US firm to put up chicken processing plant in Laguna

An American company, Perdue Farms Inc. and Royal Cargo Combined Logistics Inc. will put up a P100-million chicken processing plant in Sta. Rosa, Laguna that will process and re-export value-added products in the growing Asia-Pacific region.

"The pioneering venture will make the Philippines a regional food production and processing center for Asia Pacific and more importantly, will bolster our status as a reliable and consistent producer of high-quality and world-class products," said Agriculture Secretary Luis Lorenzo Jr. who approved the project last week.

Founded in 1920, Perdue Farms is one of the largest in the US poultry market, selling 42 million pounds of distinctly yellow chicken products and 3.5 million pounds of turkey products weekly. It has a vertically integrated operation, it hatches eggs, grows the chickens, slaughters, packs and distributes the meat.

Currently, it is expanding its value-added chicken parts and food service products and has established a plant in China through a joint venture. Perdue Farms also processes grains and makes vegetable oils and pet food ingredients. The company sells their products in the US market and in 30 countries.

Lorenzo, along with other officials of the Department of Agriculture met last week with company officials led by Perdue Farms vice president for international operations Peggy Vining and Royal Cargo chief executive officer Michael Raeuber to iron out additional concerns regarding the project.

The DA chief doused fears the project will displace the domestic chicken industry, still reeling from the bird flu scare and smuggling of chicken into the country.

"We are giving our blessing to the project because we were assured that all their products will be re-exported and that their final export shipment will have 40 percent local content. Also we could buy some of their products subject to my approval and depending on the supply-demand situation of the domestic market," Lorenzo said.

As planned, Royal Cargo will construct the processing units, cold storage facilities and equipment and invest in manpower training at its existing plant inside the Laguna Technopark in Sta. Rosa, Laguna.

Perdue Farms will be bringing in chicken and chicken parts for processing and for subsequent export to Asia.

Lorenzo said the firm intends to initially bring in at least 10,000 metric tons of chicken products per month. He added the volume could later be increased to as much as 150,000 metric tons as Perdue further expands in the region. These will be processed into various chicken products using among others, local spices and other locally produced materials. The finished value-added products will be shipped to various countries in Asia, including China and Japan.

Since the proposed food processing hub will carry at least 40 percent local content, the venture would provide job opportunities for local chicken meat and spices suppliers, as well as those engaged in food processing, packaging, transport and other allied industries, Lorenzo said

Earlier this year, Philippine Economic Zone Authority (PEZA) gave the green light for the project but required its proponents to get a "no objection" letter from the DA on their plan to import chicken for the venture.