One company which is reported here is investing PHP259 million (over AUD$6 million) to provide cold storage facilities in just one island in the country. At the same time, the industry association for this sector says there is still room for another 10-15 facilities to serve the needs of the market. This is another potential opportunity for Australian companies with expertise in this field to invest in the country.
By Louella D. Desiderio (The Philippine Star) Updated September 24, 2012
MANILA, Philippines – A firm engaged in the design and construction of cold storage and processing plants has qualified for tax perks from the Board of Investments (BOI) for its cold storage facility project in Occidental Mindoro.
In a statement, the BOI said it approved the registration of local firm Weal Builders, Inc.’s P259 million cold storage facility project in Occidental Mindoro.
By being registered with the BOI, the company can enjoy incentives like income tax holidays.
The cold storage project, which will occupy a 12,568-square meter plant for storing onions and other farm produce, is expected to start commercial operations in March next year.
The facility has an expected capacity to store up to 320,000 bags of onions or 27 kilograms per bag, and other products annually.
It will likewise employ 26 workers.
The project, the BOI said: “will stimulate economic activities in the countryside and support local farmers, cooperatives, buyers, exporters, and importers of fruits and vegetables.”
The BOI said that according to the industry group Cold Chain Association of the Philippines (CCAP), the country requires 10 to 15 additional cold storage facilities to meet food safety standards and make Philippine fruits and vegetable exports more competitive.
Established in 1992, Weal Builders provides services from the design to the actual construction, as well as initial operational phase of cold storage facilities.
The post harvest facility, which will have an annual capacity of 24,000 metric tons will provide services such as accepting quality raw materials, drying, corn shelling and cleaning, bagging, warehousing, loading, and truck-scale weighing.
The facility’s output will be dried corn grains which will serve as raw materials in manufacturing feeds for livestock and poultry.
Agriculture or agribusiness is listed among the preferred investment activities under the BOI’s 2012 Investments Priorities Plan.
Agriculture activities cover commercial production and processing of agricultural and fishery products as well as related activities like irrigation, post-harvest, cold storage, blast freezing, and fertilizer production.