Food conglomerate, state bank partner for poultry project
State-owned Development Bank of the Philippines is looking to strengthen its lending support to poultry contract growers through its partnership with the local subsidiary of an international agro-industrial and food conglomerate, a top official said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the bank has agreed to provide credit assistance to qualified poultry contract growers of the Charoen Pokphand Foods Philippines Corporation (CPFPC) after signing a memorandum of agreement with the company.
“DBP is keen on funding more local poultry contract growers in line with its commitment to promote homegrown agricultural enterprises, and consequently spur economic activities in the countryside and buttress the national government’s food security efforts,” Herbosa said.
DBP is the sixth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; environment; social services and community development.
CPFPC is a corporation engaged in the production, processing, and marketing of poultry products in partnership with integrated partners. It is a subsidiary of the Charoen Pokphand Group, an agro-industrial and food conglomerate based in Thailand and one of the largest producers of poultry and pork in the world.
Under the MOA, CPFPC will endorse its existing and potential contract growers to DBP for possible funding support while DBP will evaluate and approve loan applications of qualified poultry contract growers for farm acquisition, development, rehabilitation, and other pre-operating expenses.
DBP Senior Vice President for Lending Program Management Carolyn I. Olfindo said the bank has also re-opened its Broiler Contract Growing Program (BCGP) for new accounts with contract growing agreements with a DBP-partner integrator as well as existing accounts of good standing with proposed additional loans for expansion.
Olfindo said the DBP BCGP is designed to encourage contract growers to expand their businesses by financing poultry broiler contract growing projects through shortened loan processing.
“Moving forward, DBP will continue to assist contract growers to help boost agricultural productivity towards a stable and reliable food supply in the country,” she stressed. As of March 31, DBP has 125 approved accounts under the BGCP with a total loan amount of P8.12 billion. – Press release