EU – AGRIBUSSINESS in the Philippines

Name of Company Category Status Product Equity Capitalization Number of

Workers
1. Swedish XQ’s Agri. Products and New Non-Pioneer for Oral Snus (Tobacco Fil - .02% P 3.05M 12
Phils. Inc. Allied Services Export and Nicotine Free) Swedish –99.98%

Dec. 2007 Pre-development

2. BIOFASER FIBERS Crops, Plants and Expansion Non- Coco Coir Mfd. Fil – 80% P 14.5M 150
Inc. Planting Materials Pioneer for Domestic Products (Coir Logs, German – 20%
and Export Ecopmat & Coco
November 2004 Peat
3. GENETRANCO Ibid. New Pioneer for Genetic Materials Fil – 84.16% P 18 M 19
ASIA Export and Domestic (Boar Semen) British – 2.26%
American – 13.57%
Pre-developement
March 2008
4. INSULAR Ibid For Domestic and Ornamental Plants Fil – 60%
BOTANICALS INT’L Export incl. Cutlings, Dutch – 40%
Inc. Cutflowers and
Cuttoli

5. SCIENTIFIC Livestock, Poultry New Non-Pioneer Monkeys Fil – 60% P 6.2M 50

PRIMATES FILIPINAS and Feeds Operating for Export German – 4%
Inc. Japanese – 36%

AUG. 1990
6. FAR EAST Marine and New Non-Pioneer for Fresh and Processed Fil - .002% P 63.45 M 177
SEAFOOD Inc. Aquaculture Export Fish, Shrimps, British – 99.99%
Products Prawns, Lobsters and Japanese - .001
others
JAN 2008
7. GENOMAR Ibid. New Pioneer for Tilapia Breeding and Fil - .02% P 90 M 899
SUPREME PHILS. Domestic Fingerlings Norwegian – 99.96%
Inc. Indian - .01%

JAN 2002
8. PHILNOR AQUA Ibid Domestic Tilapia Fingerlings Fil – 60% P 36 M 29
Inc. and Full Grown Norwegian – 40%
May 2003
9. MEAT MASTERS Agrifarm Service Fil – 99.5% P27.2 M 31
INT’L and Facilities Belgium .5%

10. TRACTORC For Export Remanufactured Fil – .10% P2.6 M 17

Company Inc. Tractors British – 99.9%

11. KERRY FOOD Processed Other New Non-Pioneering Processed Seaweeds Fil - .007% P31.6 M 29
INGREDIENT (CEBU) Marine Products for Export Irish – 99.9%
Inc.

12. PHILIPPINE BIO Ibid. Non Pioneed and Refined Carageenan Fil – 40% P 488.79M 38
INDUSTRIES Inc. Expansion Non- and Processed German – 60%
Pioneer for Export Seaweeds
AUG. 2001 and Domestic
13. ASIA PACIFIC OIL Coco Products New Non-Pioneer for Coco Acid Oil Fil – 81.12% P32.94M 41
MFC. CORP. Export British – 18.87%

April 1997
14. ALASKA MILK Chocolate, Sugar, New Pioneer for Powdered Acid Fil – 37.58% P675 M 90
CORP. Confectionary, Domestic Dutch – 7.4%
Dairy, Beverages American – 3191%
Unidentified – 23.01
May 2007
15. CENTRAL Ibid. Existing Pioneer and Raw and Refined Fil – 97.89% P 184 M 1,910
AZUCARERA DE New Non Pioneer for Sugar Spanish – 2.1%
TARLAC Domestic

16. ROXAS Ibid Expansion and New Raw Centrifugal Fil – 89.64% P 695.6M 2,257
HOLDINGS Inc. Non Pioneer for Sugar, Refined Sugar Spanish – 10%
Domestic and Molasses Americans - .313%

17. ASIA PACIFIC Oil Processed Foods For Export Castor Oil Fil – 81.1% P 2.6 M 17
Manufacturing Inc. British – 18.87%
18. MIRAMAR FISH Processed Fish For Export Canned Tuna and Fil – 66.67%
COMPANY Inc. Canned Pet Food Canadian – 16%
German – 16%
19. FAR EAST Agri Food and For Export Conna Bulbs Fil. – 33.3% P 7.6M
PLANTS Inc. Forestry Dutch – 66.6%

Dec. 2004
20. ASIA PACIFIC OIL Livestocks For EXPORT Extruded Corn Fil – 81% P 4.9M
MFG. CORP. British – 19%

JAN 2002
Source: BOI Lists of Projects for All Time Period
 I. Introduction

The EU is one of the major agricultural trading partner of the Philippines. It ranks third behind
Japan and the United States in the top export destination of Philippine products. In 2004, it
accounts for 14% of the market for Philippine export products.

