Company nearing completion of pig breeding unit in the Philippines
Philippines-based conglomerate Aboitiz Equity Ventures Inc. (AEV) continues to expand the product range and geographical reach of its subsidiary, Pilmico Foods Corp.
By the end of 2023, this domestic food business is expected to have achieved several goals, in the Philippines and elsewhere in Southeast Asia, according to BW Online.
Speaking at a media event this week, Pilmico Group’s president and CEO, Tristan Roberto C. Aboitiz, announced that the firm will be growing its presence in the regional animal feed market.
In China and Vietnam, feed capacity is undergoing expansion at the firm’s mills in Yunnan and Long An, respectively. Work is scheduled for completion by the end of 2023, announced Aboitiz. After that, volumes are expected to build up towards the higher capacities.
On the home market, AEV has its presence through Pilmico Foods Corp. in animal feed and flour milling, while its pork and egg farms are operated by Pilmico Animal Nutrition Corp.
Expansion in progress, Pilmico faces challenges
Looking ahead, Aboitiz announced the firm plans to introduce new products in its existing pet food ranges, which will be available also in Malaysia, Indonesia and Vietnam. On the home market, he reported that sales are developing well on ecommerce platforms, as well as through pet retailers. Also in development are new products such as pet treats and wet foods, he said.
Furthermore, Aboitiz announced that construction is approaching completion of the company’s latest pig breeding unit. Comprising breeder and nursery facilities, the new unit is located in Nueva Ecija province in the Central Luzon region of the Philippines. Production is expected to start in mid-2023, and to build to an annual capacity of 4.7 million metric tons with 2,500 sows.
For the third quarter, AEV reported core net income of around PHP7 billion (US$120.3 million), according to BW Online. This equates to a 20% year-on-year increase in core net income, while consolidated net income rose by 57% to PHP9.6 billion.
While the group’s net income for the fiscal year to date was up by 9% to PHP21.4 billion, core net income tumbled by 17% to just over PHP16 billion.
For the same period, there was a year-on-year 83% reduction in income for the Pilmico businesses. These sectors were hit hard by losses through foreign exchange and the weak peso. As a result, they contributed revenue of PHP260 million. This compares with PHP1.5 billion for the same period of 2021.
AEV reports progress on ‘Great Transformation’
This month, AEV reported that the group is on its way to becoming the first “Techglomerate” in the Philippines.
Now nine months into its year of “Great Transformation,” the group says it is achieving significant development and cultural change through innovation and a new entrepreneurial mindset.
For the Pilmico and Gold Coin agribusiness sector, Aboitiz reported that sales of “The Good Meat” brand are growing. This he attributed to consumers’ growing familiarity with its fresh and ready-to-cook products at supermarkets and the firm’s retail outlets. From the present two in Metro Manila, more meat stores are scheduled to open before the end of the year.
On the domestic pork market, developments are expected to depend on future outbreaks and controls of African swine fever.
In addition to the agribusiness group, AEV also operates in the power, banking, digital infrastructure, construction and property sectors.
More on AEV, Pilmico Group
Around one month ago, AEV announced it was exiting the Sri Lankan market. The sale of Gold Coin Feed Mills (Lanka) Ltd. to New Anthoney’s Farms was finalized through AEV’s subsidiary, Pilmico International Pte. Ltd.
Pilmico had purchased a controlling stake in Gold Coin — Asia’s largest privately owned agribusiness company — in 2018.
In 1998, Pilmico began pork production for the first time with 1,500 pigs imported from the U.S.
In the intervening years, its business interests have expanded to include poultry, aquaculture and, most recently, pet food. It now comprises four divisions: flour, feeds, farms, and commodity solutions.
A recent development is a new pig breeder and nursery farm in Tarlac. Also located in the Central Luzon region, this farm features heightened biosecurity measures as well as modern technology to augment the local pork supply, reports Pilmico.