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All about EV6

Positioned as ‘the ideal electric vehicle for executives,’ the Kia EV6 is a premium crossover SUV that boasts tech, good styling, and oodles of space. — PHOTO BY KAP MACEDA AGUILA

Kia is bringing in its first all-electric contender

OVER THE LAST month or so, you might have caught a glimpse of a vehicle (chances are it was on EDSA headed for Manila, or from Manila to BGC), and you just couldn’t make out what it was.

That was exactly what happened to several traffic enforcers, who had the eagle eyes to spot its plate number and realize that it was supposed to be “coding” the day STAR Motoring Editor Manny de los Reyes and myself took the out for a preview. We were among a batch of media and online content creators given the key fob to the Kia EV6 — set to be the first all-electric vehicle from the Korean brand to make it to the Philippines.

The first MMDA enforcer was a rather brash fellow on the corner of Taft and EDSA who, upon being told that it was an electric vehicle, chose to go with the line, “Wala pang memo sa ’min tungkol diyan (We haven’t received the memo about it).” Even a schoolkid would know, of course, that electric vehicles in all iterations and stripes, under the implementing rules and regulations of Republic Act No. 11697 (more commonly known as the Electric Vehicle Industry Development Act or EVIDA, which lapsed into law in the second quarter of last year), are exempt from the longstanding UVVRP or Unified Vehicular Volume Reduction Program.

The enforcer looked irritated after delivering his spiel, but clearly knew we were in the right. He waved us off and, voila, another enforcer waved to us like an eager K-pop fan. Repeat explanation, ad nauseam. In the absence of identifying plates devoted to electrified vehicles, I suppose this will be the lot of all you hybrid/EV owners out there, and I commiserate.

But the tide has begun to turn. One could argue that, for the first time, government, legislature, and the private sector are finally coming together in a meaningful way — especially with the recent approval of the zero tariff on electric vehicles. So, obstinate traffic enforcers aside, prospects are on the up and up for EVs and their fans.

I mean, one gander at the Kia EV6 should imbue you with all the positive vibes you need. Sleek, svelte, and unique, the EV6, first and foremost, looks good — the true face of the future for Kia and many brands on that inevitable path to electrification.

Kia is positioning the EV6 as a crossover, and it certainly has the heft to justify this classification as a sedan/SUV. Its large wheelbase which, at 2,900mm is even longer than the Sorento’s 2,815mm, translates nicely to great space for passengers within. I tried sitting in the rear bench, and it gives oodles of wiggle room — especially since it’s bereft of a hump on the floor to accommodate the traditional propeller shaft. Manny said he thinks the EV6 looks like a sport wagon like the five-door Mazda 3, or a “sporty five-door hatchback.”

Providing grunt is a 77.4-kWh lithium-ion-battery-powered permanent magnet synchronous motor which submits 229ps and 350Nm. Kia Philippines provides the relevant numbers for charging, saying that “normal AC (charging)” from 10% to full via an 11-kW charger will take seven hours and 20 minutes. Using a 50-kW DC fast charger, the battery will get from 10% to 80% in 73 minutes; an even more powerful 350-kW charger will get you to this state in a mere 18 minutes. The caveat though is that you should use these high-capacity DC chargers sparingly as they will degrade your battery more quickly when employed often.

The sole variant, to be made available to the public on March 21, is the EV6 GT Line. Expected to be priced below P4 million, the vehicle is being positioned for executives. This is a good idea and makes perfect sense for now, since EVs are still nascent — as our interviewee on the next page so aptly put it. Because of the price premium over conventional internal-combustion-engine-powered options, not to mention EV misconceptions and anxieties, EVs (pure EVs, as opposed to hybrids) are largely the domain of early adopters.

Manny agrees with the choice of target market. “It’s wheelbase length makes it the same or even longer than some mid-size executive sedans,” he said. “It’s a decent and very comfortable — even as a chauffeur-driven car.”

Speaking driving and being driven, Manny and I took turns at the wheel and in the front passenger seat, and we came away with similar impressions. We found the suspension system firm, but not harsh. “It’s a trademark of most European cars,” he said. And therein also lies one of the qualities of this Kia — it looks like a Euro vehicle, and that’s a good thing. It’s not luxurious, but certainly premium, Manny added. Indeed, you don’t get a feeling that you’re being shortchanged in terms of build quality and materials used. Kia engineers and designers definitely put a lot of thought to conjuring up the EV6.

I’ll add “futuristic” to the mix. An unbroken upright floating screen, which houses the 12.3-inch all-digital multi-function display and an instrument cluster, juts up from a textured dash. A single-louver A/C vent design runs underneath from the right-center vent to the passenger-side vent. Most everything can be controlled via the infotainment screen; no surprise there. But what may surprise drivers is the lack of a traditional gear shifter, which is supplanted by a rather unsexy but straightforward rotary knob. The engine, er, motor on-off button lies to its north.

Manny commented on how it was also the first time he saw a one-piece floormat the runs from the driver’s side to the front passenger’s. This underscores how much legroom is available for front occupants as well.

Back to driving impressions, we expected loads of torque on demand (this being an EV, after all), and the EV6 did not disappoint. But it’s still a little weird to not feel any harshness even when you heavy-foot the throttle. What NVH?

As we savored the EV6 experience, I also took the chance to direct some salient questions to our longtime STAR Motoring editor and BusinessWorld columnist. Is the country truly ready for electrification, I posed. “I think the prevailing issue is still range anxiety for a lot of EV buyers or prospective EV buyers. Having driven (the EV6) from Taguig to Manila and back, we only consumed less than 10% battery. It should have enough to bring it to Baguio and charge once you get there, then drive back.”

