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Shell Pilipinas profit tumbles to P1.2 billion in 2023
The earnings of Shell Pilipinas Corp. plunged by 70.7 percent to P1.2 billion in 2023 from P4.1 billion in 2022 on the back of declining global fuel prices and elevated interest rates......»»
DA spending P5 billion yearly for solar-powered irrigation
The Department of Agriculture aims to spend at least P5 billion annually for the construction of solar-powered irrigation systems nationwide to boost rice productivity and mitigate adverse impacts of El Niño......»»
More Filipinos now agri, biosystems engineers: DA
The Department of Agriculture is more hopeful for wider farm mechanization and livelier agribusiness industry in the country as more Filipinos have become agricultural and biosystems engineers or ABEs. In an email to the Daily Tribune, DA reported that 12,551 ABEs obtained their licenses this year, more than the 10,909 in 2021. The DA added 615 ABEs took their professional oath last 20 October. “They are not only responsible for the design of machinery and systems, but are also the pioneers of change, custodians of sustainability, and champions of modern, appropriate, and sustainable mechanization technologies and practices,” DA-Bureau of Agricultural and Fisheries Engineering Director Ariodear Rico said. Graduates from Central Bicol State University of Agriculture-Pili achieved a 100 percent passing rate, followed by the University of the Philippines-Los Baños with 92.86 percent in the ABE Licensure Examination in September. Rico said only 33.41 percent of the total 1,841 examinees passed. ABEs play vital role “The country not only needs agricultural facilities, but an adequate and competent workforce, in which ABE professionals, together with operators and technicians, play a vital role,” he said. Rico said the Marcos administration has created agricultural and fisheries development programs and trade partnerships to provide jobs to highly skilled ABEs and help ensure they stay in the country. He said on top of the list is the National Agricultural and Fishery Mechanization Program which aims to ease exchange of knowledge and drive more collaborations among engineers and the government by streamlining all mechanization policies and programs of local government units. Another is the Renewable Energy Program for Agriculture and Fishery Sector which Rico said aims to maximize the use of solar, wind, hydro, biomass and biogas energy. Through these programs, he said ABEs can further reap the economic and intellectual benefits from the Regional Comprehensive Economic Partnership Agreement or RCEP. Approved by the Senate in February, this trade deal among the ten members of the Association of Southeast Asian Nations, plus China, Japan, South Korea, Australia and New Zealand allows stronger intellectual property rights, zero to lower tariffs for Philippine exports, and more financing for small and medium businesses. ROI on farm mechanization A study by the Department of Science and Technology showed the return on investment of farm mechanization can grow by at least 238 percent. Despite this, the country has increased its mechanization level to just 2.679 horsepower per hectare (hp/ha) this year from 2.31 hp/ha. Meanwhile, global revenue from fish and seafood is projected to grow by 7 percent annually, according to global market researcher Statista. It adds China has earned the highest at $88 billion revenue this year. The post More Filipinos now agri, biosystems engineers: DA appeared first on Daily Tribune......»»
Fuel subsidy easing eyed
An immediate release of government assistance to public utility vehicles will be achieved by shortening the trigger period from three months to one and simplifying the requirements, the Department of Energy said yesterday. The proposal, nonetheless, may need the amendment of the law for releasing fuel subsidies to the transport sector. In a press briefing, Energy Secretary Raphael Lotilla said this was one of President Ferdinand “Bongbong” Marcos Jr.’s proposed solutions to the oil price shock that is expected to worsen amid the spreading Middle East conflict. $80 per barrel long breached Under the current law, fuel subsidies are released to the transport sector whenever the Dubai crude oil price exceeds $80 per barrel for three consecutive months. Lotilla said shortening the trigger period will allow the government to release the subsidies faster to the transport sector, one of the sectors most affected by rising fuel prices. “With this simplification or shortening of the period, we will be able to release the subsidies in a shorter period,” Lotilla said. “Since Congress is now considering the General Appropriations Act, it will be included in that process. The amendment will take effect in 2024 immediately upon Congress’s approval of the GAA,” he added. The DoE chief also said the government will simplify the requirements for the release of the fuel subsidies. The release of the subsidies requires the approval of the DoE, the Department of Transportation, and the Department of Budget and Management. Lotilla said that under the new proposal, the release of the subsidies will only require the approval of the DBM, DoTr and the DoE. He said the DoTr will finalize the list of beneficiaries for those with franchises, the Department of the Interior and Local Government for tricycle drivers, and the Department of Trade and Industry for delivery service drivers. Even though there’s an effort to expedite assistance, Lotilla said the fuel subsidy in the 2024 national budget was decreased to P2.5 billion from P3 billion this year. The energy chief, however, believes that even with the reduced budget, the required funding will be met. “That’s based on the experience of the previous year. We don’t know what will be the final amount,” the official said. Other measures on table Lotilla added the government will implement a voluntary 20-percent ethanol blend for gasoline, which is targeted for approval by the end of 2023. He said the ethanol blend will help mitigate the rising fuel prices, as ethanol is cheaper than gasoline. Lotilla said the President also instructed him to continue the transport sector’s electrification, particularly for mass transport and light cargo vehicles. He said the government will put in place charging stations and ensure that the benefits to the transport sector, particularly the drivers, will be there. Lotilla said the President also emphasized the need to prepare the economy for the eventual manufacture of electric vehicles and to link this with the local mining sector that will produce the minerals needed to manufacture batteries and other components of electric vehicles. Rules out soon The DoE is also releasing the guidelines for the implementation of the long-delayed higher biofuels blend before the year ends. Lotilla said the current 10-percent ethanol blend, also known as E10, in gasoline would be increased to 20 percent or E20, although it would be a voluntary option for motorists. Lotilla added that the current two percent or B2 coco methyl ester or CME blend on diesel will be adjusted to three percent or B3. Based on the DoE calculation, implementing the E20 blend could slash gasoline prices by around P1.28 to P1.50 per liter. While ethanol is generally cheaper than gasoline, Lotilla noted that local ethanol at P79.49 a liter is still more expensive than the imported supply at P41.84 per liter. Lotilla said DoE will bank on the coconut industry, whose production reaches up to 15 billion nuts annually, to complement the B3 shift. “An additional 1 percent blend only needs 2.6 billion nuts. The increase in the blend can also drive down the cost of CME because there will be a bigger market for it. Right now, we expect pure diesel to be at parity with the per liter price of CME,” Lotilla explained. With Maria Romero The post Fuel subsidy easing eyed appeared first on Daily Tribune......»»
