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 
---------- 
 
¶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