The Charoen Pokphand Group of Thailand plans to invest $2 billion more in the Philippines over the next five years in an integrated livestock facility geared for both for the domestic and export markets.
The Philippines, according to a statement released by the Agriculture Department, accepted Charoen’s initial proposal to expand the existing facilities in Bataan, Pampanga and Tarlac.
Agriculture Secretary Emmanuel Piñol said the CP Group also wanted to expand operations to Visayas and Mindanao where the threat of typhoons is less.
The CP Group is pursuing expansion in the Philippines because of its distinction as the only country in Asia that is free from the food and mouth disease and avian influenza, or bird flu.
The hog and chicken production project will have 10 modules of 6,000 hectares each for corn and soybeans production to be used in feed processing and about 2,000 workers to man the facilities.
The group plans to create a more compact area for corn production using modern technology to maximize the hectarage and for better or increased yield.
The Agriculture Department said a a technical working group would be organized to assist the CP Group in identifying the areas where the new operations would be established.
Possible sites include Bukidnon, Saranggani, North Cotabato, Maguindanao, Zamboanga del Norte, Agusan del Sur and Del Norte provinces as the possible sites.
Trade Secretary Ramon Lopez said the new investments was on top of the P2 billion it pumped in on livestock development five years ago.
The Thai company will continued to use its production model to enter into contract growing with tie-up agreements with local growers or teaming up with entrepreneurs who will build facilities on a lease agreement.
“They are integrated, a farm to table company. From feeds milling to poultry and livestock production using new technology, to ready to cook and marinated frozen chicken and pork products, this is what the company’s expertise is about,” Lopez said.
Charoen Pokphand is diversified company with presence in 18 countries.