Higher biofuels blend to mitigate spiking fuel prices
The Department of Energy will release the guidelines before the year ends to govern the implementation of the long-delayed higher biofuels blend—a measure that would help offset increasing fuel prices. Energy Secretary Raphael Perpetuo Lotilla announced at a press conference hosted by the Presidential Communications Office on Tuesday that the current 10 percent ethanol blend, also known as E10, in gasoline will be voluntarily increased to 20 percent or E20. Likewise, Lotilla added that the current two percent or B2 coco methyl ester or CME blend on diesel will be adjusted to three percent or B3. Based on the DoE calculation, implementing the E20 blend could significantly cut gasoline prices by around P1.28 to P1.50. While ethanol is generally cheaper than gasoline, Lotilla, however, noted that local ethanol at P79.49 a liter is still more expensive than the imported supply at P41.84 per liter. Relatedly, Lotilla said the DoE will bank on the coconut industry, whose production reaches up to 15 billion nuts annually, to complement the B3 shift. “An additional 1 percent blend only needs 2.6 billion nuts. The increase in the blend can also drive down the cost of CME because there will be a bigger market for it. Right now, we expect pure diesel to be at parity with the per liter price of CME,” Lotilla explained. Under Republic Act 9367 or the “Biofuels Act of 2006,” a one percent CME blend was added to local diesel; it was last increased to 2 percent in 2007. It also mandates that only locally sourced biofuel components should be used in the biodiesel blend. The Biofuels Act intends to create a sustainable future by decreasing the importation of refined fuel, such as diesel and gasoline, while also boosting farmers' incomes. Responding to the development, Dean Lao Jr., president of Chemrez Technologies Inc., the country’s biggest producer of premium CME, said the move will significantly benefit the consumers. “The feedstock is available and the capacities for making CME are ready to support the increase in mandate. We expect many benefits to come with a B3 mandate: mileage improvement; lower pollution; import substitution and value-adding of coconut oil," Lao said in a separate statement. "These benefits will come with no practical cost to the government, yet have extensive benefits to the country,” he added......»»
ADB eyes $4 billion loans to Philippines under new CPS
The Asian Development Bank is looking at lending up to $4 billion annually to the Philippines under a new country partnership strategy being crafted......»»
DMCI seeks recouping Berong losses this year
Sustaining the strong growth momentum and offsetting the impact of the depletion of its Berong mine are the near-term goals of industry giant DMCI Mining Corp. in operating new mines in Zambales before the year ends. DMCI Mining president Tulsi Das Reyes said the planned development, to be undertaken by its unit Zambales Chromite Mining Corp., or ZCMC, is expected to initially deliver 20 million metric tons or MT of minerals annually. “We are operating one mine in Zambales now (the Zambales Diversified Metals Corporation or ZDMC) and we are getting permits for another one, (which is ZCMZ).” “I strongly believe that we have a very good chance to get this permit before the end of the year,” he added. Permit coming soon “I’m very confident it will happen within the proper time frame plus minus one month,” Reyes said in an interview with reporters over the weekend. Reyes, however, clarified that ZCMC is not a chromite mine but a nickel mine. “When we bought it from the UK, that was the name and we had not really rebranded or reshaped the company yet because those are the companies we used to apply for the permit. If that is changed, the documentation, conversation, and a little variation would be a lot of work,” he explained. Reyes also conveyed DMCI Mining’s intention to operationalize a separate mining site in another province. He did not disclose the location but noted that it can potentially deliver a minimum of 70 million MT of output. DMCI Mining has been boosting its operations to ramp up production and shipments to cater to the growing demand for minerals globally. Early this year, ZDMC was granted an amended environmental compliance certificate or ECC that allowed the company to raise its annual production to a maximum of 2.7 million dry metric tons, which put the company on track to surpass its 2022 nickel ore production and shipments. From January to June, production nearly doubled by 98 percent from 567,000 wet metric tons or WMT to 1.12 million WMT, which was way better than its 2022 full-year output of 1.03 million WMT. Meanwhile, shipments in the first half of this year reached 1.06 million WMT, equivalent to 73 percent of the total sales volume of 1.45 million WMT in 2022. Reyes attributed the strong performance to improved operational efficiency and permit timing. During the first six months, DMCI Mining recorded a net income of P708 million, a 35-percent drop from P1.09 billion owing to lower selling prices and increased costs from higher shipments, fuel consumption, depreciation, amortization and labor expenses. The post DMCI seeks recouping Berong losses this year appeared first on Daily Tribune......»»
Pag-IBIG expects P30 billion yearly from contribution hike
The Home Development Mutual Fund, commonly known as Pag-IBIG Fund, is expected to generate at least P30 billion annually if the long delayed contribution hike is pushed through......»»
