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Cebu Pacific carries new batch of COVID-19 vaccines from China

FOURTH batch of vaccines brings total transported doses to 3.5 million.

CEBU Pacific on Sunday transported a million coronavirus disease 2019 (COVID-19) vaccines to Manila from China.

The airline transported this fourth batch of vaccines in partnership with the Department of Health to reach a total of 3.5 million doses sent to Manila from China and another 1.1 million doses to various part of the Philippines.

The vaccines were inspected by authorities on arrival on Sunday morning before being transferred to cold storage vans and facilities.

Cebu Pacific, operated by Cebu Air, Inc., also recently carried 51,800 vaccine doses to Puerto Princesa, Cagayan de Oro, Cotabato, Zamboanga, and Tuguegarao.

“We are keen to transport the vaccines, whether internationally or domestically, so that our national vaccination campaign meets its targets,” Cebu Pacific Chief Strategy Officer Alex Reyes said.

With the new shipment, the country has received around 6.5 million doses of the vaccine developed by Chinese firm Sinovac Biotech Ltd.

Airlines are eyeing simpler travel guidelines for vaccinated individuals to speed up the recovery of sectors affected by the pandemic. Cebu Pacific last month said that travel requirements should be standardized to ease domestic travel. — Jenina P. Ibañez

China to make climate information disclosure mandatory

CHINA aims to make disclosing climate and carbon emission information disclosure mandatory in the future, after first testing it with some commercial banks and listed companies, central bank Governor Yi Gang said.

“Our goal is to make a uniformed disclosure standard, and in the future, we will go in the direction of mandatory disclosure of climate-related information,” Mr. Yi said on Friday during a panel discussion at the Green Swan conference hosted by the Bank for International Settlements.

President Xi Jinping’s pledge to make China carbon neutral by 2060 means the world’s top-polluting nation will need a drastic shift from fossil fuel to clean energy. The People’s Bank of China is seeking to contribute to that change by developing green finance and addressing related financial risks.

To cut emissions, the country will need an estimated 2.2-trillion yuan ($343 billion) of investment every year by 2030, and the figure will rise to 3.9-trillion yuan for the three decades leading to 2060, Mr. Yi said in April.

The PBOC has conducted stress tests to assess climate risks and provided policy incentives for banks to extend loans for green projects, according to Mr. Yi. It is also assessing the impact on inflation forecasts from the economy’s transition to green energy, he said.

The PBOC will publish the stress test results in the future, according to Mr. Yi. The review is part of broader testing that the central bank plans to conduct on all 4,024 banks this year to gauge their readiness to deal with potential shocks.

Mr. Yi also said China’s green bond taxonomy is about 80% similar to a separate one produced by the European Union. The PBOC and the EU are working on converging their taxonomies for green investment, with the aim of publishing a jointly recognized classification standard by the end of this year, he said in March.

The PBOC is tasked to ensure the country’s transition to green energy is a smooth one, avoiding “sudden moves” that may trigger crises, Mr. Yi said.

China and other large developing countries need to set an emission cap and clear roadmaps as soon as possible, in order to show their determination and ensure their promises will be delivered, former PBOC governor Zhou Xiaochuan said in a speech earlier at the conference. China also must rely on more investment in research and development to cut emission, he said. — Bloomberg

IWC, Mercedes-AMG release titanium chronograph

The IWC Pilot’s Watch Chronograph Edition is enrobed in titanium. — PHOTO FROM IWC

A tried-and-tested partnership delivers on time

HERE COMES another attractive piece of wrist candy, courtesy of two internationally renowned brands.

After first forging a partnership in 2004, IWC (International Watch Company) Schaffhausen and Mercedes-AMG have consistently leveraged their reputation and expertise to produce memorable, desirable timepieces over the years. Beginning with the Ingenieur Collection AMG, a procession of significant releases and collaborations have followed — various AMG Special Edition models, cockpit clocks, other special edition watches, and racing projects, plus experiences as well. And, owing to the success of one Lewis Hamilton in Formula 1 racing, even casual observers today should be familiar with the IWC and its affinity with Mercedes-AMG.

