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IPO stability fund requirement seen as encouraging for investors

By Keren Concepcion G. Valmonte, Reporter

REQUIRING a stability fund for companies planning to go public with a secondary share component may help ease investor worry and it may also “provide better cushion” against volatility, analysts said.

“This will somehow be a positive step for investors so as to make them confident to place their investments on IPO (initial public offering) with secondary share offering within the near term,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message on Friday. 

In a televised interview last week, Philippine Stock Exchange President and Chief Executive Officer Ramon S. Monzon said the local bourse is looking into requiring a stabilization fund for companies with a secondary share component in their offering.

This came after shares of Medilines Distributors, Inc. plunged 30% on its first day at the stock exchange on the first week of December. The company’s public offer comprised 550 primary shares and 275 million secondary shares. 

“We’re looking at anywhere from 10% to 15% of the base offer,” Mr. Monzon told the ABS-CBN News Channel’s Market Edge on Dec. 16.

A stabilization fund is deployed by issuers through their underwriters to support the company’s stock price at the secondary market for a limited time. 

COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo said requiring a stability fund is “a reasonable idea to study.”

“It may provide [a] better cushion for extra-ordinary volatility on listing day. The size of it may need to be examined though to see if it would be viable for the company to provide such as an anchor,” Mr. Barredo said in a Viber message on Friday.

He added that firms going public may “think twice” about being overly priced “as such contributes to the possible stretch back that may be encountered, thus reducing volatility.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that an issue’s price valuations would “fundamentally matter.”

“The underlying price valuations would fundamentally matter,” Mr. Ricafort said in a separate Viber message on Sunday. “If the IPO price is seen as either priced at a premium, fair value, or at a discount based on estimated earnings, future cash flows/income, and book value.”

A stabilization fund may also be “an added feature” for the public offering. 

“Having a stability fund would also be part of the branding or value-added offered by the issuer, together with the issue managers, an important signaling for the market,” Mr. Ricafort said.

JCurve targets local sectors for service management solutions

By Arjay L. Balinbin, Senior Reporter

AUSTRALIA-LISTED cloud technology solution provider JCurve Solutions Ltd. is targeting various sectors in the Philippines for its service management solution, quicta, including healthcare and logistics.

The company said quicta allows businesses to automate their end-to-end processes and optimize their operations and resources. Its target sectors in the Philippines include healthcare, consumer, transportation & logistics, professional, and retail & distribution services.

“Each of these industries has a service component that our solution can fulfill,” Arthur Fernandez, chief growth officer at JCurve, told BusinessWorld in a recent e-mail interview.

The ability to manage multiple parties is a key feature of quicta. “By seamlessly bridging this gap, it’s easier to provide a great customer experience, and retaining customers becomes more achievable,” he said.

Being a mobile-first solution, quicta adapts to any device without the need for an application.

“One surprise is that quicta users do not need to download an app,” Mr. Fernandez said. “Today’s businesses understand the true nature of what you can do with technology without having to download yet another app to the device and have the headache of managing it or worrying about constant fixes and updates.”

Asked what made JCurve decide to launch quicta in the Philippines, he said: “We see several businesses growing in the service industry but not necessarily having the tools or budget to build custom apps.”

“quicta having a configurable solution is easily adaptable to any service provider to complete their processes and sustain a high level of customer engagement,” he added.

JCurve announced in June its acquisition of the business assets of Philippine-based digital marketing company Creative Quest, as part of its expansion efforts in the country and the Southeast Asian region.

JCurve Solutions entered the Philippine market in 2019. It also has an office in Singapore.

“We have just started within the Philippines and are growing. The key challenge we face is meeting the right price point for our customers,” Mr. Fernandez said.

“Every industry is different in how they price for their customers; therefore, we must find a fine balance of not ‘eating’ into their cost of sale. The key takeaway is that we are flexible in working with our customers to provide the best solution possible.”

On the company’s future plans for quicta, he said: “We have a road map of which a few key futures include ‘out of the box’ integration with ERP (enterprise resource planning) solutions, multiple payment options, and enhanced workflow.”