RSBS revisited
All it required, inherent vulnerabilities notwithstanding, to “screw up” the Armed Forces of the Philippines-Retirement and Separation Benefits System, was a meeting of minds between the Chief of Staff of the AFP and the Secretary of National Defense. In short, it was a classic case of “partners in crime” — what one administered, the other approved. Under Presidential Decree 361, the CSAFP administered the RSBS through a board organized by himself, subject to the SND’s approval. There was a nine-man Board of Trustees that the CSAFP appointed, from its president down. PD 361 stipulated that the retirement benefits of retiring AFP personnel would be paid out of annual congressional appropriations for the AFP. Per the proviso, when the payment of retirees’ pensions exceeded P100 million in any year, the excess would be paid out of the RSBS funds. After the initial seed capital of P200 million had been given to RSBS, no further sums were appropriated/paid into RSBS. No Congress — across the terms of Presidents Corazon Aquino, Fidel Ramos and Joseph Estrada — initiated appropriations for the RSBS pension system. Since then, the retirement benefits for retiring AFP personnel were included in the regular annual appropriation for the AFP in the General Appropriations Act. Under PD 1656 dated 21 December 1979, 5 percent of the monthly base pay of AFP personnel was to be deducted as their compulsory contribution to their retirement fund. RSBS thus became an investment company mandated to “provide perpetually the cash requirement for the retirement benefits of military personnel on a self-sustaining basis.” However, the yearly cash requirement for the retirement benefits shall come from the annual general appropriation for the AFP until “perpetual self-sufficiency of the funds is attained as determined by actuarial evaluation.” The truth, however, was that the national government continued to fund the annual pension requirement for retired and retiring military members to which the RSBS contributed nothing or ever took up the burden. Apparently, the only “statutory obligation of the RSBS was to return the compulsory contributions of members of the AFP upon retirement.” What was quite strange was that RSBS was allowed to use the contributions of AFP personnel to generate investment revenues that were tax-exempt, without paying compensation for its use. It was a good thing that on 25 February 1992, a standard operating procedure provided for a “grant” of 4 percent interest per annum on members’ contributions compounded yearly effective January 1992 and it was tax-exempt. Again, effective in January 1996, the tax-exemption granted to members’ contributions was increased to 6 percent per annum compounded annually. These compulsory contributions constituted a continuing significant source of investible funds. For example, the aggregate total of members’ contributions returnable upon members’ compulsory retirement at year-end 2002 stood at P3.5 billion. However, the yearly inflow of members’ contributions in the last five years (1998 to 2002 inclusive) was around P2.5 billion. Apparently, RSBS aggressively went into real estate investment and portfolio loans to new companies. It also plunged into heavy short-term borrowing to expand these two-fold pursuits. The 1997 Asian Financial Crisis that precipitated a drop in real estate values in the country affected RSBS, resulting in losses over the years 1998 to 2001, not to mention the interest expense over the same period due to short-term borrowings which may well have run to P1.8 billion (1997 to 1999). The Senate Committees on Accountability of Public Officers and Blue Ribbon did a joint inquiry on alleged anomalies at RSBS where it was found that “very extensive real estate acquisitions by RSBS were attended by massive overpricing.” The initial report came out on 21 December 1998 and the final one on 20 May 1999. Verily, the Senate committee reports, together with the principal findings and recommendations of the fact-finding commission on the RSBS problem, were well documented and instructive to policymakers. Ideally, an AFP Service and Insurance System must be insulated from the reach of both the CSAFP and the SND, lest the vicious cycle recur. (Note. The RSBS was dissolved by Executive Order 590 on 31 December 2006.) The post RSBS revisited appeared first on Daily Tribune......»»
Biden leads US tech push in Vietnam
President Joe Biden and senior executives from top US tech firms including Google and Intel met Vietnamese business leaders Monday after the two countries agreed to deepen cooperation as Washington seeks to counter China's growing clout. Biden and Vietnam's ruling Communist Party chief -- the country's paramount leader -- struck a "comprehensive strategic partnership" as Washington pushes to boost its network of allies around Asia and the Pacific. The United States sees manufacturing dynamo Vietnam as an important part of its plan to decrease reliance on China for supplies of strategic resources, and the new pact includes agreements on semiconductors and rare earths. Executives from tech behemoth Google, chip makers Intel and GlobalFoundries, and aviation giant Boeing joined Biden and Secretary of State Antony Blinken for an "innovation and investment summit". They held talks with senior figures from a host of leading Vietnamese tech and manufacturing companies including electric car maker VinFast, internet firm VNG and digital wallet Momo. At the talks, Biden announced that flag-carrier Vietnam Airlines had agreed a $7.8-billion deal with Boeing to buy 50 medium-haul 737 airliners. Other deals announced include Microsoft developing a "generative AI-based solution tailored for Vietnam" and NVIDIA teaming up with local companies to deploy artificial intelligence in the cloud, automotive and healthcare sectors. Semiconductor security The new partnership includes an agreement on semiconductors, with the United States committing to help Vietnam develop its capabilities and expand production, including by funding workforce training. Tiny semiconductors are vital to modern life, found in every electronic device from children's toys and smartphones to electric cars and sophisticated weapon systems. Biden moved last month to restrict US investment in Chinese technology in sensitive areas including semiconductors, quantum computing and AI. With Washington looking to diversify and strengthen its supply chains after a series of shocks hit the global economy, it is increasingly looking to Vietnam, which has the world's second-largest deposits of rare earths -- another strategically vital resource -- after China. The White House highlighted US investment in chipmaking in Vietnam, pointing to a new $1.6 billion factory near Hanoi due to start operations soon. China difficulties Biden insisted Sunday that he did not want to "contain" China, but accused Beijing of seeking to change the rules of the international order. And in their joint statement, Biden and Trong launched a fresh broadside at Beijing in the sprawling, multi-state territorial row over the South China Sea. They warned against "threat or the use of force", days after the latest clash involving Chinese vessels, and insisted the competing claims to the strategic waterway must be settled under international norms. Beijing claims almost the entire sea, through which trillions of dollars in trade passes annually, and has ignored an international court ruling that its assertion has no legal basis. The president met Chinese Premier Li Qiang -- the country's number two leader -- on the sidelines of the G20 summit in Delhi on Sunday. Biden said the major economic problems Beijing was wrestling with would limit its scope for action, particularly on Taiwan -- which China regards as a renegade province. "China has a difficult economic problem right now for a whole range of reasons that relate to the international growth and lack thereof and the policies that China has followed," he said, pointing to high youth unemployment and real estate issues. "I don't think it's going to cause China to invade Taiwan. As a matter of fact, the opposite -- it probably doesn't have the same capacity that it had before." Vietnam has its own squabbles with Beijing, notably over the contested South China Sea. Hanoi's state media on Monday hailed the deal with former war foe the United States as "historic". Biden will end his visit by paying his respects at a memorial to his friend John McCain, the former US Senator shot down in Hanoi as a pilot during the Vietnam War. The post Biden leads US tech push in Vietnam appeared first on Daily Tribune......»»
