MANILA, Philippines — The Metro Pacific Group has added another company to its agriculture portfolio after signing the acquisition papers for the largest dairy farm in Mindanao for at least P700 million.
Metro Pacific Investments Corp. (MPIC) yesterday formalized its buyout of Bukidnon Milk Co., founded by the How family, by issuing a downpayment for the deal estimated at more than P700 million.
Sources in attendance at the signing told The STAR that MPIC chairman, president and CEO Manuel V. Pangilinan expressed excitement about the potential that Bukidnon Milk would bring to the table.
Recently, Pangilinan has leaned more and more to the agriculture sector, driven by an ambition to make the Philippines less dependent on imports. The business titan, in particular, is frustrated over the dairy situation in the country, lamenting that 99 percent of the demand is served by imported milk.
In response, MPIC unit Metro Pacific Agro Ventures (MPAV) made its initial dip in dairy when it acquired a majority stake in The Laguna Creamery Inc. for P198 million. The Laguna Creamery is known for making premium ice cream brand Carmen’s Best.
This time, Pangilinan is keen on raising the dairy supply of Carmen’s Best, and views Bukidnon Milk as a company that can accomplish this.
Bukidnon Milk owns a 460-hectare grazing farm in Maramag, Bukidnon, the first and biggest of its kind in Mindanao, where cows are allowed to roam freely.
In terms of milking practices, Bukidnon Milk employs a kind of dairy farming that gives cows a stress-free landscape, far from the usual confined animal feeding operations method.
Currently, Bukidnon Milk manages around 2,000 cows in its farm and the company is supplying dairy products to at least 50 businesses nationwide. On top of this, it sells milk products in select outlets of Balai ni Fruitas, Landers, S&R and SM.
Pangilinan hopes that in the long run, MPAV can splash into cheeses and yogurts. For MPAV, the addition of Bukidnon Milk to its fold also means it has a fresh source for revenue making.
MPAV targets to expand the revenue of its dairy portfolio to P500 million by 2025 and P1 billion by 2027, confident that its recent business moves would speed up its growth.