September 18, 2018
Philippines' Pilmico to expand feed mill capacity
Pilmico Foods Corp., one of the Philippines' top three feed manufacturers, is set to expand production capacity for its feed mill plants to cope with the growing demand in the local market. Pilmico is also into flour manufacturing and the same expansion plan applies to its flour mills.
Tristan Aboitiz, COO of Pilmico, said, as per report of Manila Bulletin, that the company's feed mill in Tarlac, which started operation way back in 1998, plans to expand its capacity by 20,000 tonnes per hour.
Demand for feeds in the country is growing double-digit, especially the farms segment.
Neither has the country's high inflation rate translated into lower demand for pork and meat products.
Some 80% of the materials in the manufacture of feeds are imported, and the cost has become higher due to the depreciation of the peso against the dollar. The prices of feeds have been adjusted higher as a consequence, but the company said it has absorbed most of the cost. As a result, profit has been squeezed, Pilmico said.
"What we see that's happening is a squeeze in the margins because we have not been able to pass on the higher cost to consumers. This is a very competitive industry," Aboitiz was quoted as saying.
Pilmico imports soybeans from the US and Argentina and feed wheat from Russia, Ukraine and Australia. Corn, molasses, coconut oil and rice bran are sourced locally.
Pilmico feeds are focused on swine, but the company said it is venturing into poultry.