The Board of Investment (BoI) has granted incentives to a P195.5-million broiler chicken facility in Cavite under the new tax reform package.
The attached agency of the Department of Trade and Industry (DTI) reported that it has approved the application for registration of Agro Azienda Inc.
The project is listed under the “Agriculture, Fishery and Forestry” of the Corporate Recovery and Tax Incentives for Enterprises’ investment plan.
The broiler producer is set to begin commercial operations in May. The firm expects to employ 10 direct workers and 109 indirect employees, the BOI said in a statement.
The facility has a capacity of 2.31 million birds per year. It has acquired brand new equipment and built a fly management control system, including tunnel vent building design, dry manure, and insecticide fly trap.
The project can supply 3,696 metric tons (MT) of chicken, which is 0.19 percent of the 2017-2022 Philippine Development Plan (PDP) target. Under the PDP, the government aims to produce 1.95 million MT (MMT) of chicken by 2022.
The project is a commercial production of broiler chicken via a contract- growing scheme with a big local company, the BoI noted. Broiler farming refers to rearing broiler chickens and preparing them for meat processing.
BoI noted that poultry meat is deemed one of the basic commodities of Filipinos, adding that demand for chicken meat has seen substantial increase in the past decade.
Citing government data, the DTI agency said chicken production in 2020 reached 1.8 MMT. This is expected to grow to 1.882 MMT this year.
Calabarzon, the region where the facility is located, contributes the bulk of the chicken production at 35 percent.
On Monday, BoI reported that it greenlighted the P9-million crabmeat cannery project by Carthage Crab Meat Processing in Bacolod City, Negros Occidental. It is anticipated to contribute P110.7 million in income.