Recently, another chapter was opened in the partnership, as the two European brands jointly revealed the IWC Pilot’s Watch Chronograph Edition “AMG.” The 43mm wristwatch is the first of its kind for IWC (with 85 years of history in this type of timepiece) to be encased in Grade 5 titanium, lending a matte-gray finish to the watch. Described IWC Schaffhausen CEO Christoph Grainger-Herr during the product’s recent global launch, “It’s a material directly derived from automotive engineering — a material that’s extremely hard, lightweight and very scratch-resistant indeed.” At the heart of the automatic-winding timepiece is IWC’s in-house 69385 caliber with a frequency of 28,800vph/4Hz and power reserve of 46 hours. It utilizes woven carbon fiber for its dial, something “directly derived from AMG’s aero components.” It gets black hands and a black leather strap, along with a sapphire crystal with an arched edge. This in turn receives anti-reflective coating on both sides.

Sub-dials count off hours, minutes, and seconds; and the racing-inspired black dial contrasts with the Silver Arrow-inspired sub counter calling to mind motorsport instrumentation. Flip the watch to reveal a tinted crystal case back emblazoned with a large Mercedes-AMG logo. A black embossed calf leather strap with contrast stitching and folding clasp keeps the watch on the wrist.

Mr. Grainger-Herr said that IWC’s affinity with everything automotive “runs really deep, and goes all the way back to history.”

Of the partnership with Mercedes-AMG, he explained, “(It) also has something to do with (our) unique location here in the east of Switzerland,” explained the executive. “We are removed from the western valley of Switzerland, much closer to the German automotive industry just up the road. Now, we’ve been a longstanding partner with Mercedes-AMG and there’s only a short one-hour motorway run that is connecting us to Affalterbach, the home of AMG.”

For his part, AMG CEO Philipp Schiemer declared, “IWC is our longest standing partner over 17 years. I think this is not usual in the industry, and I think the reason why is because we share the same values.”

Both companies admit to being technology-driven, while creating “very emotional products.” Mr. Schiemer continued, “With IWC you are not just looking at the time, you want to have a smile in your face. It’s the same with driving an AMG. When you enter the car, you don’t think about where to go. You just enjoy the ride.”

The Pilot’s Watch Chronograph Edition “AMG” is now available for pre-order from www.iwc.com, through IWC boutiques, and authorized retail partners.

Journey of lesbian magazine Curve hits screens this Pride month

IMDB.COM
IMDB.COM

LONDON —  Frances “Franco” Stevens was just 23 when she launched a glossy lifestyle magazine for lesbians in 1991, after raising funds by taking cash out on credit cards and betting on the horses.

The gamble paid off and now 30 years on, documentary Ahead of the Curve celebrates Curve magazine’s groundbreaking history and explores its future.

“At that time … there was nothing that showed lesbians in the positive everyday view,” Ms. Stevens, who started the magazine in San Francisco, told Reuters.

“I would say the biggest controversy we had with starting was putting the word lesbian on the front cover because that meant every time somebody wanted to buy it, they were essentially coming out to anyone standing around them, anyone who saw it in their house.”

Ms. Stevens, who was initially rejected by her family for being a lesbian, said it was a risk to bring out the magazine at the time, but she was young enough to think there would be time to bounce back if it flopped.

“It was in my wildest dreams that it would last for five years. And now here it is 30 years later,” she said.

Subscriptions soared and over time mainstream advertising deals came in and famous faces like tennis player Martina Navratilova and singer Melissa Etheridge posed for the cover.

But it wasn’t all plain sailing.

Originally called Deneuve, the magazine had to change its name following a lawsuit from legendary French actress Catherine Deneuve and in 2010 Ms. Stevens sold the magazine after an accident left her disabled.

She bought it back 10 years later and it is now part of Ms. Stevens’ newly formed organization The Curve Foundation, which aims to keep giving a voice to LGBTQ women.

“After so long, to still hear women say that it (Curve) saved their lives … makes it all worthwhile,” she said.

Ms. Stevens, who is married to one of the film’s directors, said the documentary’s release is timely given movement restrictions due to the coronavirus disease 2019 (COVID-19) pandemic.

“With the movie coming out in Pride month and people still feeling this kind of disjointed feeling of uncertainty, that’s what we felt in the ‘90s when I first started the magazine,” she said. “We need community more than ever right now.” — Reuters

Organic farmers offered low-cost certification

ATI.DA.GOV.PH

THE Department of Agriculture (DA) said it launched a quality assurance system offering low-cost certification for small farmers and fisherfolk to make their organic products more marketable.

Agriculture Secretary William D. Dar said the Participatory Guarantee System (PGS), a feature of Republic Act (RA) 11511, which amended RA 10068 or the Organic Agriculture Act, is intended to open doors to more agriculturists seeking to maintain a sustainable and environment-friendly organic operation.  