Bank of Canada likely to signal earlier rate hikes possible

INFLATION surging, the Bank of Canada is likely to change its interest rate guidance in the new year so that it has the option to raise borrowing costs earlier than planned despite the threat the Omicron variant poses to growth, analysts said.

Last week when it left the key overnight rate at 0.25% — where it has been since March 2020 — the bank reiterated its guidance, saying it would not raise rates until economic slack has been absorbed “in the middle quarters of 2022.”

But it has turned hawkish since then, warning that inflation will run hot for longer than expected, and Governor Tiff Macklem said the slack in Canada’s economy caused by the coronavirus pandemic has substantially diminished.

“Even if the Bank of Canada wants to be a little bit cautious in front of a potential winter set of shutdowns…, if they think inflation expectations are starting to become unanchored, that will be their primary concern,” Andrew Kelvin, chief Canada strategist at TD Securities.

“Certainly, in January they will want to give themselves the option of March,” he added.

The bank will next meet to decide rates on Jan. 26, when it will also update its forecasts. Money markets expect about four rate hikes next year, with the first one coming in March. They see about a 40% chance of a January move.

“January will be a declaration that every meeting is now a live meeting” for a rate increase, said Adam Button, chief currency analyst at ForexLive.

While the spread of Omicron could undermine growth, it could also reduce slack in the economy more quickly by dialing back the speed at which the economy can grow, analysts said.

“I don’t think (the bank) will change course on Omicron because they’ll see that as inflationary” because it could disrupt supply chains even further, Button said.

November inflation hit nearly 5% and is starting to pinch. On Wednesday, Macklem said the bank is getting closer to no longer providing forward guidance that guaranteed low interest rates during the pandemic, which was seen as a signal by some analysts that it would be dropped in January.

A shift in guidance in January would probably mean the Bank of Canada would start raising rates ahead of the U.S. Federal Reserve, which on Wednesday said it would speed up a phase-out of its bond-buying stimulus ahead of possibly three interest rate rises in 2022. Lift-off by the Fed is expected by money markets in June.

The Bank of England on Thursday became the world’s first major central bank to raise borrowing costs since the coronavirus pandemic hammered the global economy.

A bevy of Canadian economic data, including December jobs and inflation, will set the tone for January meeting. While most economists are skeptical about an increase as early as January, it is not impossible, said Doug Porter, chief economist at BMO Capital Markets.

“Never say never. I definitely can’t rule it out,” Porter said. “We’ll have lots of data by then,” he said, adding that the figures would have to all point in “one direction” and create a sense of urgency for the bank to move so quickly. — Reuters

Paschi planning to raise $2.8B for capital needs

BANCA MONTE dei Paschi di Siena SpA plans to raise €2.5 billion ($2.8 billion) to cover capital needs after the Italian government’s efforts to sell the lender to UniCredit SpA failed.

The capital increase is part of a five-year business plan that will be submitted to European authorities for approval, it said in a statement late Friday. The fresh funds will enable the bank to cover a gap that emerged in stress tests, investments for €800 million and restructuring charges of €1 billion.

Monte Paschi is revising a plan submitted to regulators earlier this year as the Italian government is failing to comply with a European Union (EU) requirement that it exits its stake. Italy bailed out Paschi, the world’s oldest bank, in 2017 and under the conditions of the rescue is supposed to exit the lender by the end of the year, though officials have indicated they’re asking for an extension.

Finance Minister Daniele Franco has said that Italy has already held initial talks with the EU to extend the deadline. Italy now expects to need at least another year to find a new buyer, people with knowledge of the matter have said.

The measures announced Friday are part of a 2022-2026 strategic plan, which also envisages job cuts managed through a voluntary exit scheme. Friday’s proposal will be the starting point for talks with the European Commission, which oversees the application of rules around government aid to companies.

Monte Paschi has been a financial burden for the Italian government since it was first bailed out in 2009, undermined by souring loans and derivatives deals that backfired. It has struggled to deliver consistent profit, given limited room for maneuver under terms the EU set in exchange for backing the aid plan.