EV ownership is “really easy,” he added. “You just have to be a little more careful with the planning of your driving, but as far as running out of battery juice is concerned, there really should not be any problem — especially if you use it for the day-to-day office commute. It can do Monday to Friday straight without any charging at all.”

Okay, so if we can comfortably shelve range anxiety, are EVs are at a level where more people can comfortably buy them? “That’s the second issue. I would even put that issue first because the cost is still high,” replied Manny. “Then again, the EV6 in particular is not exactly an entry-level vehicle; it’s actually a premium one. The price comes with it and it’s not just because the technology is new. Yes, it’s expensive, but as far as the EV6 is concerned, it reflects the premium-ness of the vehicle.

“The entry-level EVs in the market now — the ones costing between P1.7 and P1.9 million are the ones that could ideally be priced lower; even the hybrids. They shouldn’t be costing that much more than their ICE-powered counterparts. The premium should be minimal — not P300,000 or half a million more.”

True. After all, the natural tendency for car buyers is to look across models and brands where they can get the most bang for their buck. The price tag for a sedan EV might, say, be even more than a mid-size, ICE-powered SUV. People will most likely go for the SUV.

“I would say that a government subsidy would be beneficial, especially for the non-luxury, non-premium hybrids and EVs to enable more of the market to experience the benefits of this new technology,” Manny continued. “I think that’s the best start because they did it in so many other markets abroad and it helped put more hybrids and EVs into the hands of new customers and drivers.

When we arrived back in Taguig, with myself at the wheel, there was still 409 km of charge on the EV6. Its recuperative properties, like in other EVs, allow for the transformation of kinetic energy developed when the vehicle is coasting or when braking, back into electricity which is used to charge the battery. Thus, when you look at the displayed range, that is only a nominal, real-time snapshot which can change depending on your driving habit or the terrain.

Since Kia Philippines teased the public with an EV6 preview at the Philippine International Motor Show last year, I’ve waited to get my hands on its wheel. Now that I’ve done so and seen the electric vehicle’s breadth of values, I can’t wait to know the final price tag — just as I can’t wait for more traffic enforcers to know what EVs are about.

Hope you finally got the memo, bud.

Levi’s celebrates 150 with 501

STILL from the film Fair Exchange

“BLUE jeans are the most beautiful things since the gondola,” once declared legendary Vogue editor Diana Vreeland. This year, the world celebrates the 150th anniversary of the invention of Levi’s blue jeans (based on the 1873 original patent filed by Jacob W. Davis and Levi Strauss).

During a press preview on Feb. 2 in Makati, Levi’s Philippines showed off new collections, as well as three short films that show the cultural impact of Levi’s.

Precious Cargo tells the story of how local fishermen brought Levi’s to Kingston, Jamaica in the 1970’s. This film was directed by Melina Matsoukas and shot by Academy Award-nominated cinematographer Bradford Young. The second film, Fair Exchange is about a beloved family cow and the son who swapped the beast for a pair of Levi’s, much to his family’s dismay. This was directed by Martin de Thurah and shot by cinematographer Kasper Tuxen. The third film, Legends Never Die, tells the story of one devoted Levi’s wearer who requested to be buried in his jeans. This specific fan asked all funeral attendees to wear their Levi’s jeans too.

Levi’s adds more choices for 501’s (its flagship product), if one should choose to be buried in the same way. The brand announced the launch of the Levi’s 501 81 and 54. The 81 takes its name from the year when Levi’s first released 501’s specifically for women (1981). It sits higher on the waist with a higher rise and features a slightly tapered leg as a nod to the ‘80s. The 54 is a tribute to the fit of an archival jean design from 1954 (think 1955’s Rebel Without a Cause). These feature a higher rise with a slimmer, slightly tapered leg. This year will also see the relaunch of SilverTab, a line released in the ‘90s to cater to Gen Z nostalgia and a preference for baggier fits.

Kat Costas, Marketing Lead for Levi’s Philippines, also announced a two-day event on May 20 (commemorating the day Levi’s received its first patent for their jeans) that will feature denim customization, and performances from bands.

“The 501 was made to be a blank canvas of self-expression, as expansive as the many people who have been wearing them. It’s actually an everyday uniform shared by millions,” she said. “That’s the story we want to tell.” — JLG

Global recruiter links rising inflation to employee retention

SURGING inflation is a key factor in an employee’s decision to seek higher pay, according to a survey by global recruitment firm Robert Walters which also said an employer’s response is crucial to talent retention.

“More than 70% of professionals will be looking for a new job if they are not seeing their salary at par with the inflation levels,” Robert Walters Philippines Director Alejandro Perez-Higuero told BusinessWorld in a virtual interview.

“72% of professionals expect companies to consider the cost of living for determining salary increments,” he added.

His comments reflect the results of Robert Walters’ Global Salary Survey 2023, which was conducted in September last year and involved more than 2,000 respondent companies and clients.

The country’s inflation rate accelerated to 8.7% in January, higher than the 3% registered in the same month last year and 8.1% in December, according to the Philippine Statistics Authority. The higher inflation rate was attributed to increases in home rentals, electricity prices, and water rates.

Mr. Perez-Higuero said employers should match salary packages to market rates and ensure clear roles to attract and retain talent.

“Make sure that they (salary packages) are competitive and they (employers) know what the market rates are in order to match those when it comes to retaining and hiring people,” Mr. Perez-Higuero said.

“Flexibility and other benefits are now more important than ever. Employees are going to appreciate employers that look after them. Employers should keep making efforts to understanding their employees’ needs from a benefits perspective,” he added.

