Global feed manufacturer Cargill has decided to invest US$200mn in the Philippines to set up feed manufacturing and chicken-rearing stations
The country’s agriculture undersecretary for livestock Jose Reano said that Cargill was looking to develop intergrated plants in Mindanao, the second largest and southern most major island in the Philippines, which is famous for several crops as well as fisheries.
Dubbed as “feed to fork” plants, the upcoming factories will serve as manufacturing and growing stations for poultry products, by providing and manufacturing feeds as well as rearing chicken.
Reano added that Cargill’s presence in the Philippines would benefit local producers and workers. In addition, it would reduce the country’s dependence on Cargill products that are locally produced in Thailand.
In the run up to establish operations in the country, Cargill has already signed up for a membership in the United Broiler Raisers Association of the Philippines, but there are some legal amendments that could hamper the American company’s investment plans in the Philippines, revealed Reano.
Under Filipino law, a foreign company that engages in the rice and corn industry must either phase out its operation after 13 years or transfer at least 60 per cent of its foreign-equity participation to Filipinos or Filipino-owned entities.
The agriculture undersecretary, however, has requested the National Food Authority to extend Cargill’s permit to operate in the Philippines, since it is the only agency authorised by law to do so.