May 26, 2016

Cargill is expanding its presence in the Philippines through a joint venture between Cargill Philippines Inc. and Jollibee Foods Corp. (JFC), the largest foodservice company in Asia. The companies will build and operate a poultry processing facility in Santo Tomas, Batangas.

Under the terms of the agreement, Cargill will hold a 70% stake, and JFC will hold 30% of the new venture which will be called Cargill Joy Poultry Meats Production Inc. Cargill will oversee the establishment, management and operations of the facility, and JFC will be a key customer of the venture.

“We partnered with Cargill to deliver high quality chicken products through Cargill’s technology and quality standards,” said JFC Chief Executive Officer, Mr. Ernesto Tanmantiong in a recent press release.” The facility will provide JFC with dressed and marinated chicken to augment the chicken supply requirements of the growing needs of JFC brands.”

The project is expected to create 1,000 jobs and provide a conduit for the development of the region’s agriculture industry through contracting local poultry farmers to raise chickens to supply the processing plant.

“This partnership will meaningfully benefit our customers, our operations as well as the overall Philippine food industry,” noted Tanmantiong. “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.”

Cargill first entered the Philippines in 1947, making it the company’s first office in Asia according to their company website. Beginning with its vegetable oil division sourcing copra for export to the U.S., the company has grown to a presence in grain and oilseed origination and processing, commercial feed production, and the production of sweeteners and texturizers for food and beverage production. This newly launched joint venture will add poultry processing to the company’s Philippine portfolio.

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GAI News staff