“The PGS will significantly reduce the cost of maintaining organic certification and actively involve our small farmers and fisherfolk with like-minded stakeholders and advocates of organic agriculture by maintaining the integrity of organic products available in the market,” Mr. Dar said in a statement.

According to the DA, the system certifies producers as active practitioners of organic agriculture, and serves as an alternative to third-party certification.  

It added that the PGS was developed by organic agriculture practitioners and encourages social networking and knowledge exchange.

“The new system also directly contributes to the farm consolidation (objective) of the DA and will increase the local availability of certified organic products of small and medium farmers… (freeing up) large-scale organic producers (to) shift to export markets,” Mr. Dar said.

“We need to ensure that small organic farmers and fisherfolk are not passive participants. We need to actively engage them in the implementation and give due recognition to their experience and expertise,” he added.

President Rodrigo R. Duterte signed RA 11511 on Dec. 23 with the intent of improving the national organic agriculture program and encourage the consumption of organic products with an educational awareness initiative for consumers.  

Aside from the creation of the PGS, the law also created the National Organic Agriculture Program — National Program Coordinating Office to manage the implementation of the program and serve as the planning and administrative secretariat of the National Organic Agriculture Board. — Revin Mikhael D. Ochave

Yields on gov’t debt drop on steady May inflation

YIELDS ON government securities (GS) mostly declined last week following the release of May inflation data, which showed that the average rise in prices was steady for a third straight month.

Bond yields, which move opposite to prices, edged down by an average of 3.08 basis points (bps) week on week, based on data from the PHP Bloomberg Valuation Service Reference Rates as of June 4 published on the Philippine Dealing System’s website.

A bond trader said yields mostly moved lower last week as inflation concerns eased.

“[Last Friday’s] data confirmed that view as CPI (consumer price index) may have seen its peak,” the trader said in a Viber message.

“Yields slightly dropped across the curve with a pickup in activity week-on-week as dealers and investors continued to put their excess liquidity into work and hunted for bargains across the GS curve,” Robinsons Bank Corp. peso sovereign debt trader Kevin S. Palma said in a separate Viber message.

He said this market activity was shown by the robust demand seen at last week’s Treasury bills (T-bills) and 20-year Treasury bond (T-bond) auctions that “somewhat boosted sentiment and catalysts on the direction of yields.”

“Icing on the cake is the local CPI for the month of May, which clocked in as expected at 4.5%,” Mr. Palma added.

Inflation was steady for the third straight month at 4.5% in May, the Philippine Statistics Authority reported on Friday, matching market expectations.

The figure was within the 4-4.8% estimate by the Bangko Sentral ng Pilipinas (BSP) for that month and also matched the median estimate in a BusinessWorld poll.

Year to date, inflation was 4.4%, higher than the 2-4% target of the BSP and its revised forecast of 3.9% for the year. May was the fifth month in a row that inflation went beyond target.

Meanwhile, institutional investors continued to swamp government securities, as seen in the bids for the Bureau of the Treasury’s (BTr) offerings last week.

The BTr raised P21 billion from its offer of T-bills last week, higher than its P15-billion program, after it accepted more non-competitive bids for all the tenors amid a decline in rates.

Total bids for the short-tenored securities stood at P87.173 billion on Monday, making the offering over five times oversubscribed.

On the other hand, the Treasury raised P35 billion as planned via the reissued 25-year T-bonds it auctioned off on Tuesday. The offer was nearly two times oversubscribed as bids reached P61.914 billion. ​

At the end of trading on Friday, rates mostly dropped across the yield curve, except for 20- and 25-year T-bonds, which went up by 4.68 bps and 4.11 bps, respectively, to fetch 4.976% and 4.9709%.

The short end of the curve went down as the 91-, 182-, and 364-day T-bills declined by 1.95 bps, 8.05 bps, and 5.73 bps, respectively, to yield 1.3026%, 1.4738%, and 1.7548%.

At the belly, yields on the two-, three-, four-, five, and seven-year bonds decreased by 2.92 bps, 2.81 bps, 2.55 bps, 2.11 bps, and 3.09 bps, respectively, to 2.1407%, 2.4984%, 2.8435%, 3.1716%, and 3.6775%.

The rate of the 10-year T-bond likewise dropped by 13.48 bps to 4.0086%.

