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Coffee production hampered by small scale of growers’ farms

REUTERS

By Adrian H. Halili, Reporter

COFFEE farmers in the Philippines operate mostly small-scale farms, limiting their ability to rapidly ramp up production, according to Nestlé Philippines, Inc.

Nestlé Corporate Affairs Head Joey Uy III said: “The average farm size is one to two hectares. … given the size of their land, it might not be enough,” Mr. Uy told reporters at the weekend.

Smallholder farmers — those with between one and two hectares of land – account for an estimated 80% of Philippine coffee production.

These growers are typically located in Mindanao area, where about 70–80% of coffee is produced, because the climate there is suitable for growing coffee.

The Philippines imports the majority of its coffee requirements, mostly from Vietnam, as local production cannot meet demand. Local coffee can service about 38% of market needs.

“The medium-scale farmers have five hectares. And then (there are) big farm land owners as well. So, it varies,” Mr. Uy said.

“But our focus is on the small farmers. We want to consolidate them into associations or work with cooperatives,” he added.

The company requires about 40,000 metric tons of coffee per year at its Cagayan de Oro processing plant.

He said Nestlé conducts technical training for coffee farmers to improve the yield of the high value crop to 1 metric ton per hectare. The company trains 4,000 to 8,000 farmers per year.

He added that yields have also increased due to the use of regenerative agriculture, which aims to maintain the fertility of the soil.

“We also bring back the health of our land. Normally, when you always harvest, you also uproot the nutrients. So, we practice regenerative agriculture as well,” he said.

“That means that we have to practice balanced fertilization and not to be fully dependent on chemicals into the land. So we try to inject composting, agroforestry, intercropping, covered crops, in order to bring back the health of the land,” he added.

The government’s Coffee Industry Roadmap seeks to increase the self-sufficiency rate of the industry to about 47%.

The Department of Agriculture (DA)  is proposing a budget of P32 billion next year for high-value crops.

“We have like almost 30 crops to look into. So, the mechanism now is to introduce transformative interventions to address farm productivity,” Agriculture Undersecretary Cheryl Marie Natividad-Caballero said.

The DA is also planning to put up multi-purpose cold storage facilities to minimize post-harvest losses of high value crops.

“It’s still a proposition, but while waiting for 2025, we are doing our due diligence. We are going around to see where we have a competitive advantage for a particular crop in a particular location,” Ms. Natividad-Caballero added.

Angkas now preparing for four-wheel operations, expansion

PHILIPPINE STAR/EDD GUMBAN

DBDOYC, Inc., the company behind the Angkas motorcycle taxi app, aims to offer its services to more locations nationwide and is currently preparing to operate four-wheel vehicles, its top official said.

“It is really determining the key cities. I think there is an opportunity for us to be able to expand the Angkas system where it is really needed, especially in the provincial cities,” Angkas Chief Executive Officer George I. Royeca said on the sidelines of the BusinessWorld Economic Forum last week.

“We hope we will get their approval soon. If we could expand to as many cities as possible, that would be great,” he added.

The motorcycle taxi provider is also venturing into the four-wheel business after securing approval to commence operations.

“We have gotten our approval already, so it is just a matter of time. We are in preparation right now. Hopefully, over the next few months, we will see Angcars on the road,” he said.

Mr. Royeca said that Angcars will initially launch in Metro Manila, while the fleet size is still being determined.

Angkas expects this new addition to boost the company’s overall operations.

“Well, it is definitely a much bigger base. I think it is going to be a high contributor but our hearts are still focused on developing the informal sector of two-wheels,” Mr. Royeca said. 

He also said the government should legitimize motorcycle riders as they are a big contributor to the country’s economy.

“The informal workers, such as boatmen, masseuses, and habal-habal drivers, are already working, but without the help of the government and financial services, and proper access to a lot of these different benefits. What’s missing are policies in our economy that recognize them. Through recognizing the informal sector, we could reinforce their work, significantly boost the economy, and uplift millions of Filipinos almost overnight,” he said during the forum.

