Pilmico earmarks P9 billion for expansion until 2020

MANILA, Philippines — Pilmico Foods Corp., the integrated agribusiness and food company of conglomerate Aboitiz Equity Ventures, is investing P9 billion over the next three years to continue to expand its business in the country.

“The whole protein market, which is swine and chicken, is really expanding and the requirement for bread is also expanding so there is good demand. A lot more interest in agriculture now…because of government’s programs highlighting agriculture more. Agriculture is where inclusivity is happening so we’re happy that its finally happening,” Pilmico chief executive officer Sabin Aboitiz said.

Acoording to Aboitiz, Pilmico’s P9 billion capital expenditure budget for 2018 to 2020 will be used to expand its farms and feed mills in Tarlac and Iligan.

The two feed mills, which have a capacity of 20 tph each, would be ramped up by 20 tph more each in the next two years, Aboitiz said.

“We are setting up a meat fabrication plant in Tarlac. We are waiting for our land conversion permit from the Department of Agrarian Reform. The minute that happens, since we already have the equipment in the country, we will set up a meat fabrication facility and also a cold storage area to be able to properly serve our digital strategy,” he said.

Aboitiz said Pilmico would soon launch a strategy utilizing new technology “to connect digitally the grow farms and the markets.”

“It is a complicated thing to do because you’ve got e-receipts, plus build software and educate the people,” he said.

Abroad, Pilmico has been growing its presence in Vietnam in recent years.

Aboitiz said the company continues to look for opportunities for expansion outside the Philippines and Vietnam.

“We are expanding overseas. We’re eyeing more countries. We can go to Cambodia and Thailand,” he said.

“Our exports of flour are currently limited to Myanmar and Hong Kong because it is hard to export to other countries because they don’t allow our products. We are having a hard time going to other countries,” Aboitiz said.

Pilmico currently has four business divisions which are flour, feeds and animal health, farms, and trading.