For this week, the trader said the market will likely focus on how fast the country can reopen given the recent uptick in cases.

“External factors will also be a factor as we look at how fast US economy recovers,” the trader said.

Mr. Palma said reinvestment requirements due to the P121.8 billion in retail Treasury bonds maturing on June 13 will drive demand for government securities in both primary and secondary markets this week.

“T-bill auction results should guide direction for short dates, while the seven-year [bond] reissuance auction results and US Treasury yield movements will then dictate the tempo for the belly to the long-end of the curve,” he added.

The Treasury is looking to raise P15 billion from the T-bills on Monday and P35 billion from an offering of reissued seven-year T-bonds on Tuesday. It wants to borrow P215 billion from the domestic market this month: P75 billion via T-bills and P140 billion from T-bonds.

The government plans to raise P3 trillion this year from onshore and offshore sources to plug a budget deficit expected to hit 8.9% of gross domestic product. — B.T.M. Gadon

Emerging-market stocks in pole position to gain as world reopens

A BULLISH case is building for emerging-market stocks, which have trailed their developed-nation peers this year, with strategists saying the asset class is better positioned to benefit from a global reopening.

There are already signs the gap is narrowing, with the MSCI Emerging Markets Index last month outperforming the MSCI World Index for the first time since January.

Relatively attractive valuations, a weaker dollar and expectations that global supply chains will whir back into high gear are burnishing the appeal of developing-nation equities. The surge in global commodity prices is adding to optimism that improving growth will help boost cyclical shares in these markets.

“Investors who missed out on the strong US and EU consumer and cyclical equity bull run so far this year should consider investing in EM stocks,” said David Chao, a global market strategist in Hong Kong at Invesco Ltd., which oversees about $1.4 trillion. “Rising inflation expectations and bond yields should drive continued investor rotation from growth to cyclical assets – EM economies are more cyclical in nature.”

Analysts see the MSCI EM index, which is trading at 14 times forward earnings, rallying about 20% over the next 12 months, according to data compiled by Bloomberg. That’s almost double the advance seen for the developed-nations’ gauge, which has a valuation multiple of about 20.

At the same time, 12-month forward earnings estimates for EM shares have jumped by about 40% from a June 2020 low.

“Expectations for the year ahead remain high,” said Emily Whiting, an investment specialist for emerging markets & Asia Pacific equities at JPMorgan Asset Management in London. “A successful vaccine rollout leading to a resumption of normalcy in the developed world and parts of EM. With that, comes optimism for corporate earnings and equity markets.”

Not everyone is convinced emerging markets will outperform.

Risks include a vulnerability to escalating inflation, and a potential pullback in commodity prices, said Mathieu Racheter, an emerging-market strategist at Julius Baer Group Ltd. in Zurich. Investors looking for EM exposure may want to consider sticking to value stocks in Asia, particularly in like China, India and South Korea, Racheter said.

The MSCI EM gauge is trailing the developed-nations index by about four percentage points so far this year.

Developing-nation stocks are also seen benefiting relatively more from expectations that commodities will extend gains as vaccine rollouts help economies rebound after grinding to a halt due to the pandemic. Materials and energy shares carry a weightage of almost 14% in the MSCI EM Index, versus about 8% for the MSCI World gauge, data compiled by Bloomberg show.

An index of global commodities has surged about 20% this year as prospects for the global recovery have improved. Cyclical stocks, which include sectors such as auto makers, clothing stores and restaurants, are seen getting a boost as growth gathers momentum and inflation concerns dim the appeal of technology shares.

“Emerging markets are still one of the better ways to get exposure to the global-growth story,” said Marija Veitmane, senior multi-asset strategist at State Street Global Markets in London.

Boston-based State Street favors metals and miners in Latin American countries such as Brazil and Chile over Eastern Europe. Invesco’s Chao said he prefers emerging markets in Europe, and Brazil. — Bloomberg

Hyundai PHL looks back at a year of ‘phygital’ solutions

IMAGE FROM HYUNDAI ASIA RESOURCES

ON ITS 20th year in the business, the official distributor of Hyundai in the Philippines looks back at a suite of programs it initiated quickly amid the pandemic which began last year.

Embodied in the so-called Hyundai GPS (Guidelines for Protection and Safety), Hyundai Asia Resources, Inc. (HARI) crafted three main programs — Hyundai HOME Page, Hyundai ARMOR, and Hyundai @YourService — that allow the company to pivot in the new normal.

