Massive investment in Philippines’ poultry production

San Miguel Foods officially opened the first of many planned state-of-the-art chicken farms.

Broiler Feeding 000
Courtesy Big Dutchman


Ferdinand R. Marcos Jr., president of the Philippines, inaugurated the country’s largest poultry processing facility.

Located in Hagonoy on the southern main island of Mindanao, the Magnolia Poultry Farm is a major investment by San Miguel Foods, reported CNN Philippines. The company is part of the Philippines-based San Miguel Corporation and is the nation's largest poultry integrator.

According to this source, the facility is the first of 12 mega-farms to be constructed across the country. Each will be climate-controlled, and have integrated biosecurity and air quality monitoring systems. Feeding, watering and harvesting will be automated.

Despite the high level of technology, the new farm will provide employment for 1,000 local people.

President Marcos said that investment in infrastructure and people are crucial for the nation’s future.

“We put a high premium on investments in agriculture, as it is the key to combatting hunger and poverty, and achieving our goal of food sufficiency and security across the country,” he said.

For the company’s president and chief executive officer Ramon S. Ang, the corporation’s latest investment also offers opportunities for local growers of corn and cassava. These will be key feed ingredients for the chickens.

“This means they benefit from having a steady market for their goods, and at better selling prices compared to what they would get from middlemen,” he said.

Hagonoy is in the province of Davao del Sur in the southwest of Mindanao. 

Future development of Philippines’ agriculture

For the administration of President Marcos, industrialization of agriculture is key to the goals of food sufficiency and food security for the Philippines.

At the recent inauguration, he described the new San Miguel facility as the “way of the future,” reported the Philippines News Agency. 

Once realized, this will ensure a more stable, sufficient and cost competitive supply of chicken, as well as bolster the food and nutritional needs of our people,” he said.

For the president, the project demonstrates that the country is ready to welcome initiatives that support the food supply from both local and foreign investors.

He acknowledged the Corporation’s investment in Mindanao, and urged other investments in this region, including in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

According to this source, the new farms will aim for antibiotic-free chicken production. These medications will be used only when necessary for the treatment of disease. 

Group’s future expansion plans

Less than four months ago, a groundbreaking ceremony was held in Hagonoy for the first of 15 planned poultry mega-plants, according to San Miguel Foods.

At the event, company president Butch Alejo said that the ceremony marked a milestone in the nation’s food industry.

“What we are bringing to the table is not just a significant amount of chicken that our consumers can enjoy,” he said, “but also the assurance of food security to every Filipino.”

When completed, the 920-hectare (2,280-acre) site will have 28 climate-controlled poultry houses containing multi-tier cages. Annual production will be 80 million birds, or 200,000 metric tons (mt).

According to the firm, the cages allow more growing cycles per year. Furthermore, the system gives rise to greater production efficiency, and it includes an integrated sanitation management program that both eliminated flies and neutralizes odors.

At the time, the group said it will start construction of four other mega-plants, similar to that in Hagonoy. Planned for the country’s other main island, Luzon, sites are foreseen in Sison and Lucanin, as well as Sariaya and Pagbilao in Quezon.

Within 10 years, total annual production from these new facilities and Hagonoy is projected to be 400 million birds. 

More on San Miguel Foods

The largest poultry company based in the Philippines, San Miguel Foods ranks among the Top 10 producers in Asia, according to WATTPoultry.com’s Top Poultry Companies survey. As well as table eggs, the group slaughters around 350 million chickens per year.

With both company-owned and contracted businesses, the business is vertically integrated, including broiler breeding, hatching, growing, and processing facilities. Its flagship brands include Magnolia Fresh Chicken and Purefoods Supermanok.

With annual production of 3.15 million metric tons, San Miguel Foods is among the 30 largest feed companies in Asia by volume, according to the latest Feed Strategy World’s Top Feed Companies ranking. Among its products are feeds for aquaculture, poultry, pigs, and ruminants.

At the group’s annual meeting in June of this year, Ang informed shareholders that its expansion plans include the construction of multiple poultry plants over the coming decade.

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