“On top of the infrastructure, which we know is being taken care of by the private sector, let’s take a look at the human aspect, the human capital and how do we make them informed and empowered members to strive in this economic ecosystem,” he added.—Ashley Erika O. Jose

DBP looking to issue bonds in the second semester

BW FILE PHOTO

THE Development Bank of the Philippines (DBP) is eyeing a bond issuance in the second half of the year to raise fresh funds, its top official said.

“Our approved fund reserve for the year is around P45 billion. We have raised initially P8.75 billion in the first quarter. We intend to issue the balance depending on the market conditions,” DBP President and Chief Executive Officer Michael O. de Jesus told reporters last week.

The bonds will have short-term tenors and will likely be issued in the third or fourth quarter, he said.

The bond issuance could be peso or dollar-denominated, but the bank is more inclined to issue peso bonds, Mr. De Jesus added.

Proceeds will fund the bank’s general corporate requirements, he said.

Mr. De Jesus said the bank is bullish on its outlook for this year and expects the bank’s performance to be “slightly better” than in 2023.

“We’re optimistic. A lot of our loans now are to the power sector and the infrastructure. There’s still a lot of renewables we’re seeing. We always want to be selective in our loans,” he said.

“We’re not after a particular target, meaning a particular asset size. We want to make sure we’re very selective in what we do. We’re prudent.”

Latest data from the DBP showed that its net income jumped by 60% year on year to P4.42 billion in the first half of 2023.

Meanwhile, Mr. De Jesus said the bank is not seeking an extension of the regulatory relief granted to them by the central bank, saying this is “not on the table right now.”

The state bank, along with Land Bank of the Philippines (LANDBANK), were extended regulatory relief following their capital contributions to the Maharlika Investment Corp. (MIC). DBP and LANDBANK were required to provide P25 billion and P50 billion, respectively, to the MIC’s initial funding.

Finance Secretary Ralph G. Recto earlier said the banks could ask for an extension of the relief, but noted this was a “non-issue” as both banks’ financial positions are sound.

President Ferdinand R. Marcos, Jr. last year signed executive orders reducing both the banks’ dividend obligations to the National Government to 0% of their net earnings from 2022.

LISTING
On the other hand, the DBP could list publicly as early as next year, Mr. De Jesus said. “If (the law) is passed this year, you could have an initial public offering (IPO) as early as next year.”

The Department of Finance is proposing to amend both the DBP and LANDBANK’s charters to raise their authorized capital stock and allow for their public listing. The proposal seeks to hike the DBP’s authorized capital stock to P300 billion from P35 billion and the LANDBANK’s to P1 trillion from P200 billion previously.

Mr. De Jesus said that the proposal has been submitted to Congress and is hopeful that this will be approved and passed into law within the year.

Apart from the hike in capital stock and public listing, he said the proposed charter amendments will increase the public ownership of the DBP.

“I think they even increased it from 20% to 30%. It’s a proposal of the DoF. All these have to go through the Senate,” he added, adding that the proposal ensures that the government will still hold a majority stake in the bank. — Luisa Maria Jacinta C. Jocson

Great Wall Motor sets great expectations

Tank 700 Hi-4T SUV — PHOTO BY DYLAN AFUANG

The Chinese auto group bares fresh metal, venture at Beijing Auto Show

By Dylan Afuang

AT AUTO CHINA (or Beijing Auto Show) 2024, Chinese auto group Great Wall Motor (GWM) reiterated the manufacturing prowess of its facilities in Baoding and Xushui, China. It revealed “new-energy” vehicles from its brand umbrella, along with the company’s goals for the future.

These feats were announced by GWM CEO Mu Feng to the visitors of the major auto show, which was staged in Beijing from late April to early May. Car makers from around the world, but especially Chinese ones, bannered their advancements in mobility at Auto China.

“China’s complex topography provides us with a good development and test environment, and we can experience the complex global car scene and to (gain insight in) the needs of users,” Mr. Mu stated in Chinese, whose message was accompanied by English translations flashed on screen at GWM’s booth.

At the 18th Auto China, the GWM unveiled the 700 Hi-4T SUV from Tank; 03, 03 GT, and 07 electric vehicles from Ora; and the H9 and H6 crossovers from Haval. GWM also revealed its venture into motorcycle manufacturing through its new subsidiary, Souo Motorcycles.

