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A broader look at today’s business n
Saturday, March 11, 2017 Vol. 12 No. 150
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GOVT IMPLEMENTS MEASURES TO KEEP PHL BIRD FLU-FREE
Expect higher prices of chicken products
T
By Jasper Emmanuel Y. Arcalas
he national government has intensified its monitoring of the spread of the avian influenza after it reached the United States, which could exert pressure on global poultry supply, resulting in stiffer competition and a price spike of processed goods. Tight supply
Meat Importers and Traders Association President Jesus C. Cham told the BusinessMirror the price of MDM in the international market rose by at least 40 percent due to tightness in supply caused by the bird-flu outbreak in some European countries. “Price has gone up 40 percent and still climbing, which is almost 50 percent higher now,” Cham said in an e-mail on Thursday. Cham urged the government to align the imposition of importation bans on countries with the World Organisation for Animal Health (OIE) guidelines, as the banning of the totality of countries could worsen the global market competition. “The DA [Department of Agriculture] should not overreact by banning entire [EU] countries or [US] states, as this will result in tighter supply and higher price. Instead, it should abide by OIE international guidelines and ban 10-kilometer zones around any outbreak,” Cham said. “The BAI policy is not consistent with OIE international guidelines. They should abide by the OIE so the situation will not be exacerbated,” he added. Amurao said some of the major sources of MDM of the local meat-processing industry
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The Bureau of Animal Industry (BAI) said it is cautious in imposing a total import ban from certain states in the US, or the entire country, noting that such a move could greatly affect the local meat-processing industry, which sources much of its raw materials from the US. “One of the countries lately banned by the government is the US. A part of the US, a county in the state of Tennessee, has reported an outbreak of avian influenza. Because the state is too big, what we usually do is that we ban the county first, and whenever the bird flue spreads to three others, then that’s the time we ban the whole state,” BAI Assistant Director Dr. Simeon S. Amurao Jr. told the BusinessMirror. “The biggest effect really of this is on the raw materials used by our local meat processors, which is the mechanically deboned meat [MDM] of chicken,” he added. Amurao said he has received reports that the price of MDM of chicken in the global market has spiked due to the decrease in the number of importation sources. “That’s the biggest effect of the ban. The main source of MDM of our meat processors comes from Europe. I was told that, because of the scarcity of supply due to banning of the European countries, the price of the raw material for processors increased,” Amurao said.
See “Chicken,” A2
BSP: Entry of foreign banks spurs efficiency in local banking system
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By Bianca Cuaresma
Since the full liberalization of the local banking sector to foreign players in July 2014, foreign banks, particularly those coming from the region, have been coming to the Philippines either to set up branches or to come in as stakeholders to existing local banks. In particular, the Central Bank has already granted nine foreign banks licenses to operate in the local banking system since
July 2014 with the passage of Republic Act 10641. Earlier, the Central Bank said more foreign banks are to enter the Philippines this year; about six more, in particular, have expressed their intent on establishing and operating in the Philippines. BSP Deputy Governor for the Supervision and Examination Sector Nestor A. Espenilla Jr. said the See “BSP,” A2
PESO exchange rates n US 50.3770
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he Bangko Sentral ng Pilipinas (BSP) is seen to welcome more foreign players into the local banking system, as the Philippines’s financial industry remains a prime destination for international banks. Foreign banks also seem to make local banks “work harder” to improve their services, a Central Bank senior official said.
“The Philippines is an attractive market, because we are one of the fastest-growing economies, relatively big domestic market, young and upwardly mobile, and relatively underbanked. We also have large financing needs for infrastructure and other investments.”— Espenilla
n japan 0.4384 n UK 61.3038 n HK 6.4883 n CHINA 7.2936 n singapore 35.4943 n australia 38.8180 n EU 53.3190 n SAUDI arabia 13.4368
Source: BSP (10 March 2017 )