According to Mr. Perez-Higuero, the survey also showed that employees’ salaries in the Philippines are expected to increase by 4% in 2023 amid surging inflation and higher living costs.

“Employees with the right skills, and with skills in demand, will be entitled to be more demanding when it comes to asking their employers to match their salaries with the increased costs of life,” Mr. Perez-Higuero said.

Mr. Perez-Higuero added that employers could better retain their employees if they improve their human resource (HR) policies and introduce employee learning and development.

“If employers want to retain their people, they’ll need to work on their learning and development or HR, policies or culture or capabilities so they can keep key employees constantly engaged. That will probably stop them to look for something else because they are actually challenged and they’re actually learning,” Mr. Perez-Higuero said.

“Nowadays, especially given that the workforce is slowly being populated by millennials and Gen Z, work-life balance is non-negotiable. There is a whole community out there where they can check a company’s background and culture before they decide to be recruited,” he added.

Meanwhile, Mr. Perez-Higuero said that the Philippines is expected to become a global shared services hub, attributing it to the country’s English-speaking population.

“As more and more startups — especially those that specialize in technology, finance, and digital services — enter the market this year, we expect the Philippines to strengthen its position in the global workforce market by the end of 2023,” he said. — Revin Mikhael D. Ochave

All aces for a fuel house

At the launch of the new and improved Shell V-Power are (from left): Pilipinas Shell Head of Mobility Marketing Arvin Obmerga, Shell V-Power Fuels Brand Manager Miguel Estrada, new brand ambassador Piolo Pascual, Pilipinas Shell Vice-President and General Manager Randy Del Valle, and Shell Global Solutions Fuel Scientist Andreas Schaefer. — PHOTO BY KAP MACEDA AGUILA

Shell says new V-Power line can restore engine to ‘like new’

By Kap Maceda Aguila

BEYOND the seemingly interminable task of comparing fuel prices across brands (and even individual stations), does it even matter what fuel goes into your car? The answer, if you didn’t already know, is of course. While government regulatory requirements and such standardize the fuels (or so we’d like to think), it’s important to get product from a reputable brand. After all, your car is a big-ticket investment you want to take care of.

Shell, which now boasts a considerable network of 1,150 mobility stations across the country, is upping the ante anew to keep itself top of mind among brands. On top of its efforts at evolving its stations into clean, one-stop destinations designed not just for those wishing to fill up their vehicles’ gas tanks, the company recently enlisted celebrity Piolo Pascual as its newest brand ambassador, who had said that his lifestyle and mobility habits — which include cycling — are fueled by Shell. “I’m happy to represent a brand that is about quality, service, and reaching as many Filipinos as possible,” Mr. Pascual stated. “When I’m out on a ride and stop at one of their stations, I can see how much they take care of their customers. Their passion for service is a value that’s important to me, helping me meet all my needs on the road. That’s why I trust Shell.”

Even more recently, Shell rejuvenated its product line at the pump by rolling out the latest version of its V-Power line of fuels. The company insists that the “new and improved Shell V-Power… cleans 100% of performance-robbing deposits and prevents future buildup on vital engine parts. Removing these deposits can restore up to 100% of engine performance.” This bold claim similarly applies for any V-Power-branded fuel — V-Power Diesel, V-Power Gasoline, and V-Power Racing (see interview below for more information).

On hand for the launch held at The Fifth at Rockwell in Makati City was Shell Global Solutions Fuels Scientist Andreas Schaefer, who joined Pilipinas Shell officials led by its President and CEO Lorelie Quiambao-Osial, Vice-President and General Manager for Mobility Randy Del Valle, and Shell V-Power Brand Manager Miguel Estrada.

Mr. Estrada shared in a speech that the V-Power brand was first introduced in 1998. “Over the past 25 years, it has been a successful part of our mobility offer for customers. It is that important.” Today, there are some 46,000 Shell mobility stations around the world, serving 30 million customers a day.

“Imagine the breadth of insights that we get to help us understand the evolving need of our customers,” averred Mr. Estrada. Globally, one in every five customers use Shell V-Power, making it the best-selling fuel type. In the Philippines, it is said to rise to one in three.

Mr. Shaefer said that the product’s latest formula has been specially designed with powerful cleaning agents that can remove deposits from key fuel system components and restore up to 100% of engine performance. “Vehicle manufacturers strive to increase modern vehicles’ performance and efficiency. More efficient engines require fuels to perform under tougher operating conditions, exposing them to gunk buildup and corrosion over time. With that in mind, Shell V-Power has been developed to work more effectively even in challenging conditions,” he added, and shared that these modern engines are particularly more susceptible to the adverse effects of these buildups because they are smaller.

“Vehicle manufacturers strive to increase performance and efficiency,” joined Mr. Estrada. “With engines’ reduction in size, they tend to (be more prone) to operating conditions where dirt can build up. V-Power is developed for these conditions. It’s now a step above… giving the best without compromise.”

The newest V-Power products have been developed over five years, and Shell said that “this latest development is in line with Shell’s mission to make life’s journeys better through its evolving range of fuels and a retail experience that puts forward convenience, quality, and choice for its customers.”

For more information, visit www.shell.com.ph/ShellVPower.

Designer Michael Kors celebrates power of women with new collection

MODELS present creations from Michael Kors Fall/ Winter 2023 collection during the New York Fashion Week in New York City, New York, US, Feb. 15. — REUTERS/CAITLIN OCHS
MODELS present creations from Michael Kors Fall/ Winter 2023 collection during the New York Fashion Week in New York City, New York, US, Feb. 15. — REUTERS/CAITLIN OCHS

MICHAEL KORS celebrated women who inspired him at his New York Fashion Week show on Wednesday, designing his collection with Tina Turner, Jane Fonda and Yoko Ono in mind.

