The Board of Investments upgraded the non-pioneer status of Cargill Joy Poultry Meat Production Inc.’s P2-billion marinated cut chicken production project to an inclusive business model.
The firm’s project, which started operations in November 2017 with a production target of 79,465 metric tons a year, qualified for the Investment Priorities Plan criteria for inclusive business models.
Cargill Joy in Santo Tomas, Batangas is a joint venture between Cargill and Jollibee Foods Corp.
“Cargill Joy has the potential to create inclusive impact in Batangas by engaging the low-income farmers through sourcing of goods and services,” said Trade Undersecretary and BoI managing head Ceferino Rodolfo.
IB projects are those that engage members of the low-income community in a company’s core operations, enabling their contributions to make an impact on the firm’s financial performance. The people may be employed directly by the firm, or their produced goods and services are integrated in the company’s value chain.
Under the current IPP, an IB-approved project can avail of an income tax holiday for five years.
The criteria say 25 percent of total costs of goods sold should be derived from micro and small enterprises, and the project should employ a a minimum of 300 individuals from the marginalized sectors, with at least 30 percent women.
Income derived from the engagement should be equal to at least minimum wage, or baseline income plus 20 percent increase, whichever is higher, by the end of the third year of operation.
Companies are also required to provide technical assistance and capacity-building measures to MSEs and individuals, facilitate financing access, and provide inputs or technology that can increase productivity and improve product quality.
Cargill Joy expects the total cost of goods sold to reach P5.9 billion by the third year, with around P1.54 billion sourced from MSEs.