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Cranberry overload spurs US producers to dump extra supply

CRANBERRIES might be a staple on Thanksgiving tables, but a glut of US supplies has gotten so large that fruit could be headed to the compost pile.

Just as demand is hitting its seasonal peak, American processors are anxiously awaiting government approval that would allow them to turn excess fruit into fertilizer. The program would be the first of its kind for cranberries.

Supplies have piled up amid bountiful US harvests and a surge in imports. Inventories were large enough to top consumption before farmers even started gathering this year’s crop in September. The overhang prompted growers and processors to vote in favor of the disposal program at a biannual meeting of the Cranberry Marketing Committee in August. The US Department of Agriculture could rubber-stamp the proposal as early as this week.

“The order will allow the industry to get back into supply and demand balance,” said Kellyanne Dignan, the director of global cooperative communications at Ocean Spray Cranberries, Inc., the largest US producer and processor, and a name that’s become almost synonymous with the fruit.

The humble cranberry is iconic at this time of year as it pops up in everything from traditional relishes to Christmas cookies and cocktails. About 20% of annual sales of the fresh and processed fruit occurs during the week of Thanksgiving, celebrated on Nov. 23 this year. But becoming a celebrity of the fruit world hasn’t been enough to reverse the slowing pace of demand growth, leading the industry to take desperate measures to keep prices from collapsing.

Under the proposed initiative, fruit processors and exporters would be responsible for supply disposal. Some can be donated or used for research, but the lion’s share will likely end up as compost. The cranberry committee has also recommended that growers reduce next year’s production, leaving it 25% below average sales of the past six years, according to Michelle Hogan, executive director of the Wareham, Massachusetts-based group. The plan for next season is similar to a crop-reduction method last used in 2000 and 2001.

“We are producing a lot more than we are selling” Hogan said.

Even as US exports climbed in recent years, with shipments to China helping boost American shipments by 33% over the past five seasons, that hasn’t been enough to prevent a jump in inventories. The problem is US production grew 19% since 2011 and imports, mostly from Canada, tripled.

The cranberry is one of many agricultural products that are plagued by gluts, which has kept global food inflation in check. World grain stockpiles are ballooning and American meat production is at record levels. All the excess supply will help make this year’s US Thanksgiving dinner the cheapest since 2013.

The disposal program would help to reverse the growth of excess supply while the industry works to increase demand in domestic and international markets, said Tom Lochner, executive director of the Wisconsin State Cranberry Growers Association. About 5% of the crop is sold as fresh fruit, with the rest stored and sold frozen, dried or processed into juices and sauces.

If the USDA approves the program, any handler that uses more than 125,000 barrels would be required to dispose of 15% of their supplies gathered from this year’s crop, Hogan of the Cranberry Marketing Committee said. A barrel weighs 100 pounds, or 45 kilograms.

A bout of bad weather could also help to ease the fruit glut. American production is projected to fall 6% this year to 5.6 million barrels after some adverse growing conditions, the government estimates.

Cranberries are native to North America with about 75% of global production grown in the US Wisconsin accounts for more than half the domestic harvest.

Fawn Gottschalk’s family’s 230 acres of marsh beds in Wisconsin Rapids, Wisconsin, will produce about 7% less this year after a cold start to the growing season, some heat near blooming in July and too much rain in August curbed yields for the perennial crop. The farm her grandfather started in 1940 had better yields than expected as freezing weather this fall came in a little later than normal.

Still, ample inventories mean prices are likely to fall to 30 cents to 35 cents a pound this year from about 38 cents last year and 40 cents in 2015, Gottschalk said.

“We are approaching break-even and some growers are below break-even,” Gottschalk said. “We are still OK, but we need to develop new markets and increase year-round consumption.” — Bloomberg

NBA gold standard

National Basketball Association (NBA) stars don’t usually shine well into their 30s. Because of the rigorous nature of their work and the demands on their talents under pressure, they suffer from drops in performance by the time they’re in their third decade. And even as advances in technology and fitness regimens have served to lengthen careers, productivity is still expected to taper off. No one defeats Father Time.

