October 23, 2020
Cargill Philippines reaffirms 5-year, US$260-million investment pledge
In the face of the COVID-19 pandemic, Cargill Philippines is bent on fulfilling its P12.5-billion (~US$260 million; P1 = US$0.021) investment commitment in the country, which it first announced in 2018, Manila Bulletin reported.
The company says it is already seeing a recovery in product demand, particularly for its poultry processing and animal nutrition businesses, as the Philippine government eases lockdown restrictions.
On October 22, Sonny Catacutan, president of Cargill Philippines and managing director of Cargill Animal Nutrition and Health, said despite some delays due to the pandemic, the company will not downscale its planned five-year investment in monetary terms, aimed at expanding the company's operations throughout the country.
"This is the same long-term plan that we put in place back in 2018. That investment is now rolling out. [There were] a few expansions in General Santos. We also expanded our feeder facilities. We are also expanding our geographical presence for the animal nutrition business. This is on-going," Catacutan says.
"We mentioned some projects will be delayed but commitment will remain the same. This pandemic has given us several business uncertainties. We need to be agile with the changes. In our feeds business and in our coconut oil business, we've just expanded our capacity, and we have also initiatives to increase capacity for coconut oil in General Santos," he adds.
According to him, further expansion of the company's presence in Visayas and Mindanao is planned, since it is already currently heavily invested in Luzon.
Cargill offers swine, poultry and aqua feed, along with the premix solutions. The company has four feed mills in Villasis, Baliuag, Pulilan and Villanueva.
For chicken processing, Cargill partners Jollibee Foods Corporation. Through their joint venture company, Cargill Joy Poultry Meats Production, they operate a poultry processing facility in Santo Tomas, Batangas. The company also supplies grain and meal, serving various customers in both the food and feed industries. To tide over the pandemic, Catacutan said the company resorted to retail selling of its processed chicken.
"We've seen a drastic shift in the way where people buy from and how they consume products in terms of our C-joy business. We needed to figure out how to get quality products into your home," says Chris Ilagan, Cargill Philippines corporate affairs director.
"There are two major ways. These are [through] individual re-sellers who are interested to sell in their communities so long as they pass our basic criteria for accreditation. The other route we've taken is [while] you won't see [our processed chicken] in grocery shelves, we supply some groceries and they will sell our products under their house name and not under the C-joy brand," he adds.