BOI oks San Miguel Food’s P2.4-B meat processing project
The Board of Investments (BOI) has approved the registration of San Miguel Foods Inc.’s (SMFI) P2.4-billion meat processing project under the prevailing Investment Priorities Plan, which entitles the company to fiscal and non-fiscal perks.
In a statement yesterday, the BOI said SMFI was registered as a producer of whole dressed chicken and further processed chicken parts (marinated and deboned).
The company will put up two meat processing plants— one in Davao del Sur and the other, in Quezon.
The plant in Sta. Cruz, Davao del Sur would cost P1.3 billion while the project in Quezon would account for the remaining P1.1 billion. Both of these projects, according to BOI, will be a fully-mechanized, integrated processing facilities. They will use the technology of electric stimulation in carcasses.
SMFI is a subsidiary of San Miguel Pure Foods Co. Inc. (SMPFC), the food division of listed San Miguel Corp., one of the country’s largest conglomerates. SMFI carries diversified product lines including commercial feeds, poultry, pork and beef.
The BOI said SMFI’s technology would improve the quality of chicken by enhancing bleeding capability of carcass and meat tenderness through the chilling process. Both facilities will be constructed as “AAA” plants in compliance with the standards set by the National Meat Inspection Service (NMIS).
“The finished products will boost the domestic market demand, with further processed chicken parts targeted for established fastfood brands like Jollibee, McDonald’s and KFC in Mindanao, South Luzon and GMA [Greater Manila Area],” said Trade Undersecretary and BOI Managing Head Ceferino Rodolfo.
The projects are registered under the 2014 Investment Priorities Plan, said BOI, which is a list of preferred investments that would be granted certain incentives such as income tax holiday and duty free importation of capital equipment.
Both plants are scheduled to be operational by January 2018 with a combined expected employment of 1,127 people.
The Davao del Sur plant is expected to produce 17,215 metric tons (MT) of dressed chicken and 16,892 MT of further processed chicken parts yearly.
On the other hand, the Quezon plant would have an annual production of 10,009 MT of dressed chicken and 22,972 MT of further processed chicken parts. Broilers would come from SMFI’s contract growers, BOI added.