Don’t tell that to LeBron James, though. He’s not stupid; he understands that, as with all other players before him, he will eventually have to exit stage left. Nonetheless, he has taken pains to delay the inevitable by taking care of his body as best he can. It helps, of course, that he’s blessed with physical attributes that have kept him largely injury-free; even though he turned pro in his teens and has, to date, burned rubber for over 51,000 minutes through a whopping 1,295 games, the playoffs included, he remains in the pink of health. In fact, he leads the league in minutes played, never mind that, at 33, he’s a veritable elder statesman.

For the Cavaliers, the good news is that James appears to be getting better — and how — with age. This season, he’s norming 28.3 points per contest (his highest since the turn of the decade) off a career-best effective field goal rate of 62.9% and boasts of a Player Efficiency Rating of 30, a number not seen outside of his Most Valuable Player campaigns. Given the franchise’s offseason turnover and bouts with injury, it’s fair to argue that his eye-popping contributions have kept it afloat.

No wonder, then, that James continues to be the NBA’s gold standard. Ask any hoops habitue, and you’d readily be told that he’s the league’s best player by far. And as for the Maurice Podoloff Trophy, he’s at least bent on proving that he deserves to remain in the conversation. He was slighted by his absence from the Top Five of voting results for the award this year after having posted career highs in rebounds in assists, no doubt fueling his fast start.

Naysayers have contended that James will not be able to sustain his otherworldly play, and that, if the Cavaliers truly want to regain the championship, they would do well to rest him more. On the other hand, there is likewise cause to claim that he’s on the court longer than all others precisely because no one can approximate his worth. A regression to the mean may well be in the offing, but, lest we forget, his mean far exceeds everybody else’s. Which is to say concerns about him wearing down are valid but ultimately overblown. At this point, only he knows how to best pace himself. And if he wants to play, who’s to say he shouldn’t?

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

Towards responsible management and sustainable business practices

The theme of the recently concluded 5th National Business Management Conference (NBMC) is “Grassroots: Towards Responsible Management and Sustainable Business Practices,” which is both timely and appropriate for the Philippines.

The conference was organized by the Center for Business Research of the Ramon V. Del Rosario College of Business of De La Salle University (DLSU), led by its director, Dr. Raymund Habaradas, and co-organized by the Central Bicol State University of Agriculture (CBSUA), in cooperation with the Philippine Academy of Management. The conference was held on Nov. 17 and 18, at the Avenue Plaza Hotel, Magsaysay Avenue, Naga City.

The NBMC, which was cofounded by DLSU and the University of San Carlos, aims “to enhance the ability of faculty members and graduate students of Philippine business schools to engage in scholarly research by providing a venue for the presentation and critique of their ideas, and by providing capability-building sessions on various research approaches and methodologies.”

The focus on the grassroots and its role in responsible and sustainable management practices is timely because all business leaders and students must imbibe in their practices the following most often quoted definition of sustainability by the United Nations (UN) World Commission on Environment and Development: “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

The plenary talk by Br. Armin Luistro FSC, De La Salle Philippines president and Philippine Business for Social Progress (PBSP) president, espouses the role of business in ensuring that our country has zero poverty by 2030, a goal that is aligned with the 17 Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable Development of the UN.

Bro. Armin focused on how the business sector through PBSP is helping address social problems in the country. He also challenged the participants to assist in the achievement of the SDGs through their research, advocacy, and community engagement.

The other sessions focused on capacity-building of faculty and researchers.

Dr. Emilina Sarreal gave a session on case writing and teaching. She focused on the need to develop more cases, especially Philippine-based cases, so that students and teachers can have a variety of cases to use in class for discussion and assessment of learning. Case studies are effective tools of instruction and have been proven to improve the critical-thinking skills of learners both in schools and corporations. They supplement theories that are learned in class, make students aware of various aspects of management, and provide various what-if scenarios in different situations.

