DBP extends credit line to ASF-hit hog growers

MANILA, Philippines — State-owned Development Bank of the Philippines (DBP) will set up a loan facility where swine producers can borrow cash to repopulate their hogs and upgrade their facilities.

The DBP said it is working with the Department of Agriculture (DA) in putting up a credit program for the hog industry to improve pork production and meet consumer demand.

Dubbed the DBP Swine Repopulation, Rehabilitation and Recovery Credit Program, the facility can be accessed by pork producers to secure cash needed to procure farm equipment and build bio-secured pig pens.

DBP president and CEO Emmanuel Herbosa said the loan facility would assist hog stakeholders to recoup the losses they incurred from the African swine fever (ASF) outbreak, and would put them in a position to increase their supply.

“DBP’s loan program is the manifestation of the bank’s firm support to the national government’s efforts to increase production, ensure continuous supply, and achieve steady pork prices in the wake of the ASF outbreak,” Herbosa said.

The DBP has aligned P12 billion for commercial hog raising. It also set aside P500 million for its borrowing program to bankroll the upgrade of farm facilities operated by small firms.

Under the credit facility, Herbosa said local governments and private firms can secure funds that they can use to put up swine breeder farms, swine wean-to-finish farms and consolidated swine facility projects. He said efforts can also be financed for as long as they complement the DA’s swine production initiatives.

Local governments can acquire a loanable amount of up to 100 percent of total project cost, while private firms can get a maximum of 70 percent. They are obliged to pay in 10 years, and are given a grace period of two years.

Herbosa said the DBP has come up with a set of programs that it intends to roll out to enhance local food production. He said the bank would intensify measures to assist the DA in its objective of securing food supply for consumers.

“The DBP 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 local food production. We believe that a strong agribusiness sector is one of the key elements in achieving a food-secure Philippines,” Herbosa said.

According to the Bureau of Animal Industry, the government culled as of last week more than 470,000 hogs to prevent the spread of ASF.