Talks on selling Monte Paschi to UniCredit came to a halt earlier this year over the question of how much capital Italy should inject into the lender. — Bloomberg

Quality does not mean paying top dollar

CHINA won 38 gold medals at the 2020 Summer Olympics in Tokyo and will host the Winter Olympics next year. Anta Sports, a brand founded in China in the 1990s, is poised for international exposure thanks to their sponsorships within the Olympic Games.

During the opening of their 7th store in the Philippines earlier this month in Robinsons Place Ermita, John Paul Paglinawan, General Manager of AvidSports Philippines, said that Anta sponsors not just China’s Olympic teams, but also its Olympic Games committee, as well as its referees and officials. The store opening was also an opportunity to launch the KT7, a sports shoe created with the collaboration of Golden State Warriors player Klay Thompson.

The KT7 features shock absorption, and fluid, bulletproof materials that can absorb 99.4% of impact to reduce the burden on ankles and knees to a great extent. It also uses lower heights, and thin and breathable material for comfort. For stability, KT7 uses parametric for better traction and liquid rubber for better grip.

According to Mr. Paglinawan, the brand has had a presence in the country for the past 10 or 15 years under another distributor. AvidSports Philippines has only been around since 2019, but is part of a company that distributes the brand in Southeast Asia under a joint venture between Anta Sports in China and Luen Thai in Hong Kong. According to an article in China Daily, Anta is the world’s “third-largest sportswear company by revenue.” Mr. Paglinawan credits this to the sheer size of the company in its (similarly large) country of origin. “In China, the brand has 10,000 stores. With the size of China, that basically drives it.” The brand has also acquired Amer Sports, which owns various sports-oriented brands such as Wilson (as in the balls) and outdoor clothing brand Arc’teryx, adding to its bulk.

Touring the store, one finds that the brand is relatively affordable: on average, the sneakers cost P2,795, and its flagship shoe at present, the KT7, costs about P7,995. “From design to manufacturing, to retail, they own the whole process,” said Mr. Paglinawan. “Because of that vertical integration, since we’re involved on all levels… we can drive down the process.”

Meanwhile, celebrity and PBA Blackwater Bossings player Andre Paras, one of the ambassadors of Anta in the country, said that he personally wears the KT5 (two editions behind the new flagship sneaker). He said that the KT5 is “very comfortable. I’m someone who doesn’t like changing shoes.” While he was browsing through a display of sportswear from Anta (just a little above P1,000), he explained to BusinessWorld:  “I’m not sure if you’re familiar: players, when they play the game, first half, they wear different shoes, and second half, they swap. I never do that, because I just stick to one shoe. I’m not even kidding.

“You want to get that extra comfort, and that’s what Anta provides for me.”

Speaking about the Anta consumer profile, Mr. Paglinawan, said, “I think you’re a practical customer who demands quality, but you know you don’t need to pay top dollar to get it.” — Joseph L. Garcia

Customs bureau sets deadline for Pilipinas Shell payments

THE Bureau of Customs (BoC) has directed Pilipinas Shell Petroleum Corp. (PSPC) to make its first payment for alleged P3.49 billion in unpaid taxes for alkylate imports by Dec. 27, the Finance department said.

PSPC had agreed to pay taxes on alkylate imports shipped from 2014 to 2020, doing so under protest amid the pending court case, the Department of Finance (DoF) said in a press release on Saturday.

Customs Commissioner Rey Leonardo B. Guerrero in a letter to PSPC President Lorelie Q. Osial said the oil company’s accreditation could be suspended if it fails to pay.

The potential suspension “was not whimsically raised nor is the same a threat, but rather a proper recourse of the Bureau pursuant to existing rules and regulations and in view of the dissolution by the Supreme Court of the Temporary Restraining Order previously issued,” he said.

“In the event of default for the payment as agreed upon, the suspension of the accreditation of PSPC shall be forthwith imposed subject to existing rules and regulations, and without prejudice to any other available administrative and judicial remedies which the BoC may exercise.”

The Supreme Court lifted the temporary restraining order that had restricted the government from collecting the taxes, and it remanded the case to the Court of Tax Appeals, where PSPC filed a motion to pursue a previous temporary restraining order.

