HOMEGROWN fast food giant Jollibee Foods Corp. (JFC) has entered into a partnership with a unit of US-based Cargill Inc. to build a poultry processing plant in Sto. Tomas, Batangas
In a disclosure to the Philippine Stock Exchange, the fast food giant said that the joint venture will be known as Cargill Joy Poultry Production Inc. (CJPMPI) and will be owned 70 percent by Cargill and 30 percent by JFC.
The investment cost of the joint venture is P867 million, of which P244.9 million will be contributed by JFC representing its 30 percent stake. JFC will also invest an additional P15.2 million for the lease of the property where the plant will be located.
Cargill will invest about P571.5 million for its 70 percent stake in the JV and will oversee the setting up, management and operations of the facility, JFC said.
The JFC group of companies is one of the largest buyers of chicken in the country with its restaurant brands Jollibee, Mang Inasal, Chowking, Greenwich and the Burger King franchise selling a significant volume of chicken products.
According to JFC, the joint venture is expected to create 1, 000 new full-time jobs and develop new opportunities in the farming community in Batangas and nearby provinces “as local poultry farmers are contracted to grow chicken to supply the requirements of the processing plant.”
“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,” said Ernesto Tanmantiong, chief executive officer of JFC.
Paul Fullbright, managing director of Cargill Joy Poultry Meats Production, Inc., said they are making additional investments in the country to take part in the robust growth of the domestic consumer sector.
“Cargill can contribute in further enhancing the quality of products of JFC brands for its costumers at very competitive costs and raise the assurance of its chicken supply. As in many other parts of the world where we do businesses, Cargill can also contribute in improving the system of hygiene, food safety, and quality by operating a world-class facility and by setting a high level of partnership with the poultry growers and farmers,” Fulbright noted.