Group eyes more aquaculture export zones

MANILA, Philippines — Food security advocacy group Tugon Kabuhayan is calling for the establishment of more aquaculture export ecozones in the country to boost the output of processed and value-added products both for the domestic and export markets.

On Monday, Tugon Kabuhayan stressed the need for national and local governments and the fisheries sector to work together to establish more aquaculture economic zones.

The move would boost production of processed and value-added aquaculture products for both domestic and export markets and generate local employment, Tugon Kabuhayan said.

“We can become a dominant exporter while still caring for and providing gainful economic growth to local communities. At the same time, with the recent approval of the interagency task force on the coronavirus on the increase of domestic sales allowance to 50 percent from the previous 30 percent , we can ensure that or local consumers will not be deprived of sufficient fish protein source,” Tugon Kabuhayan said.

The group also emphasized that local producers are more than capable of addressing the country’s need for accessible and affordable food, saying these producers just need facilities and systems that support production and post-harvest facilities.

“With government support and provision of fiscal incentives, the fisheries and aquaculture industry can generate more jobs. We are ready to venture in the promotion of consumption of processed commodities both domestically and internationally. This will definitely contribute to more job creation,” Tugon Kabuhayan said.

It cited internal estimates that even if only half of the urban population patronizes deboned milkfish (bangus), this would create additional 7,000 jobs in a year.

“What more if we sell deboned bangus and other value-added aquaculture products to other countries?” the group said.

Tugon Kabuhayan explained that while there are aquaculture companies willing to invest in the processing and export of commodities, there is a need for an enhanced technical support from different agencies, especially since some documentary requirements for Philippine Economic Zone Authority (PEZA) registration include favorable endorsement from the Department of Agriculture (DA), Environmental Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR) and endorsement from LGUs among others.

“We’re confident that the Philippine aquaculture industry can be competitive globally. We have the untapped natural and human resource and technical expertise which can propel our growth in the international arena,” the group said.

Tugon Kabuhayan pointed out that despite the availability of incentives for aquaculture and fisheries enterprises that locate in economic zones, only few have opted to establish export processing zones for aquaculture and fisheries.

The Special Economic Zone Act of 1995 provides fiscal and non- fiscal incentives such as tax holidays and simplified import-export procedures to businesses located inside such zones.  The incentives available include tax free importations of capital equipment, construction materials, specialized office equipment and vehicles, professional instruments.

In addition, industries in the ecozone are exempt from national and local taxes on their importation as well as tax credit for import substitution. PEZA industries also enjoy income tax holidays.

Tugon Kabuhayan cited 2017 data from the Philippine Economic Zone Authority (PEZA) showing that of the 379 operating ecozones in the country, only 22 are agro-industrial zones.

Of the 22 agro-industrial zones, only Shemberg Biotech Corp. and Alsons Aquaculture Corp. are PEZA-registered enterprises. Shemberg is into seaweeds processing while Alsons is involved in the production of feeds, fish, shrimps and other aquaculture farm species for export.

The group recalled that in 2019, the PEZA and the Department of Agriculture signed a memorandum of agreement intended to industrialize agribusiness in a bid to promote domestic production, manufacturing, and exports as well as reduce import dependence.