Local GWM distributor Luxuriant Auto Group, Inc. (LAGI) will bring in limited examples of the aforementioned Tank SUV, Ora EVs, and H9 this year, LAGI Product Manager Fritz De Ocampo told the Philippine contingent on the sidelines of the show. Last month, the distributor brought local motoring media to China for a tour of GWM’s manufacturing bases and the motor show.

“In 2023, GWM entered the harvest period of high-quality development, and we achieved an annual sales of more than 300,000 vehicles in overseas markets,” the company CEO continued. While “in the first quarter of 2024, GWM sold 92,800 vehicles overseas and 35,800 vehicles in March (alone), both of which maintained a high growth trend.”

Following the executive’s announcement, GWM’s goal to achieve a million units sold in overseas markets annually by 2030 was presented on screen.

Through Souo, the firm plans to make a luxury touring motorbike powered by an eight-cylinder engine, and as of presstime, the brand’s first model could have made its debut in the Chinese market.

Revealed to the Chinese market early this year, the Tank 700 Hi-4T is a full-size SUV powered by a three-liter turbo V6 engine accompanied by a plug-in hybrid system, and is supported by an air suspension system. It boasts a 950-mm water-wading capability.

Known here as the Ora 03 and abroad as the Good Cat, the electric hatchback features a bug-eyed appearance, a brightly colored cabin, and a 400-km range. Its sportier counterpart is the aforementioned 03 GT, which is distinguished by more aggressive exterior details.

Positioned as Ora’s premium model is the 07 fastback. It sports the brand’s signature styling with circular headlamps and a well-appointed interior. Similar to the 03 GT, limited examples of the 07 are allocated for our market.

The Haval H9’s boxy styling wraps a three-row, seven-seat cabin, and engine choices of a two-liter turbo with 221hp, and a 2.4-liter turbodiesel with 185hp. Supporting these is a 4WD system and three differential locks.

Our market’s Haval H6 crossover packs a hybrid powertrain, while the conventionally powered model, available in China, received a new infotainment system inside and styling changes outside. These changes could find their way to the hybrid H6.

“GWM makes Chinese cars a new business card in the world,” Mr. Mu concluded, “and with (entry into) multiple categories, it makes us firmly believe in the realization of (the 2030 goal).”

Where are we now?

MARIAH DALUSONG-UNSPLASH

“We are pleased to see that our economy has sustained its growth, expanding by 5.6% in the fourth quarter of 2023, resulting in a GDP growth rate of 5.6% for the entire year.”

“While this growth is below our target of 6 to 7% for 2023, it keeps us in the position of being one of the best-performing economies in Asia. Among those that have already released their Q4 2023 GDP growth figures, we follow Vietnam (6.7%) while surpassing China (5.2%) and Malaysia (3.4%).”

“More importantly, our full-year GDP for 2023 is now 8.6% higher than pre-pandemic levels. Moreover, the Q4 economic performance validates the strategies and policy directions outlined in the Philippine Development Plan 2023-2028.”

Above was the official start-of-the-year press statement of National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan on the “Economic Performance for Q4 and full year 2023,” released on Jan. 31.

On the same day, the NEDA released the Philippine Development Report, or PDR 2023, to the public. “The PDR identifies the critical programs, projects, and policies begun and implemented in the past year or 2023. As an evidence-based report, it evaluates our country’s performance concerning the outcome indicators identified in the PDP and includes updates on the Marcos Administration’s legislative agenda. As a forward-looking document, the PDR considers and anticipates internal and external developments and scenarios. Finally, it presents the lessons we have learned and lays down plans of action to ensure we remain on track to meet our goals by 2028. I urge the public to read the report to see how we have fared and how we see ourselves moving forward this year,” Mr. Balisacan urged.

Where are we now?

Mr. Balisacan was the keynote speaker at the BusinessWorld Economic Forum, “PH Next: Growth Drivers,” held at the Grand Hyatt Manila on May 22. “We experienced 5.7% growth this month,” he announced. That’s where we are now. Balisacan, chief economic planner for three consecutive presidents — Aquino, Duterte, and Marcos, and former Dean of the School of Economics at the University of the Philippines Diliman (UP), should know.

