August 6, 2024

 

Philippine tycoon eyes creation of national dairy champions with acquisition of dairy company

 

 

Philippine business tycoon Manuel V. Pangilinan plans to establish national dairy champions nationwide as he beefs up his investments in the dairy industry following his acquisition of Universal Harvester Dairy Farms Inc. (UHDFI), the operator of Bukidnon Milk Co.

 

Metro Pacific Agro Ventures (MPAV), a wholly owned subsidiary of conglomerate Metro Pacific Investments Corp. (MPIC), has entered into agreements to acquire 100% of UHDFI as part of its goal of providing fresh and high-quality milk products to the public.

 

The acquisition, valued at more than ₱700 million (US$12 million), complements the current resources of The Laguna Creamery Inc. (where MPAV is a majority shareholder) in Pangilinan's plan of establishing a national dairy champion with farms across the country, a nationwide reach, and a comprehensive range of products.

 

MPAV emphasised that the recent buyout is a testament to the company's continued support for the dairy industry, which it noted is an "underserved" segment of the economy.

 

The Philippines imports virtually 99% of its dairy requirement as local milk production remains minuscule. The government aims to increase local milk production to 5% of domestic demand by 2028.

 

"Establishing this strategic beachhead in Mindanao complements our dairy farms in Luzon, bringing us closer to our mission of achieving nationwide food security," said Pangilinan, chairman and president of MPIC and chairman of MPAV. "Our operations in Laguna have not only improved the accessibility of fresh dairy, but also fostered an ecosystem of milk farmers who supply to us, creating a virtuous cycle of increased domestic milk production."

 

UHDFI, located in Maramag, Bukidnon, produces fresh milk, flavored milk, yogurt, and cheese products under the Bukidnon Milk brand, with presence in key cities across the Visayas and Mindanao.

 

MPAV said UHDFI is the largest state-of-the-art dairy production facility in the country, and a showcase for community, private sector and government partnership.

 

UHDFI is a major supplier of products for the National Dairy Authority (NDA)'s Milk Feeding Program, primarily focused on ensuring schoolchildren have regular access to high-quality fresh milk, according to the MPAV.

 

The acquisition of UHDFI is a "significant" step toward MPAV's goal of becoming a "dairy masterbrand" that serves Filipinos with a full range of dairy products from ice cream, milk, yogurt, cheese, and butter, among others, which are all fresh and locally produced, said MPAV president and chief executive officer Juan Victor Hernandez.

 

MPAV said the completion of the acquisition is subject to various conditions, which include regulatory consents and other customary closing conditions.

 

MPAV is now also eyeing to invest in corn plantations and silage production to further enhance its dairy portfolio.

 

- Philstar