Cargill will be establishing feed-producing and chicken-rearing stations in the Philippines, with an investment of US$200 million.
The company could develop integrated facilities in Mindanao, according to Jose Reano, the Philippines' agriculture undersecretary. Dubbed as "feed to fork" plants, the sites will function as manufacturing and growing stations for poultry products, by producing and supplying feeds alongside chicken rearing.
These new plants will not only benefit local producers and workers but also cut down the country's dependence on Cargill products produced in Thailand, Reano said.
In the meantime, Cargill seeks membership in the United Broiler Raisers Association of the Philippines, Reano added. However, the company's investment plans face potential challenges in the form of some legal amendments.
Under the local law, a foreign company that engages in the rice and corn industry must either terminate its operation after 13 years or transfer at least 60% of its foreign-equity participation to Filipinos or Filipino-owned entities.
Reano had requested the National Food Authority to extend Cargill's permit to operate in the country.