JV Gives Chicken Farmers New Income Opportunity
PHILIPPINES - Cargill Joy Poultry Meat Production Inc. opened on Tuesday, giving chicken farmers in Batangas and nearby provinces new income opportunities, Jollibee Foods Corp. said Wednesday.
6 December 2017
3 minute read
By: A joint venture between Jollibee Foods and Minneapolis, USA-based Cargill , the largest poultry processing plant in the country has a yearly capacity of 45 million chickens.
"The plant increases income opportunities for local poultry farmers in Batangas and nearby provinces as they will supply the chickens to be processed at the JFC facility," according to Jollibee Foods.
The poultry plant in Santo Tomas, Batangas will supply the demand of JFC bands with dressed and marinated chicken.
"C-Joy is partnering with local poultry farmers in Batangas and nearby provinces to supply the new facility with chicken," according to Cargill.
"We are looking forward to producing the chickens that will be supplied to the C-Joy plant to meet the poultry meat requirements of Jollibee," said Vic Lao, president of Highcrest Corp., a partner-grower of the C-Joy.
Cargill and Jollibee Foods revealed the partnership in May last year, saying the processing plant will create an estimated 1,000 new full-time jobs in Batangas.
They said the plant will be 70-per cent owned by Cargill Philippines which will oversee the setting up, management, and operations, with Jollibee Foods owning 30 per cent.
JFC invested P244.9 million in the processing plant, and P15.2 million in Cargill Joy Poultry Realty Inc. from which C-Joy leased the land to build the facility.
The poultry processing plant is industry positive, according to the United Broilers Raisers Association.
"This is positive for the industry as this will promote competition among big market players like San Miguel and Bounty fresh," UBRA president Bong Inciong told GMA News Online.
Summit Securities Inc. president Harry Liu said the development will have an impact on the financial condition of Jollibee Foods.
"I think it will help the bottom line. I am sure they are doing this investment for future requirement and steady supply for the business now and in the future," he said in a separate text message.
JFC closed the third quarter with a net profit of P1.62 billion, up 21.1 per cent from a year earlier.
