Metro Pacific agri unit eyes dairy coup

Metro Pacific Agro Ventures Inc. (MPAV), the agribusiness unit of Metro Pacific Investments Corp. (MPIC), is on track to double its milk production by year-end, a strategic move expected to enhance profitability and improve efforts toward creating a homegrown dairy industry.

In an interview, MPAV president and CEO Juan Victor Hernandez said the company has been expanding its dairy operations through a mix of greenfield and brownfield investments.

At the moment, the country imports 99 percent of its dairy product requirements.

Hernandez revealed MPAV’s dairy farm in Bay, Laguna has increased its herd size to 140 milking cows, to reach 200 by December, which will effectively double the company’s overall milk output.

“The acquisition of Bukidnon Milk Company immediately adds to the pool of milk supply that is required by the company to further grow,” Hernandez said.

He highlighted that the Bukidnon Milk Co., which has a herd of 1,000 cows, 200 of which are currently milking, complements MPAV’s existing dairy operations in Laguna.

Moreover, the acquisition is set to improve ice cream production and distribution efficiency in the Visayas and Mindanao regions.

According to Hernandez, MPAV’s ice cream division has been performing exceptionally well, with revenue for the first half of the year already equaling the full-year figures from 2022, largely due to the acquisition of Carmen’s Best.

The company is also introducing a new variant, “Carmen’s Best Lite,” which has received positive market reception.

“Our dairy self-sufficiency is (targeted) by 2026. I think that’s very critical for the daily business to move forward. Our ice cream business is growing,” Hernandez said.

Overall, he said MPAV is delivering solid growth across its agribusiness segments, with ice cream already delivering positive EBITDA and dairy expected to follow by next year. 

Greenhouse in Bulacan

Meanwhile, in the greenhouse business, construction in Bulacan is progressing steadily.

The 3.5-hectare facility is expected to begin commercial production in January 2025, with an annual capacity of 800 metric tons of vegetables.

Hernandez mentioned that there are plans to double this area to seven hectares next year to increase production capacity to 1,600 metric tons.