CARGILL Inc., a global producer and supplier of feeds and agricultural goods, will invest $200 million to put up feeds manufacturing and chicken-growing stations in the Philippines this year, an official of the Department of Agriculture (DA) said.
Agriculture Undersecretary for Livestock Jose Reano told editors and reporters of media companies under the ALC Group that Cargill is set to establish integrated plants in different parts of the country, specifically in Mindanao.
Dubbed as “feed to fork” plants, the factories will serve as manufacturing and growing stations for poultry products and will perform several functions—from providing seeds to manufacturing feeds and growing chicken to processing chicken products.
Reano said Cargill’s presence in the Philippines will greatly benefit local producers and workers. For one, the raw materials and the labor needed to operate the plants will have to come from Filipinos.
“Dito, Filipino ang makikinabang, especially in the backward and forward leakages in operating a plant. The raw materials for the feeds will come from local farmers, and the workers in the factories will have to be Filipinos, as well,” Reano said.
The undersecretary added that with Cargill based in the Philippines, the country will not have to import from Cargill in Thailand anymore.
“We are importing products from Cargill in Thailand. Once the plants in the Philippines become operational, Thailand won’t have to export here anymore. Kumpleto na tayo dito,” Reano said.
He also said one of the advantages why Cargill was keen on establishing plants here in the Philippines is because it is an archipelago.
“Sila ang lumapit sa atin. Nasa sentro kasi tayo and islands pa. If the chicken they grow get hit by a disease, other stations in the country won’t be easily affected,” he said.
He said that in preparation for its operation in the country, Cargill has already signed up for a membership in the United Broiler Raisers Association of the Philippines.
However, Reano said there are still some amendments in the law that could threaten the company’s investment in the country.
Presidential Decree 194 states that a foreign company that engages in the rice and corn industry, after 13 years of operation, shall either phase out its operation or transfer at least 60 percent of its foreign-equity participation to Filipinos and Filipino-owned entities.
Reano said he is urging the National Food Authority to extend Cargill’s permit to operate in the Philippines since it is the only agency authorized by the law to do so.
“We are asking [Presidential Assistant for Food Security and Agricultural Modernization] Secretary Francis Pangilinan to consider our request. Maaari sigurong magawan ng paraan nang maayos,” Reano said.