In 2006, Philippine merchandise exports to EU countries were at US $ 8.55 billion, while

imports were at US $ 4.28 billion. The Philippines has a positive trade balance with EU
amounting to US $ 4.26 billion. Bulk of Philippine export to EU are electronic products
comprising 76.43% of its total export to the region.

However, despite being the thirds biggest export destination, the country’s export to EU remains
miniscule if compared to its over-all EU market. To date Philippine exports to EU is only .7% of
its over-all market while EU exports to the Philippines is only .5% of its global exports. Such
small percentage of RP trade to EU justifies both parties interest to conclude both regional and
bilateral trade agreements to bolster both trade interest.

In general, agricultural trade in both export and import terms comprise on the average of 6% and
8% respectively of the Philippines’ total exports and imports. There is a nominal annual increase
in both amount and value of agricultural exports and imports in the past several years however,
Philippine agricultural balance of trade has been running in deficit amounting to more than US
$1M from 2004 onwards.

In agricultural trade, EU is among the two major trading partner for Philippines agricultural
products that it has a positive trade balance of 44.5% in 2004-2005. Philippines agricultural
export to EU surpasses the latter’s agricultural imports to the country. From US$124.76 million
in 2004, it rose to US$180.09 million in 2005. Exports to the EU increased by 20.58% while
imports from it grew by 11.22%.

However, despite is current trade surplus with the EU, Philippines agricultural exports to the
region are concentrated only in a few EU states such as United Kingdom, Netherlands, Spain,
Belgium, Ireland, Italy, France Sweden and Germany. The country’s top agriculture exports to
EU includes crude and refined coconut oil, tuna, dessicated coconuts, pineapples and seaweeds
to name a few. While in terms of agricultural imports from EU, the country’s are mainly includes
sugar, food preparations, whey, fungicide, prawn feeds, unmanufactured tobacco, pig fats and
malts.
II. EU AGRIBUSINESS INVESTMENT INTEREST in the Philippines

The economic relation between Philippines and EU goes beyond the trade in goods. EU is also a
major investment contributor in the Philippines. For the last ten years, EU investments in the
Philippines has increase significantly accounting for 27% of the total Foreign Direct Investments
(FDIs). While in terms of portfolio investments, EU contributes about 41% of Philippine
portfolio investments. The latest average annual investment of EU in the Philippines is at 389 M
Euro (1998-2003). Among the EU member countries, Netherlands, France, Italy, Germany and
Sweden has the biggest aggregate foreign direct investments to the country.
EU investments in the Philippines is varied and cuts through broad economic interest such as IT
and services, processed foods and beverages, tourism, infrastructures and utilities, industrial,
chemicals and consumer products and agriculture and allied services.

In Philippine agriculture, Although it is still predominantly controlled by Filipinos, EU

investments are significantly visible in the past several years. Base on the Department of Trade
and Industries – Board of Investments (DTI – BOI) records of agriculture base investments, there
are about 20 companies that EU members are active and have significant equity.

These companies are spread across different sub-sector of the agriculture industry from plant and
crop materials, fish and marine processing, agri products and allied services, livestocks, poultry
and feeds, marine and aquaculture products to name a few.

Interestingly most of these investments are both for domestic and export markets. Likewise some
of the EU investments in agriculture in terms of equity violates existing rules in equity that state
that investments in the country with foreign partners must be within the 60 – 40 arrangement
wherein 60% should be Filipino.

According to the present data, EU investment in agriculture is about P 2.35B. However, in terms
of employment generation EU investment employs only about 5, 766 workers very small if
compared to the overall employment. The biggest investment that EU has in the agriculture is in
the area of sugar production, confectionaire and marine product processing.

The predominance of Filipino-owned enterprises and business in the agriculture sector can be
seen as an opportunity for EU business interest in the sector specially in the area of fishery, food
processing and allied services that can be both for domestic and export intent.

The conclusion of both regional and bilateral trade agreement with EU can trigger an influx of
investments not only through the service and manufacturing industry but as well in agriculture.
The downside would possibly be that many of the Filipino enterprise might be forced to close
down or be forced to enter into partnership with EU investors.

But given the small-size of jobs that it generates at the moment, any expectation that it will
significantly contribute in the increase in income and employment is doubtful and might rather
further the country’s unemployment problem.