PSPC in a Viber message last week said that it would remit the P3.49 billion, under protest, as it looks to continue operations and import fuel supply.

“This will allow us to continue to provide to our customers and to the general public who rely on our products and mindful of the thousands of Filipinos whose livelihood depends on our ability to maintain our operations. The case on whether Alkylate is subject to excise tax is yet to be decided by the courts,” the company said.

Finance Secretary Carlos G. Dominguez III said the demand for payments “levels the playing field” while other oil companies pay taxes on their alkylate imports.

“Congratulations on collecting the tax on the alkylate imports. Even though it’s under protest, I think it’s a real move forward,” he told Mr. Guerrero in a meeting. — Jenina P. Ibañez

Magnolia Hotshots clinically defeat ROS Elasto Painters

MICHAEL HARRIS led Magnolia Hotshots in beating Rain or Shine Elasto Painters 109-98. — PBA MEDIA BUREAU

By Olmin Leyba

Games on Wednesday
(Smart Araneta Coliseum)
3 p.m. – Blackwater vs Alaska
6 p.m. – Meralco vs TnT Tropang Giga

WELL-OILED Magnolia followed up its emphatic debut romp with a masterful dispatching of tough Rain or Shine (ROS), 109-98, for a rousing start in the 46th PBA Governors’ Cup at the Smart Araneta Coliseum on Sunday.

Picking up from where they left off in a 114-87 blowout over Terrafirma, the Hotshots turned in another efficient performance against ROS to make it two-for-two and gain momentum ahead of their Christmas Day showdown with Barangay Ginebra.

“We controlled the pace, we executed on both ends and we were mentally tough. We needed to do all those against a tough team like Rain or Shine,” said coach Chito Victolero, who was victorious on his 200th game at the Magnolia bench.

So sharp were Mr. Victolero’s charges that they only committed five turnovers all game long — a new all-time lowest in franchise history — while engaged in the dogfight with the rugged Elasto Painters (2-2).

The Hotshots made a killing inside the paint, scoring 54 points against ROS’ 28 while netting 14 in fastbreak points versus ROS’ 4.

Mike Harris dropped 26 markers with six assists as Calvin Abueva shot 18 with nine rebounds.

Magnolia’s shock troopers contributed big-time with Jio Jalalon delivering 14 plus 10 dimes and Jerrick Ahanmisi (8), Jackson Corpuz (8), and Aris Dionisio (5) giving quality time.

“Maganda ang contribution ng bench,” said Mr. Victolero. “They’re very sharp, they have good chemistry and they deserve their minutes.”

Three ROS stalwarts hit 20 or more in Henry Walker (23), Rey Nambatac (23) and Javee Mocon (20).

The Hotshots took command in the second period as the troika of Messrs. Harris, Jalalon and Corpuz teamed up in a 14-4 run that led to an initial 12-point separation.

They kept pounding the Elasto Painters en route to posting their largest margin at 96-78 and stayed on-guard against their rivals, who in their previous 90-88 win over Phoenix, proved capable of wiping out big deficits.

Big Mini’s back

A hefty 30% of Minis sold worldwide are Countryman units. That share grows to 40% in the Philippines. — PHOTO FROM MINI PHILIPPINES

Dichotomy sells, and the Countryman proves it

THERE’S NOTHING quite as playful, candid and quirky as a Mini — but the Countryman has its own special backstory. The progressive model is the product of business foresight, a gutsy attempt of the British brand to introduce a type of Mini that did not strictly conform with all of the traditional characteristics that first made Minis famous.

It has a length of over four meters, has four doors, and could comfortably seat five — something that was definitely not as “mini-sized” as the original proposition. And although it still has the DNA of a Mini and was absolutely recognizable as one, it also almost looked like a tiny crossover, which would certainly have to make a few sacrifices here and there in terms of comparable extreme driving dynamics. But in the end, the people have spoken.

