The local unit of Thailand-based food conglomerate Charoen Pokphand Foods PLC will invest $1 billion in the Philippines as part of its five-year expansion plan aimed at increasing hog production.

According to the Department of Agriculture (DA), Charoen Pokphand Foods Philippines Corp. (CPF) is targeting to raise its hog output from 1.3 million heads to seven million by 2030.

Based on the company’s plan, it seeks to produce as much as 4.8 million heads in Luzon, 1.2 million in Mindanao, and one million in Visayas.

CPF is currently evaluating nine locations across the country that will house its agro-industrial complexes, each covering roughly 20 hectares (ha).

These complexes will include feed production and hog processing facilities, with each expected to cost around $125 million to build.

The feed output of these facilities is projected at around 10,000 tons per month, which would require corn production from about 5,000 ha.

Agriculture Secretary Francisco Tiu Laurel said the investment plan aligns with the government’s ongoing efforts to achieve the vision of a zero-kilometer food system, where food is produced where it’s needed.

With this, he said CPF should consider situating some of its facilities near major tourist hubs to help ease food costs.

Tiu Laurel also said the investment advances the government’s push to foster agricultural investments in the country, which aims to create jobs and ensure food security.

“CPF’s plan signals a major push for the local pork industry, focusing on enhanced production capacity, farm modernization, and greater support for local pig farmers,” the Secretary said.

Earlier this year, the DA tapped CPF for a pilot program in which the company would supply 100 live hogs per day, at a discounted price, to state-run Food Terminal Inc. (FTI).

These hogs were processed into fresh pork carcasses, which were then delivered to various retailers in wet markets as a measure to stabilize pork prices.

Moreover, Tiu Laurel said CPF’s planned investment is in line with the DA’s efforts to restore the country’s hog population to previous levels by 2028.

Since the first outbreak of African swine fever (ASF) in 2019, the country’s swine population has fallen from 13 million to around eight million heads.

The DA recently unveiled a repopulation plan, which includes a vaccination drive, to help restore the hog population to pre-ASF numbers within the next three years.

Complementing these efforts, the Animal Industry Development and Competitiveness Act (AIDCA) was recently enacted into law, allocating ₱20 billion annually over the next decade to develop the livestock, poultry, and dairy sectors.

Under the law, 26 percent of the ₱20-billion fund will go toward repopulation, herd build-up, and the improvement and accreditation of established breeding centers or stock farms.

Of this, 70 percent is earmarked for hog repopulation, 20 percent for poultry, and five percent each for native and other animals.