HARI said it was challenged “to recover losses and to ensure business continuity for the sake of over 500 employees and their families, plus the thousands employed at Hyundai dealerships across the country.” The programs, according to a release, were conceived and implemented “at the height of the lockdowns in a record three months in May last year.” The GPS is comprised of a comprehensive set of procedures and programs that aim to safeguard the well-being of HARI employees, business partners, and customers in order to restore confidence and win back customers through alternative channels.

“We had to take care of the physical and mental well-being of our own, first of all, to ensure that they are ready to adapt and serve customers under the new working conditions. We can’t give customers what we don’t have,” said HARI President and CEO Ma. Fe Perez-Agudo. “And as we struggle to get back on our feet, we enable our customers to get back on theirs. This is HARI for you in the new normal and beyond.”

The mobility experience for HARI is expressed through “phygital” (physical-digital) solutions. Hyundai HOME Page (Hyundai Online Market Experience) is the company’s online selling platform that provides a comprehensive and seamless buying experience, from vehicle selection, to bank approval, to delivery. The company said that, since June last year, HOME has been “the go-to car purchasing platform for some 200,000 customers.”

Meanwhile, Hyundai ARMOR (Active Response, Management, Operations, and Resumption) Service Program is the reworked “Right Here, Right Care” after-sales customer promise of the company. It covers the entire vehicle maintenance process, observing strict health protocols at the service workshops and minimizing face-to-face contact through online booking via Hyundai @YourService, consultation with technical experts through the dealerships, and the ordering of genuine parts through Hyundai Unified Buys (HUB). The program has served more than 154,000 customers to date.

To widen its reach from the traditional dealerships to high-traffic locations, HARI has launched a new retail experience called “i-space” and the first Hyundai City Store in Cebu. These trendy lifestyle spaces located in high-traffic areas such as malls offer walk-in customers the convenience of checking out their preferred models online in a comfortable and very welcoming and personalized environment. By 2019, HARI had launched the Hyundai store in Lazada, generating buzz among netizens who started buying the Accent and Reina online.

“There’s no turning back. Phygital is the future of our industry. We have discovered a way of providing customers better journeys and they are loving it,” concluded Ms. Agudo.

Exotic leathers: why fashion products are more sustainable than some research suggests

In Indonesia, the sustainable and regulated harvest of wild pythons for food and leather provides a livelihood for thousands of families. — DANIEL NATUSCH

THE FASHION industry tries to do the right thing when it comes to sustainability — after all, its profits increasingly depend on it. But it needs help, and this is where science comes in. Yet even issues that attract strong scientific consensus can sometimes arouse deep skepticism.

In the fashion industry, nowhere is that conflict more apparent than in the use of animal products versus synthetic alternatives. Animal rights activists and the fashion industry have long clashed over natural materials such as animal furs, wool, feathers, and leathers.

The industry, with scientific backing, argues that using wildlife products is sometimes a better option than synthetics. Animal rights activists nonetheless protest such uses, and have every right to do so because free speech and public debate are critical forums for advancing knowledge and society as a whole.

Yet a disturbing trend has emerged: respectable scientific journals publishing apparently scientific assessments of the wildlife trade that purport to reveal major problems, but seem at least partly to reflect a philosophical opposition to animal use by the authors. This can negatively impact both ecosystems and the people who depend on this trade.

In a paper in the journal Conservation Biology, we cite a number of examples of what we argue are flawed studies and highlight how they can undermine science and sustainability. We also examine a case study of wildlife use by the fashion industry: a piece of work published in early 2020 by the scientific journal EcoHealth.

The authors of that paper analyzed statistics about fashion items made with wildlife products seized by US Customs between 2003 and 2013. Many of them were well known brands and most items were derived from reptiles. The authors concluded that breaches of regulation were common and increasing — and hence that illegal trade is rife, increasing, and (by implication) harmful to wild populations. As a result, the authors of that paper called for the trade to be regulated far more rigorously and, ideally, stopped entirely.

The authors’ philosophical opposition to commercial use of wildlife products is clear, for example, in phrases like, “If species are beautiful enough to carry as a handbag, they should be beautiful enough to let live sustainably and fulfil their ecological roles in the wild.” We don’t doubt the authors’ sincere passion for animals, but believe that sadly that perspective has led them to conclusions that are counter to the information that is available.

