Del Monte project gets PEZA approval

REPORT FROM BUSINESSWORLD The local subsidiary of Singapore-listed Del Monte Pacific Ltd. has received approval from the Philippine Economic Zone Authority (PEZA) to set up two agro-industrial economic zone projects in the Philippines. In a disclosure to the Singapore Stock Exchange, Del Monte Pacific identified Del Monte Philippines, Inc.’s (DMPI) two agro-industrial economic zone projects as the Philippine Packing Agricultural Export Processing Zone in Cagayan de Oro City and the Bukidnon Agro-Resources Export Zone in Bukidnon. "The board of Del Monte Pacific would like to confirm that DMPI had received in-principle approval from PEZA for its applications to set up two agro-industrial economic zones," Del Monte Pacific said. "These zones are part of a government initiative to promote industry linkages through the production of high-value added and better quality agricultural products geared primarily for the export market, as well as to accelerate growth and development in the countryside," it added. Projects approved by PEZA would enjoy certain incentives. Del Monte Pacific, which owns the Del Monte brand in the Philippines, said the applications to PEZA are subject to final approval from President Gloria Macapagal-Arroyo. "The company would provide more details of Del Monte Philippines’ agro-industrial economic zone projects upon receipt of the requisite final approvals," it said. Del Monte Pacific operates one of the world’s largest pineapple plantations of 19,499 hectares located in the southern Philippines. In 2006, it harvested 637,116 metric tons of pineapples, almost the same level as that of 2005. Majority of the harvested pineapples went into processing, with only 3 percent sold as fresh. Last month, Campos-led NutriAsia Pacific Ltd. reduced its stake in Del Monte Pacific to 79.9% from 84.5% after it sold 50 million shares equivalent to 4.6% of the company primarily to institutional investors to increase its liquidity. — Ruby Anne M. Rubio/BusinessWorld