Cargill still bullish on PHL market
Cargil L Philippines Inc. (Cargill) on Thursday said it remains committed to investing a total of P12.5 billion in the Philippines until 2023 despite the challenges brought about by the Covid-19 pandemic to its businesses.
Cargill President Sonny Catacutan said the company remains confident in investing in the Philippines due to its young population and its consumer- driven economy.
“It is one of the most attractive markets in Asia alone. We are in the food business and we believe that as the economy grows our relevance to this market and food security becomes more relevant,” Catacutan said in a virtual press briefing.
“Cargill remains committed to continue to invest in the Philippines. What we committed in 2018 regardless of how the market has changed we are still committed [to invest],” he added.
The P12.5-billion, 5-year investment plan is heavily concentrated in Luzon. Part of the plan is intended for the expansion of Cargill's business portfolios in the country in Visayas and Mindanao.
“The vibrance of the economy is all over the Philippines. All the government efforts to improve that economy down South continue to expand businesses there in our feeds and coconut oil businesses,” he said.
In 2018, Cargill said the P12.5-billion ($235 million) investment aims to expand its Philippine operations to meet the growing demand of Filipinos for meat products.
“The company is focused on helping meet the increased domestic demand for chicken and pork, as well as delivering solutions in key areas of the global agricultural supply chain,” Cargill said in a statement in November 2018.
Cargill’s announcement came as the company celebrated its 70th year in the Philippines, its first office in the Southeast Asian region.
“We are proud to have been in the Philippines since we started our business here 70 years ago. Working closely with the government, our customers, partners and the community, we are helping farmers thrive and are bringing safe and nutritious food to Filipino tables,” said Dave Maclennan, chairman and CEO of Cargill.
“We are grateful for our partnership with the Philippine government as they welcome investments that enable Cargill to grow alongside the Filipino people and the local economy,” Maclennan added.
Maclennan said the $235-million investment would be spread across its local agricultural supplychain portfolio, which include importation of commodities, copra business, animal feeds and aqua feeds business and C-joy, the firm’s joint venture with Jollibee Foods Corp. to process chicken for domestic consumption.
“In the next five years we want to be bigger. And we want to be bigger in Asia, specifically in Southeast Asia and China,” he said. “That’s our clear intention.”