“Prudent fiscal management has been instrumental in supporting the country’s growth. Following the pandemic, we have sought to reduce our debt and deficit-to-GDP ratios to expand our fiscal space,” Mr. Balisacan said at the BusinessWorld forum. The Philippines Consolidated Fiscal Balance recorded a deficit equal to 6.1% of its Nominal gross domestic product (GDP) in Mar 2024, compared with a deficit equal to 6.2% in the previous quarter.

On the demand side, there is a need for our growth to transition from being mainly consumption driven to being propelled by a more balanced mix of growth drivers. Philippine Statistics Authority (PSA)/NEDA charts showed that the contribution of consumption to GDP in 2021-2023 was 69%, compared to 19.3% from government expenditures, and 43% from investments, pulled down by -23.1% from exports.

On the supply side, contributions of agriculture and manufacturing to growth have declined, while that of services has steadily risen, pointing to the need to strengthen productivity and competitiveness. PSA data for 2021-2023 showed agriculture contributing 0.7%; manufacturing, 15.3%; other industry subsectors, 14.2%; education, 4.8%; ICT, 3.9%; and other Services subsectors, 61.2%.

The Business Process Outsourcing – Information Communication Technology (BPO-ICT) industries have flourished and played a pivotal role in driving service exports. Services export levels were $30.5 billion in 2023, contributing 8.4% to GDP.

The Tourism sector has always been a significant contributor to GDP, with its share reaching nearly 13% of GDP at its peak in 2019, Mr. Balisacan said at the BusinessWorld economic briefing. However, while the economy has fully reopened, the sector has not yet completely recovered. From close to P3 trillion gross value added (GVA) to GDP (a 12.9% contribution), GVA slid to P1 trillion in 2020 (a 5.1% contribution), sluggishly moving up to P1.376 trillion (a 6.2% contribution to GDP).

Mr. Balisacan lamented that while Foreign Direct Investments (FDIs) have risen, the Philippines has lagged behind its dynamic ASEAN neighbors. This indicates the need to further enhance our investment ecosystem and address constraints to doing business, he said. Charts from the UN Trade and Development showed the Philippines most often at the bottom of FDI inflows since 2010, and still the lowest recipient, $9.2 billion in 2022, compared to Indonesia’s $22 billion, Vietnam’s $17.9 billion, and Malaysia’s $16.9 billion.

What’s wrong with us? Mr. Balisacan pointed out that geographic inclusivity remains a challenge to our development and growth, and to our marketability in global competitiveness. Mega Manila, consisting of the National Capital Region (NCR), Central Luzon, and Calabarzon, has, from 2001-2023, contributed more than 50% to GDP (56% in 2021-2023), while the rest eke out their 45% contribution.

The inequalities of opportunities in the regions, and the imbalance in supply and demand factors across the country affect the most crucial factor of production: labor. In the past decade or so, wages have been increasing, albeit gradually. Massive job-generating investments are needed to strengthen the backward and forward linkages between sectors and are crucial to raising wages, Mr. Balisacan stressed.

The Public-Private Partnership (PPP) Code enables the country to achieve inclusive and sustainable growth by establishing a stable and predictable environment for collaboration between the public and the private sectors. The PPPs shall remain a key driver for sustained spending on physical and social infrastructure to boost productivity and raise the country’s competitiveness, Mr. Balisacan confirmed. There are 194 projects under implementation (13 are infrastructure) with total estimated project cost of P3.3 trillion ($59.4 billion). There are 129 projects in the pipeline (32 are infrastructure) with total estimated project cost of P3 trillion ($54 billion).

The Marcos Jr. Administration continues to evaluate, approve and roll out the 185 Infrastructure Flagship Projects (IFPs) under the “Build, Better, More (BBM)” Program worth P954 trillion ($166.6 billion).

“We are confident of meeting our short-term development objectives and we aim for no less socio-economic transformation in the medium term,” Mr. Balisacan promised the Filipino people.

His tandem keynote speaker at the BusinessWorld Economic Forum, representing the private sector, Lance Gokongwei, President CEO of JG Summit Holdings, Inc., pledged the support of the private sector for the government’s PPPs and BBMs, and laid out current individual and cooperative private sector plans and programs to contribute to socio-economic development in the country. The private sector drives 93% of the Philippines’ gross domestic product and employs over 92% of the workforce, per the Asian Development Bank.

