Cargill bullish on Phl expansion

The local unit of US-based agro-industrial firm Cargill will continue to invest in the country amid the pandemic as it sees the agriculture sector as a vital sector in economic recovery.

In a virtual briefing Thursday, Cargill Philippines president Sonny Catacutan said its P12 billion five-year strategic expansion plan remains intact despite challenges in operations due to the quarantine measures.

The P12 billion investment started last year and will last until 2023.

“We have committed to continue to invest in the Philippines. We are confident especially that the country is consumer driven. It has a growing population and is an attractive market in Asia for our food business,” Catacutan said.

“We are heavily invested in Luzon and we also want to expand our footprint in Visayas and Mindanao,” he said.

Cargill currently has feeds and coconut oil businesses in Davao and General Santos City.

The company’s operations, especially its C-Joy poultry business, were hit by the pandemic as the lockdowns have shut down hotels, restaurants and other institutions.

Its C-Joy unit is a major supplier of fast food chain giant Jollibee Foods Corp.

“We will continue to invest in our existing business. The poultry sector was hardly hit but we see a lot of confidence in this market,” Catacutan said.

The closure of business establishments and disrupted overall demand resulted in a supply glut in chicken nationwide especially in March and April, which eventually pulled prices down.

Because of the drop in the number of its institutional buyers, Cargill began retail selling just to get its products to consumers’ homes.