His designs included sexy slits, power suits, flared pants and sweeping coats and capes, playing with proportions by pairing long jackets or short flirty looks.

Mr. Kors put a twist on evening wear by designing sleek jumpsuits and evening gowns with daring cut-outs.

“There’s the moment in my life when I decided I wanted to be a designer. I fell in love with women who were very inspiring to me at the time,” said Mr. Kors. “But I also fell in love with Greenwich Village and this whole idea of urban bohemia.”

Mr. Kors selected a location that allowed the city to be a part of the show: “I’m a New York designer, so I love that people can watch from outside.”

The color palette was warm and earthy yet sophisticated.

“Beautiful shades of taupe and mocha, lots of chocolate brown. I think it’s a nice alternative to black and warm, and people look so great in it,” Mr. Kors said.

“And then I always think that metallic as a color … like putting on something gunmetal or bronze automatically just lifts the spirits and lifts and lifts your face. You look great.” — Reuters

LNG terminals seen to pose threat to PHL energy security

THE government’s approval of more terminals for imported liquefied natural gas (LNG) may have worsened the country’s looming power crisis, according to organizations focused on the energy sector.

“Taking a broader perspective will address the level of dependence we may be placing on LNG given its volatile fuel prices,” said Alberto R. Dalusung III, energy transition advisor of Manila-based policy group Institute for Climate and Sustainable Cities, in a Viber message.

Separately, Greenpeace campaigner Khevin Yu told BusinessWorld by phone over the weekend that the proposed LNG facilities require imported fuel, “posing another layer of problems in achieving energy security.”

Their comments come after the Department of Energy announced in January that Samat LNG Corp. had been given the notice to proceed with the construction of its small-scale LNG receiving terminal and regasification facility in Mariveles, Bataan. It is expected to start operations in 2024.

“It will only lock us down to these long-term contracts because it will require private energy companies to profit out of these projects, given that, there’s also a huge threat of volatile [prices],” Mr. Yu said.

LNG is being put forward as a solution to the country’s looming power crisis as the country’s only indigenous commercial source of natural gas — the Malampaya gas field — is expected to start depleting.

A report from Fitch Solutions Country Risk and Industry Research said the country might need to turn to the volatile spot market for LNG as the proponents of LNG terminal projects have yet to secure a long-term supply contract.

“The approval of more LNG projects amid high fuel costs and unsure import supply simply proves that there is a mismatch between our country’s energy development directions and energy security interests,” Gerry C. Arances, executive director of the Center for Energy, Ecology, and Development, said.

“LNG expansion means deepened reliance on imported fuels and vulnerability to global market volatilities. This is precisely why we have been raising alarm over the government’s promotion of LNG in the Philippines. All indicators tell us that LNG is not a solution to our power crises,” Mr. Arances added.

Samat LNG is the seventh receiving terminal to be cleared for construction in the Philippines after those proposed by Linseed Field Power Corp.; First Gen Corp.; Luzon LNG Terminal, Inc.; Energy World Gas Operations Philippines, Inc.; Shell Energy Philippines, Inc.; and Vires Energy Corp.

Linseed, an arm of Atlantic Gulf & Pacific Co., said that it had completed the conversion of a vessel into a floating storage unit for gas. The company is expected to start taking delivery of gas by March.

First Gen Corp., through its subsidiary FGEN LNG Corp., expects its LNG terminal to be completed by the first quarter of this year. — Ashley Erika O. Jose

‘It’s a transition, not a switch’

Mr. Shaefer explains the benefits of V-Power. — PHOTO BY KAP MACEDA AGUILA

Talking V-Power, sustainable fuels, and electrification

Interview by Kap Maceda Aguila

AFTER THE LOCAL launch of the latest iteration of Shell’s “best-ever performance fuel,” Velocity talked exclusively to Shell Global Solutions Fuels Scientist Andreas Schaefer and Pilipinas Shell Head of Mobility Marketing Arvin Obmerga. Here are the excerpts of our interview.

VELOCITY: What does the new Shell V-Power fuel mean for consumers? Will its properties help them save on fuel consumption — and by how much? What’s the figure like?

ANDREAS SHAEFER: Good question. I mean, because it helps you to clarify once again, what we refer to when we speak about engine performance improvement or rejuvenation of engine performance. In principle that refers to aspects like fuel consumption that you were just mentioning. Through cleanliness, you can improve fuel consumption efficiency as part of performance, but that also refers to that same power and acceleration, which obviously is improved in any cleaner engine — compared to a dirty engine.

In particular, to your question, we don’t quantify the fuel economy benefit at this point in time because I’m convinced that are too many types of cars that you can find in the marketplace that respond differently to our formulation. We could provide a kind of average benefit or the like but we have decided that we do not want to mislead customers, and we want to communicate honestly. So we don’t quantify.

But across various engine types and V-Power variants, will there be fuel savings?

MR. SHAEFER: Absolutely. We conducted different types of tests but we used the industry standard, and this relies on bench engines, because you can control bench engines better than full vehicles. The other positive thing about bench industry standard testing is that there is no doubt about this. It’s widely accepted in the industry. This is not just a test that we have made up in order to show the benefits that we want to communicate. On top of that, we have also conducted fleet tests with engines that we have sourced from the open market… to have that realistic test environment. We tested these vehicles under controlled conditions, for example, in terms of fuel consumption. We then operated these vehicles with Shell V-Power and observed statistically significant fuel economy benefits for the cars that we tested. We are very much convinced that the benefits that we are communicating are real.