“The Philippines is still on track to become an upper middle-income economy next year as long as the growth momentum continues,” Mr. Balisacan told reporters on the sidelines of the economic forum last week (bworldonline.com, May 24). Since 1987, the Philippines has been classified as a lower middle-income economy, according to the World Bank’s earliest records. It still currently classifies the Philippines as a lower middle-income country with gross national income (GNI) per capita of $3,950. Mr. Balisacan said GDP growth must average 6.1% in the next three quarters to hit the government’s 6-7% growth target.

President Ferdinand “Bongbong” Marcos, Jr. has set a target for the Philippines to reach upper middle-income status by 2025. Being an upper middle-income country means having a GNI per capita income range of $4,466 to $13,845.

The World Bank forecasts that the Philippines would be the fastest-growing economy in Southeast Asia this year with a 5.8% growth estimate. For 2025, the multilateral lender hiked its growth forecast for the Philippines to 5.9% from 5.8%. However, the World Bank’s growth forecasts for the Philippines still falls behind the government’s 6-7% target band.

That’s where we are now. Not there yet, it seems.

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Diamonds aren’t forever as singer Shirley Bassey sells her gems

INSTAGRAM.COM/SOTHEBYS

LONDON — Dame Shirley Bassey, who famously sang “Diamonds Are Forever” in the James Bond film of the same name, is selling some of her jewelry and watches at auction, with proceeds from the sale to benefit her chosen charities.

The Welsh-born singer, 87, is parting with more than 80 items, including dazzling pieces by high-end names such as Cartier and Van Cleef & Arpels at Sotheby’s Oct. 10 Fine Jewels sale in Paris.

“This collection is eclectic and shows her (Bassey’s) grand personality and superstar status,” said Nikita Binani, Head of Jewellery at Sotheby’s London.

“A lot of the pieces have diamonds, which is a wonderful theme that connects everything together,” she said of the highly varied collection.

Top lots include a diamond necklace with an estimate of €270,000 – €320,000 ($292,500 – $346,700), a diamond and gold parure by Cartier estimated at €200,000 – €250,000, a yellow diamond ring for €165,000 – €200,000, and an emerald and diamond necklace by Van Cleef & Arpels estimated at €60,000 – €70,000.

“Collecting jewelry for me is like collecting memories, and this collection is full of them,” Ms. Bassey said in a press release.

“All the pieces are meaningful and have a story to tell, whether I bought them for myself, or they were gifted to me.”

Among these, she said, is a 1960s Van Cleef & Arpels ring covered in white diamonds Ms. Bassey received from Elton John after performing at one of his AIDS fundraising galas and an emerald parure she bought herself after singing at the Royal Variety Performance for the first time in front of the late Queen Elizabeth.

“One of the things that’s wonderful about this collection is that many of her jewels were gifted or bought or acquired around or connected to a stage performance of hers,” said Ms. Binani.

As well as 1971’s “Diamonds are Forever,” Bassey is known for recording the theme songs for two other James Bond films, 1964’s Goldfinger and 1979’s Moonraker.

Highlights of the collection go on show as part of Sotheby’s London Fine Jewels sale from Friday until May 29. They will also be exhibited in Paris from Oct. 4 in the run-up to the live auction. — Reuters

Debt yields up on Fed minutes

YIELDS on government securities (GS) ended mostly higher last week as investors remained defensive following the result of the 20-year bond auction and the release of minutes of the US Federal Reserve‘s policy meeting this month.

GS yields, which move opposite to prices, went up by an average of 5.11 basis points (bp) week on week at the secondary market, according to the PHP Bloomberg Valuation Service Reference Rates as of May 24 published on the Philippine Dealing System’s website.

Rates at the short end of the curve increased, with the 182- and 364-day Treasury bills (T-bill) rising by 4.23 bps and 0.81 bp to fetch 5.9429% and 6.0323%, respectively. Meanwhile, the yield on the 91-day T-bill dropped by 1.1 bps to 5.7881%.

