Fastfood chain invests on new poultry plant

CEBU, Philippines - Jollibee Foods Corp. is set to augment its chicken supply requirements at it builds a new poultry processing plant with the local unit of US-based Cargill Inc.

 In a disclosure to the Philippine Stock Exchange yesterday, JFC said it entered an agreement with Cargill Philippines to build and operate a poultry processing plant in Batangas.

 "The facility will provide JFC with dressed and marinated chicken to augment the chicken supply requirements of the growing needs of JFC brands. This partnership will meaningfully benefit our customers, our operations as well as the overall Philippine food industry," JFC CEO Ernesto Tanmantiong said in the disclosure.

 "We will continue to maintain our strong relationships with chicken suppliers in the country and look forward to sustained long term supply arrangements with them as our businesses grow together," Tanmantiong said.

 Cargill and JFC will have a 70 percent and 30 percent stake, respectively, in the joint venture firm Cargill Joy Poultry Meats Production Inc. (CJPMPI).

 JFC will invest P244.9 million for the 30 percent stake while Cargill will invest P571.5 million the 70 percent stake of CJPMPI.

 "We partnered with Cargill to deliver high quality chicken products through Cargill's technology and quality standards," the CEO said.

 JFC said Cargill will oversee the setting up, management and operations of the plant.

 The homegrown food chain operator operates Jollibee, Chowking, Mang Inasal and Greenwhich, among others.

 Shares of JFC were at P235 apiece in yesterday's noon trading. — (FREEMAN)