Our re-analysis of their evidence shows that rates of seizure of wildlife goods by US Customs were exceptionally low, at 0.4% of shipments (or 253 out of 56,930), and decreasing rather than increasing. For comparison, US universities, museums, and government agencies importing reptile specimens for scientific and other non-commercial purposes over the same time period had a seizure rate of 2.5%.

Nonetheless, does this mean that the fashion industry and reputable US institutions are involved in illegal wildlife trade? Of course not. These seizures mostly reflect paperwork errors rather than evidence of poaching or criminal activity.

For example, if a store worker in the exporting country accidentally misplaces the permits meant to accompany the shipment, that shipment will be seized on arrival. Or if one of the leathers used in a product (a lizard skin handle for a snake skin handbag, say) has not been written into the documentation, then the product will be seized even if valid permits cover other leathers used in that same product.

In some instances, a customs official may merely confiscate items and give the importer the opportunity to clarify the error. However, paperwork errors are indeed a violation, no matter how innocent or accidental — and whether the importer is a fashion brand or a reputable US institution — and most often the items are seized.

Nevertheless, the flaws in the EcoHealth article have already done their damage. Reputable media outlets like National Geographic, The Business of Fashion, and Vogue reported the authors’ conclusions, further confusing fashion’s decision-makers and misguiding consumers, many of whom are desperate to make the right choice. Since then, Tommy Hilfiger and Calvin Klein have officially dropped exotic leathers from their product lines, joining other major brands like Hugo Boss, Victoria Beckham, and Vivienne Westwood.

You might be wondering whether this matters. Even if scientific papers like the one in EcoHealth are misleading as we argue, surely killing wild animals to make luxury handbags is still unacceptable and unsustainable?

No, the exact opposite is true. Detailed scientific studies over many years have shown that the trade in exotic leathers — like those of pythons, lizards, and alligators — can be entirely sustainable. Not only that, the industry also directly finances robust conservation programs, with benefits for indigenous communities and rural livelihoods. It is the essence of a nature-based solution to a nexus of growing global challenges.

Closing down the trade in wildlife-based luxury goods can create significant economic and social problems for people in biodiverse countries like Indonesia and Malaysia. Ironically, it may even increase poaching of genuinely threatened species.

So, we have a choice. Do we want to maintain a sustainable industry, and help people and biodiversity co-exist, or do we want to ban exotic animal products altogether? We can’t have it both ways. Well-intentioned people will form widely opposed views on this matter, and that’s OK, but it is critical that the information to support those views is factual and reliable.

Climate-change deniers and anti-vaccination conspiracy theories have taught us that misinformation and ideology can be deadly. Flawed science on the wildlife trade poses the same risk for biodiverse ecosystems and the communities who depend on them.

We invited the authors of the EcoHealth paper to respond to the above analysis of their work. One of the authors, Monique Sosnowski, a Lecturer at John Jay College of Criminal Justice at The City University of New York, said:

We are currently in the process of publishing a formal response to the paper in question. While we cannot share all the details of that paper, given that it is currently under peer review, it is false to suggest that we have an anti-trade philosophical bias. As seen across our previous work, we neither petition for nor against the trade in wildlife. Rather, we acknowledge that there are rules and regulations guiding what can legally be imported into the United States, for example, and examine the available data on wildlife goods that have been seized upon legal violations.

We further would like to clarify claims made that the wildlife seizure data we analyzed were the result of “paperwork problems,” “errors in documentation,” or other mistakes or omissions. This is untrue. Each individual seizure analyzed was tied to one or multiple violations of federal regulations. These “seizures” vary distinctly from “confiscations,” which are more temporary holds possibly explained due to the aforementioned errors.

 

Patrick Aust is a Research Associate at the Department of Zoology, University of Oxford. Daniel Natusch is an Honorary Research Fellow, Macquarie University, while Rick Shine is a Professor in Evolutionary Biology, Macquarie University.

Farm mechanization training brought to countryside via radio

IRRI

THE Philippine Center for Postharvest Development and Mechanization (PhilMech) said it has commissioned radio programs to prepare farmers for the mechanization of rice cultivation, including post-harvest processing.

PhilMech said over the weekend that 11,682 farmer-beneficiaries affiliated with 892 cooperatives and associations are enrolled in the “Radyo Eskwela” program, created to support the mechanization component of the P10-billion Rice Competitiveness Enhancement Fund (RCEF), which was created by Republic Act No. 11203 or the Rice Tariffication Law.  