On the other hand, Dr. Reynaldo Bautista gave a session on the importance of frameworks in quantitative analysis. He emphasized the need for such frameworks in the design, conduct, and analysis of surveys and studies to further management theories, and in the construction and validation of theories that would lead to better business practices.

Lastly, the session by Dr. Feorillo Petronilo Demeterio III on “Building a Research Culture in Philippine Higher Educational Institutions: Opportunities and challenges” focused on the history and development of research universities in the west, and on how the Philippines is faring compared with its Southeast Asian neighbors.

While most universities are now espousing research as evidenced by incentives related to research endeavors, there is still a dearth of faculty undertaking research to further the field of business and management, which has traditionally been known in the academe as being practice-oriented.

However, this talk and conference proved that given the nature of business practice, research can be done in a lot of areas to improve and to innovate management practices. The papers presented in the conference were a testament to the perseverance and passion that are brought about by researching on management.

Overall, the conference achieved its aim of being a venue for collaboration, communication, and compassion in management — traits that can lead to both responsible and sustainable management practices.

 

Brian C. Gozun is Dean of the Ramon V. Del Rosario College of Business of De La Salle University.

brian.gozun@dlsu.edu.ph

AUB, Tencent sign deal for WeChat Pay

MOBILE payment system WeChat Pay will now be available in the Philippines to accommodate the influx of Chinese tourists in the country.

In a statement, Asia United Bank (AUB) said it has signed an acquiring license agreement with WeChat Pay developer Tencent, enabling the Ng-led bank to accredit Philippine merchants to accept WeChat payments, especially from Chinese tourists.

WeChat Pay is one of the largest mobile payments systems in China, with the other being Alibaba’s AliPay. Launched in 2013, WeChat Pay caters to nearly a billion users with 43% global market share, according to AUB.

For Philippine merchants to accept WeChat payments, AUB head of credit cards business Maria Magdalena V. Surtida said they only have to open an AUB deposit account and download WeChat Pay’s application in their smartphones to start accepting QR code-based transactions.

With the launch of WeChat Pay in the Philippines, Filipino businesses are now more open to cater to Chinese tourists.

In the latest industry performance report from the Department of Tourism, the country saw a surge of Chinese tourists in August, standing at 95,687 arrival, up from 61,766 arrivals booked in the same period a year ago.

China is the country’s third largest source market, only behind South Korea and the US.

“We cannot underscore enough the opportunities and tight engagement in this medium. WeChat users spend an average of about 90 minutes and 33 times each day and it is imperative for a technologically savvy institution like AUB to help make life easier for its massive and thriving Chinese user base,” AUB chief transformation officer Jacob C. Ng said during the bank’s anniversary banquet in October.

Meanwhile, AUB branch banking group head Manuel A. Gomez noted that the partnership will “harnesses the natural ecosystem of retail in today’s tech-driven world and pushes the innovation and flexibility that AUB has always been known for.”

AUB will make WeChat Pay available starting this month to December, while the lender is currently conducting merchant orientations and accreditation. — K.A.N. Vidal

Ang says Inquirer deal completed

BUSINESSMAN Ramon S. Ang said on Wednesday he has completed the acquisition of a majority stake in the Inquirer Group of Companies.

“The deal is long done. Inaayos pa lang with the regulators, Philippine Competition Commission (PCC),” Mr. Ang told reporters after the annual shareholders meeting of his company Eagle Cement Corp.

Mr. Ang, who is making the investment in his personal capacity, declined to disclose the value of the deal for the 85% stake in the Inquirer Group.

The PCC is mandated to review all mergers and acquisitions valued over P1 billion.