DBM flags PNP’s P27-B ‘overdraft’
The Philippine National Police (PNP) has been spending a whopping P26.7 billion annually for “unauthorized” excess positions in the organization, covering ranks from Lieutenant Generals and below, according to a Department of Budget and Management (DBM) document, In a letter dated 12 October 2022 addressed to the Department of the Interior and Local Government (DILG) Secretary Benjamin C. Abalos Jr., Mary Anne Z. Dela Vega, Director of the Budget Department’s Budget and Management Bureau, submitted a matrix of PNP rank distribution approved by the DBM covering the 226,410 members of the police force. The DBM-approved rank distribution did not match the actual strength and distribution of ranks implemented by the PNP leadership, contrary to existing laws and regulations. The following excess positions were noted in the following ranks: Lieutenant General, 5; Major General, 6; Brigadier General, 24; Colonel, 232; Lieutenant Colonel, 910; Major, 1,410; Captain, 1,835; Staff Sergeant, 31,729; and Corporal, 30,052. The total excess positions stand at 66,203 with a combined annual base pay of P26.707 billion. DILG sources said these excess positions, which go beyond the DBM-authorized number of personnel, are considered “illegal." On the other hand, DBM and DILG data showed that there are 77,190 unfilled positions in the PNP hierarchy, with the rank of Patrolman/Patrolwoman suffering the biggest discrepancy with 66,958 unfilled posts. The DBM-authorized positions for Patrolman stands at 129,926 but the actual strength per PNP record as of 30 June 2023 stood at only 62,968. These unfilled positions have a combined budget of P23.838 billion that was not spent on the recruitment of more Patrolmen and women. “This explains why we severely lack police visibility in our communities. And this has an adverse effect on the overall campaign to preserve peace and order and protect the people from crimes,” said a DILG insider, who spoke on condition of anonymity. Other PNP ranks that remain unfilled include Lieutenant, 1,066; Executive Master Sergeant, 2,382; Chief Master Sergeant, 3,878; Senior Master Sergeant, 463; and Master Sergeant, 2,443. For star rank positions, the DBM allows only three for Lieutenant Generals but there are presently eight officials having that rank. For Major General, the DBM allows only 11 but 17 are now occupying the position while for Brig. General, only 86 are allowed but 110 were appointed to the rank. For non-star ranks, there are only 624 colonels allowed by the DBM but the PNP has 856. The DBM authorized 2,000 for Lt. Cols. but the actual number of officers with that rank stands at 2,910. “… we wish to reiterate that any changes in the PNP’s organizational structure should be supported by a study and recommendation of NAPOLCOM (National Police Commission), to include its impact on the hierarchy and leadership structure of the organization, and subsequently, the same shall be subject to the President’s approval,” the DBM letter said. Napolcom Commissioner Alberto Bernardo, who is also Vice Chairperson of the body, was furnished a copy of the said letter but could not be reached for comment. An earlier letter to the DILG dated 19 July 2018 and signed by then Secretary Benjamin Diokno warned that except for such offices created by the Constitution, the creation of public offices is primarily a legislative function. Therefore, these excess positions in the PNP not otherwise authorized by the DBM are contrary to law and may only be considered ad hoc or temporary positions. Likewise, the realignment of PNP funds to these excess positions was a power reserved only to the President and the use of savings to augment items in the general appropriations law for the executive branch is his sole prerogative and not any police official in the case of the PNP. Executive Order No. 292 or the Administrative Code of 1987, specifically states that; “the General Appropriations Act shall not contain any itemization of personal services, which shall be prepared by the Secretary after enactment of the (GAA), for consideration and approval of the President.” The twin acts of creating excess positions and using realigned savings to fund these posts by the PNP leadership are prohibited by law. “While the Napolcom is duty-bound to advise the president on all matters relating to police functions and administration, it cannot recommend to the President the promotion of Third Level PNP officers to excess and prohibited positions,” the DILG source further explained. The post DBM flags PNP’s P27-B ‘overdraft’ appeared first on Daily Tribune......»»
