Tuesday, March 24, 2009

Co-ops question Napocor rate hike

published March 24, 2009 in BusinessWorld

TACLOBAN CITY — The 11 electric cooperatives operating in Eastern Visayas region yesterday questioned the rate increase granted to the National Power Corp. (Napocor), saying that it was not justified because most of the agency’s assets have already been privatized.

"With only 30% (privatization) more to go, there is no reason to increase the rate because majority of Napocor’s generation assets are already in the hands of private companies," said Gerry Gwen Conde, head of the association of the general managers of electric cooperatives in Eastern Visayas.

Mr. Conde, who is also the general manager of Leyte II Electric Cooperative, further questioned the lack of consultative meetings and public hearings before the increase was granted.

The Energy Regulatory Commission (ERC) held a public hearing on the adjustment only last week. But the rate increase was granted in February.

The electric cooperatives in Eastern Visayas, host of the Leyte geothermal fields, have started a signature campaign against the increase.

The Energy Regulatory Commission approved last month provisional increases in Napocor’s generation rates, as follows: P0.4682 per kilowatt-hour in Luzon; P1.15 per kilowatt-hour in the Visayas; and P0.7147 per kilowatt-hour in Mindanao. The adjustments will bring rates to P4.37 per kilowatt-hour in Luzon, P4.03 per kilowatt-hour in the Visayas, and P2.82 per kilowatt-hour in the Mindanao grid effective the billing period from February 26 to March 25.

The commission said it granted provisional relief to Napocor and its co-applicant, the Power Sector Assets and Liabilities Management Corporation, to immediately alleviate Napocor’s current financial difficulties, given its current costs of generating power, including the costs of the discounts that it is mandated to extend to certain customers.- Sarwell Q. Meniano

Monday, March 23, 2009

Coconut oil producer, appliance retailer reduce working days

published March 23, 2009 in BusinessWorld and Leyte Samar Daily Express

TACLOBAN CITY — The economic slowdown has become a reality for workers in a coconut processor and an appliance dealer in Eastern Visayas, with their employers resorting to reduced working hours and cutting pay.

Forter G. Puguon, regional director of the Department of Labor and Employment, said SC Global Coco Products, Inc. based in Baybay, Leyte has reduced workdays to only 10 to 15 days a month starting February. The company’s 66 workers had to take a pay cut as a result.

Gillamac’s Marketing, Inc., a Cebu-based appliance distributor with branches in Calbayog, Maasin and Ormoc in Eastern Visayas, also reduced working hours as part of a cost-cutting strategy. A total of 19 employees were affected.

"The appliance store claimed in their report submitted to us that they are affected by the global financial crisis. The firm did not indicate in its report the details of the flexible work arrangement," Mr. Puguon told BusinessWorld.

The Labor department has been closely monitoring the operation of eight coconut oil mills in Eastern Visayas.

"We had a meeting with the owners earlier to ask them to immediately report any changes so that we can extend necessary interventions. The general information we got is that they are still able to face the effects of crisis in terms of their market," Mr. Puguon said.

The official said strong ties with the local market should allow coconut processors to survive and preserve jobs.

"We consider the coconut oil mills and our overseas Filipino workers as the most vulnerable sectors. Our contingency plan has been focused on how to help them," Mr. Puguon added.

The Filipino-run SC Global owns a coconut oil refining facility with a capacity to produce 39,600 metric tons of coconut oil a year for export.

"The company has been experiencing weaker export activities prompting them to depart from the traditional or standard workdays and workweek. They have to shut down production from time to time," he said.

Mr. Puguon said the department has tied up with the local government of Baybay to help SC Global employees, who are being considered for emergency employment in road repair work.

Aside from the global slowdown, SC Global’s coconut-based products have also lost ground to alternative products like palm, soya and rapeseed oil.

SC Global’s chief operating officer, Emmanuel Licup, earlier sent an e-mail to the Philippine Coconut Authority (PCA) to explain that the unusually high copra price in early 2008 — "at a staggering P43 per kilo" — had made coconut oil less competitive than alternatives like palm, soya and rapeseed oil.

Experts have said that higher demand for coconut oil for use as feedstock by local biodiesel producers and a need to boost domestic stocks would slow down coconut oil exports in 2009.

