Jollibee, Cargill enter poultry processing JV
American agriculture company Cargill and fast-food giant Jollibee Foods Corporations has entered into a joint venture agreement to construct and operate a poultry processing plant in Sto. Tomas, Batangas, said in a disclosure with the stock exchange, on Wednesday, May 25.
The P867.1 million JV between Cargill Philippines Inc. and JFC will be called Cargill Joy Poultry Meats Production Inc. (CJPMPI) and will boost JFC’s supply of marinated and dressed chicken.
Equity sharing between Cargill and JFC will be 70%-30%, respectively, and JFC will also hold a 30% stake in the realty firm, where CJPMPI will lease the land.
About 1,000 employment opportunities will be provided by the new venture, and will develop opportunities in the farming communities in Batangas.
Local poultry farmers are contracted to raise poultry requirements of the plant.
JFC CEO 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,”
Cargill, on the other hand, said that the project is in line with the company’s plans to expand.
“Cargill is making additional investments in the Philippines to participate in the robust growth of its consumer sector,” the disclosure said.