Canada wildfires inflict brutal toll on tourism, other areas of economy
Joanna Schlosser found refuge from advancing wildfires at a winery where she works, but is now dealing with a tourism downturn and other wide-ranging fallout on the business -- and Canada's economy. An inferno jumped Okanagan Lake and was barreling down hills behind her Kelowna home when a knock on the door woke up the family of five, ordering them to leave immediately. For two weeks, they stayed at a guest house at Quails' Gate winery with other evacuees, some of whom lost their homes. About 200 houses in the valley would be destroyed. "Your home is your biggest investment and with only five minutes to get out you start to reel about things you left behind that you might not ever see again," Schlosser told AFP. She also fretted about the grape harvest now underway. None of the 222 wineries in the region reported any direct fire damage. But they suffered a big drop in revenues as tourists stayed away during the peak month of August. Kelowna's airport and main highway closed temporarily. Tasting tours, weddings, and other events at the wineries were canceled. "We're now facing a pretty devastating season in terms of winery traffic and sales," said Schlosser. Across Canada, more than 15 million hectares (37 million acres) have been scorched, and 200,000 people displaced, spanning from Halifax on the Atlantic coast to parts of the Northwest Territories. Stephen Brown of Capital Economics noted that forest fires do not normally have a measurable impact on the Canadian economy. But this year, he said in a research note, "With the fires so widespread, we are seeing more of an impact than usual." "The worst Canadian wildfires on record appear to be behind much of the recent weakness in GDP and, with more areas now under evacuation orders, the data are likely to remain weak in the coming months," he said. Sun blocked, roads closed Statistics Canada on Friday reported a 0.2 percent contraction in the second quarter and a weak start to the third. It pointed to wildfire disruptions at mines and oil facilities. Lumber mills were also idled. Outfitters saw their livelihoods upended by fishing bans. A road to Tofino, a tourist hotspot on Vancouver Island with ancient forests and sandy beaches, was cut off. In the Okanagan Valley, orchards lamented smoke blocking out the sun delaying the ripening of apples. The toll, however, is "not as bad as it could have been," said Tony Stillo at Oxford Economics. "Even though the wildfires are record-setting, they're happening in more remote areas with less of an implication for large population or economic centers or transportation corridors -- things that would cut off supply lines," he explained. Disruptions have also been relatively short. Oxford Economics in a June report warned that wildfires could slash Canada's economic growth this year by as much as 0.3 to 0.6 percentage points. Firefighting costs rise Ottawa estimates the annual cost of fighting wildfires at Can$1 billion (US$737 million) and noted that, according to the Canadian Climate Institute, climate impacts such as more and bigger fires could halve Canada's projected economic growth in the coming years. By 2030, the average annual losses from disasters are forecast to reach Can$15.4 billion. Insurance losses have already jumped fivefold since 2009 to more than Can$2 billion annually, according to the Insurance Bureau of Canada. The bureau's Jason Clark said the number of catastrophic events and insurance payouts will continue to rise. Most worrying, he said, is that Canadians aren't dealing anymore with one localized disaster every few years or decades, but rather "several events stacked on top of each other in a single year" -- including fires, floods, heatwaves, and powerful storms. "Where countries regularly experience large losses it has a significant impact on insurance risk assessments and premiums," he said. "We need to be better prepared." Back at Quails' Gate, Schlosser assessed the smoke's impact on grapes, noting that the industry has developed mitigation techniques. "Sometimes it works quite well and others (the smoke taint) is just not something you can avoid," she said, adding that "sommeliers may talk about it in terms of terroir like it's part of that vintage." Smoke taint can add character to a wine, but also risks producing overpowering burnt or medicinal notes. The post Canada wildfires inflict brutal toll on tourism, other areas of economy appeared first on Daily Tribune......»»
It’s about the donut, not the hole
While the gale from the north is fraught with incendiary sound bites on what’s taking place in the West Philippine Sea, Davao is getting ready for its next shipment of tuna sashimi, durian, fresh buko (young coconut), and other agricultural products to Zhenshen, China. Zhenshen is only three hours and 30 minutes via direct flight from Davao City, thus the cargo gets there fresh. This is another exciting development that makes farmers and fishermen ebullient. Earlier, a few tons of tuna were exported to China, followed later by a bigger volume of durian. This time, PHILEXPORT Davao City chapter president Domingo Ang, who owns Marina Tuna Restaurants in the city, and his fellow businessmen will embark on a bigger shipment. The Davao region is the country’s biggest exporter of agricultural products. Top on the list are Cavendish bananas. Japan absorbs an export volume valued at $700 million annually, but China started loving the taste of the fruit as it now consumes about $420 million worth of bananas. Hong Kong separately imports about $25 million, South Korea devours $200 million, and Saudi Arabia eats $34.3 million worth of bananas. The United States is the smallest export market with a volume worth $356,000. Ang is confident that value-wise, tuna sashimi, other marine fish varieties that are successfully “farmed” in the calm Davao Gulf, durian and fresh coconuts, among others, will add upwards of about $1 billion to Davao’s economy. He pointed out that if fresh buko makes it in the China market, you can expect an additional bonanza for coconut growers. Davao is also the biggest producer of coconuts in the Philippines. Ang, whose father pioneered the tuna industry in Mindanao, is especially happy with the new export development for the fisherfolk and fruit growers in Davao. Fishermen can organize themselves into cooperatives and avail of loans since they are now bankable. They can then jointly own fleets of fishing boats. Individually, they can raise fish in cages and be assured of ready buyers in China. The potential for fishermen is limitless and Doming Ang hopes the government will allow the fishermen to fish beyond municipal waters. This brings us to our dispute with China over an atoll in the West Philippine Sea. Yonder nearly every island is claimed by our neighbor countries. Some of these islands have been quietly occupied by them while we are exchanging barbs with China. Our ambivalence makes laggards out of us. We have missed opportunities. There was this offer by China to jointly explore and mine the rich oil deposit in the WPS, with a 60/40 deal in favor of the Philippines. Had the deal been inked we would be in a different situation today. The WPS is just a small part of the South China Sea. Underneath the water are $26 trillion worth of oil and gas deposits. Today we are facing the biggest challenge as food and oil prices have escalated beyond our imagination. The peso is now breaching $57 to $1. Despite this stark prospect of stagnation, this government is not keen on enhancing our agricultural productivity, and exploring the potentialities of our energy resource is zero on its agenda. The simpletons still rely on importation. Against the apprehensions of some senators and the freaking spokesperson of the Philippine Coast Guard, China need not fire a single shot to cripple this government. Look at how and where our economy is weighing in. The Western drum beaters are saying that the United States is our biggest trading partner, accounting for $12.5 billion of our exports. Japan comes next with $11.1 billion, mainland China is third with $11 billion, and Hong Kong is fourth at $10.5 billion. But lump together China and HK, its administrative region, and you have $21 billion total. Go figure out what fate awaits us. Marcos should be circumspect about his options. He ought to see the donut and not the hole. The post It’s about the donut, not the hole appeared first on Daily Tribune......»»
