Pilmico opens P400-M feedmill facility in Davao

ILIGAN CITY, Davao — Pilmico Foods Corp. (PFC) is set to invest an additional P350 million on a new P400-million feed mill facility which it formally inaugurated here yesterday with Sen. Manuel A. Roxas III as guest of honor.

In a press briefing, Pilmico president and chief executive officer Antonio Moraza said projected first year revenues for its Iligan feed mill is P1 billion to P1.5 billion.

Moraza said the operation of the new feed mill facility comes at an opportune time when the cost of shipping its animal feeds from its Tarlac facility has increased 50 percent and the Viz-Min market faces a potential boom because of its FMD (foot and mouth)-free status.

Pilmico produces both hog and poultry feeds, with the bulk or 90 percent comprised of hog feeds and 10 percent poultry feeds.

Moraza said Pilmico plans to double the capacity of its current 20 metric tons per hour Iligan feed mill plant once the Mindanao hog industry starts exporting processed pork.

Moraza said, Pilmico used to produce animal feeds at its plant in Capas, Tarlac and then shipped nationwide. But with the rising cost of crude oil, Moraza said, Pilmico decided to put up a new feed mill facility in Iligan where it could better service its Visayas and Mindanao market.

According to Moraza, Pilmico spends an average of P15 million a month in freight cost.

With the start of commercial operation of its Iligan feed mill, Moraza projects that Pilmico will save more than 50 percent in freight cost.

The operation of the company’s Iligan feed mill, Moraza said, would adversely affect production in its Tarlac feed mill which has a production capacity of 40 MT per hour.

The hog industry in Luzon, Moraza confirmed, has been negatively impacted by a spate of diseases. On the other hand, hog production in Visayas and Mindanao faces a bright future boom because of its FMD-free status.

According to Hendel Cabral, vice president of sales and marketing of Fil-Am Food Corp., an affiliate of Pilmico, the hog industry in Mindanao is projected to post double digit growth.

More specifically, backyard production (which comprises up to 70 percent of total hog production) is projected to continue growing annually by 10 percent, while large farms are expected to post a higher growth of 20 percent.

This compares to the slightly lower growth projected for Luzon hog raisers of just five percent for backyard growers and 12 percent for large farms.

Pilmico is part of the Aboitiz Group.