It added that enrollees go through six modules, with three to four lessons per module, on topics such as farm mechanization principles and machinery know-how.

Baldwin G. Jallorina, PhilMech executive director, said the program aims to help farmers who have received machinery to use and maintain their units effectively.

“There is a need to further educate and train farmers using various avenues like radio and social media to complement hands-on training,” Mr. Jallorina said.

“Eventually, those who finish the series can influence more farmers to be open… about farm mechanization,” he added.  

According to PhilMech, the lessons are simultaneously aired in Tagalog, Hiligaynon, Cebuano, Waray, Chavacano, Bicolano, and Iloco by radio anchors and PhilMech technical experts in the field.

The radio program airs 5 a.m. to 6 a.m. every Wednesday and Saturday across 27 AM stations and six FM stations of the Radio Mindanao Network. Farmers can also access the program via its Facebook page and YouTube channel.

“Those who are not from the farmers’ cooperatives and associations can also listen to Radyo Eskwela by accessing its online platform,” PhilMech said. — Revin Mikhael D. Ochave

Market debut drives Monde Nissin stock

By Ana Olivia A. Tirona, Researcher

MONDE NISSIN Corp. ended up as the most actively traded stock in the Philippine Stock Exchange (PSE) last week following its market debut on Tuesday.

A total of P6.40-billion worth of 477.94 million Monde Nissin shares exchanged hands on the trading floor from June 1 to 4, PSE data showed.

Monde Nissin shares closed at P13.40 per share on Friday. This was down by 0.59% from its initial public offering (IPO) price of P13.50.

“Investors were cautiously optimistic on the new IPO as it was a food manufacturer of highly recognized brands that are in a majority of Filipino homes… There were some concerns though about the size of the offering as it was the biggest IPO in the PSE’s history and also the timing of the offering,” AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun said in an e-mail.

“Price movement was stable in the first few trading sessions although volatility picked up which sent the price substantially lower, down about 6% from the IPO price at one point before recovering. The recovery is a sign that investors were quick to scoop up Monde Nissin shares at a slight discount,” he added.

In a separate e-mail, Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce noted the stock had been trading below its IPO price on relatively low volatility and was expected of any large-cap issue making its debut in the local bourse.

“However, there seems to be confidence in the company — bouncing back after hitting a low of P12.68 per share [last Thursday]. Investors may yet still consider [Monde Nissin] a good addition to their investment portfolios,” Mr. Arce said.

The food manufacturer offered 3.6 billion shares to the public at P13.50 each. Excluding underwriting commission and listing expenses, the company said it raised P48.6 billion, or around $1 billion from its maiden offering.

Based on its prospectus, the company is planning to spend around 57.2% of its IPO proceeds to fund its capital expenditures (capex), while around 28.8% and 14% will be used for the redemption of convertible notes and repayment of loans, respectively.

“A big chunk of the [IPO] funds will go towards paying its liabilities which eliminates future interest costs. Some of it will go towards the expansion of facilities, although it will not translate into increased production for at least another two years,” Mr. Mangun said.

For this year, the company will allot P8 billion in capex. It also earmarked P9 billion in capital spending in 2022 and P10 billion in 2023.

For its branded food and beverage business in the Asia-Pacific region, Monde Nissin will finance key projects, which include the completion of its facility in Malvar, Batangas, and the production of healthier noodle lines.

Financial statements attached to the company prospectus show Monde Nissin booked a consolidated net income of P8.07 billion in 2020, up 21.3% from a year ago. During the same period, net sales grew by 3.8% to P67.9 billion.

“Better profit margins and lower interest expenses will sustain its net income growth from last year, which is between 15-20%. This translates to P9-10 billion for 2021 which is our rough estimate,” AAA Southeast Equities’ Mr. Mangun said.

For Globalinks’ Mr. Arce, lower interest expenses and the higher foreign exchange gain last year enabled Monde Nissin to increase its profits by a substantial amount.

“This year, assuming the repayment of loans will cut interest expenses by 60% given same sales growth of 3.8%, Monde Nissin’s net income should increase by 19.4% to P9.6 billion,” he said.

“But this growth in earnings will come as a result of financial deleveraging rather than organic growth. Earnings growth after 2021 will more or less mirror the company’s average sales growth of less than 5%,” he added.

Mr. Arce further noted the company’s earnings growth over the long term will depend on the success of its meat alternative business, which has been losing in the past two years.

