MANAGEMENT ASSOCIATION OF THE PHILIPPINES AgriBusiness and Countryside Development Foundation

Transcription

1 MANAGEMENT ASSOCIATION OF THE PHILIPPINES AgriBusiness and Countryside Development Foundation Office: 41 st Floor Rufino Pacific Tower, 6784 Ayala Avenue, Makati City 1600 Tel: or loc. 152 Fax: Website: -abcdf.com.ph Minutes of the 25 th Regular Foundation Meeting 01 August :00 9:00 a.m. McKinely Room C, Manila Polo Club, Forbes Park, Makati City A. CALL TO ORDER/INVOCATION The Chairman called the meeting to order at 7:30 a.m. and Ms. Elena Lim led the prayer. The following attended the meeting: Members: GUEST SPEAKER: 1. ALCUAZ, Francisco A. 15. MR. FRANCIS G. ESTRADA 2. ALCUAZ, Manuel A. 3. AMANTE, Victorio M. 4. ANGELES, Aurelio O. 5. CARLOS, Meneleo J. GUEST: 6. DRYSDALE, George W. 16. MR. James Tomell 7. FOLLOSCO, Ceferino L. 17. Mr. Meliton A. Narciso Multinational 8. IGUAL, Manuel Jose B. 18. Mr. Dindo Caguiat Multinational 9. ILUSORIO, Ramon K. 10. LAPERAL, Oliverio G. 11. LIM, Elena S. 12. LIM, Vicente H. SECRETARIAT: 13. QUESADA, Hector A. 19. MONDIDO, Ronald A. 14. RODRIGUEZ, Victor H. 20. VILLA, Remy B. B. APPROVAL OF MINUTES OF LAST MEETING Upon motion duly moved and seconded, the Minutes of the meeting of 18 July 2006 was approved. OTHER MATTERS 1) Having discussed the Financial Statements for the period ending June 30, 2006 for both the Trust and Operating accounts of MAP ABCD Foundation at the previous meeting, the Chairman inquired from the members if they had any additional questions regarding the financial report. No questions nor comments were raised.

2 2) Comprehensive Agrarian Reform Program The Chairman asked the members present if they had gone over the draft letter distributed at the previous meeting and invited them to give their suggested changes or corrections, if they had any. There being none, the Chairman reiterated the plan to have all interested groups/other associations to meet maybe by September and decide on the stand they should take regarding the extension of the CARP. He suggested the possibility of timing the meeting with the Foundation Meeting of August 29 where the special guest, Australian Ambassador Tony Hely will be giving a talk on the Land Administration Management Program. In this regard, the President, Mr. Amante announced that the MAP ABCD Committee has scheduled a meeting on CARP this week. It was then suggested by the Chairman that a copy of the draft letter to other Associations be sent to Mr. Arnold Salvador for possible presentation to the attendees of said ABCD Committee meeting. 3) Trip to Ms. Elena Lim s Farm Ms. Lim announced that due to a series of typhoons, no date has yet been set by the MAP ABCD Committee for the proposed trip to her farm. She will be informing the Foundation members accordingly as soon as she receives a new date for the visit from the Committee. Investment Prospect: PNB Tier-2 Notes Mr. D. Caguiat and Mr. M. Narciso of Multinational Investment Bancorporation made a presentation of the Unsecured subordinated lower Tier 2 Notes issued by the PNB and explained its terms. The bonds will mature in 10 years, subject to a call option by the Issuer after 5 years. It is expected to give investors a 10% yield net of taxes with a quarterly interest payment. Minimum participation is P500,000 and increments of P100,000 thereafter. Questions were raised by some members which were answered by both Mr. Caguiat and Mr. Narciso to their full satisfaction. MAIN AGENDA The President introduced the guest speaker, Mr. Leopoldo S. Titular, Assistant Vice President and Manager of the Agribusiness and Development Operations Group of SAN MIGUEL CORPORATION. A Magna Cum Laude graduate in Mechanical Engineering from the Mindanao State University, Mr. Titular obtained his Master of Science in Industrial Engineering from the University of the Philippines. His work experience includes the Development Academy of the Philippines, PLDT and, from 1978 to the present, the San Miguel Corporation, in various projects like hybrid seed production, shrimp processing, aquaculture and feeds business. Currently he manages the overall operations of the Agribusiness Development and Operations Group. AgriBusiness and Countryside Development Foundation 2

3 Mr. Titular presented the agribusiness program of SMC with the thrust of helping develop the countryside by providing livelihood opportunities through alternative crops and improvement of farming technologies. They are now working on a program of sourcing locally-grown agri-based raw materials such as cassava, corn, soybeans and sweet potato (with concentration on cassava) in partnership with Assemblers who are willing to go into large-scale cassava production.. Mr. Titular compared the cassava industry as of 2005 in the Philippines (volume of 1.6 mio MT in area harvested of 204,000 has.) with Thailand s (16.9 mio MT from 985,920 has.) Philippines total cassava importation for FY 2005 totalled $12,493,600. He also enumerated the industrial applications of cassava but said that in the Philippines it is mostly used for animal feed and alcohol and in sodium glutamate. He gave the requirements, as well as the selection criteria, for new Assemblers who can either be a corporation, a cooperative, a state university, or an agribusiness entrepreneur. In the Assembler Program, SMC provides guaranteed market for produce with floor price, technical assistance and advances for cassava planting materials. On the other hand, Assemblers provide technical and financial assistance to their farmer proponents, post-harvest and logistics services, and consolidate volumes from farmers and ensure delivery to SMC. They have a second program called San Miguel Corporate Farm thru Third Party Program. SMC s role in this program is the same as in the Assembler Program but here they provide financing for total cost of production. The Toll-Farm Operators consolidate land and provide back-to-back lease arrangement with SMC, manage all farm labor and ensure delivery of harvest to SMC. The selection criteria for a Toll-Farm Operator and his compensation in the form of fixed and variable management fee were explained by Mr. Titular. He also described the ideal site for cassavas as well as the specs for cassava varieties and the finished products (dried cassava chips and granules). In closing he announced the need of San Miguel for more good investors and assemblers. After his talk, some members raised questions which were satisfactorily answered by Mr. Titular. ADJOURNMENT There being no other matter to take up, the meeting was adjourned at 9:15 a.m. AgriBusiness and Countryside Development Foundation 3

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