The Mini Countryman, despite a lot of purist pushback, eventually evolved into a hot-selling model as it managed to diversify Mini’s original spectrum of clientele. More people became willing to own a Mini because they could opt for a relatively more practical vehicle in terms of space, versatility, and passenger capacity. These days, the Countryman comprises about 30% of all of Mini’s car sales worldwide! And even more interestingly, the Countryman’s share of total Mini sales in the Philippines is at an impressive 40%! How’s that for Mini providence?

And the latest news is that the new 2022 Mini Countryman is now available at Mini dealers in the country. It carries a refreshed radiator grille, a new body finish, and also comes with what I think is a really attractive, piano black exterior trim. Elevating the look are new, 19-inch turnstile-spoke two-tone wheels that come with run-flat tires as standard. The rear lights flaunt those funky Union Jack patterns, and they’re clearly discernible during the day as they are at night. Its headlamps and fog lights now use LEDs as standard equipment. It now also always comes with roof rails to exude its Mini All4 exterior image. This Mini Countryman that runs on a Cooper S gasoline engine with the latest TwinPower Turbo technology is priced at P3.75 million. And of course, being an All4, that certainly means it’s in four-wheel drive.

Powering this relatively bigger and higher (but still go-kart-like cute) driving machine is a four-cylinder, two-liter gasoline engine (with Twin Power Turbo technology) mated to a seven-speed Steptronic dual-clutch sport transmission. This favors rapid gear changes, and can make the car go from a standstill to 100kph in 7.5 seconds. The more sophisticated engine combined with its new particulate filters also further optimize the car’s CO2 emissions, helping it meet stringent Euro 6d emission standards.

The interior is ever modern and convenient with its electronically adjustable front seats that offer a memory function for the seat adjustments of the driver. As a highlight of the comforts of the Countryman, it generously offers passengers three seats in the rear, which can be folded via a 40:20:40 split to free up more cargo space, should it be necessary. Folding all three seats increases the initial 450 liters of storage capacity to 1,390 liters. Also new in design is a central instrument panel that comes in piano black as well to match the exterior motif.

The digital cockpit display behind the steering wheel is also redesigned with a five-inch color screen. Set as standard is an 8.8-inch color display positioned in the center that also functions as a professional navigation system. Wireless phone charging, a second USB socket, and Apple CarPlay compatibility are all also among the new vehicle’s offerings.

Of course, a Mini will not be a Mini without its hip colors to choose from — and this latest model is available in two new shades, White Silver Metallic and Sage Green Metallic, among other options. And to many a customer’s delight, there is now also an extended range of original Mini accessories that allow for customers to further individualize their cars and, most especially, to opt for those ridiculously cute retro-fit parts. You can check them all out at official Mini dealers nationwide.

Kwik.insure to offer car insurance policies via GCash

INSURANCE PLATFORM Kwik.insure is working with GCash to allow car owners to buy policies through the financial technology platform.

Kwik.insure said car owners will be able to buy compulsory third-party liability and comprehensive car insurance policies through GCash.

“There’s a consistent rise in car ownership here in the country and it has motivated us to further aid Filipinos when it comes to ensuring their safety and security on the road,” Kwik.insure Chief Executive Officer Hamilton Angluben said in a press release on Sunday.

The service could be accessed through GInsure in the GCash mobile application.

“After clicking on their preferred insurance policy, they just need to provide the complete details of their vehicle to see all their options,” Kwik.insure said.

The insurance technology startup launched its online platform earlier this year, allowing users to receive e-policies directly from insurance companies.

GCash President and Chief Executive Officer said the new partnership aligns with the company’s aim to democratize financial services.

Car sales grew by 14% year on year to 26,456 units in November, data from the Chamber of Automotive Manufacturers of the Philippines, Inc. and Truck Manufacturers Association showed.

Vehicle sales as of November exceeded last year’s sales total after the industry sold 240,642 units in the first 11 months, up by 22.7% from the 196,197 units sold during the same period last year.

Total industry sales plummeted by 40% year on year to 223,793 units in 2020 due to the lockdowns declared to curb the pandemic. — J.P. Ibañez

Luxury sees billions in Rolex, Hermes and Gucci NFTs

YEEZY BOOST 350 V2 Blue Tint — PHOTO FROM ADIDAS.COM.PH

TIME to get ready for the party. You put on your Balenciaga cap, fasten your Rolex Daytona and don your Louis Vuitton cross-body bag.