Heat stress could threaten health of one billion cows
By the end of the century, more than one billion cows worldwide could suffer from heat stress if global warming continues unabated, threatening their fertility, milk production, and lives, according to research published on Thursday. Nearly eight out of 10 cows across the planet are already experiencing excessively high body temperatures, spiked respiration rates, bowed heads, and open-mouthed panting -- all symptoms associated with severe heat stress, the study said. In tropical climates, 20 percent of cattle endure those symptoms year-round. These numbers are projected to balloon if cattle farming continues to expand in the Amazon and Congo basins, where temperatures are on track to rise more quickly than the global average. If emissions of climate-heating greenhouse gases continue to rise, the study predicts heat stress will become a year-round problem in Brazil, southern Africa, northern India, northern Australia, and Central America by 2100. "A very important determinant of how many cows are exposed to this heat is decisions about land-use change," lead author Michelle North of the University of KwaZulu-Natal in South Africa told AFP. "Deforestation of tropical forests for livestock expansion is not a viable development future, because it makes climate change worse and will expose hundreds of millions more cattle to severe heat stress," she added. The study, published in Environmental Research Letters, found that in a worst-case scenario, cattle husbandry will nearly double in Asia and Latin America and increase more than fourfold in Africa. Losing livelihoods If greenhouse gases are curbed sufficiently -- including by cutting the use of fossil fuels and by limiting the expansion of cattle farming -- the number of cows suffering could be reduced by half in Asia and by four-fifths in Africa. Commercial ranchers stand to lose a lot of money from heat stress. It already costs as much as 1.7 billion dollars annually in the United States alone. But these farmers usually have insurance, good relations with banks, and the ability to draw on loans to help them recover from heat-related losses, said North. When heat or other climate disasters hit small-scale farmers, however, "it can lead to farmers literally losing their livelihoods, even if the net losses may appear 'negligible'", she said. North and her team found that global milk supplies would be reduced by 11 million tonnes per year by 2050 under a high greenhouse gas emission scenario. If emissions are aggressively reduced, nearly half of that amount would still be lost, mostly in Asia and Africa, where milk supplies are already low. In the near term, overheated cows can be helped by providing them with access to shade and fans, and feeding them earlier in the day. The post Heat stress could threaten health of one billion cows appeared first on Daily Tribune......»»
P40 million needed to ensure MUP pension
The government will have to pay an additional P40 billion annually to ensure that the military and uniformed personnel pension system is self-sustaining in 20 years, especially with the influx of new members into the uniformed services. In a recent briefing, Finance Undersecretary Cielo Magno explained that the government would still need to pay for those who retired and those still on active duty would contribute a portion of the cost. "That would still reduce the overall burden because we already have a counterpart, although the government will still pay the bulk of that," Magno said. The MUP still receives pension benefits even though they don't contribute to the fund. Therefore, the government allocates a yearly budget to cover this expense. Under a new proposal submitted by the ad hoc committee of the House of Representatives, all MUPs would now be obliged to contribute a higher portion of their income to the pension fund, with new hires contributing the highest portion at 9 percent of their salaries. Incremental increases under the proposed plan would require active workers to contribute 5 percent of their salaries to the fund for the first three years, 7 percent for the following three, and 9 percent for the remaining years. A bigger government contribution to the fund, equivalent to around 11% of the MUP regular wage, will equal the effort. Magno estimated that this would be worth between P40 and P50 billion in the first year of implementation. But if every MUP who is now active contributes to a fund for their retirement benefits, finance officials said the target year for the MUP to be stabilized would be shortened. "The pension system is not a real pension system," Finance Secretary Benjamin Diokno told senators last week. "A pension system is where the beneficiaries contribute, and there's a government counterpart," Diokno also mentioned in a separate statement over the weekend. He added that the finance officials understood where the objections of Defense Secretary Gilberto Teodoro Jr. came from. However, Diokno explained that it is the job of the economic managers to ensure the sustainability of the proposed pension fund and individual contributions are really necessary to achieve that. Meanwhile, Finance Undersecretary Maria Luwalhati Dorotan-Tiuseco said in the briefing that if only new recruits were required to make contributions to the fund, it would require an extended duration of at least six decades. In addition, the government would need to set aside a minimum of P40 billion annually as its share in the fund. This expenditure would be in addition to the yearly pension payments for retirees, until a point when the fund could independently sustain these payments. “Right now, it really has no source and their pension is dependent on the funds available. There are years when we even have arrears,” Dorotan-Tiuseco said. “It’s not just addressing the fiscal space, but making sure that we have a source to get it from when the time comes,” she said. The post P40 million needed to ensure MUP pension appeared first on Daily Tribune......»»
