April 22, 2008

San Miguel Foods, Gensan Feedmill in P100M feed venture in Mindanao

Gensan Feedmill from South Cotabato province in southern Mindanao will invest P100 million (US$2.38 million) to make animal feeds that will supply the region and carry the B-Meg brand of San Miguel Foods Inc.

Gensan Feedmill Inc. will start its commercial operation in January 2009 and intends to produce 2.4 million bags of feeds. The venture will produce feeds from corn, rice bran, copra meal and fishmeal for livestock, poultry and aquaculture.

The company will initially engage in tolling services, or a business arrangement where clients own the raw materials and finished products.

Gensan Feedmill and San Miguel Foods Inc. have forged a deal to manufacture B-Meg feeds under toll-mill arrangements.

The project will receive incentives from the Board of Investments (BOI) in line with the government's Medium Term Philippine Development Program to increase the country¡¯s livestock and poultry production.

The BOI noted the project is vital to the livestock sector, which has been registering annual growth rates of at least 6 percent.

The programme will also improve the economy of Mindanao by supplying the production input for the livestock, poultry and aquaculture industries.

The 100-percent Filipino-owned firm will employ 205 people for the project.