Metro Pacific Investments Corp (MPIC) has recently partnered (60:40) with Israeli firm, LR Group Ltd. to boost Philippine dairy production with a Pesos 2 billion (US$36.5 million) state-of the-art dairy farm facility producing fresh milk and milk derivatives.
Metro Pacific Agro Ventures Inc. (MPAV), the wholly-owned agriculture unit of Metro Pacific Investments Corp. (MPIC), and its partner LR Group launched Metro Pacific Dairy Farms (MPDF), a facility that can produce 6.5 million litres of milk annually.
MPAV President and CEO Jovy Hernandez said that the partnership presents a significant growth opportunity for MPIC and the Philippines, as the country currently imports 99% of its annual dairy requirements. Hernandez said that the MPDF aims to significantly reduce the country’s reliance on milk imports, with a target to eventually meet 25% of the country’s daily demand.
The MPDF project expands MPAV’s existing dairy business, The Laguna Creamery Inc., of which MPIC bought 51% stake from Carmen’s Best Group for Pesos 198 million (US$3.62 million) in June 2022. The new facility will have the capacity for up to 2,000 milking cows, which is much more than the 100 milking cows found at Carmen’s Best farm.
MPDF also aims to increase its fresh milk yield per cow from the country’s standard 8-10 litres a day to 30 litres a day. The new facility will also have highly mechanized and automated operations to maximize fresh milk’ shelf life, which will ensure adherence to quality and safety standards. It will also be equipped with solar farms that will produce power for the dairy facility, a water treatment plant that will provide human-grade drinking water for the cattle, and a waste management facility that will allow the facility to produce fertilizer.
Apart from producing fresh milk, MPDF will also have processing plant capabilities to produce other milk-derivative products such as low-fat milk, chocolate milk, yogurt and other popular dairy products for the local market.
Construction of the new facility will start in 2023 with commercial operation expected to start in late 2025.
MPIC aims to ramp up investments in the agriculture sector to help reduce the country’s dependence on food imports amid ongoing global supply chain disruptions and high inflation.
