Government-owned financial institutions, Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP) opened a credit facility to support the hog industry players, pork producers in an effort to help the industry recovery from the African Swine Fever (ASF) outbreak.
This came following the directive from Finance Secretary and Landbank chairman Carlos Dominguez III for the state lender to double its support for hog raisers, feed millers, and other industry players dealing with supply shortfalls and retail price spirals of pork products.
The LBP said that they raised its available loan window to P30 billion from only P15 billion.
“Landbank is doubling its funds available for financing swine repopulation, feed milling operations, and facility upgrades in order to help address at the soonest the supply shortfalls and subsequent retail price spirals affecting both hog producers and pork consumers,” Dominguez said in a statement.
The funds will be available under the Landbank SWINE (Special Window and Interim Support to Nurture Hog Enterprises) lending program for commercial hog raisers registered as cooperatives or farmers’ associations, small and medium enterprises (SMEs), and large enterprises or corporations.
Early this year, the LBP in partnership with the Department of Agriculture (DA), launched the SWINE lending program to support the local hog industry amid threats from the ASF outbreak and assist hog raisers in sustaining and increasing pork production. Loans under this program shall be used for swine production, which includes the acquisition or importation of semen or breeding animals; feed milling operations; the construction, improvement, or retrofitting of necessary facilities that are compliant to biosecurity protocols of DA, the industry, or integrators; acquisition of fixed assets; and as working capital.
Meanwhile, the Development Bank of the Philippines (DBP) said it will launch its DBP Swine Repopulation, Rehabilitation and Recovery Credit Program (Swine R3 Credit Program). It is a P12-billion credit facility for hog farmers to help the hog industry.
DBP President and CEO Emmanuel G. Herbosa said in a statement that the lending program will support the construction of bio-secure pig farms and equipment acquisition. The special credit facility is known the
Herbosa said local government units (LGUs) and private companies can tap the P12-billion lending facility to build breeder farms, swine wean-to-finish farms, and consolidated swine facility projects. The bank can lend up to 100% of the project’s total cost for LGUs and 70% for companies. Loans will have a maximum term of 10 years, inclusive of up to two years’ grace period.
“The DBP Swine R3 Credit Program is the latest in a comprehensive line-up of programs that will be developed and implemented to ramp up more efficient and sustainable food production. We believe that a strong agribusiness sector is one of the key elements in achieving a food-secure Philippines,” Mr. Herbosa said.
The loan program is intended to increase pork production, ensure stable supply and bring down the retail price of pork.
The supply of pork has dwindled because of the prolonged ASF outbreak starting from late 2019, causing inflation to break out.