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Two of Southeast Asia’s richest tycoons are
undertaking the biggest farm project in the Philippines at a cost of
$1 billion. They have signed an agreement to develop at least
million hectares of government land.
Dubbed “Feeding Our Future,”
the project will produce grains, sugar, other basic foods, and
feeds. The government has at least two million hectares of idle land
belonging to different cabinet departments and government
corporations.
The national government, through
the Department of Environment and Natural Resources, the Armed
Forces of the Philippines, National Commission on Indigenous
Peoples, and National Power Corp., will identify, evaluate and
review government land suitable for food production.
In a statement, San Miguel Corp.
(SMC) said it and the Kuok Group will provide financial, 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 will continue to be owned by the government.
“Food security is a global
issue. But here in the Philippines, we are feeling the effects even
more. Often, when food crises happen, it is not because there is
insufficient food supply, but because people do not have access to
them,” SMC President and Chief Operating Officer Ramon Ang
explained.
“In many parts of the world,
including the Philippines, food prices have reached record levels.
This is why many lower income families are no longer able to afford
the kind of nutrition they need,” Ang added.
For his part, Kuok Group Chairman
Robert Kuok, said “There are many factors that have led to the
present crisis. Urbanization, changing diets in emerging economies,
the use of crops to produce alternative fuels, the global rise in
population, and climate change, have all put tremendous pressure on
farm lands and are changing the face of farming,” he said.
“The skyrocketing prices of
fossil fuels, which affect not only farming but also the transport
of goods, as well as the rise in prices of fertilizers, have also
had a major impact on food supply and food prices,” Kuok pointed
out.
World cereal stocks are at their
lowest in 30 years and prices of agricultural commodities are at
their highest on record. At the same time, crude oil prices are
climbing to record highs almost every day. They have hit $145 per
barrel, on the way to $150 per barrel before year-end and $200 in
2009.
With rising oil prices come
rising fertilizer prices because fertilizer is derived from oil, and
rising fuel prices, which in turn fuel higher and higher transport
costs. The setup sends prices of basic foods and other products
beyond the reach of the poor. The result is hunger, malnutrition and
mass poverty. When rice prices tripled and oil hit $130 per barrel,
analyst Joey Salceda estimated that the bottom 40 percent of the
population lost P156 billion in purchasing power this year.
Bad service, high pricing
BMW vehicles are priced three to
four times their Japanese counterparts. This is because BMW is
supposedly the ultimate driving machine. BMW has fun and wow factor.
Unfortunately, the service of
local BMW dealers leaves much to be desired and pales in comparison
to the service other car brands, notably Toyota, Honda and to some
degree, Ford and Mazda. Toyota tops in service and reasonableness of
its pricing, both labor and parts.
Recently, BMW wrote BMW owners
suggesting that they send their vehicles for a 100-point inspection
service—for free. At BMW Makati, the owner of a 2002 BMW 325 was
assessed P275,000 in repairs and maintenance costs. Supposedly, he
must change his alternator, his fan, fan belt, all four shock
absorbers, engine mounts, door locks, brakes and many other parts.
This car is quite young because its mileage is less than 40,000 kms.
The car stayed with Makati BMW for three weeks, with no work done.
The owner brought his unit to BMW
Libis for a second opinion. The QC dealer had a different set of
findings and slapped an even higher repair cost than P275,000
estimated by Makati. The dealer recommended changing his tires
(which are brand new) and changing his tire gauges or pito (which
are brand new). The cost to install just the tires—P3,600. Now, if
you go to any tire dealer and buy brand new tires, installation is
free. Why should it take BMW Libis P3,600 to do it? The car stayed
with BMW Libis for three weeks with no work done.
One gets the gnawing feeling BMW
service is a swindle. I tried to call Lito German of BMW Philippines
but got no response as of this writing. Other BMW owners I have
talked to have a similar complaint—bad service and high pricing by
BMW.
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