VZCZCXYZ0014
OO RUEHWEB
DE RUEHML #2000/01 1660905
ZNR UUUUU ZZH
O 150905Z JUN 07
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6979
RUEHRC/USDA FAS WASHDC IMMEDIATE 1378
RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
UNCLAS MANILA 002000
SIPDIS
SIPDIS
STATE FOR EAP/EP
STATE FOR EEB/EPPD NSMITH-NISSLEY
STATE PASS EXIM, OPIC AND USTR
TREASURY FOR OASIA
USDA FOR FAS/OA AND FAS/OFSO
E.O. 12958: N/A
TAGS: BEXP EINV ELAB ETRD KSEP SENV RP
SUBJECT: NOMINATION FOR CORPORATE EXCELLENCE AWARD: CARGILL
PHILIPPINES INC.
REF: STATE 00047222
NOMINATION
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1. Post is pleased to nominate Cargill Philippines Inc., an
international provider of food and agricultural and risk management
products and services. With 401 employees in the Philippines, the
company uses its knowledge and experience to collaborate with
customers and suppliers and help them succeed. Cargill was
established in the Philippines in the 1950's through a
representative office that exported copra (dried coconut meat) to
the United States. The corporation since added an animal nutrition
plant, plant and seed unit, and coconut oil plant to its Philippine
operations.
Good Corporate Citizenship
--------------------------
2. Cargill Philippines partners with Food for Hungry Minds (FHM), a
global educational initiative that targets impoverished children.
Cargill donates $50,000 annually, has representation on the
executive board, and donates hundreds of volunteer hours to FHM's
various programs.
3. In June 2004, the first FHM School opened for 28 Food for Hungry
Minds scholars in Malolos, Bulacan. In addition to FHM, Cargill and
its employees sponsor 79 scholars at various schools in the Mindanao
region. Cargill employees volunteer their time to support the
development of the scholars by sponsoring programs such as talent
shows, two-day farm trips, and a summer camp. These programs
increase the students' confidence and offer them a learning
experience in agriculture and business. Employees also donated $700
this past year to pay for school uniforms and supplies. Cargill
doubles or triples all employee donations.
Provision of a Safe and Healthy Workplace
-----------------------------------------
4. Cargill has goals for zero accidents and no lost time due to
accidents. The copra crushing plant in General Santos has not had an
accident since 1991. The plant has also been recognized by its peers
in the Asia Pacific with Safety Excellence Awards. Cargill Animal
Nutrition plants in the Philippines have been accident-free for more
than seven years.
5. To avoid work-related accidents, employees submit near miss
reports to address unsafe acts, unsafe behaviors, and unsafe
conditions. The best report's author is recognized by peers and the
company awards tokens of appreciation. Safety audits are conducted
on a quarterly basis by cross functions and locations to ensure
consistency in meeting safety standards.
6. In 2007, the copra crushing plant received the 'Health and
Cleanliness' award from the Dept of Labor & Employment-Occupational
Health and Safety Council for its 'best in class' working
conditions. Since 2004, all the feed plants of Cargill Animal
Nutrition Philippines have received Hazard Analysis Critical Control
Points (HACCP) certification. These are the first and only HACCP
certified animal feed plants in the Philippines. The HACCP
certification means that Cargill's feed plants meet some of the most
stringent worldwide safety standards for food production.
Responsible Environmental Stewardship and Practices
--------------------------------------------- ------
7. In 2004, Cargill Philippines worked with local farmers to develop
a program to address toxins and contaminants found in Philippine
copra exports due to traditional drying methods. Instead of drying
the copra over an open flame, the new process uses an inexpensive
oven made with indigenous materials. This reduces air pollution and
provides for a cleaner and more healthful copra product, while
improving the competitiveness of copra exports and creating a new
oven production industry.
6. To encourage broad adoption of this green innovation, Cargill
Philippines has made this technology available to all interested
parties - including the competition. Cargill even provides grants
to farmers for a key component of the oven to further reduce their
upfront investment and conducts formal training and monitoring to
ensure farmers have a positive experience when using the process.
Additionally, the farmers get an immediate economic benefit because
Cargill pays a premium for the 'clean' copra. This ensures the
sustainability of the export market and maintains the farmers'
livelihood.
Compatibility/Contribution to Local Science and Technology
--------------------------------------------- ---------
7. Oven-drying copra drastically reduces toxin and contaminant
levels to ensure the resulting oil and meal are 'clean' enough to
meet current and future product safety specifications across all
markets. This drying procedure allows farmers to achieve better and
more consistent results, while using the same amount of time,
effort, and resources as the traditional methods. Most importantly,
it makes their products more competitive as worldwide standards
become more stringent.
8. The GRP has adopted Cargill's technology with a nationwide
initiative to jumpstart adoption. Cargill, for its part, has helped
install more than 250 oven dryers in dozens of small communities in
Southern Mindanao and trained over 3,500 farmers in the drying
process.
Contribution to the Rule of Law and Economic Growth
--------------------------------------------- ------
9. Cargill's sustained presence in the Mindanao region has offered
Filipinos a viable option for economic prosperity, in spite of the
region's unstable political climate. Cargill built the world's
largest coconut oil mill in the Iligan, Lanao del Norte area in
1974. Cargill also established a seed business and research
facility on the island in 1981 to develop, grow, and distribute
hybrid corn seed varieties in collaboration with local corn farmers.
Although these ventures have since been sold, Cargill Philippines is
still active in Mindanao today through a coconut oil milling
facility in General Santos City (Southern Mindanao), seven copra
buying offices, animal feed distribution, and a feed manufacturing
plant under construction in Northern Mindanao. The copra buying
stations are located in remote and sometimes politically hostile
areas. For example, Cargill Philippines has had a buying office on
Basilan Island since 1994. This island gained international
notoriety as a stronghold of radical Muslim insurgency groups such
as the Abu Sayyaf. As a result of Cargill Philippines' reputation
in the area, it has seldom encountered problems in this volatile
community.
10. Coconut oil is the largest agricultural export of the
Philippines ($565 million in 2006) and is becoming even more
important as a biofuel component. The coconut oil and corpa meal
(the solid byproduct of oil extraction) produced by the Cargill
Philippines crushing facility is exported to Asia, Europe, and the
United States. The coconut industry is the source of livelihood for
over 3.5 million farmers and their families. Cargill accounts for
nearly 15% of the country's coconut oil exports.
KENNEY