Cargill invests P12.5B in PHL

ANIMAL nutrition provider Cargill will invest 12.5 billion pesos ($ 235 million) to expand its operations in the Philippines over the next two years as domestic demand for chicken and pork increases.

Philip G. Soliven, President of Cargill Philippines, Inc., said the funds would be used to expand its animal feed and nutrition business, as well as its agricultural supply chain activities.

"The focus is not necessarily put on the specific areas of investment but on the fact that it 's a very large number of' 's''. investments in the food and agriculture sector in the Philippines, "he said at a press conference in Makati City on Wednesday.

"The country badly needs investments in agriculture. Cargill is one of the companies that said we would meet the need for additional investment in the sector. We will do it because it makes sense for the company, "he added.

Dave MacLennan, President and CEO of Cargill, said the company's investment in the Philippines was part of its larger development plan for Southeast Asia and China.

"Southeast Asia and China are the main regions of investment and growth over the next five years. We want to become bigger in Asia, especially in Southeast Asia and China, and that's really our intention … 12.5 billion PJ is specifically for the Philippines. We have other capital budgets for Thailand, Vietnam, and Indonesia, "said Mr. MacLennan during the same presentation.

Cargill turns 70^th in the Philippines, after opening its first office in 1948. Cargill currently employs 2,200 people at 27 sites in the country.

The company is also celebrating the first anniversary of C-Joy, its joint venture with Philippine fast food giant Jollibee Foods Corporation. C-Joy is a facility that processes chicken for home consumption.

"Jollibee is one of our major customers in the industry and I believe we will continue to meet Jollibee's requirements," said Soliven.

Mr. Soliven also said that Cargill would continue to invest in the copra oil sector despite falling prices.

"Rest assured, we remain a major exporter of copra oil in the Philippines and we will continue to do so. We continue to have confidence in the sector, "he said.

At the same time, Cargill is contributing $ 7 million ($ 130,000) to the Inclusive Trade Capacity Building Fund for Filipino Farmers.

"Supporting the Inclusive Trade Capacity Building Fund is another way to help the world strengthen food security. Smallholder farmers are an essential part of the diet of nearly 10 billion people by 2050 and they need all possible help to become more productive and more profitable, "he said. Mr. MacLennan. – R.J.N.Ignacio