JFC seals poultry processing JV with Cargill

Jollibee Foods Corporation (JFC) is securing its own supply of chicken, one of its best selling items, through an 1867.1-million joint venture with Cargill Philippines, Inc., a wholly owned subsidiary of global agriculture firm Cargill, Inc.

In a disclosure to the Philippine Stock Exchange, Jollibee said it has entered into an agreement with Cargill Philippines to build and operate a poultry processing plant in Santo Tomas, Batangas in the Philippines.

Cargill and JFC will have a 70 percent and a 30 percent stake, respectively, in the joint venture Cargill Joy Poultry Meats Production, Inc. (CJPMPI). JFC will invest 1244.9 million for its 30 percent while Cargill will invest 1571.5 million for 70 percent of CJPMPI.

JFC will also invest 115.2 million for a 30 percent stake, while Cargill and Trust will invest 135.5 million for 40 percent and 30 percent, respectively, in Cargill Joy Poultry Realty, Inc. (CJPRI), from which CJPMPI will lease the land on which the plant will be located.

Cargill will oversee the setting up, management and operations of this facility. The facility will provide JFC with dressed and marinated chicken for the growing needs of its various brands in the country.

The partnership is seen to create an estimated 1,000 new full-time jobs and develop new opportunities in the farming community in Batangas and nearby provinces as local poultry farmers are contracted to grow chicken to supply the requirements of the processing plant.

“We partnered with Cargill to deliver high quality chicken products through Cargill’s technology and quality standards,” said JFC chief executive officer Ernesto Tanmantiong.

He added that “this partnership will meaningfully benefit our customers, our operations as well as the overall Philippine food industry.”

Tanmantiong noted though that “we will continue to maintain our strong relationship with key chicken suppliers in the country and look forward to sustained long term supply arrangements with them as our businesses grow together.”

CJPMPI managing director Paul Fullbright said “Cargill is making additional investments in the Philippines to participate in the robust growth of its consumer sector.”

He noted that “Cargill can contribute in further enhancing the quality of products of JFC brands for its customers at very competitive costs and raise the assurance of its chicken supply.”