We also source cars in a way to make sure that the car fleet that we are testing represents different engine technologies and also different brands that you can find in the marketplace to make sure that the results are really representative or as representative as they can be for target markets like the Philippines. But there are lots of vehicle brands out there. We just cannot test everything so it’s just technically impossible. What we’re doing is we investigate the market and try to understand how the car market looks like, using the brands that are most represented in the market, test those which gives us confidence that our results are really sensitive and meaningful for the customer.

How long will it take until a vehicle gets to the 100% clean state? Is it after a tank of V-Power? If I’m going to switch to the fuel, when can I expect my car at that 100% level and have that optimized performance?

MR. SHAEFER: It is a very quick effect; most of the effects can be perceived with the first tankful. There’s a huge amount of benefits that can be experienced in a relatively short timeframe. If you continue to fill up with Shell V-Power you see further benefits but customers can benefit really pretty quickly within the first tankful of the product.

ARVIN OBMERGA: We’ve made it clear in terms of the two main benefits of the product. The first one is 100% cleaning of vital engine parts which means you’ll feel it once you fill up with V-Power. But eventually, through consistent use, depending on how you use your vehicle and how much you fill in, you get the 100% restoration of engine performance.

MR. SHAEFER: And maintain it if you keep using it.

MR. OBMERGA: So if you use it consistently, you’ll to be able to get 100% performance in engine performance restoration.

Is the cleaning efficiency the same across V-Power fuel product types?

MR. SHAEFER: Yes, indeed it is. So, the amount of cleaning molecules that you can find is the same. The key benefit from Shell V-Power Racing is that it has an enhanced octane number that further supports the power and performance characteristics of the fuel, of course. But the cleaning level is the same.

Many are looking forward to a future that’s electrified, and I know that a lot of companies are also working toward formulating sustainable fuels. As a fuel scientist, can you speak about that or where Shell is at and what you and your colleagues are doing to help us realize these sustainable fuels which of course are better than fossil fuels? What’s the kind of work behind the scenes that you guys are looking at are doing?

MR. SHAEFER: Yeah, you’re absolutely right. For Shell, the development of sustainable mobility solutions is of key importance and we are working in that area using different types of approaches. We are, for example, looking into making existing conventional fuels based on hydrocarbons greener so like, by for example, bringing in biofuels. On top of that (are fuels) with increased efficiencies which lower fuel consumption also contribute to lowering CO2 emissions. Shell as a whole also works on electrification. We have a very, very strong footprint in that area and what we can offer our customers in the e-mobility area, but we’re also working on other types of let’s say, other types of fuels like LNG (liquefied natural gas) offerings.

We are also working on longer-term solutions like, for example, hydrogen, which is for us, interesting important area that we are looking at. We are also looking into making conventional fuels more sustainable — I mentioned biofuels — there are other components that we are also looking at on the scientific side in order to make sure that our fuels are as sustainable as they can be. So we are working at Shell on multiple fronts to make the mobility solutions more sustainable.

MR. OBMERGA: For the Philippines, compared to other countries, we’re a little bit nascent on electrification — compared to even our Southeast Asian neighbors. So we’re taking a demand-based approach, and currently the demand for electrification is really in its early stages. That’s why we continue to strengthen our proposition on our conventional fuels, and as Andreas has mentioned, for the Philippines it’s biofuels — although I must say it’s government-regulated or driven in terms of the mix.

I think that Shell has the technology in terms of biofuels for us to be able to meet the standards that the government will tell the industry. We navigate that space but, at the same time in parallel, we also navigate the energy transition. As we mentioned, it’s a transition, not a switch. So, it will take time for us to be able to go through electrification or other product solutions that Andreas mentioned such as hydrogen and LNG. I think that’s the space we play in here in the Philippines.

So obviously, it’s limited by local conditions, right? But just to clarify, Shell is ready to supply more sustainable, eco-friendly fuels once the local context where you guys operate, allow for that? It’s just a matter of time.

MR. SHAEFER: We have a lot of experience in the space. I mean, there are markets here in Asia-Pacific where you see much higher biofuel levels than in the Philippines. In Europe, for example, if you look into diesel fuels, we typically have biofuel content of seven percent, in the Philippines it’s two percent. It’s a very complex topic, but I would say that we’re ready. We have a lot of technology at hand that we can bring into the marketplace if the markets permit this.

Complexities of cold storage big hurdle in farm supply chain

REUTERS

By Beatriz Marie D. Cruz and Sheldeen Joy Talavera

MOST consumers, having bought their groceries for the week, might simply stash their vegetables in the refrigerator and not give them a second thought.

Blown up to industrial scale, however, the complexities of keeping produce fresh and saleable multiply, which might help explain why farmers find it difficult to store their excess harvest. Even if enough facilities were built to service the entire harvest, the practice of storing produce is all about finding the sweet spot between building properly-sized facilities, managing the difficulty of keeping multiple types of produce fresh, and doing so at scale to justify the cost.

“A cold storage facility is a huge refrigerator. It has separate compartments used for storing food products at different temperatures depending on need,” Anthony S. Dizon, president of the Cold Chain Association of the Philippines, said in an e-mail. “Cold chain practice for vegetables needs to be planned carefully to ensure that economies of scale are adequate to justify investment in storage facilities.”

He said the facility must have separate compartments for storing vegetables whose temperature needs vary wildly. Lettuce, he said, should be kept at 0 degrees Celsius, while bell pepper is best at 7 degrees.

