May 27, 2008

Aboitiz company to allocate PHP900 million on feed mill

Aboitiz Equity Ventures announced that it would set up a new feed mill and expand its swine and breeder farms in the Philippines with a budget of PHP900 million.

Jon Ramon Aboitiz, Aboitiz Equity president and chief executive, said that the new feedmill would be located in Iligan City and is expected to be operational by July.

Aboitiz said the new feed mill, which will produce 108,000 tonnes yearly, will save the company freight and input costs.

Pilmico Foods Corp., the unlisted unit of holding company Aboitiz Equity Ventures, would also expand its finisher swine and nucleus breeder farms in Tarlac, which will be completed by 2009 and 2010, respectively.

The grower-finisher farm will increase farm capacity by 4,800 heads, while the nucleus breeder farm will increase sow level by 1,759 heads.

These will improve Pilmico's piglet production by over 35,000 heads.

For the first quarter, Aboitiz Equity's net income rose by nearly 10 percent to PHP1.8 billion, with Pilmico contributing PHP156 million.

US$1 = PHP43.68 as of May 27, 2008