April 5, 2010

CP Foods to open hog production facility in Tarlac, Philippines

Charoen Pokphand Foods (CP Foods), a wholly-owned subsidiary of Thailand's largest agri-business group, Charoen Pokphand Foods Public Company Limited (CPF), is investing PHP1.042 billion (US$22 million) in a hog production facility in Concepcion, Tarlac.

The investment would complement its PHP2.36-billion (US$52 million) aqua feedmill plant in Capas, Tarlac.

CP Foods continues to raise the level of its investment commitment by expanding their operations in the Philippines. The project will contribute substantially to the SME sector since their main market will be hog raisers in the country," said Trade and Industry Secretary Jesli A. Lapus.

The project will entail the construction of a great grand parent stocks (GGPs) farm, a grand parent stocks (GP) farm, and a farm for breeder finishing hogs.

The feed requirements of the three farms will be culled by the company through feedmill tolling agreements with a chosen feedmill adjacent to the farm sites.

Lapus added that the project "shall boost the opportunities in the food sector particularly in the hog raising industry. A steady supply of hogs will ensure stable prices for the public as consumer confidence continues its upswing recovery.

In addition, this project will benefit local suppliers of feeds as the company will buy feeds from adjacent sites.

Its breeder hogs will have a capacity of up to 25,000 head for sows and 500 heads for boars which could produce slaughter hogs of over 1,100 MT of GP fatteners and roughly 2,500 MT of Parent Stock (PS) fatteners. The breeder hogs will be sold on a per head basis regardless of weight while the slaughter of hogs will be sold live to viajeros with prices based on weight.

The market for the parent stock breeders will be the owners and operators of small, medium and large hog commercial raisers around Luzon, Visayas and Mindanao. Identified markets include Bulacan, Pampanga, Pangasinan, Tarlac, Zambales, Ilocos Sur, Ilocos Norte, La Union, Nueva Ecija, Isabela, Laguna, Cavite, Rizal, Batangas, Quezon, Camarines Norte, Albay, Sorsogon, Bohol, Negros Occidental, Negros Oriental, Cebu, Aklan, Iloilo, Davao Oriental, Davao Occidental, North Cotabato, South Cotabato, Bukidnon, Agusan del Norte, and Agusan del Sur.

CP Foods will employ 80 personnel as commercial operation is scheduled to start on January 2011.