But this isn’t In-Real-Life bling. It’s all virtual gear, worn by your digital self, who’s about to be teleported into the metaverse.

Welcome to the new world of luxury, where avatars wear Burberry “skins” and carry Gucci handbags that are not leather totes but non-fungible tokens.

The biggest designer groups are grappling with how to approach the virtual and augmented reality of the metaverse. The new realm promises to help them capture lucrative sales and win over young fans. It could also be a hedge against China’s common prosperity efforts, since it might be harder for the government to crack down on conspicuous consumption in another world.

So far, luxury houses have mainly ventured onto the big gaming platforms. Perhaps the best known is Balenciaga’s collaboration with Fortnite, which sells skins — virtual clothing and accessories for avatars — costing less than $10, as well as a real-life collection of T-shirts, hats and hoodies costing multiple times more. The Kering SA-owned brand is so keen on virtual fashion that it’s creating a dedicated business unit to explore opportunities in the metaverse.

It’s far from alone. LVMH Moet Hennessy Louis Vuitton SE, Burberry Group Plc, Moncler SpA, Ralph Lauren Corp., and Kering’s Gucci have all participated in gaming collaborations. Although not a luxury brand, Inditex SA’s Zara is making its first foray into the metaverse through the Zepeto platform.

According to Morgan Stanley, luxury groups could generate sales of about 10 billion euros ($11.3 billion) from gaming by 2030, although this could be as high as 25 billion euros in its most optimistic scenario.

On top of direct sales — either from skins or physical products tied to a game — getting involved in the metaverse can help the bling behemoths reach new, younger customers. That’s crucial, because generations Y and Z will account for more than 70% of the global luxury market by 2025, according to Bain & Co.

But the most lucrative luxury metaverse play is creating non-fungible tokens (NFTs). They could generate sales of 11 billion euros by 2030, Morgan Stanley says, though this could reach as high as about 22 billion euros. What is most enticing about NFTs is that the profit margins could be extremely high — after all, it costs far less to make a digital watch or handbag than the real thing.

Luxury has so far only dipped its toes into NFT waters, with Dolce & Gabbana, Burberry, and Gucci among those exploring possibilities. Several LVMH brands, including Louis Vuitton, Givenchy, Bulgari, and Rimowa, are also experimenting, although their efforts have been more about testing the concept than generating sales and profit. Adidas AG on Thursday announced an NFT collection, while just a few days earlier Nike, Inc. bought RTFKT, a pioneer of fashion NFTs with virtual sneakers.

The sweet spot will come when NFTs can easily be moved between different virtual platforms, according to Morgan Stanley. This will make them more useful, and therefore more valuable.

This may not be too far away. Jewelry from the website Artsy is available to rent in the so-called Mall of the Metaverse in AltspaceVR, an app owned by Microsoft, Inc. On Altspace, these objects are known as Mixed Reality Extensions, because they are designed to work across different virtual worlds.

With parallel efforts in the NFT market, such developments could enable people’s avatars to wear their digital clothing and accessories in multiple cyber settings. Who needs to buy a real Birkin bag when you can show off a simulacrum at a virtual concert with your avatar pals?

Of course, the leap into the metaverse comes with risks for the luxury industry. The most pressing is how to break into it without losing exclusivity or devaluing brands. One option is to issue NFTs tied to the purchase of physical luxury goods. You can buy your Patek Philippe watch, have its authenticity certified on the blockchain, and get the VR bragging rights, too. But there is also a danger of unauthorized NFTs and other unofficial representations of brands clogging up the space.

Pressure on the cryptocurrencies used to pay for NFTs is another potential peril, as is an effort by the Chinese government to crack down on kids’ screen time, which could hurt gaming and metaverse efforts more broadly.

Some of the virtual reality worlds outside of the big gaming platforms, such as VRChat, are more experimental. Luxury groups will have to tread very carefully as they expand their presence to these outer frontiers.

