June 5, 2008

San Miguel US$41.2 million pig project in Southern Philippines to start Feb 2009

Monterey Foods Corp., a unit of food and beverage group San Miguel Corp. (SMCB.PH), will finally push through with its PHP1.81-billion (US$41.2 million) hog farm project in the southern Philippines.

The company's project, which would see an annual production of 200,000 head of hogs, was delayed by farmers' protests contesting ownership of the land the company was supposed to build on.

Farmers recently reached a compromise with the company.

In a project update with the Board of Investments (BOI), Monterey said the project should start commercial operations in February next year.

The BOI has granted Monterey's project a tax holiday and other fiscal incentives.

The hog farm is part of San Miguel's integrated agro-industrial zone in the northern section of Mindanao.