Encouraged by strong local demand, San Miguel Pure Foods Company (SMPFC) has announced a PHP52 billion (US$1.1 billion) expansion program over the next 5 years for its feed, poultry and pig meat operations in the Philippines.
The news came at the annual meeting of the stockholders’ of SMPFC’s parent company, San Miguel Corp. (SMC) earlier this week, reports Daily Inquirer. Investment in SMC’c food and beverage business, SMPFC, aims to increase capacity in flour milling, feed milling and the food sub-sectors.
Among the planned facilities in the feed sector are seven new feed mills, each with an annual capacity of 500,000 metric tons, which will together add 3.5 million metric tons to the company’s yearly feed capacity.
According to SMC president, Ramon S. Ang, the local market will easily absorb the extra production, and SMPFC’s market share will reach only 37 percent after the new mills are operational.
Pig and poultry farm capacity expanding
The company’s poultry and pig farm capacity will also be expanded following new investments, as will manufacturing of hotdogs, chicken nuggets, canning line and poultry processing plant, as well as ready-to-eat chicken and pork products.
In its latest quarterly results, SMPFC and its subsidiaries reported strong performance compared to the same period last year. On consolidated revenues 4 percent higher, net income was up 34 percent. With the flour milling business facing global market challenges, the company said it will continue to focus on increasing sales of customized and specialty premixes, which provide more stable margins.
First-quarter revenue for SMPFC was 6.2 percent from the same period of 2015. Volumes of sales were up by 8 percent and 5 percent, respectively, for the fresh poultry & meat, and feed subsectors.