In July, Inquirer Group of Companies Chairman Marixi R. Prieto said she has “resumed discussions” with Mr. Ang, president of San Miguel Corp., for the sale of the family’s interest and “majority” shareholdings in the Inquirer Group, which owns a broadsheet, tabloid newspapers and a radio station.

Ms. Prieto had described Mr. Ang as a “long-standing friend and business partner,” noting that talks started in 2014 and restarted early this year.

“The Prieto family’s decision to divest after 25 years is a strategic business decision that it believes will maximize group opportunities for the Inquirer Group,” the newspaper said at that time.

The remaining 15% of the Inquirer Group is held by businessman Manuel V. Pangilinan, who previously expressed willingness to sell his stake. 

Mr. Pangilinan already has interests in the media industry through Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. Hastings has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Arra B. Francia

House bills curbing ‘endo’ consolidated

A TECHNICAL working group at the House of Representatives has consolidated legislation aimed at strengthening the security of tenure of private-sector workers and restrict the practice of fixed-term employment.

The legislation aimed at curbing the practice known as “endo,” which denies employees a path towards permanent status. The measure, which remains unnumbered, consolidates House Bills (HB) 55, 76, 170, 341, 556, 563, 709, 712, 895, 916, 1045, 1208, 1351, 1563, 1837, 1857, 1910, 2389, 3556, 3769, 3802, 4443, 4444, 5130, and 5267, which all seek to amend Presidential Decree No. 442 or the Labor Code of the Philippines.

The consolidated measure features amendments to Article 106 which limits labor contracting “if the person supplying workers to an employer does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others” or if the workers employed “are performing activities which are directly related, indispensable, and essential to the principal business of the employer.”

The contract is also considered labor-only “if the control over the outcome of the employee lies with the person supplying the worker.”

Article 106-A was also added to the measure which mandates that “licenses for existing job contractors shall not be renewed by the Department of Labor and Employment (DoLE) unless they are in an industry or perform work classified by the DoLE secretary as open for legitimate job contracting” subject to the unanimous recommendation of the National Tripartite Industrial Peace Council.

The new measure also provides through the amendments to Article 294 that employees cannot be terminated “without just or authorized cause, or without observance of due process.” However, terminated employees are entitled to back wages which includes the employer’s share of contributions to the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth) and PAG-IBIG “which will be free from interest and late remittance penalties.”

The labor group Kilusang Mayo Uno (KMU) said the bill in its current form will only “further institutionalize contractualization through third-party contracting agencies.”

“They rejected the labor sector’s proposal to junk all forms of contractualization by junking the articles 106-109 of the Labor Code. They disregarded our position papers and finalized the bill amidst workers’ strong opposition,” Niel Ambion, KMU’s media liaison officer, said in a text message.

Mr. Ambion added that KMU will oppose the passage of the bill. — Minde Nyl R. Dela Cruz

Restaurant Row (11/23/17)

Cocktails at The Pen

THE PEN will hold a mixology class at Salon de Ning.

COCKTAIL CULTURE is alive at The Peninsula Manila’s Salon de Ning with guest mixologist from The Peninsula Tokyo, Mari Kamata, who is one of Japan’s top bartenders. She will demonstrate the secrets behind her signature cocktails — featuring premium 10-year-old Ardbeg single malt whisky, Belvedere Pure vodka, and Hennessy VSOP cognac brands from Moët Hennessy, and with additional festive season alcoholic and nonalcoholic options — in a mixology class that will explore the art and science of mixology while guests enjoy the cocktails paired with canapés. The mixology class will be held on Nov. 24 and 25, 3 p.m.-5 p.m., at Salon de Ning. The hotel is at the corner of Ayala and Makati Aves., Makati City. For details, call 887-2888.