The company has said it will use some of its IPO proceeds to expand in the United States through its Quorn Foods brand, which offers consumers healthier alternatives to meat.

Mr. Arce placed Monde Nissin’s stock support and resistance at P13.10 and P13.56, respectively, noting investors will still be assessing the company’s performance in the next few weeks.

For AAA Southeast Equities’ Mr. Mangun: “The current low of P12.68 is the immediate support with the high of P13.56 as the resistance, although it will take several weeks before we can determine the trend,” he said.

The Philippines-based manufacturer provides most of Filipino household staples such as Lucky Me!, Skyflakes, and M.Y. San Grahams.

Letter to the Editor (06/07/21)

June 2, 2021
Mr. J.ALBERT GAMBOA
BUSINESSWORLD

Dear Mr. Gamboa,

We hope that everything is well with you today.

We read your column (https://www.bworldonline.com/vax-populi/) about the high billing concern of Ms. Aurora Pijuan last year.  Allow us to relay what transpired at that time.

It was in March 2020 when the Enhanced Community Quarantine (ECQ) was declared that also covered the areas served by Meralco.  For safety and to avoid further spread of the virus, meter reading activities were halted because of the community lockdown.  This resulted to the bill estimations that was based on the past 3 months’ average daily consumption following the Distribution Services and Open Access Rules (DSOAR) issued by the Energy Regulatory Commission (ERC).

In the case of Ms. Pijuan, her scheduled meter reading date is every 7th day of the month.  Since the community quarantine started on March 15, 2020, we were still able to read her meter on March 7.  Hence, the March bill was based on the actual meter reading and was read prior to the declaration of ECQ. This was not the same for her April 2020 bill.  With the lockdown at that time, the bill estimation was applied to her April 2020 bill and was computed using the average of January, February and March 2020.

The period from January to March was relatively cooler. Since the basis was the average of the cooler months, this yielded an estimated electricity consumption that may have not matched Ms. Pijuan’s actual usage for her billing period of March 7 to April 7.  Had there been an actual meter reading, it would have been immediately reflected.  However, due to the lockdown in April, this was not possible at that time.

We resumed our meter reading activities on May 6, following safety protocols for the meter readers to perform their duties.  With this, we were able to read the meter of Ms. Pijuan on May 7, as well as the other customers in the area.

With the actual meter reading on May 7, this was deducted from the last actual meter reading on March 7.  The difference is the actual electricity consumption of Ms.Pijuan for the 2 months.  From this, the estimated consumption in April was deducted from the total May kWh consumption, resulting to the May 2020 bill rendered that is Ms. Pijuan’s cause of concern. 

It was on May 25, 2020, when we received the concern of Ms. Pijuan.  We dispatched our crew on June 1, 2020 to check the meter reading.  As the meter registration progresses, the reading obtained on June 1 validated the May 7 meter reading.  With this validation, it can be concluded that the April bill was under-estimated, and the unregistered electricity consumption was carried to the May bill.

Electricity consumption is derived from the present meter reading less the previous meter reading.  It is a straightforward approach done monthly.  The same is true for the succeeding and continuous meter readings of Ms. Pijuan’s electric meter.  From this process, the electricity bills are rendered.

The electric meter being the tool used to register electricity consumption, we offered to have the meter tested in her presence or even accompanied with a trusted representative, to validate the accuracy of the meter.  However, the past 2 attempts to have the meter tested did not push through as Ms. Pijuan declined, stating that the meter has no defect.  She mentioned that the meter was registering correctly but on the other hand, pointed out that her electric consumption should not be that high in May.

With this statement, we presented a comparison of the 2020 and 2019 April and May bills.  The sum of the 2 months’ consumption compared year on year, showed that the trend of her electricity consumption is approximately the same.  This comparative analysis is to show that it is possible for Ms. Pijuan to reach the electricity consumption and bill in question.  It was the under-estimation of the kWh consumption rendered for the April bill that was carried over to the May bill when an actual meter reading was taken.    

The electric meter being the fundamental instrument by which we derive the kWh consumption and for the bill to be computed, we would like to show in good faith and transparency the accuracy of the meter by conducting a meter test.  We have also reached out several times to explain and have paid attention to Ms. Pijuan’s concern.

At present, this case is being reviewed by the ERC and will await the due process to take its course.  We will respect the outcome and decision of ERC for this case.

Thank you very much for hearing our side on this.

Respectfully,
Margarita B. David.
Head, Home and Microbiz – Central Business Area
Meralco