“In the case of onions, they need to be stored separately to avoid odor contamination of other products,” Mr. Dizon said.

Onions are the food item of the moment, having experienced price spikes in recent months. It probably didn’t help the onion market that an onion farming cooperative complained to Congress last week about having lost millions of pesos after its harvest was stored at the wrong temperature.

According to the Philippine Onion Industry Roadmap, cold storage helps “balance the peaks and troughs of onion supply,” helping farmers save their bumper crops for release when demand picks up.

In 2022, the onion industry lost about 100,000 metric tons “due to lack of facilities such as cold storage and improper handling,” according to the Department of Agriculture.

Mr. Dizon said that onions should be cleaned and pre-cooled to avoid temperature shock. “Under proper storage conditions, onions are expected to last in storage for 6-8 months,” he said.

“(Cold storage facilities) are important so onions can have a longer shelf life,” Joy E. Dela Rosa, operations manager of Bonena Multipurpose Cooperative of Bongabon, Nueva Ecija, said by telephone.

What terms exactly are farmers given when they seek out cold storage services?

According to Mr. Dizon, a farmer must agree with the cold storage operator on storage conditions, cost, and duration.

“Storage charges for vegetable products depend on the item density, which dictates the quantity that can be stored in a specific area,” he said. Cold storage operators also charge for handling and transporting the produce outside the storage facility. A handling charge may also be collected for bringing the produce in and out of storage.

The admission process for any crop involves an inspection of the produce to check for damage, pests, or moisture.

“Onions can also be stored after they have been cleaned and should not (be older than) seven days after harvest,” Eric D. Batbatan of Royale Cold Storage, which operates facilities in Rizal and Bulacan, said by telephone.

Farmers and cooperatives usually store 1,000-10,000 bags of onions with Royal between April and December. The company’s capacity for onions is about 5,000 pallet positions.

He said improperly stored onions run the risk of sprouting or freezing, becoming unmarketable. In such cases, negligence will have to be established before compensation is paid.

“If we receive (good produce) at the inbound inspection, the responsibility rests upon us. If there is any damage, we would pay our client,” Mr. Batbatan said.

Mr. Dizon said the client is expected to take out insurance while the produce is kept in storage in third-party warehouses.

London kicks off Fashion Week, dedicated to late Vivienne Westwood

MODEL on the runway at the Bora Aksu fashion show during the Fall Winter 2023 Collections Fashion Show at London Fashion Week in London on Feb. 17. — JONAS GUSTAVSSON/SIPA USA VIA REUTERS
MODEL on the runway at the Bora Aksu fashion show during the Fall Winter 2023 Collections Fashion Show at London Fashion Week in London on Feb. 17. — JONAS GUSTAVSSON/SIPA USA VIA REUTERS

LONDON Fashion Week kicked off on Friday, with organizers dedicating the five-day event to late designer Vivienne Westwood, who died in December.

Ms. Westwood, who died aged 81, was one of British fashion’s biggest names. She rose to fame dressing the Sex Pistols, becoming synonymous with 1970s punk rock, and was known for her rebellious designs.

An avid campaigner, she used her runways to address issues she felt strongly about: climate change, pollution and her support for WikiLeaks founder Julian Assange.

“She is the embodiment of our extraordinary industry,” British Fashion Council (BFC) chair David Pemsel told London’s Evening Standard newspaper.

“It is only right and appropriate that we dedicate the entire week to her. We must celebrate her contribution as she was extraordinary and unique.” On Thursday celebrities and fashionistas gathered at London’s Southwark Cathedral for a memorial service for Ms. Westwood.

“She set such a high standard and she was fun to work with,” designer Paul Costelloe told Reuters at his Friday morning show. “London is empty because she is gone.”

Mr. Costelloe turned to James Joyce’s novel Ulysses for his collection featuring smart knitwear in browns, greys and greens as well as dresses adorned with floral prints in gold and pink hues.

The 77-year-old said the line reflected “the west coast of Ireland – very romantic, very soft, very rich in colors.”

London-based Turkish designer Bora Aksu opted for a mainly black and white line, inspired by Norwegian painter Edvard Munch and fictional character Wednesday Addams and which celebrated outcasts.

“They didn’t even try to fit into society, they didn’t try to change themselves,” Mr. Aksu told Reuters, adding the choice of black also took on a new meaning.

“With the recent… earthquake (in Turkey and Syria), black actually felt right in the sense of a silent grieving in a way. Even though it wasn’t my intention at the beginning it was easier to transform it into that kind of muted color palette.”

Mr. Aksu held a minute’s silence for the victims of the Feb. 6 earthquake that has killed more than 43,000 people.

His models wore black and white sheer dresses with bows, lace, frills and polka dots. There were crochet shawls and bonnets, trouser suits with trails. Dabs of color came in pastel blue and pink dresses with black trims.

Highlights this season include designer Daniel Lee’s debut at Burberry, while a BFC initiative with Ukraine Fashion Week will see three Ukrainian designers presenting their creations.

“Fashion needs to be continually evaluating what it’s giving back,” Natasha Bird, ELLE UK’s Executive Editor (Digital), told Reuters.

“Showcasing talent that might help the initiative of improving a country post-crisis or while enduring a crisis is a great way to kind of make sure that fashion has some worth and some value beyond just the business of making clothes.” — Reuters

Rates of Treasury bills, bonds may go up on tightening bets

BW FILE PHOTO

RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) on offer this week could rise to track yield movements at the secondary market and amid hawkish signals from officials of the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve.

