Sarrat, Ilocos Norte—Department of Agriculture (DA) Secretary Arthur Yap arrived in Ilocos Norte on March 31 to personally inspect the Northern Foods Corporation (NFC) tomato paste plant located in the province to assess the plant’s current operations.

The NFC plant had earlier been reported to be facing closure as a result of massive ‘pole vaulting’ of NFC’s tomato contract growers.

‘Pole vaulting’ is when NFC tomato contract growers sell their produce to other traders instead of the Ilocos Norte tomato paste processing firm.

Armed with President Gloria Macapagal-Arroyo’s directive, Yap said he had been tasked to look into his official line functions, which include the monitoring of the operations of several government-owned and -controlled corporations (GOCCs) under the DA.

In an open forum with NFC’s management officers, and which was also attended by at least 50 tomato contract growers, Yap underscored that the national government would be reviewing all of the GOCCs’ concerns in an effort to make sure that these corporations are serving their purpose as “assets of the government.”

As for the reported closure of the Sarrat-based plant, Yap said DA and NFC officials are still set to sit down together to come up with plans and suggestions to improve the operation of the tomato plant.

Yap also reiterated that his department’s line function is to assess the NFC’s current financial status and operations as he also divulged that the national government is geared towards creating a macro environment to promote investment opportunities for the private sector to allow the government to concentrate on public service.

Meanwhile, NFC Vice President for operations Norberto Mendoza, in a separate interview, admitted that NFC’s target production was off by at least 20 percent due to losses of an estimated 5,000 tons due to ‘pole vaulting’.

Presently, Mendoza divulged that NFC is within the verge of “floating status” due to financial difficulties and the concerns of their contract growers of not earning any income in their dealing with the NFC.

It is this precarious financial situation, according to Mendoza which prompted several farmers to sell their produce elsewhere despite the live contracts they had with NFC.

However Mendoza also said that the national government is currently reviewing NFC’s status for it to come up with possible solutions to address NFC’s difficulties and to save the plant from possible closure.

The Ilocos Times also learned that NFC had requested for an estimated P121 million fund from the DA for the upgrade of the processing plant’s facilities.

The said amount is separate from the P74 million needed by NFC to pay for the produce of contract growers this harvest season.

Presently however, NFC still owes an estimated P57 million to contract growers who had already delivered their produce to the Sarrat tomato plant.

Leilanie G. Adriano