At the belly, the four-, five-, and seven-year T-bonds saw their yields climb by 1.84 bps (to 6.4519%), 4.37 bps (6.5117%) and 7.7 bps (6.6143%), respectively, while the rates of the two- and three-year papers declined by 4.83 bps (to 6.3104%), and 1.49 bps (6.3867%).

The long end saw bigger yields movements as the 10-, 20-, and 25-year debt jumped by 10.54 bps, 16.26 bps and 17.86 bps to fetch 6.7171%, 6.8338%, and 6.8492%, respectively.

Total GS volume reached P9.62 billion on Friday, lower than the P14.23 billion recorded as of May 17.

“Trading last week began on a quiet note as investors opted to remain defensive following the rise in US yields and the slated new 20-year bond issuance on Tuesday. Most players opted to de-load some of their holdings in the belly and long-ends in anticipation of the new long-end issuance,” Alessandra P. Araullo, chief investment officer at ATRAM Trust Corp., said in a Viber message.

Ms. Araullo added that the weak reception for the new 20-year T-bonds auctioned off last week fueled defensiveness, causing further selling pressure especially in the five-year and 10-year tenors, and also caused market players to look at overseas developments amid a lack of catalysts.

“The release of the US Fed minutes has shown that some Fed officials are willing to hike rates if inflation doesn’t keep moving lower toward the US Fed’s 2% goal. This further caused concern among local market participants as this solidified their stance to remain defensive for the week,” she added.

The minutes of the Fed’s April 30-May 1 policy meeting affected local yield movements, Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., likewise said in a Viber message.

“Market players will remain cautious after the Fed minutes still signalled higher rates for longer. We expect sideways to up movements in rates,” Mr. Ravelas added.

The Bureau of the Treasury (BTr) last week raised just P22.717 billion via the fresh 20-year bonds it auctioned off, lower than the P30-billion program, despite total bids reaching P37.919 billion.

The bonds were awarded at a coupon rate of 6.875%, while accepted yields ranged from 6.6% to 6.95% for an average rate of 6.797%.

Meanwhile, Federal Reserve officials at their last policy meeting said they still had faith that price pressures would ease at least slowly in coming months, but doubts emerged about whether the current level of interest rates was high enough to guarantee that outcome and “various” officials said they’d be willing to hike borrowing costs again if inflation surged, Reuters reported.

That meeting was held before data showed the pace of consumer price increases beginning to cool again in April, yet reflected what US central bank officials since then have said is increased uncertainty about the path of inflation and monetary policy.

“Participants… noted that they continued to expect that inflation would return to 2% over the medium term,” according to the minutes of the April 30-May 1 meeting, but “the disinflation would likely take longer than previously thought.”

While the policy response for now would “involve maintaining” the Fed’s benchmark policy rate in the current 5.25%-5.5% range, “various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate,” the minutes said, employing a modifier not included in the usual set of — like some, many, and most — used in the minutes to give a sense of how many officials voiced a particular opinion.

Fed Chair Jerome H. Powell and other policy makers have since said they feel further rate hikes are unlikely.

But the minutes released on Wednesday excluded specific reference to that notion and to the likelihood of rate cuts this year.

In place of that broad judgment, the latest minutes showed an emerging debate about just how tight monetary policy is, an important consideration that could bear on how fast inflation returns to the central bank’s 2% target — or whether it gets there at all.

For this week, Ms. Araullo said the BTr’s three-year bond auction on Tuesday will be the leading catalyst for market activity, along with data releases in the US, especially first-quarter gross domestic product data and the April personal consumption expenditure report.

“Investors will keep a close eye on where the BTr will award to get a sense if market defensiveness will continue in the short-term. This may give investors a clearer view on where they think monetary policy decisions will be headed so that they can position themselves accordingly,” she said.

Mr. Ravelas added that market will likely look ahead to the release of May Philippine inflation data on June 5. — Lourdes O. Pilar with Reuters

Catch landed at regional fishports up 34.6% in April

Buckets of fish are sold at the Navotas fish port in this file photo. — PHILIPPINE STAR/MICHAEL VARCAS

FISH landed at regional fishports (RFPs) in April amounted to 60,256.88 metric tons (MT) in April, up 34.6% year on year, the Philippine Fisheries Development Authority (PFDA) said.