The Bureau of the Treasury (BTr) will auction off P15 billion in T-bills on Monday, made up of P5 billion each in 91-, 182-, and 364-day papers.

On Tuesday, it will offer P35 billion in reissued 10-year Treasury bonds T-bonds that have a remaining life of nine years and six months.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that T-bill and T-bond rates may follow the rates seen at the secondary market.

“Upcoming Treasury bill auction yields could again be slightly higher, after the slight week-on-week increase in the comparable short-term PHP BVAL (Bloomberg Valuation Service) yields. The upcoming 10-year Treasury bond auction yields could be slightly higher at near the comparable 10-year PHP BVAL yield at 6.36% on Feb. 17,” Mr. Ricafort said.

He said PHP BVAL rates were higher after the BSP’s 50-basis-point (bp) rate hike last week and signals of more increases to come, as well as hawkish hints from officials of the US Federal Reserve.

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills went up by 13.29 bps, 5.58 bps, and 2.31 bps week-on-week to end at 4.4768%, 4.9937%, and 5.3483%, respectively, based on the PHP BVAL Reference Rates data published on the Philippine Dealing System’s website.

The 10-year bond likewise climbed by 13.63 bps week on week to 6.3635%.

The BSP’s policy-setting Monetary Board last week on Thursday hiked benchmark rates by 50 bps for a second straight meeting, and hinted at further increases to help bring down elevated inflation.

The latest move brought the central bank’s policy rate to 6%, the highest in nearly 16 years or since May 2007 when it stood at 7.5%. It has now raised borrowing costs by 400 bps since May 2022.

BSP Governor Felipe M. Medalla last week said a third or maybe fourth rate hike is likely this year, adding they could look at a 25-bp or 50-bp increase at their March 23 meeting.

Meanwhile, Cleveland Fed President J. Loretta Mester and St. Louis Fed President James Bullard both said they would back a 50-bp hike in the next Federal Open Market Committee (FOMC) meeting following stronger-than-expected US consumer inflation data.

The US consumer price index (CPI) increased 0.5% last month after gaining 0.1% in December. In the 12 months through January, the CPI increased 6.4% following a 6.5% rise in December.

The Fed this month hiked its target interest rate by 25 bps to a 4.5%-4.75% range, bringing total increases since March 2022 to 450 bps. Its next policy review is on March 21-22.

“This week’s US data led by PCE (personal consumption expenditure) price indices and FOMC minutes may risk sustaining higher US Treasury rates and stronger dollar and thus, weigh further on risk sentiment,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a report.

“Higher bid-rates for the BTr’s reissuance of its FXTN (fixed-rate Treasury note) 10-69 (10-year) this week could sow the seeds of a steeper curve, although the early yield indication is in the range of 6.20%–6.30%,” Mr. Asuncion added.

Last week, the BTr raised P14.6 billion from its offering of T-bills, lower than the P15-billion program and even as bids reached P32.182 billion, as rates climbed across all tenors.

Broken down, the Treasury raised P5 billion as programmed via the 91-day T-bills, with tenders reaching P8.856 billion. The average rate of the three-month papers inched up by 4.4 bps to 4.23%, with accepted rates ranging from 4.15% to 4.313%.

The government also made a full P5-billion award of the 364-day securities as bids stood at P15.55 billion. The six-month tenor was quoted at an average rate of 5.298%, up by 0.6 bp, with accepted rates at 5.28% to 5.315%.

On the other hand, the BTr borrowed only P4.6 billion from the 182-day debt papers, below the P5-billion program, despite demand for the tenor reaching P7.776 billion. The average rate of the one-year T-bill went up by 8.2 bps to 4.949%. Accepted yields were from 4.91% to 4.975%.

Meanwhile, the reissued 10-year T-bonds to be auctioned off on Tuesday were last offered on Jan. 24, where the government raised the programmed P35 billion, with tenders reaching P93.696 billion. The issue fetched an average rate of 5.913%, with accepted rates at 5.749% to 5.99%.

The Treasury wants to raise P130 billion from the domestic market this month, or P60 billion via T-bills and P70 billion via T-bonds.

The government borrows from domestic and external sources to finance its budget deficit, which is capped at P1.47 trillion this year or 6.1% of gross domestic product. — A.M.C. Sy

DoF expects more businesses to go green this year

THE DEPARTMENT of Finance (DoF) is confident that it can persuade more businesses to go green this year, citing the possible passage of a bill easing tax payments as well as increased promotion of available incentives.

Finance Undersecretary Maria Cielo D. Magno said that despite the incentive packages, the Philippines still has a low count of environment-friendly companies.

“Companies are still applying; we still have very few,” she said in an interview on the sidelines of the Nordic-Philippine Climate Executive Dialogue on Thursday.

However, she expects to see progress this year since “we’re just at the beginning of implementing it,” referring to incentive packages provided by the fiscal incentives review board.

The DoF is giving incentives to companies that employ eco-friendliness and renewable energy, as well as those that introduce new technology.

“We are also working with Congress right now on the ease of paying taxes to simplify all the tax administration [and] tax payments,” Ms. Magno said, citing the inclusion of a provision that further simplifies invoicing requirements of companies.

She said the bill if passed would make it easier for export companies that are entitled to a value-added tax (VAT) refund to get their claim, benefits, and incentives given by the government.

Should the proposed bill be passed, it will remove the P500 annual taxpayer registration fee, introduce a medium-sized taxpayer classification, and remove the distinction between sales invoices and official receipts for purposes of recognizing VAT transactions.