Thanksgiving at Diamond Hotel

A THANKSGIVING feast at the Diamond Hotel

FIND REASONS to be grateful for at the Diamond Hotel Philippines while indulging in a traditional Thanksgiving celebration perfect for a family reunion or get together with friends. Reserve a lunch or dinner table at the Corniche Buffet Restaurant for P2,880 net per person today and dine on classic favorites such as turkey with stuffing, pumpkin pie, mashed potatoes, and other side dishes. One can also opt to spend an afternoon at the Lobby Lounge for a lighter take of the celebration. The turkey sandwich paired with a glass of champagne cocktail is a must-try. Available for lunch or dinner for P1,280 net per person. For a refreshing twist on an old classic and the perfect aperitif to a Thanksgiving meal, drop by Bar 27 and try some of the bar’s specially prepared champagne cocktails. For restaurant reservations, call 528-3000 ext 1121. The hotel is located along Roxas Blvd., Malate, Manila.

Traditional Thanksgiving turkey

MYRON’S Thanksgiving Turkey at the Ascott

MYRON’S at the Ascott Makati will offer a Thanksgiving Dinner Buffet today. The spread will include choices for appetizers, main entrees and desserts but the stars of this culinary display will be Myron’s Thanksgiving Turkey and the restaurant’s popular Slow-Roasted US Angus Beef. The roast turkey will have Italian stuffing with cranberry jelly, honey-glazed sweet potatoes, sautéed cabbage with bacon and caraway, and rosemary baby potatoes. Myron’s Slow-Roasted Angus Beef is a year-round favorite and is a sought-after take out dish for special occasions like family reunions, Christmas and New Year’s Eve parties. The Thanksgiving Dinner is priced at P1,250 net per person. For inquiries and table reservations, call Myron’s at 755-8898 or e-mail reservations@myronsph.com. Myron’s is located on the 6th Floor of Ascott Makati, Glorietta 4, Makati City.

Davao City mayor pursues ‘season of peace’ with NPA

MAYOR Sara Duterte-Carpio, through the Davao City Peace Group she recently formed, is exploring lines of communication and access to local leaders of the communist New People’s Army (NPA) in pursuit of a “season of peace” this Christmas. In a statement, Ms. Carpio said she aims to continue reaching out to our brothers and sisters (in the insurgency movement)” even as President Rodrigo R. Duterte, her father, has announced on Tuesday, Nov. 21, that he is no longer open to peace talks with the National Democratic Front-Communist Party of the Philippines (NDF-CPP). The NPA, the armed wing of the CPP, has groups in various parts of the country, including remote areas of Davao City. Ms. Carpio called on law enforcement agencies to help her in observing the “season of peace,” during which she aims to meet with local NPA leaders in a “neutral area,” — Carmelito Q. Francisco

Hackers stole data from 57 million Uber riders, drivers — chief executive

SAN FRANCISCO — Uber said Tuesday that hackers compromised personal data from some 57 million riders and drivers in a breach kept hidden for a year.

“None of this should have happened, and I will not make excuses for it,” said a statement from Chief Executive Officer (CEO) Dara Khosrowshahi, who took over at the ride-sharing giant in August.

Two members of the Uber information security team who “led the response” — which included not alerting users that their data were breached — were let go from the San Francisco-based company effective Tuesday, according to Mr. Khosrowshahi.

The Uber chief said he only recently learned that outsiders had broken into a cloud-based server used by the company for data and downloaded a “significant” amount of information.

Stolen files included names, e-mail addresses and mobile phone numbers for riders, as well as the names and driver license information of some 600,000 drivers, according to Uber.

Uber paid the hackers $100,000 to destroy the data, not telling riders or drivers whose information was at risk, according to a source familiar with the situation.

Co-founder and ousted chief Travis Kalanick was advised of the breach shortly after it was discovered, but it was not made public until Uber’s new boss Mr. Khosrowshahi learned of the incident.

“You may be asking why we are just talking about this now, a year later,” Mr. Khosrowshahi said.

“I had the same question, so I immediately asked for a thorough investigation of what happened and how we handled it.”

Mr. Khosrowshahi said that what he learned about Uber’s failure to notify users or regulators prompted corrective actions.

