Nestle eyes higher cassava ouput

The local unit of Swiss consumer goods giant Nestle Corp. is seeking increased production of cassava, a major raw material for its Milo energy drink products, as it is set to complete its newest processing plant.

Agriculture Secretary Emmanuel Pinol said the company is eyeing producers of cassava with the expected completion of its P2-billion plant in Batangas by early next year.

“Nestle Philippines is looking for sources of about 70,000 metric tons of cassava every year to be processed to protomalt,” said Pinol, who had a meeting with Nestle Philippines CEO Jacques Reber.

Protomalt is a key nutritional ingredient to make Milo while cassava is the main raw material for the malt extract.

At present, the company sources protomalt from Singapore where the Nestle Group’s biggest malt plant is located.

“Reber said the Philippines could also become a major supplier of the cassava-based malt for Nestle’s other production facilities for Milo energy drink, including Singapore,” Pinol said.

In response to the new demand, Pinol said he hadinstructed regional directors to organize cassava farmers to be assisted with drying facilities.

The Department of Agriculture is also eyeing the establishment of cassava flour plants in cassava-producing regions.

Cassava production im- proved 1.5 percent to 589,750 MT in the first quarter, driven by the sustained demand for feeds and industrial use and more area harvested.

Northern Mindanao was the top-producing region in the country, with more than 30 percent of the national cassava output during the period.

The Milo malt plant, which is being constructed on a 5,400 square meters property in Lipa, Batangas, will be Nestle’s sixth factory in the Philippines.

The plant can produce up to 35,000 MT of the cassava-based malt to supply the requirements of the Philippines.

Nestle has three existing malt plants globally which are located in Singapore, Nigeria and Australia.

The Philippines is currently Nestle’s biggest market in Southeast Asia, second biggest in Asia next to China, and eighth largest worldwide.