Metro Pacific Investments Corp. (MPIC) Chairman and President Manuel V. Pangilinan has recently announced the company plan to focus more on food production as it is setting its sights to enter the dairy segment to increase the country’s output of food products like milk and its derivatives.
After scooping up a majority stake in a luxury ice cream brand, MPIC hopes to expand its portfolio in the dairy sector.
In June, MPIC signed a deal with Carmen’s Best Group as part of its moves to expand its portfolio. In turn, the Carmen’ Best Group integrated its assets into The Laguna Creamery Inc., of which the MPIC bought a 51% stake for Pesos 198 million (US$3.45 million).
The Carmen’s Best Group makes the premium brand Carmen’s Best Ice Cream and the locally pasteurised Holly’s Milk. It also runs a dairy farm in Bay, Laguna, where it sources 80% of its milk requirements for its dairy products.
Pangilinan said, “The opportunity to expand in the dairy business is there because we import more than 90% of our dairy products, and we we want to remedy that to the extent that we are able to locally produce milk products and derivative milk products like yoghurt and cheese that the Philippines can consume.”
Pangilinan believed that by doing this, the country can cut its imports of dairy and milk, benefiting consumers hurting from rising costs as the Pesos weaken against the dollar.
According to a recent USDA report, the Philippines imports 99% of its dairy requirements. Domestic output fails to meet the annual demand of around 2.9 million metric tons of milk equivalent.
