Cargill and Jollibee Foods to build poultry processing plant in Philippines

Cargill Philippines has signed an agreement with Jollibee Foods Corporation (JFC) to form a joint venture to build and operate a poultry processing plant in Santo Tomas, Batangas, the Philippines.

Cargill Philippines is a fully owned unit of Cargill, while JFC is a food service company,

Cargill will have a 70% stake in the Cargill Joy Poultry Meats Production joint venture (JV), while JFC will hold a 30% interest.

The development, management and operations of this facility will be overseen by Cargill.

The JV is expected to create around 1,000 full-time jobs.

JFC chief executive officer Ernesto Tanmantiong said: "We partnered with Cargill to deliver high-quality chicken products through Cargill’s technology and quality standards.

"The facility will provide JFC with dressed and marinated chicken to augment the chicken supply requirements of the growing needs of JFC brands. This partnership will meaningfully benefit our customers, our operations, as well as the overall Philippine food industry.

"We will continue to maintain our strong relationship with key chicken suppliers in the country and look forward to sustained long-term supply arrangements with them as our businesses grow together."

Cargill Joy Poultry Meats Production managing director Paul Fullbright said: "Cargill is making additional investments in the Philippines to participate in the robust growth of its consumer sector. Cargill can contribute in further enhancing the quality of products of JFC brands for its customers at very competitive costs and raise the assurance of its chicken supply.

"As in many other parts of the world where we do business, Cargill can also contribute in improving the system of hygiene, food safety, and quality by operating a world-class facility and by setting high level of partnership ?with the poultry growers and farmers. We look forward to a very productive poultry processing venture in the Philippines and with JFC."

JFC will invest PHP244.9m ($5.2m) for the 30% stake, as well as PHP15.2m ($320,000) for a 30% interest in Cargill Joy Poultry Realty, from which the JV will take the land on lease to set up the facility.