Friday, July 04, 2008 San Miguel, Kuok Group to donate US$1B for agri development
CORPORATE giants San Miguel Corporation (SMC) and the Kuok Group of Companies committed up to US$1 billion in the development of the agricultural sector in the country.
SMC officials led by its chairman Eduardo Cojuangco and the Kuok Group of Companies led by Ean Kuok, in the presence of President Gloria Macapagal-Arroyo, signed a memorandum of understanding (MOU) last Thursday stating their commitment to help the government in the development of up to one million hectares of agricultural lands to ensure the food security in the country.
SMC is considered to be the biggest food and beverage company in the Philippines while the Kuok Group of Companies is known for the development of the chain of Shangri-La Hotels in Asia including the US$215 million, 66-storey Shangri-La Hotel being put up at the Fort in Taguig City.
Under the agreement, the two companies would provide financial assistance of up to US$1,000 per hectare.
The two companies will also provide technical expertise for the development and cultivation of the government land and guarantee to buy all food products “under the terms and conditions of the definitive agreements executed by all the parties”.
The land to be developed would be identified by the National Government, through the Department of Environment and Natural Resources (DENR), Armed Forces of the Philippines (AFP), National Commission on Indigenous Peoples (NCIP) and National Power Corporation (Napocor).
These lands will continue to be owned by the government.
The land should also be suitable for food production, and should be used mostly for the production of grains, sugar and other basic food staples.
“There is no more important issue today than that of food security. Indeed the defining challenge of the future will be to guarantee that our people will have enough access to food,” Cojuangco said.
Cojuangco, citing a United Nations report, predicted that at least 30 countries would “face particular pressure to fee their people this year”.
He added that based on studies, the prices of food would continue to go up until 2010 and remain at a high level for at least a decade more.
He said in the Philippines, some sectors are starting to feel the strain brought about by the high cost of food with about 60 to 80 percent of family incomes usually spent on food.
He said this leads families to cut back on other necessities like health and even education of children to have more money to put food on their table.
“And that’s the reason why we’re here,” Cojuangco said stressing that SMC and the Kuok Group are “prepared to help.”
“Guaranteeing adequate food supply is an important strategic goal for everyone, not just government. Today, we are partnering with the government to help develop over one million hectares of land. We are prepared to spend US$1,000 per hectare, a project cost of up to US$1 billion,” he said.
Cojuangco and Kuok said they are more than happy and proud to work with the government in this endeavor adding that they are not taking this responsibility lightly.
The two also called on other corporations to help the government in “securing the food of our people.”
“Let us all join the call of President Arroyo for a collective move in addressing the food security of the Philippines,” Kuok added.
For his part, Ean Kuok, executive chairman of Shangri-La Asia Ltd., said Feeding the Future program hopes to help assure “access to sufficient, safe and nutritious food at all times.”
Arroyo thanked the two companies for their initiative. She is also grateful for the money both companies are extending.
“When government and private sector come together for the public good, the results can be powerful. We thank San Miguel and the Kuok Group for their generosity and cooperation in food security,” she added.
The President also thanked the Kuok Group for continuing to believe in the Philippines by putting up their chain of hotels in the country which she said is boost to the country’s campaign to become the investment and tourism destination in Asia. (JMR/Sunnex)