But right now, the new realm looks promising. With concerns that China’s focus on mass affluence will put consumers off of ostentatious displays of wealth IRL, digital domains offer another option for extravagance. With everything from Moncler puffer jackets to 1990s-inspired Ralph Lauren ski suits to choose from, the metaverse is fast becoming the place to live your most blinged-up life. — Bloomberg

Poultry producers bracing for more imports, limited gov’t aid

PHILSTAR FILE PHOTO

By Luisa Maria Jacinta C. Jocson

POULTRY PRODUCERS said the government’s policy direction has been to import more food with no regard for the impact on domestic producers.

United Broiler Raisers Association (UBRA) President Elias Jose M. Inciong said in a Viber message that the industry is still dealing with “high levels of frozen inventory, both local and imported. Import arrivals remain high.”

“We expect no assistance from the Dar regime,” he added, referring to Agriculture Secretary William D. Dar. “We expect more imports. They are the ones who are helping importers to sell retail.”

Mr. Inciong said poultry farmers have to deal with “high input costs, especially corn, soya, and day-old chicks (DOCs).”

“Everyone is still cautious about production as it continues to ‘self-regulate’ as per Department of Agriculture (DA) pronouncements last year given the high levels of meat imports,” he said.

“Of course, big players are more aggressive as they have the resources to absorb losses caused by sudden drops in farmgate and wholesale prices,” he added.

Chicken farmgate prices peaked on Dec. 10 at P113.41 per kilo live weight. They fell this week to P102.18 on Dec. 17, with retail prices not showing any corresponding drops at P160 per kilo or higher.

As of October, the chicken inventory was 190.74 million birds, up 2.4% from a year earlier. These consisted of 42.9% native or improved chicken, 34% broiler chicken, and 23.1% layer chicken.

The inventory of broiler chicken and layer chicken grew 5.5% and 6.3%, respectively. Native or improved chicken numbers declined 1.9%.

The volume of processed chicken fell to 1.8 million metric tons (MT) in 2020 from 1.92 million MT in 2019.

Central Luzon had the highest chicken population with 29.77 million birds, followed by Northern Mindanao with 27.25 million, and Calabarzon with 23.41 million.

Due to Typhoon Odette (international name Rai), losses are expected along the storm’s track in Mindanao and the Visayas.

“So far, they are complaining of heavy damage to farms and very disrupted supply chains,” Mr. Inciong said.

The storm damage has led the DA to announce that it is considering a price freeze on agricultural products in areas along the storm’s track, which Mr. Inciong called “a political announcement. Whether it will have an impact on prices is another thing.”

Vasquez, Alforte win bronzes in individual kata in Kazakhstan

THE Philippine karate team delivered a medal as promised as John Enrico Vasquez and Sakura Alforte each scooped up a bronze medal in the men and women Under-21 individual kata of the 2021 Asian Championship in Almaty, Kazakhstan on Sunday.

Mr. Vasquez, a double bronze medalist in the 2019 Southeast Asian Games, edged Abdullah Alsalem of Saudi Arabia, 25.54-24.08, while Ms. Sakura edged Lo Sum Man of Hong Kong and Milana Safynbaeva of Kyrgyzstan to snatch the pair of bronzes.

And more are expected to come with World Championship veterans Junna Tsukii and Jamie Lim competing in the women’s -50-kilogram and -61kg divisions of the kumite event, respectively.

“We have four more events coming and we have a pretty good chance of getting a podium finish with Junna Tsukii and Jamie Lim,” said Karate Pilipinas President Richard Lim.

The 24-year-old Ms. Lim will try to ride the crest of her solid effort in last month’s World Championships in Dubai where she emerged the best Asian performer while Ms. Tsukii should be one of the favorites being the No. 4 in the world and No. 2 in Asia behind Japan’s Miho Miyahara in her class.

Also plunging into battle are Alwyn Batican in the men’s -67kg and Remon Misu in the women’s -61kg U21.

Ms. Lim also said they are using the four-day meet, which was being bankrolled by the Philippine Sports Commission (PSC), as an indicator on how the country will perform in the Hanoi Southeast Asian Games and the Hangzhou Asian Games next year. — Joey Villar

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