July 6, 2007

Philippine agriculture department finding San Miguel corn facility sites
 

The Philippine Department of Agriculture said Friday (Jul 6) it is selecting sites where San Miguel Corp. (SMC) can build corn facilities.

"We are now identifying the sites - there is already meeting of the minds," said Agriculture Secretary Arthur Yap.

He said sites for the grain centres being considered include the provinces of Ifugao, Isabela, South Cotabato and North Cotabato.

He added that a memorandum of agreement would be signed between the agriculture department and SMC as soon as the sites have been identified.

Assistant Secretary Dennis Araullo, the department's programme director for corn, last week said SMC is keen on establishing grain centres at 10 sites, which could cost up to PHP5 billion (US$108 million).

Each grain centre - which will provide shellers, dryers and storage facilities - will cost about PHP500 million (US$10.852 million), Araullo said.

The country's largest food and beverage conglomerate, SMC also has a feeds and poultry division.

The department has set a production target for this year of 6.9 million tonnes, up 13 percent from last year. Corn is a major component in livestock and poultry feeds.