SMFB allots P30-B capex, mainly for feedmills

Published June 2, 2021, 4:16 PM

by James A. Loyola

San Miguel Foods and Beverage Inc., a subsidiary of diversified conglomerate San Miguel Corporation, is allotting P30 billion for capital expenditures this year.

SMFB President and CEO Ramon S. Ang

During the firm’s annual stockholders’ meeting, SMFB President and CEO Ramon S. Ang said the capex will be allotted mainly for the expansion of its feedmills as well as the construction of new ones.

“At the moment we are expanding our Echague, Isabela feedmill from 500,000 tons per year and then also our feedmills in San Ildefonso, Bulacan; Sta. Cruz, Davao; and in Mandaue, Cebu,” said Ang.

He added that, “We are also in the process of building 7 new feedmills. These are greenfield projects of which each of these will cost about US$50 million dollars.” SMFB, through San Miguel Foods Inc., is the largest producer of animal feeds and operates a nationwide manufacturing network which includes 37 feedmills across Luzon, Visayas and Mindanao.

The Food Division ha recently built six new feed mills of which two facilities are in Luzon, in Bataan and San Ildefonso, and two in Davao and Misamis Oriental.

For the Animal Nutrition and Health segment, compound feeds are manufactured at 14 company-owned feedmills, seven of which are located in Luzon, three in Visayas and four in Mindanao, plus 23 third party-owned and operated feed plants located throughout the Philippines.

Most of these plants are capable of producing pelleted and crumble format feeds and two plants have extrusion capabilities to produce aquatic floating feeds.

The feeds business also maintains tolling arrangements for eight rendering facilities that convert animal by-products used as raw materials into some feed types.

The Animal Health and Nutrition segment had built five new feedmills with an estimated capacity of approximately 1,500 thousand metric tons for the period 2018 to 2020, one of which is equipped with capability to produce aquatic floating feeds.

These increased the Food Division’s capacity for higher margin products and help supply the Visayas-Mindanao region.