Philippines feed sector attracts more investment

Philippines feed sector attracts more investment

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In recent weeks, substantial new investments have been announced to expand and improve feed production in the Philippines, thus supporting the nation’s aquaculture, poultry and pig producers.

In the Western Visayas region of the Philippines, a new facility for the production of aquaculture feeds is under development.

Cost of the commercial-scale feed mill is PHP30 million (US$550,000), reports Philippines News Agency (PNA).

With the aim to produce cost-effective feed, the government agency — the Bureau of Fisheries and Aquatic Resources (BFAR) — has sought technical support from the Aquaculture Department at the Southeast Asian Fisheries Development Center (SEAFDEC).

With feed accounting for 60% of the cost of production, the department head said the new feed formulation will cost less than commercial feeds available. However, he said, that it will result in efficient aquaculture production.

“Establishing a feed mill plant for cost-efficient feeds will likely invigorate the fisheries sector and help the country ensure food security by producing high-quality feeds at a reasonable price,” he said. “This is also one way of increasing and sustaining aquaculture production of finfishes and cages in the area.”

The likely location for the new feed mill is the SEAFDEC station at Tigbauan in Iloilo province, reports PNA. The center will add PHP250,000 to help fund the facility.

San Miguel Corp seeks feed, poultry investment opportunity

Philippines-based food group San Miguel Corp. is also looking to invest in the Western Visayas region.

According to Manila Times, the company is seeking a location to invest PHP21 billion (US$384 million) in a feed mill and poultry projects. The province of Negros Occidental is among the areas selected for investigation.

Already the nation’s largest commercial feed producer, San Miguel is planning a further 12 poultry production facilities across the Philippines. These developments alone would have an annual output approaching 1 billion birds.

The same source reports that San Miguel’s animal nutrition and health business operates 14 feed mills. Of these, seven are located on the island of Luzon, four on Mindanao, and three in Visayas. Furthermore, there are 23 other feed sites across the country, which are owned and operated by third parties. Two of the facilities have extruders to produce floating feeds for aquaculture, while all of the sites produce pelleted feeds and crumbs.

Most of these plants are capable of producing pelleted and crumble format feeds and two plants have extrusion capabilities to produce aquatic floating feeds.

According to Manila Times, animal byproducts are converted into feed ingredients for San Miguel’s feed division through toll manufacturing agreements at eight rendering factories.

CP to invest in poultry, livestock production in Mindanao

The Philippines’ large southern island of Mindanao is set to receive funding of PHP1 billion.

Source of this investment is Thailand-based CP Group, reported PNA last month.

Through its local company, Charoen Pokphand Foods (CP) Foods Philippines, poultry and pig farming in central Mindanao will receive this additional support following disease challenges. This part of the Philippines has been hit hard by avian influenza and African swine fever in recent years.

Furthermore, the group aims to support local growers of feed crops such as corn, sorghum and cassava in cube cuts.

PNA reports that CP Group has pledged to invest further in the Philippines. According to former agriculture secretary Emmanuel Piñol, these plans were announced after a meeting with President Ferdinand R. Marcos Jr. in the Thai capital. CP has shown in interest in further supporting aquaculture, rice and swine production in the Philippines.