BPI pushes for agribusiness devt in Luzon, Mindanao
Published on Thursday, 07 March 2013 19:38
Written by Marvyn N. Benaning / Contributor
BANK of the Philippine Islands (BPI) is betting heavily on agriculture
this year and increasing its involvement in the sector by launching a
loan program designed to benefit livestock raisers in Central Luzon, as
well as expanding business corridors in Mindanao like the cities of
Cagayan de Oro in Misamis Oriental province, General Santos in South
Cotabato province and Davao.
Through its BPI Agribusiness Solutions, the bank has created a program
that would support poultry raisers, hog farmers and entrepreneurs and
small companies engaged in cattle fattening.
For starters, BPI was to launch BPI Agribusiness Solutions at the
Holiday Inn Clark hotel in Pampanga province's Clark ecozone on
Thursday, with BPI Executive Vice President and Corporate Banking Group
head Alfonso Salcedo Jr. expected to hold a media briefing and present
an overview of the program, along with BPI Senior Vice President Budong
SL. Castro and BPI Assistant Vice President Pearl Padilla.
Agriculture Undersecretary for Administration and Finance Antonio Fleta
was also expected to deliver a message on behalf of Agriculture
Secretary Proceso J. Alcala.
Andrew Bateson of Genus Pig Improvement Co. (Genus PIC) was to present a
paper titled "Genus PIC: Helping Nourish the World" followed by Vincent
Borromeo, who was scheduled to discuss "World-class Pig Production in
the Philippines."
The bank was also set to tackle "BPI Sustainable Energy Finance," which
was expected to show that agribusiness companies could use farm waste as
an energy source and thus reduce their dependence on fossil fuels.
BPI Vice President JM Sangco, also head of North Luzon Provincial
Lending, was to deliver the closing remarks.
Technical lectures on livestock production and poultry management would
cap the event.
Highly important
"THE agriculture sector is highly important for the Philippines as it
promotes food security. Agriculture promises to be the key to alleviate
poverty among millions of Filipinos who depend on farming and
livestock-raising. A stronger agriculture sector is needed to sustain
growth and food sufficiency," BPI said.
The bank stressed that a strong participation in agribusiness
development is part of its corporate social responsibility.
What compelled BPI to launch its agribusiness campaign this year is its
strong belief that the Philippines will be a big player in the livestock
industry in Southeast Asia. The bank noted that the country is free of
the food-and-mouth disease that has been the bane of cattle raisers in
the region.
Moreover, the Philippine poultry industry has been free from the
bird-flu virus that has decimated the stocks of chicken and duck raisers
in mainland Asia.
BPI also said agriculture has contributed 12.3 percent or P11.9 billion
of the country's gross domestic product in 2011. The labor force in
agriculture is 13 million, or 35 percent out of the total labor force of
37 million.
"BPI Agribusiness Solutions currently lends to piggery, poultry and
other agri-related businesses like fish production, fruits, vegetable
and crop production, post-harvest operations and food processing,
agricultural trading and sustainable/renewable-energy financing," the
bank said.
"Considering that both pork and poultry products are top staple foods
after rice and fish, there is a projected 10-percent increase in demand
for pork and about a 4-percent increase for chicken in 2013," it added.
"Currently, imports supply 153,000 metric tons [MT] of pork [6.82
percent of total consumption] and 179,000 MT for chicken [10.86 percent
of total consumption]. It is in these two big windows of opportunity
that BPI has decided to go big in 2013," the lender said.
Two agriproducts
FOR this year, BPI will unveil two agriproducts. The first, "BPI
Agribusiness Solutions Commercial Hog Breeding and Fattening," involves
the partnership between BPI and the Pig Improvement Co. (PIC) as the
technology provider and breed supplier for prospective clients. The PIC
targets to expand its sow level from 120,000 to 180,000, a 60,000
sow-level increase representing a 30-percent share of the total sow
level population.
The second, "BPI Agribusiness Solutions Poultry Contract
Growing/Commercial Broiler Operations," entails financing
qualified/prospective poultry contract growers of San Miguel Foods Inc.
(SMFI), which is bidding to increase its bird population by 5 million in
2013. Other integrators such as Bounty Fresh and other commercial
poultry integrators will also be tapped, depending on their expansion plans.
BPI said it is venturing into agriculture in consonance with the
Agri-Agra Law, which mandates banks to apportion 20 percent of its total
loan portfolio for agri-agra loans.
"If banks are unable to meet this ratio, they will be penalized by the
Bangko Sentral ng Pilipinas. BPI, like all other major banks, gets
penalized every now and then. BPI would therefore like to ensure full
compliance to this law from 2013 onward through the BPI Agribusiness
Solutions," the bank said.
BPI Agribusiness Solutions is concentrating on farm-growth corridors in
Central Luzon and the cities of Cagayan de Oro, General Santos and
Davao, and supporting existing clients of integrators like the PIC, the
SMC, Bounty Fresh and locals who want to expand their businesses,
whether they are BPI clients or not.
Middle-market companies, or those valued between P15 million and P100
million, are also qualified to benefit from BPI Agribusiness Solutions,
along with clients not engaged in agribusiness but are willing to
venture into it.
Existing BPI Preferred or High Value clients engaged in the agri/agra or
related businesses like piggery, poultry, feed mill, slaughter house,
chicken dressing, meat shop, rice mill, corn mill, fisheries, fruit,
vegetable and crop production, and agricultural trading are welcome to
join, according to the bank.
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