BOI okays Php 5.7-B Purefoods Hormel expansion project
By Kris M. Crismundo
MANILA, Feb. 24 (PNA) — The Board of Investments (BOI) has registered the Php 5.68-billion expansion project of Purefoods Hormel Company, Inc. as preferred activities under agribusiness and fishery sector in the Investment Promotion Plan (IPP), the agency said on Friday.
The company, a joint venture of San Miguel Corp. and Hormel Netherlands, Inc., will be doubling the production capacity of its plant in General Trias, Cavite to 121,200 metric tons per year from its current annual capacity of 60,000 MT.
Purefoods Hormel will boost production of its processed meat, particularly hotdogs, which 98 percent of the total production is for domestic market and the remaining 2.0 percent will be for exports.
It will start the operation in December this year adding 1,242 workers.
Furthermore, Purefoods Hormel aims to partner with local small-scale entrepreneurs to source their raw materials including meat, spices, and casings.
In particular, the company has Cassava Assembler Program composed of 500 farmers cultivating some 500 hectares of land for cassava plantation.
The group of farmers can produce 1,000 to 1,500 MT of cassava which are processed into cassava chips as feeds for hogs — the main ingredient for hotdog production.
The company’s Cassava Assembler Program provides guaranteed market with purchase agreement, guaranteed floor prices, start-up technical assistance, and research and development activities to farmers.
“The undertaking supports the thrust of the administration to further promote rural and value chain development towards increasing agricultural and rural enterprise productivity,” Trade Secretary and BOI Chairman Ramon Lopez said. (PNA)