In a statement, the PFDA said the April total was “the highest fish unloading in the recorded history of PFDA and a 9% increase from the March unloading,” it added.

The General Santos Fishport Complex reported deliveries of 28,027.19 MT, up 21% from a year earlier.

Deliveries at the Navotas fishport totaled 23,344.29 MT during the month, against 23,149.47 MT a year earler.

Both fishports reported record deliveries during April.

The PFDA said that the Lucena Fishport landed 3,152.15 MT, while Bulan Fishport in Sorsogon received 2,030.36 MT.

The sole PFDA fishing complex in Visayas, the Iloilo fishport, landed 2,570.82 MT in April.

It added that the Zamboanga Fishport and the Davao Fishport landed 752.43 MT and 307.03 MT respectively.

The PFDA said that Sual Fishport in Pangasinan reported deliveries of 69.93 MT, while the Camaligan Fishport in Camarines Sur reported 2.68 MT. “All RFPs experienced a significant jump in their month-on-month records,” it added.

Fish volumes rose 9% from a month earlier. — Adrian H. Halili

Napocor targets to bid out RE hybridization in off-grid areas soon

PHILSTAR FILE PHOTO

STATE-LED National Power Corp. (Napocor) said it targets to complete the bidding process for the Accelerated Hybridization Program (AHP) soon to allow private companies to put up renewables in off-grid areas.

“We made an innovative structure, so they are doing the line-by-line review of the bidding documents and the terms of reference,” Ferdinand Martin Y. Roxas, Napocor president and chief executive officer, told reporters on the sidelines of a forum last week.

“Hopefully it becomes approved soon and we are able to bid out by end of May or June,” he added. 

The AHP is aimed at allowing the private sector to build renewable energy generation plants or facilities to supplement, augment, or replace the existing capacities in the operations of Napocor’s Small Power Utilities Group (SPUG) diesel power plants.

Under the program, Napocor plans to bid out four clusters of off-grid areas such as Batanes, Palawan, Bicol, and Tawi-Tawi.

“So, if this became successful, we will think about applying it to the rest of other power plants,” Mr. Roxas said.

Mr. Roxas said that the bidding will be under a 20-year contract wherein Napocor will serve as the offtaker and will pay for the energy delivered to its switchyard, including losses.

“It is technologically agnostic, as long as it’s RE (renewable energy). We will pay them the SAGR (Subsidized Approved Generation Rate). If the SAGR goes up, we will pay 50% each,” Mr. Roxas. 

However, he said that if the SAGR goes down, Napocor will “not pay them below what they bid.”

Napocor said that the program aims to reduce the Universal Charge for Missionary Electrification subsidies, the use of diesel fuel and its cost.

The agency is mandated to provide electricity to areas that are not connected to the transmission system, through SPUG plants. At present, Napocor operates 272 SPUG plants, mostly powered by diesel in 222 areas. — Sheldeen Joy Talavera

Philippines falls in 2024 Elite Quality Index

The Philippines fell three places to 51st spot out of 151 countries in the 2024 edition of the Elite Quality Index (EQx) by Switzerland-based Foundation for Value Creation Activities in partnership with the University of St. Gallen. Despite this, the country’s EQx score improved to 52.1. The EQx evaluates and ranks countries based on their elite quality in political economy. Elite quality refers to the overall impact of elite business models, which can result in either positive value creation or negative rent-seeking.

Philippines falls in 2024 Elite Quality Index

Domestic trade in the regions: Which have (un)favorable trade balances?

The domestic trade in goods in the first quarter grew by 46.7% year on year to P389.42 billion, the Philippine Statistics Authority (PSA) said on Friday. Read the full story.

Domestic trade in the regions: Which have (un)favorable trade balances?

Knowledge is key to vaccine confidence

DIANA POLEKHINA-UNSPLASH

The public perception of the importance of vaccines for children declined during the COVID-19 pandemic in 52 out of 55 countries. This was revealed by the UNICEF report published entitled “State of the World’s Children 2023: For Every Child, Vaccination.”