“The [DoF] remains steadfast in mobilizing financing for climate change mitigation and adaptation,” Ms. Magno said.

The Finance department is currently establishing a sustainable finance ecosystem to synergize investments from the public and private sectors to yield green projects that “will have a lasting and permanent effect on the environment and our people,” she added.

Meanwhile, Ms. Magno said that in the extractive sector, which includes mining, and oil and gas exploration, “there is an active discussion within the MSG (multi-stakeholder group), the board of the EITI (Extractive Industries Transparency Initiative), to discuss stronger environmental and social monitoring,” noting awareness for the increasing need for critical minerals.

On its website, the EITI describes itself as a platform to show the direct and indirect contributions of the extractive sector to the economy, among others.

Critical minerals such as copper, lithium, nickel, cobalt and rare earth elements are essential components in rapidly growing clean energy technologies — from wind turbines and electricity networks to electric vehicles, according to the International Energy Agency.

Demand for these minerals will grow as clean energy transitions gather pace, it added.

“Right now, the group is working on a grievance mechanism, so that the MSG will be more accessible,” Ms. Magno said, adding the creation of more policies that target responsible mining.

“If we’re able to really implement policies that would make responsible mining feasible, then I think it’s good news for everyone, especially now that there’s increasing demand for critical minerals,” she said. — Alyssa Nicole O. Tan

Abandoning monocropping expected to boost farming households’ food security

PHILIPPINE STAR/EDD GUMBAN

By Patricia B. Mirasol, Reporter

IT’S DIFFICULT to imagine farmers being at risk of growing hungry, being so close to where the food is grown. But agricultural households that specialize too much in any one crop to maximize their land may find themselves in exactly that situation; avoiding such a predicament will require them to cultivate a variety of crops and farm animals.

“You can’t consume the same crop or food every day,” according to Ma. Elena P. van Tooren, executive director of the East-West Seed Foundation, Inc., adding that growing mixed crops also helps food security within a community because it makes food accessible, available, and affordable.

The East-West Seed Foundation is the corporate social responsibility arm of East-West Seed Philippines, which breeds and produces vegetable seed for tropical conditions.

“Grow local, consume local, shorten the food supply chain,” she said in an e-mail.

The Food and Agriculture Organization has said that one of the most advantageous features of home gardens is their “location adjacent to homes, close association with family activities, and a wide diversity of crop and livestock species to meet family needs.”

Per the World Food Programme (WFP), about a quarter of Philippine agricultural households are food insecure, compared to only 9% for non-agricultural households.

Regenerative agriculture — an approach that highlights intercropping, where multiple crops are planted together; agroforestry, the cultivation and use of trees and shrubs with crops and livestock in agricultural systems; and livestock integration — may likewise help contribute to food security.  

The approach helps both farmers and the environment by “ensuring that the agri-ecosystem remains productive, with less damage to the environment,” said academician Eufemio T. Rasco, Jr., chair of the Agricultural Sciences Division of the National Academy of Science and Technology.

“Switching from the present practice to regenerative agriculture practices may temporarily compromise food production, however, as it takes time to heal a damaged agro-ecosystem,” he said.

“This damage resulted from years of monoculture, harmful tillage practices, and chemical farming,” he told BusinessWorld.

Mr. Rasco added that the Philippines could be uniquely resistant to regenerative farming because of the “limited” diversity of its food — dominated by rice — and high meat consumption.

 “The existing practices in rice production is arguably the most environmentally destructive form of agriculture,” he said. “Meat has a higher environmental footprint than plants and fish. We need to shift to a more diverse diet, mostly plant-based.”

Ms. Van Tooren describes regenerative agriculture as “one level higher” than organic or natural farming, as it requires more planning.

“At this time, even natural or organic farming has limited adoption, with farmers claiming that commercial crop production is not possible with natural or organic methods and procedures,” she said.

Both organic or natural farming and regenerative agriculture require a paradigm shift, she added.

“We all know how difficult a paradigm shift can be. Pushing for organic or natural farming is paving the way towards regenerative agriculture,” Ms. Van Tooren said.

The global food and beverage manufacturer Nestlé, whose NESCAFÉ Plan helps smallholder Robusta coffee farmers increase yields and earnings, sees regenerative agriculture as feasible in the Philippines.

Project Coffee+, the Plan’s banner project, was implemented from 2018 to 2022 in the provinces of Bukidnon and Sultan Kudarat. A joint undertaking with the German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the project sought to equip 1,500 farmer participants to approach farming as a “business beyond subsistence levels,” said Jose Uy III, senior vice-president and head of corporate affairs, Nestlé Philippines, Inc.

Some 83% of all coffee in the country is grown in Mindanao, Mr. Uy told BusinessWorld.

The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and Region XII (which covers the provinces of Cotabato, Sarangani, South Cotabato, and Sultan Kudarat in Mindanao) are two of the most food insecure regions in the country, WFP noted in October 2022. BARMM, in particular, is the only area that recorded food insecurity levels above 30%.

“These farmers have undergone extensive training to become agripreneurs who now practice farming as a business,” Mr. Uy said in an e-mail. As a result, he added, the participants’ average production grew to about 900 kg/hectare in 2021 from 235 kg/hectare in 2018.

The regenerative agriculture practices of composting, intercropping, agroforestry, and cultivating cover crops were among the techniques taught to the first batch of farmer participants. These, said Mr. Uy, strengthen resilience against climate change, increase harvests, help improve farm incomes, and promote coffee agriculture sustainability.

“As more farmers adopt these practices in and beyond coffee growing, the country’s agriculture sector as a whole can only become stronger, increasing our food security,” he added.

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