Salceda’s MUP bill stirs hornets’ nest
Defense Secretary Gilberto “Gibo” Teodoro Jr. took potshots yesterday at the substitute bill recently approved by a House of Representatives ad hoc committee that would require military and uniformed personnel, or MUPs, to contribute to their pension funds. “I do not subscribe to the proposed blanket mandatory contributions for military personnel, especially for those who have already completed at least 20 years of active service,” Teodoro said. Teodoro’s statement came as grumblings in the military and the police and other uniformed services, both active and retired, heightened anew after dying down in the past few months. The Defense chief hinted at the reasons MUPs were becoming restless anew. He said the substitute bill of the ad hoc committee chaired by Albay Rep. Joey Salceda does not conform to the government’s intent regarding their pensions. For one, Teodoro explained that President Ferdinand Marcos Jr.’s proposed pension reform plan should have the least negative impact on active-duty military personnel. Forced contribution “The President envisions a carefully transitioned introduction of any pension reform plan so that those in active service will be impacted in the least possible way,” he said. But the imposition of mandatory monthly contributions without a transition phase, under the substitute bill, will “definitely” affect the soldiers, Teodoro warned. “As Secretary of National Defense, it is also incumbent upon me to look after the welfare of our military pensioners,” he said. “Ensuring the non-diminution of their retirement benefits is the least we can do in recognition of their sacrifices to the country,” he added. The substitute bill would require those in active service to contribute 5 percent of their base and longevity pay during the first to three years of the MUP pension reform implementation, 7 percent in the fourth to sixth year, and 9 percent in the seventh year onward. The government will contribute its counterpart 16 percent to the pension fund of those in active service during the first three years, 14 percent during the fourth to sixth year, and 12 percent in the seventh year onward. Sui generis New entrants to the uniformed services like the police and military will contribute 9 percent of their base and longevity pay toward their pension with a 12-percent government contribution. Salceda said the ad hoc panel has committed to approving its version on the third and final reading “as soon as possible.” He insisted the panel heard all the statements and comments of the various services. But Teodoro was clearly not buying Salceda’s assurance as he remained firm in his position on the soldiers’ pensions and entitlements, “including that the 100-percent automatic indexation shall remain unchanged.” Automatic indexation means the pensions of retired MUPs are adjusted according to the pay scale of active service personnel of the same rank. Meanwhile, the Defense chief stressed the “substantial distinction” members of the Armed Forces of the Philippines enjoyed over all other uniformed personnel. “The AFP performs a sui generis mandate emanating from the 1987 Constitution — to secure the sovereignty of the Philippines and the integrity of our national territory,” Teodoro pointed out. “Despite wearing uniforms and having ranks similar to those of other uniformed personnel, there is no uniformity in terms of the nature of their duties and responsibilities,” he noted. Teodoro underscored that the risks that soldiers face with the “multifarious” roles they play in nation-building and in times of crisis are “well known.” He pointed out that soldiers do not receive additional financial support from local government units, “unlike some of the other services.” He added that soldiers are governed by “strict rules of military law from the moment they first train until the last day of their service.” “The AFP continues to obtain the highest approval, satisfaction, and trust ratings. Adding to their burdens will only serve to distract them from focusing on their crucial mission,” he said. Cops are sore, too Many police officers are also antagonistic toward the substitute bill. “With that abomination of a substitute bill, Salceda threw into the dumpster the President’s ideas on an MUP reform law that would have been acceptable to us,” a police colonel retiring in a few months told Daily Tribune. He said that they in the PNP thought the MUP reform measure had been placed on the back burner, thus many of those who had filed for early retirement tried to pull out their papers. “Those who would want to retire now before the lawmakers rob us blind would surely increase. The veterans are leaving and Salceda has only himself to blame if we are swamped with rookies,” the police officer said. No contributors Finance Secretary Benjamin Diokno started the MUP pension reform ball rolling when he warned that the next administration would have a “huge problem” if the present MUP pension system was not overhauled. With no contributions from MUPs to the pension fund, Diokno said the liabilities were previously estimated at P9 trillion, compared to the country’s GDP of around P20 trillion. “The pension system of the military is not a real pension system in the following sense — there are no contributors. A pension system is where the beneficiaries of the pension fund contribute to it and there is a government counterpart fund. But in this particular sense, there is no contribution on the part of the beneficiaries, and we only appropriate it annually,” Diokno said. Under the 2024 National Expenditure Program, the government is pushing a P164-billion allocation for the MUP pension fund, reflecting a 3.5-percent increase over the fund this year. The post Salceda’s MUP bill stirs hornets’ nest appeared first on Daily Tribune......»»
$1.8-billion Aboitiz, Coke deal still under PCC review
The Philippine Competition Commission or PCC is monitoring the recently reported intention of Aboitiz Equity Ventures Inc. or AEV to acquire minority stakes in Coca-Cola Beverages Philippines or CCBP under a $1.8-billion cash joint venture deal with Coca-Cola Europacific Partners or CCEP. In an email on Friday, the competition watchdog said it is still determining if the parties involved have properly met the required threshold for their transaction. As of the end of the first quarter, all mergers and acquisitions that breach a P7-billion size of party and P2.9-billion size of transaction should be reviewed by the PCC. The PCC’s merger review thresholds are adjusted annually relative to the size of the economy. While this is ongoing, the PCC likewise noted that it may also ask its Mergers and Acquisitions Office or MAO to conduct an initial assessment if the effects of the transaction warrant a motu proprio review. “This review will determine if the transaction may result in a substantial lessening of competition in the relevant markets,” it said. The PCC’s MAO provides pre-notification consultations for parties contemplating a merger to address queries about the merger review process. During consultations, the parties may seek non-binding advice on the specific information needed for the notification. Early this month, AEV and CCEP signed a non-binding Term Sheet with The Coca-Cola Company, which is currently divesting its CCBP interests. The parties are now in advanced discussions regarding the potential joint transaction, where CCEP would be the majority owner with a 60 percent stake. AEV, on the other hand, would take up the remaining 40 percent non-controlling interest. The AEV, however, clarified that since the buyout is still subject to several conditions, the transaction has no guarantee that it would proceed until closing. These conditions include satisfactory completion of confirmatory due diligence which is well underway, receipt of AEV and CCEP’s board approvals, and the parties signing the definitive agreements. However, assuming that the plan pushes through, AEV expects that the deal could be closed by the end of the year, subject to the approval of the Philippine Competition Commission. CCEP is a global consumer goods company serving 600 million consumers and helping 1.75 million customers across 29 countries grow their businesses. On the other hand, the AEV of the Aboitiz family has major investments in power, banking and financial services, food, infrastructure, land, and data science and artificial intelligence. In the first half of the year, AEV reported an 11 percent decline in its net income. It only booked a bottom line profit of P10.5 billion during the period, from last year’s P11.8 billion. The post $1.8-billion Aboitiz, Coke deal still under PCC review appeared first on Daily Tribune......»»