Major exporters Philippine Associated Smelting and Refining Corp. and the Philippine Phosphate Fertilizer Corp. have assured Labor officials that they won’t lay off workers this year.- Sarwell Q. Meniano

E. Visayas plans organic fertilzer plants

published March 23, 2009 in BusinessWorld

TACLOBAN CITY — The regional government plans to put up organic fertilizer production facilities in a bid to raise rice production in low-yielding farms in Eastern Visayas.

Arman Arcamo, regional coordinator of the Bureau of Soils and Water Management (BSWM), said a total of 129 organic fertilizer production centers will be set up in Eastern Visayas in the next two years. Some 12,900 hectares of low-yielding rice farms are expected to benefit.

Each facility will provide institutional support to farmers groups and local governments to produce their own organic fertilizer and enable farmers to apply the recommended amount of fertilizer in their fields, Mr. Arcamo said.

Of the 129 units planned in the region, 18 will be in Eastern Samar, 14 in Northern Samar, 30 in Samar, 41 in Leyte, 18 in Southern Leyte, and eight in Biliran. The first set will be delivered within the first half of the year.

The project will give priority to areas where yield is less than the national average of 3.8 tons per hectares, as well as to fourth, fifth and sixth class municipalities.

"Each facility is capable of providing the requirement of 100 hectares of farm per cropping. It will increase yield by up to 30%," Mr. Arcamo said in an interview.

With the rising cost of commercial fertilizers, he said the project is envisioned to reduce the use of imported chemical fertilizers for rice production by at least two bags per hectare.

The putting up of organic fertilizer production facilities is a cost-reduction strategy that would allow a farmer to save as much as P2,200 to P4,130 in one hectare.

"This will also reduce pollution of soils in agricultural areas with chemical residues, and improve ecological balance through the conversion of farm waste into compost fertilizer," he added.

Leo Cañeda, regional executive director of the Department of Agriculture, said they’ve been promoting the "balanced fertilizer" strategy.

"It advocates the judicious use of a balanced fertilizer combination, without sacrificing the yield targets per hectare per cropping season," Mr. Cañeda said.

The region has 57,000 hectares devoted to rice production, with most of the areas currently supported by inorganic — or chemical — fertilizer.

Organic fertilizers address macronutrient deficiency of the soil in nitrogen, phosphorus, and potassium. It also improves soil’s water holding capacity. Thus, it facilitates easy absorption of the needed nutrients by the crop’s roots. — Sarwell Q. Meniano

Wednesday, March 18, 2009

Hog deaths caused by changing weather

published March 18, 2009 in BusinessWorld

TACLOBAN CITY — Veterinarians in Southern Leyte have said that the recent hog deaths were caused by sudden weather changes and not by any disease.

Victor Macopia, provincial veterinary office chief, told BusinessWorld: "We found out that the animals merely suffered from common colds, abnormal body temperature and lack of appetite. These are caused by sudden changes of weather."

Over 200 sick animals have been slaughtered in the province in the past two months.
Rey Alinsub, a veterinarian of the provincial government, said their office was alarmed by reports of animal deaths in Bontoc town early last month.

"The farmers slaughtered the animals after observing that they have lost their appetite," Mr. Alinsub said.

Mr. Macopia said the hog raisers were concerned that their animals have been stricken by Ebola Reston, salmonella or hog cholera.

Sick animals were reported in Sogod and Bontoc towns as well as in Maasin City.

Mr. Macopia said they have undertaken a massive information drive to stop the slaughter and urge the raisers to observe or treat the animals.

"The situation has been controlled. There are no more unusual slaughtering and mortalities among hogs in affected areas lately," Mr. Macopia added.

Hog diseases have been reported in 18 towns and one city of Eastern Visayas since late last year. – Sarwell Q. Meniano

Thursday, March 5, 2009

Illegal shipments of young mud crabs a cause for concern at BFAR

published March 05, 2009 in Leyte Samar Daily Express and BusinessWorld

TACLOBAN CITY — The Bureau of Fisheries and Aquatic Resources (BFAR) has expressed concern over the rampant transport of crablets from Northern Samar.

BFAR regional director Juan Albaladejo said this illegal practice has affected the local mud crab production. Although Northern Samar is one of the biggest producers of crablets, it remains a minor producer of marketable crabs.

Shipments of megalopa, the post-larval form that leads to the first crab stage, are being traded outside Samar.

