1.06-percent contraction by posting a first-quarter increase of 2.37 percent. A decrease in hog production was blamed for last year’s decline, an area that appears to have been restored. The final subsector, fisheries, fell slightly from last year’s 5.78-percent expansion to register 3.49-percent growth in the first quarter of 2009. Currently, the fisheries subsector contributes 24 percent to total agricultural production, primarily due to aquaculture and commercial fishing.

Several factors could determine agricultural growth, with the government clearly playing an important role through its FIELDS (Fertilizers, Irrigation, Education, Loans, Dryers and Seeds) program. However, budgetary restraints dictate that government assistance will not be enough to sustain the kind of strong growth that is required to attain adequate domestic food production. Organization and cooperation among farmers has been ongoing for years and will continue to play a vital role in the industry’s development.

Cooperative groups have existed in the Philippines for decades and often provide the necessary platform for farmers to ensure maximum utilization of lending, borrowing, production and distribution. Probably the most important function of the cooperative lies in its ability to access loans that would have been otherwise unattainable to its individual members.

Rural banks and some larger financial institutions, such as the Land Bank of the Philippines, specialize in providing liquidity to the rural marketplace. Land Bank currently operates a P185-billion ($3.86-billion) loan portfolio, of which at least 65 percent goes to small-scale farmers, fishermen and other rural enterprises.

According to Gilda Pico, the president and chief executive officer of the Land Bank of the Philippines, “Cooperatives have organized and galvanized small- and medium-sized rural farmers to the extent that lending from the financial sector is becoming more and more viable. This increase in liquidity in rural areas is vital from an investment standpoint and we hope to continue this trend in the coming years.” She later added, “Infrastructure development is a key driver of agricultural growth and we will continue to provide the necessary funds to build and upgrade roads, irrigation channels and other required infrastructure for the sector.”

Regardless of the success cooperatives have had in organizing agricultural producers, it is essential that the sector strengthens these associations moving forward. Not only are cooperatives a vital vehicle for attracting loans and investments, they are a critical platform for farmers to discuss key issues concerning production and distribution—thereby making agricultural production more efficient.

Despite the attention currently being showered on the importance and growth of overseas foreign worker remittances, the recent decline of exports or the potential of a rising business-process outsourcing industry, the reality has not changed that the agricultural sector is one of the most important industries in the country.

Written by Adam Jones, Editorial Manager

Source: OBG

BOC intercepts Thai rice shipments

THE Bureau of Customs (BOC) has intercepted high-grade rice from Thailand, a highly regulated cargo, as it competes with the produce of local farmers.

The BOC and National Food Authority (NFA) on Thursday inspected some 20 containers carrying Thai rice believed to be worth around P32 million. The rice cargo was apprehended by the BOC’s Customs Intelligence and Investigation Service at the Manila International Container Port in May.

The said cargo, which arrived in two shipments from Bangkok in May onboard the Maersk Buffalo, was monitored by customs officials because of the “high risk” nature of the regulated commodity.

A month after the shipments arrived, consignee Kaye International Trading Corp. hadn’t filed the import entries for the rice, which deems the cargo abandoned and forfeited in favor of the BOC.

According to BOC Director Filomeno Vicencio Jr., a review of the shipments’ import documents show that the cargoes were properly declared in the bill of lading, but the goods were not covered by any import permit from the Department of Agriculture and NFA, the main government agencies that can give such documents to importers.

Vicencio said they’ve suspected the importers were hoping to obtain import permits for the shipment before filing for entry within the 30-day period allowed by the government.

“Even if they filed for import permit when the shipments arrived, they will not be granted one because they have to file before the date of exportation from the country of origin,” Deputy Commissioner Jairus Paguntalan said.

The forfeited shipments will be immediately auctioned off, BOC Commissioner Napoleon Morales told reporters.

This is the second apprehension made by the BOC in two months after a shipment of smuggled onions—also classified as a high-risk commodity—was seized two weeks ago.

The NFA plans to import about 1.5 million metric tons (MT) of rice this year, and will allow the private sector to also import up to 500,000 MT. The Philippines is the world’s biggest rice importer.

Last year the government bought 2.35 million MT of rice at an average price of $750 per MT for a total contracted price of P75 billion.

Written by VG Cabuag

Source: Business Mirror