Razon’s Bloomberry bares H1 profit surge
After returning to profitability last year, Bloomberry Resorts Corp., the operator of Solaire Resort & Casino, still sustained its momentum even throughout the first half of the year. In a report on Wednesday, the publicly listed holdings firm reported a P6.4 billion consolidated net income during the period, a 160 percent surge from last year’s P2.5 billion. San the impact of a P356.6 million one time gain on sale from the disposition of an asset, the company noted that consolidated net income would have increased by 145 percent. “All our business segments continued to deliver growth that pushed consolidated net revenues, EBITDA, and net profit in the first half to levels exceeding that of the same period in 2019,” Enrique K. Razon Jr., Bloomberry Chairman and CEO said in the report. Solaire gaming revenue surges “We anticipate that the growth momentum we have so far seen will continue well into the next six months and in the years ahead,” he added. In terms of consolidated net revenues, Bloomberry posted P25.6 billion, which represented a 48 percent growth against P17.2 billion in the same period last year. At Solaire, total gross gaming revenue soared 41 percent to P31.2 billion annually — driven by the recovery in domestic mass table games and electronic gaming machines segments. Compared to the pre-pandemic figures in 2019, Solaire’s first-half GGR represented a 110 percent jump. The casino’s non-gaming revenues from its hotel, food, and retail segments reached P4 billion, up 51 percent. As of the end of June, Bloomberry logged a consolidated cash and cash equivalents balance of P44.9 billion. Total outstanding long-term debt was P98.1 billion, which represented the balance of the current and non-current portions of the amended P73.5 billion and P40.0 billion Syndicated Loan facilities. Meanwhile, the total equity attributable to equity holders of the parent company was P39.9 billion. The company has already drawn P18.2 billion from the P40 billion Syndicated Loan Facility, higher by P8.7 billion as the company drew from the facility in the second quarter to partially finance the construction of Solaire Resort North scheduled to launch by the first quarter of 2024. The post Razon’s Bloomberry bares H1 profit surge appeared first on Daily Tribune......»»
D& L expects capacity, income boost via Batangas plant
With its Batangas plant up and running since July, listed chemicals manufacturer D&L Industries, Inc. expects to double its existing manufacturing capacity in the coming years — a move that will also perk up the company’s financial backbone. “The plant that we have built is not just another plant. Specced to the highest standards and equipped with new capabilities, our Batangas plant will elevate the company to operate on a whole new level,” D&L President and CEO Alvin Lao said at a press briefing on Wednesday. D&L’s Batangas plant sits on a 26-ha property in First Industrial Township - Special Economic Zone in Batangas. It will mainly cater to D&L’s growing export businesses in the food and oleochemicals segments. The facility will also add the capability to manufacture downstream packaging; thus, allowing the company to capture a bigger part of the production chain. While the company primarily sells raw materials to customers in bulk, the new plants will allow it to “pack at the source.” This means that D&L can efficiently process the raw materials and package them closer to finished consumer-facing products. Relatedly, it will enable D&L to move a step closer to its customers by providing customized solutions and simplifying its supply chain, which is of high importance given ongoing logistical challenges. However, Lao pointed out that the high volume of orders from prior periods coupled with the lingering effects of high inflation and generally cautious consumer sentiment slightly took a toll on the company’s profits. During the first half of the year, D&L’s earnings annually declined by 28 percent to P1.24 billion. Notably, in the second quarter, there was a subtle but continued sequential recovery with quarterly earnings growth of 9 percent to P646 million. Additionally, Lao noted that incremental expenses were booked in the first semester because of the new plant in Batangas. Excluding the Batangas-related expenses, first-half income would have fallen by just 13 percent yearly to P1.5 billion. “Similar to what we have seen with the various plants that we have built over the past 60 years, the commercial operations of a new plant will mean incremental expenses that may affect near-term income,” Lao pointed out. As the company moves past peak capex with the completion of its Batangas plant, coupled with the normalization of commodity prices, the company’s free cash flows, or FCF turned positive for the first time in two years. From January to June, the company’s FCF stood at positive P2 billion vs negative P1.7 billion and negative P3.4 billion booked in 2022 and 2021, respectively. With improving FCF, falling debt levels, and continued business optimism, D&L conveyed having “the highest confidence in its ability to service bonds maturing in 2024 and 2026.” The post D&L expects capacity, income boost via Batangas plant appeared first on Daily Tribune......»»
Canada dock workers reject new salary offer
Dock workers on Canada's west coast have rejected the latest salary offer from an employers group, after earlier launching a 13-day strike with major economic consequences for the country. The International Longshore and Warehouse Union (ILWU) of Canada -- whose leaders had backed the tentative agreement -- called on employers to "come to the table and negotiate something that works for our members and the industry," according to a brief statement released late Friday. The employer's group, the British Columbia Maritime Employers Association, said it was disappointed by the rejection of an offer proposed by a federal mediator. In a statement, it called the proposal "a good deal that recognized the skills and efforts of B.C.’s waterfront workforce while providing certainty and stability for the future of Canada’s West Coast ports." The tentative accord had called for a 19.2 percent salary increase over the course of a four-year contract. "Regrettably," the employers' statement went on, "ILWU’s rejection once again leaves businesses, Canadians, and all those who depend on a stable, well-functioning supply chain hanging in the balance." It said that while the union had "not communicated their next steps, they retain the ability to provide 72-hour strike notice." A 13-day strike in early July affected crucial economic sectors, notably Canada's automotive industry. Workers rejected the first agreement in principle on 18 July. After announcing plans to again strike, they canceled that after authorities said the law required 72 hours advance notice for such action. Negotiations resumed under a federal mediator, resulting in the tentative pact that the workers rejected late Friday. The automation of ports, the cost of living, and the issue of subcontracting are the key points separating the two sides. Key Canadian exports (coal, wheat, canola, and other food products) and imports (clothing, petroleum products, automobiles, and parts) pass through the ports daily, providing important transit links to Asia and the United States. The Port of Vancouver alone -- the nation's largest -- handles some Can$305 billion (US$342 billion) worth of goods annually and contributes Can$11.9 billion to the nation's annual output. The post Canada dock workers reject new salary offer appeared first on Daily Tribune......»»