"Traders buy at P5 each and then sell in other areas of Visayas and Luzon at P14 per crablet. The dealers earn more from our local produce," Mr. Albaladejo said.

Pepe Lutao, Northern Samar provincial fishery director, said that in 2007 alone, between 150,000 and 250,000 pieces of megalopa were shipped out of the island every week.

Under the provincial fishery ordinance of Northern Samar and Eastern Samar, only matchbox-size crablets are allowed for transport outside the province.

"There are already local ordinances prohibiting the transport of megalopa outside of Samar Island but [they are] not strictly implemented.

"We have started meeting with local government officials to act on this," Mr. Albaladejo told BusinessWorld.

The Fisheries bureau is looking at expanding mud crab production in Northern Samar to 2,000 hectares
.
Mr. Albaladejo said the province is ideal for mud crab fattening because of the abundant coastal mangroves, which provide a natural habitat for the crabs.

Last year, the 20 coastal towns in Northern Samar produced 13,000 metric tons of mud crabs.

In the early part of 2007, the Southeast Asian Fisheries Development Center-Aquaculture Department together with the Australian Center for International Agriculture Research (ACIAR) joined forces to implement the Community Agricultural Technologies Project’s "Enhancing adoption of mud crab production technologies in Northern Samar."

The 30-month project, which will end in November 2009, has established demonstration sites in the towns of Laoang, Lavezares, Rosario and Pambujan.

The initiative, which has a P3.3-million budget, undertakes on-farm demonstration and assessment of nursery techniques, grow-out management, fattening and nutrition, mud crab stock assessment and mud crab market survey.

Mr. Albaladejo said the project will pave the way for the adoption of sustainable improved technologies.

It will also see that there are sufficient available seed stocks for beneficiary communities, and improved ordinances to manage the collection of wild crablets.

"With this project, the total harvests and production of mud crabs will be improved by 15-30% compared with standard practices.

"The income of farmer beneficiaries will then increase between 10-20%," he added.
To support the activity, the BFAR has asked farmers to come up with a large volume of trash fish required to feed the mud crabs.

Leftover fish from a sardine manufacturer in Northern Samar can also be used which will prevent spoilage at the facility.

"Our task is to establish a storage facility to keep trash fish even after harvest seasons for future consumption," Mr. Albadejo said. (Sarwell Q. Meniano)

Tuesday, March 3, 2009

Nasdaq-listed call center outfit bullish on expansion

published March 03, 2009 in BusinessWorld

PALO, LEYTE — The top official of a business process outsourcing (BPO) firm which opened its first site outside Metro Manila yesterday said business would still be brisk this year despite the global economic slowdown.

Nasdaq-listed APAC Customer Services, Inc., which has offices in Alabang, Muntinlupa and Cubao, Quezon City, invested P200 million on a 31,000-square-meter facility at the Leyte Information and Communication Technology Park in the town of Palo, and plans to hire up to 1,000 workers when operations go full-blast.

"We’re in a business that when companies are downsizing and looking to cut cost, we’re one of the solutions. We prefer not to have the world in economic crisis but the truth of the matter is for APAC, it’s generally a time for opportunity. We will continue to expand in the Philippines and in the United States," said APAC President and Chief Executive
Officer Michael Marrow.

When it opened yesterday, APAC had 225 workers including 150 call center agents. The company plans to have a total of 600 seats this summer.

"If things continue to go the way we’re going right now, we will be in full operation late this year or early next year and will be looking additional space. We will continue to build more seats anytime until we all have 800 workstations built. We won’t stop at a thousand workers if we will be successful," Mr. Marrow said in news conference.

Mr. Marrow said APAC chose Leyte for expansion because of existing fiber optic connections, a good education system with 5,000 to 8,000 graduates every year, and incentives from the local government.

APAC clients are in the health care, financial services, publishing, business services, travel and entertainment, and communication sectors.

Doug Almond, APAC vice-president for international operations, said the Leyte site aims to "expand the sphere of growth and development in the BPO industry to more underdeveloped parts of the country."

"We have a growth strategy for the next five years in the Philippines, and the APAC Leyte site is part of that strategy, together with a couple more sites opening in the Visayas and Mindanao," Mr. Almond said.

APAC’s headquarters is in Deerfield, Illinois, with operations in Arizona, Florida, Iowa, New York, Texas, Virginia, Wisconsin and Philippines. – Sarwell Q. Meniano