Jollibee ambivalent toward ASEAN free trade

The ASEAN economic integration in 2015 would definitely help fastfood chain Jollibee Foods Corp. grow and even be the largest food service company in Asia, but it has serious concerns on how a single market would impact on the agriculture sector and Filipino farmers.   "It would be easier for us to deploy people to train our staff in other Asean countries. That would help to ensure food quality and transfer of technology," Ysmael Baysa, Jollibee Foods chief financial officer and vice president of corporate finance, said Tuesday.   He said, however, the duty-free regime would mean an influx of agriculture products that could hurt Philippine agriculture.   Baysa noted that Jollibee could easily import rice, coffee, pork and chicken from Vietnam, Thailand, and Indonesia.   Right now, Jollibee uses imported pork and chicken from the United States. With an ASEAN integrated market, Jollibee may source its ingredients from Thailand, or Vietnam, or Indonesia duty-free, according to the company executive.   "The lower cost of raw materials would result in lower prices for Filipino consumers," Baysa noted during Tuesday’s Punongbayan and Araullo Chief Executive Business Forum in Makati City.   He cited the cost-benefits of an integrated market, saying chicken from the US carry a 45 percent duty and pork 40 percent. Free trade inherent in an integrated economic region would wipe out those duties, he added.   Jollibee imports 30 percent of its ingredients from the US, Brazil, and Australia, the rest are from the Philippines.   Baysa said 70 percent of Jollibee Foods raw materials are sourced locally while 30 percent are imported from the United States, Brazil and Australia.   A single market offered by the ASEAN Economic Community would also mean it would be easier for Jollibee to expand within the region.   The company operates 37 outlets in Vietnam and 11 in Brunei. "We have 2,222 stores within ASEAN alone," Baysa noted. — VS, GMA News