Jollibee goes into poultry business to avoid another ‘Chicken Joy’ crisis
After the shortage of Chicken Joys a couple of years back, Jollibee Foods Corp. is making sure that it doesn’t happen again.
Jollibee Foods has signed a partnership with Cargill Inc. to build and operate a poultry processing plant in Santo Tomas, Batangas, the company said in a disclosure.
Jollibee Foods will have a 30-percent stake and Cargill, through its wholly owned domestic subsidiary, will have a 70-percent stake in Cargill Joy Poultry Meats Production Inc.
The joint venture will create some 1,000 new full time jobs and create opportunities for poultry farmers and the feeds industry in Batangas and nearby provinces.
“We partnered with Cargill to deliver high quality chicken products through Cargill’s technology and quality standards. The facility will provide Jollibee Foods with dressed and marinated chicken to augment the chicken supply requirements of the growing needs of Jollibee Foods brands,” Jollibee Foods chief executive officer Ernesto Tanmantiong 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 Jollibee Foods brands for its customers at very competitive costs and raise the assurance of its chicken supply,” Cargill Joy Poultry Meats Production managing director Paul Fullbright said.
Jollibee Foods is investing P244.9 million in the facility and another P15.2 million for a 30-percent stake in Cargill Joy Poultry Realty Inc. that will be leasing the land where the poultry processing facility will be located.