The construction of the plan will be financed through internally-generated funds of P28.7-million, a P30-million loan from the Development Bank of the Philippines (ADB) and P28.8-million loan from the Agricultural Competitiveness Enhancement Fund.
Aside from the meat processing plant, Limcoma will also set up 20 meat ships in Metro Manila, and engage in a 2,000-hectare corn cluster and contract growing operation in marginal sugarcane areas in Batangas.
Limcoma’s new venture completes the food supply chain and complements its successful swine production and feedmilling operations.
The cooperative’s existing business include swine production, production of broiler, layer, fighting cock, hog, and aquaculture feeds, feed delivery, manufacturing and marketing of veterinary products, among others.
The cooperatives’ fully automated and computerized feedmill produces an average of 14,000 bags a day. The feedmill ensures its member-raisers of poultry and livestock of quality feeds at affordable prices. About 6,800 bags of feeds are sold daily.
Limcoma also runs a cooperative bank and provides loans to its members.
The meat processing line would expand its existing plant in San Jose, Batangas which already carries a variety of products like pork tapa, tocino, longanisa, hotdog, hamburger carrying the brand name Batangas Prime.
Agriculture Secretary Arthur Yap who recently met Limcoma officials in the recent National Hog Raisers Convention in Tagaytay City lauded the cooperative and encouraged similar groups to integrate their production systems.
"This food supply chain is what the department is envisioning – to eliminate trade and transport of live pigs from production farms nationwide to slaughterhouses in Manila. What we are aiming for is that slaughtering be done from the point of origin, and pre-cut pork to be transported as frozen or chilled, and even processed, to give better value for these products," Yap said.
The Department of Agriculture (DA) in collaboration with the National Federation of Hog Farmers which consists of 32 hog raisers groups nationwide, recently launched the "Pork in A Box Program" which aims to institute a pork post production system that will bring down frozen pre-cuts of pork at prices lower than supermarket price levels.
The supply will initially come from foot and mouth disease free areas like Panay and Mindanao, and then shipped to Metro Manila and sold to selected supermarkets such as Robinsons, SM, Makro, Uniwide and other members of the Supermarket Association of the Philippines.
Yap said that at the outset, the scheme could bring down pork prices at about P5 to P6 per kilo.
He said cooperatives like Limcoma will be very competitive and encouraged them to invest not only to join the pork-in-a-box program, but in other segments of the entire meat supply chain.
These include backward linkage enterprises such as corn production or contract-growing and feedmilling, and forward linkages such as meat processing, cold chain systems and provision of refrigerated vans, and marketing, and eventually, exports.