MANILA - Poultry and feeds company Vitarich said Tuesday it set aside P80 million for capital expenditures this year, as it sought to double capacity one year after it exited corporate rehabilitation.
A new feed mill in Panacan, Davao will start operations in July, and is expected to double output to 232,000 50-kg bags of feeds per month, from 93,600 bags currently, said Vitarich president & CEO Rocco Sarmiento.
A dressing plant, also in Davao, will double capacity to 942,000 heads per month, while the automation and expansion of its mills in Iloilo will also bring capacity to 187,200 of 50-kg bags of feeds, from the current 93,600 bags,l he said.
In Luzon, animal feed capacity will get a 67-percent boost, while aquafeed capacity will see a 40-percent jump, he said.
While the company isn’t in a rush to tap the equities market, it is in talks with several potential, foreign investors, most of them Asian, he said.
“We would prefer strategic investors rather than financial investors. Right now we’re focused on what’s ahead of us, we’re pretty much doubling capacities nationwide," he said.
Vitarich which has a 1.5-percent of market share in the animal feeds industry, and a 2.5-percent share in the chicken business market is confident there is room for growth.
“There’s big demand locally right now, big deficit in terms of locally produced," he said.
On the regional level, Sarmiento said the Philippines' being free from bird flu was an advantage.
The company is also looking to set up one more feeds mill in Luzon, that could potentially cost half P500 million and take over a year to build.