Cargill gets BOI approval for chicken production project
The Philippine Board of Investments (BOI) has approved the application of Cargill Joy Poultry Meat Production Inc. to upgrade the status of its P2.08 billion marinated cut chicken production project from non-pioneer to an inclusive business (IB) model.
The project, which started operations in 2017 with a production target of 79,465 metric tons per year (MTPY), just recently qualified in the agency’s Investment Priorities Plan (IPP) criteria for IB Models.
“Cargill Joy has the potential to create inclusive impact in Batangas by engaging the low-income farmers through sourcing of goods and services,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said.
IB projects engage members of the low-income community in the company’s core operations, enabling their contributions to make an impact on the firm’s financial performance.
These people may be employed directly by the firm, and/or their produced goods and services are integrated in the company’s value chain.
Under the current IPP, an IB-approved project can avail of income tax holiday for a total of five years.
The criteria for IB models mandate that at least 25 percent of total costs of goods sold should be derived from micro and small enterprises (MSE), and a minimum of 300 individuals from the marginalized sectors are engaged, at least 30 percent of which are women. Income derived from such engagement should be equal to at least minimum wage, or baseline income plus 20 percent increase, whichever is higher, by the end of the third year of operation.
As part of the IB criteria, firms are also required to provide technical assistance and capacity-building measures to MSEs and individuals engaged, facilitate financing access, and/or provide inputs or technology that can increase productivity and improve product quality.