MANILA, Philippines - Jollibee Foods Corp. may source its raw materials from neighboring countries once tariff barriers have been eliminated through a regional integration.
Chicken, which Jollibee currently buys from the Philippines and the US, may be sourced from Thailand if tariff walls have been brought down as part of the Association of Southeast Asian Nations (ASEAN) integration, Ysmael V. Baysa, Jollibee's chief financial officer, said.
Moreover, the food firm may opt to get its rice supply from Vietnam and Thailand instead of buying locally and import pork from the US and Vietnam instead of tapping local producers, Baysa said.
Bringing down the tariff barriers in the region will make importing raw materials less costly than tapping local producers.
Hence, Baysa said the lower cost of raw materials will result in lower prices for Jollibee's end-products for consumers in the Philippines.
Despite the possibility of bringing down expenses, Baysa pointed out that the government and the private sector should consider what will happen to the competitiveness of local producers that may be hurt in the process of regional integration.
source: abs-cbnnews.com