Uber is notifying drivers whose license numbers were swiped, and offering them credit and identity theft protections. The company also said it is notifying regulators, and monitoring affected rider accounts for signs of fraud.

“While I can’t erase the past, I can commit on behalf of every Uber employee that we will learn from our mistakes,” Mr. Khosrowshahi said. “We are changing the way we do business.”

Mr. Khosrowshahi inherited a litany of scandals and a toxic workplace culture when he replaced Mr. Kalanick.

Mr. Kalanick’s brash style has been credited with driving Uber to the leading spot in the smartphone-summoned ride market, but also blamed for fostering an atmosphere of impropriety and rule breaking at the company.

A planned tie-up with Japanese tech giant SoftBank suggests the ride-sharing giant is set to come of age in the business world, but it still faces a long road ahead.

The deal would give Uber an additional $1 billion in capital and could allow SoftBank to acquire as much as 14% of Uber over time.

While Uber has become a global phenomenon operating in more than 600 cities and dozens of countries, it is trying to move past scandals and missteps that have included executive misconduct, a cutthroat workplace and potentially unethical competitive practices.

One step toward the future was the hiring of Mr. Khosrowshahi earlier this year, which left founder Mr. Kalanick in the background.

But Uber needs to clean up governance and other practices in order to meet its goal of a 2019 stock market debut that will open up the privately held firm to greater scrutiny. Under Mr. Kalanick, Uber reached an eye-popping valuation of $68 billion, unprecedented for a private firm.

But at the same time, it has faced resistance from traditional taxi operators and regulators, and faces possible bans in cities for failing to live up to local rules.

The deal with SoftBank is aimed at getting past the clashes between Mr. Kalanick and early investors like Benchmark Capital, which has sued the former CEO. SoftBank is expected to buy up shares from some investors by pumping in as much as $9 billion, in a so-called tender offer to Uber stakeholders. Rajeev Misra, CEO of SoftBank Investment Advisors, said earlier this month that some details are not yet final.

Uber called the SoftBank deal “a strong vote of confidence” in the company’s long-term potential.

But Uber has other issues as well. It is in court facing Waymo, the former Google Car unit, which has alleged the theft of trade secrets on autonomous vehicle technology, in a case pending in California. Uber’s use of software aimed at thwarting rivals like Lyft has also hurt its image and could create further legal woes. — AFP

PSEi down on profit taking ahead of Fed minutes

STOCKS continued their downward movement for the second day in a row due to profit taking amid a good forecast for Asian equities next year and ahead of the release of the minutes of the last Federal Open Market Committee (FOMC) meeting, as well as the US Thanksgiving holiday.

The Philippine Stock Exchange index (PSEi) closed at 8,265.68, down 23.51 points or 0.28%.

The all-shares index, meanwhile, closed at 4,846.38, down 5.30 points or 0.10%.

“The index closed in the negative territory today as investors took profits in SM [Investments Corp.] and BDO [Unibank, Inc.] after the banking stock reached its all-time high of P149.50. I also think that the last-minute dumping today is just another ordinary day of profit taking for investors after a good announcement from Goldman Sachs said that Asian equities excluding Japan may see favorable returns in 2018,” Jervin S. de Celis, equities trader at Timson Securities, Inc., said in a text message on Wednesday.

US banking giant Goldman Sachs Group, Inc. released yesterday a report forecasting strong performance of stocks in Asia except Japan, after a 33% rally in 2017. Goldman Sachs increased its 12-month target for the MSCI Asia Pacific index ex-Japan by 9.7% to 620, favoring China, India, and South Korea stocks.

“Equities were sold down ahead of both the FOMC minutes and the Thanksgiving holiday. Bets were also placed, which arose as investors speculating on whether the US tax cut would keep the current economic expansion going,” Luis A. Limlingan, managing director at Regina Capital Development Corp. said in a text message.

