Aboitiz Group expands its feed mills

The expansion of their subsidiary Pilmico Foods’ feed mill to Lanao del Norte
is needed to support growing demand in the south and to reduce pressure on its
Tarlac mill, which has been operating at full capacity, according to Mr
Abiotiz.

He
further added that “Construction of the Iligan milling complex, with a capacity
of 10,000 t/month began in June last year and will be finished in two months. It
will be operated by our Fil-Am Foods.
In
addition the Aboitiz group will also expand Fil-Am Foods’ pig farms by building
new finishing and breeder facilities in Tarlac. These will be commercially
operational by 2009 and 2010, respectively. Pilmico and Fil-Am Foods will spend
Peso 900 million (m) for both capacity expansion projects. In addition, the
company will build more grain silos this year to give Pilmico the largest
flourmill storage capacity in the Philippines.”

At the end of March the
two Aboitiz subsidiaries income distribution grew 20% to P156 m year on year.
Revenues of its flour business rose 28% from a year ago due to higher selling
prices. Fil-Am Foods’ income grew by 125% due to strong volume sales for its
pigs business and favorable prices for both pigs and feeds.

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