By Bernie Cahiles-Magkilat

San Miguel Foods, Inc. (SMFI), a subsidiary of the country’s premier food conglomerate San Miguel Pure Foods, Inc., is expanding its footprint with two meat processing projects worth P2.4 billion.

The projects have been registered by the Board of Investments (BOI) with income tax incentives and one percent duty on imported capital equipment, among others needed for the production of whole dressed chicken and further processing of chicken parts (marinated and deboned).

The two meat processing projects are located in Sta. Cruz, Davao del Sur (P1.3 billion) and in Pagbilao, Quezon province (P1.1 billion).

Both plants are scheduled to be operational by January 2018 and are expected to employ around 1,127 personnel.

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 annually; the Quezon plant with annual production of 10,009MT of processed chicken and 22,972 MT of further processed chicken parts. Broilers will come from SMFI’s contract growers.

Based on its BOI registration, these projects will be fully mechanized, integrated processing facilities by utilizing the technology of electric stimulation in carcasses.

According to SMFI, the technology will improve the quality of chicken by enhancing bleeding capability of carcass and meat tenderness even without maturation by chilling process.

Both facilities will be constructed as “AAA” plants in compliance with the standards set by the National Meat Inspection Service (NMIS).

The plants will have blast freezers, chilled holding rooms, cold storage for frozen products and corresponding utilities. It will be also be equipped with cutting edge wastewater treatment facilities in accordance with the Clean Air Act and the presence of rendering plants to convert solid waste into poultry meals for its feed milling activities. Rendering plants will be complemented with bio-filters to weed out any foul odors within the facilities.

Trade Undersecretary and BOI Managing Head Ceferino Rodolfo welcomed the approval of the project saying “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 within Mindanao, South Luzon and GMA areas.”

SMFI is a subsidiary of San Miguel Pure Foods Co., Inc. (SMPFC), the food division of San Miguel Corporation, which is one of the country’s largest conglomerates. SMFI has diversified products in the agro-industrial sector, with businesses ranging commercial feeds, poultry to pork and beef.