Concerns over the proposed tax reform plan of the Republican Party still linger in Wall Street, with the uncertainty of the passage of the plan in the legislative bodies in the US.

Meanwhile, the FOMC minutes were scheduled for release last night.

“Looking into the indicators, we can see hints of continued decline although as of now the 50-day moving average is slightly breached. If this trend continues this week, we get to see another strong support level at 8,100. We also have to note that ATR (average true range) is still recording high volatility levels so caution is advised,” Mr. Limlingan added.

Among the sectoral indices, only industrials and property gained, with industrials closing at 10,926.32, up 4.27 points or 0.03%, and property closing at 3,855.43, up by 28.85 points or 0.75%.

Financials closed at 2,082.64, down 4.49 points or 0.21%; holding firms at 8,369.01, down 55.75 points or 0.66%; services at 1,629.96, down 5.54 points or 0.33%; mining and oil at 12,047.27, down 44.89 points or 0.37%.

Total volume traded was 1.43 billion, while total value was P6.93 billion. Decliners outnumbered advancers 109 to 83, and 50 remained unchanged.

Net foreign selling inched higher to end at P269.15 million from Tuesday’s P269.1 million. — P.P.C. Marcelo

PHL has ‘high level’ of mobile access, download speeds in urban areas — report

DESPITE a telecommunications duopoly, the Philippines has a “high level” of basic mobile access and the latest wireless and fixed technologies with high downloads speeds in urban areas, according to a report by a United Nations (UN) specialized agency.

wifi symbol

The International Telecommunications Union (ITU), a UN agency for information and communication technologies (ICT), released a report titled “Measuring the Information Society,” said that the Philippines has achieved “a high level of basic mobile access and has deployed the latest wireless and fixed technologies with high download speeds, at least in urban areas.”

ITU also said that there is room for growth for mobile penetration in the Philippines.

“Mobile penetration passed the 100% mark in 2012 but there is room for growth with 84% of homes had a mobile phone (91% in urban areas, 78% in rural areas) (Philippine Statistics Authority, 2014),” ITU said in its report.

ITU said that the two players PLDT Inc., and Globe Telecom, Inc. launched LTE in 2012 and in 2013 deployed LTE-Advanced, with download speeds reaching 1 Gbps.

The UN agency also said that the two players have “extensive” national fiber optic backbone, made up of underground, overhead, and submarine cables. “The country’s strategic location and considerable coastline facilitate access to international submarine cable systems.”

ITU also gave a positive assessment of the overall ICT picture in the Philippines given its population and strong business process outsourcing (BPO) industry.

“It is also well endowed with international Internet bandwidth driven by its large overseas population and burgeoning business process outsourcing industry,” ITU said.

Earlier this week, Malacañang said that President Rodrigo R. Duterte has offered a Chinese telco player a space in the industry dominated by PLDT and Globe to provide services and spur competition to improve Internet speed and availability offered by the two players, which have not satisfied consumers.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

Russia bans Brazil meat over additives

RUSSIA has decided to suspend imports of pork and beef from Brazil from Dec. 1 after traces of banned feed additives were detected in the meat, the country’s agricultural safety watchdog said Monday.

Russia’s Rosselkhoznadzor agency said in a statement that ractopamine and other “growth hormones” had been detected in Brazilian meat imports.

Ractopamine is used to promote the development of lean meat. It is banned by Russia and the European Union (EU) due to human health risk concerns, but it is allowed in the United States, Canada and Brazil, among other countries.

The agency said that it had been forced to take “severe measures to protect Russian consumers” and impose “temporary restrictions” on the pork and beef imports from Dec. 1.

The decision will further restrict Russia’s meat imports after those from the EU, US, Canada, Australia and other western countries have been banned due to an agricultural embargo imposed in response to western sanctions in the wake of the Ukraine crisis.

In February, Russia imposed a temporary ban on imports of beef and beef by-products from New Zealand, after traces of ractopamine were found. — AFP