Philippines: Jollibee, Cargill JV to establish poultry processing plant

Visual sourced from the company's Facebook page.

Philippine fast food giant Jollibee Foods Corp (JFC) and a unit of US-based food conglomerate Cargill Inc signed a joint venture agreement for the creation of a local processing facility which is expected to create 1,000 full time jobs.

Called the “Cargill Joy Poultry Meats Production Inc”, the new joint venture firm will be developed in Santo Tomas town in the province of Batangas, Philippines.

Jollibee informed the local bourse on Tuesday that it signed the JV with Cargill’s wholly-owned subsidiary Cargill Philippines Inc, wherein Cargill and Jollibee will have a 70 per cent and 30 per cent stake, respectively.

The US agribusiness firm will oversee the setting up, management and operations of the poultry processing plant to be led by its managing director Paul Fullbright.

Jollibee revealed it will invest up to $5.2 million (P244.9 million) for 30 per cent stake in Cargill Joy Poultry Meats Production Inc, and another P15.2 million for a 30 per cent stake in Cargill Joy Poultry Realty Inc, where the new JV firm will lease the land where the plant be located.

Also Read: Philippines: Jollibee buys last 30% share in Mang Inasal for $43m

However, detailed investment figures from Cargill were not disclosed.

Besides job creation, the new processing facility is expected to provide 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.

Jollibee chief executive officer Ernesto Tanmantiong said they partenered with 150-year-old American firm to deliver high quality chicken products using 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,” Tanmantiong said. “The patnership will meaningfully benefit our customers, our operations as well as the overall Philippine food industry.”

Also Read: Philippines: Jollibee buys out partner stake in China-based food JV Happy Bee for $10m

He added Jollibee will maintain its strong relationship with key chicken suppliers in the Philippines and looks forward to sustained long term arrangements with them as businesses grow.

Meanwhile, Fullbright said Cargill is making additional investments in the Philippines to participate in the robust growth of its consumer sector.

“As in many other parts of the world where we do business, Cargill can also contribute in improving the system of hygiene, food safety, and quality by operating a world class facility and by setting high level of partnership with the poultry growers and farmers,” Fullbright said.

Also Read: After Smashburger deal, PH food giant Jollibee shows appetite for more M&As

The JFC Group of Companies is one of the largest buyers of chicken in the Philippines. Its brands Jollibee, Mang Inasal, Chowking, Greenwhich, and Burger King franchise sell significant volume of chicken products.

JFC notes it has a broad system of product supply chain that includes 13 commissaries in the Philippines.

The Philippines is Cargill’s first office in Asia which started in 1947 when the vegetable oil division started buying copra for export to the US. Cargill Philippines now employ over 460 people throughout the archipelago.

Also Read:

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Philippines: Jollibee buys out partner stake in China-based food JV Happy Bee for $10m

Indonesia’s Nippon Indosari, PH’s Monde Nissin form $12.4m JV firm

Philippines’ Monde Nissin buys out UK food firm Quorn for $831m

Alliance Select buys out JV partner, takes control of NZ-based Prime Foods

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.