San Miguel Food and Beverage Inc. eyes to spend P30 billion this year to expand its capacity.
Ramon Ang, San Miguel president, said majority of the amount will go to the company’s expansion of its Echague, Isabela feedmill from its current 500,000 tons per year capacity.
The company is also expanding its San Ildefonso, Bulacan feedmill which produces pellet crumble and mash, as well as its Sta. Cruz Davao feedmill.
“We are also in the process of building seven new feed mills. These are greenfield projects of which each of this project costing about $50 million,” said Ang at the company’s stockholders meeting Wednesday.
San Miguel Food and Beverage last month said profit for the first quarter of the year reached P9.68 billion, up 66 percent from last year’s P5.83 billion.
Sales reached P76.36 billion, up 11 percent from last year’s P68.79 billion.
San Miguel operates feed mills around the country and is the largest producer of commercial feeds in the country.
For its animal nutrition and health segment, compound feeds are manufactured at 14 company-owned feedmills, seven of which are located in Luzon, three in Visayas and four in Mindanao, plus 23 third party-owned and operated feed plants located throughout the Philippines.
Most of these plants are capable of producing pelleted and crumble format feeds and two plants have extrusion capabilities to produce aquatic floating feeds. The feeds business also maintains tolling arrangements for eight rendering facilities that convert animal by-products used as raw materials into some feed types.
The business segment completed five new feedmills with an estimated capacity of approximately 1,5 million metric tons between 2018 and 2020, one of which is equipped with capability to produce aquatic floating feeds.