One of these countries is the Philippines, where the perception of the importance of vaccines for children declined by about 25%. The global report warned that a total of 67 million children missed out on vaccinations between 2019 and 2021, with vaccination coverage levels decreasing in 112 countries during that period.

Of the 67 million children globally, who missed out on routine vaccination between 2019 and 2022, 48 million did not receive a single routine vaccine (“zero-dose”). The Philippines recorded one million zero-dose children, the second highest in East Asia and the Pacific Region, and the fifth highest globally.

The report also warned the confluence of several factors suggest the threat of vaccine hesitancy may be growing. Vaccine hesitancy refers to delay in acceptance or refusal of safe vaccines despite availability of vaccination services. Although the COVID-19 pandemic has ended, growing access to misleading information, declining trust in expertise, and polarization remain. Vaccine hesitancy contributes to low immunization coverage which puts children at risk of death, disability, and illness from vaccine-preventable diseases.

The country’s fully immunized child (FIC) coverage rate, meanwhile, increased from 59.9% in 2022 to 62.3% in 2023 and our measles-containing vaccine (MCV2) coverage rate increased from 63.7% in 2022 to 69% in 2023. Despite extensive efforts by the Department of Health (DoH) and the National Immunization Program (NIP), these figures still fall short of the 95% target coverage for routine immunization among children.

The UNICEF report attributed vaccine hesitancy in the Philippines to cultural factors and concerns on vaccine safety. A recent study sheds light on the underlying factors that fuel vaccine hesitancy in the country, particularly in rural areas. Conducted by reach52, the study aimed to identify the reasons for vaccine hesitancy and delayed vaccinations in six municipalities in Region 6 (Western Visayas). The reach52 is a HealthTech social enterprise with the mission to redesign healthcare to reach 52% of the world’s population without access to essential health services.

From December 2023 to January 2024, focus group discussions (FGDs) were conducted with two groups of 62 parents of children under five years of age, as well as in-depth interviews with 23 local health workers (municipal health officers, midwives and barangay health workers).

The first group consisted of parents/guardians whose children have not been vaccinated with or have missed doses of pentavalent, polio, or measles vaccines. The second group consisted of parents/guardians whose children have been vaccinated with or are on schedule with their pentavalent, polio, or measles vaccines. Among the parents of unvaccinated children, four barriers to childhood vaccination were identified.

First, complacency. A common assertion among parents was “vaccines are unnecessary” — a conviction either inherited from their own parents or derived from their environments such as misinformation spread in certain groups.

Second, safety concerns. The risk of adverse events following immunization (AEFIs) is a key factor driving vaccine hesitancy among parents whose children may have had experienced AEFIs in the past. On the other hand, parents with children getting vaccinated for the first time were worried about the risk or perceived risk of vaccines or vaccination rather than the risk of infectious diseases — a form of omission bias. Concern about their children receiving multiple shots also led parents to postpone vaccination.

Third, cost. To reach the vaccination center, some parents need to rent a motorbike or travel by boat and could spend up to P115 per trip. Needing to accompany their children to the vaccination center, some parents also stand to lose a day’s pay.

Lastly, poor health of the child on the day of vaccination, too many children to care for, migration, and religion also hindered the decision of some parents to have their children vaccinated.

The reach52 community operations and insight manager Rachel Alcalde-Dumlao noted that insufficient knowledge and understanding of vaccines are the root causes of vaccine hesitancy.

When asked about the diseases that the government-provided vaccines protect against, most parents said they “don’t know much/anything about it.” Others claimed the available vaccines were not discussed to them during immunizations, except for tuberculosis and pneumonia. In particular, many parents were not aware of the causes of vaccine-preventable diseases and their infectious nature, with some even possessing inaccurate information.

Educating parents is key to improving routine childhood immunization coverage, stressed Ms. Dumlao. She recommended emphasizing the importance of vaccination by reinforcing the messaging already employed by the DoH; reiterating that vaccines in the NIP are tried and tested, safe, effective, and free; explaining the diseases prevented by each vaccine; and highlighting the serious consequences of failing to vaccinate children.

The research-based pharmaceutical industry is one with the DoH and the medical community in enhancing health literacy, fighting misinformation, and increasing the country’s immunization coverage.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines (PHAP).  PHAP represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that  affect Filipinos.

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