Aboitiz Foods boosts supply chain resilience ahead of El Niño

Aboitiz Foods is strengthening its supply chain operations and expanding production capacity to help maintain food security as the Philippines prepares for the potential effects of El Niño and continued disruptions in global markets.

The company said proactive planning, supplier coordination and investments in local production are essential to maintaining food availability amid climate-related and economic uncertainties.

According to figures cited by the company from the National Disaster Risk Reduction and Management Council (NDRRMC), El Niño has affected nearly 451,000 people nationwide, with agricultural losses and damage reaching P6.5 million.

With El Niño conditions expected to persist into early 2027, according to PAGASA, food producers face growing pressure to manage raw material availability, production costs and distribution.

“Food security is not just about having enough food available today. We also need to consider how reliably we can produce and distribute food, and how we can withstand disruption and continue serving communities over time,” said Teddy Deocares, first vice president for supply chain at Aboitiz Foods.

“That requires us to look ahead, understand potential risks, and work closely with our partners to maintain continuity across the supply chain.”

Operating in eight countries, Aboitiz Foods said it is coordinating with suppliers to secure advance arrangements, monitor commodity prices and assess shipping conditions to minimize potential disruptions.

The company is also reviewing inventory requirements, water availability and feed quality to support uninterrupted production of animal nutrition products.

“We are taking a proactive approach by monitoring developments early, planning our purchases and freight arrangements, and coordinating across our teams, so we can make more informed decisions and reduce avoidable disruption,” Deocares said.

Beyond climate concerns, the company cited geopolitical tensions in the Middle East and rising fuel, freight and raw material costs as additional challenges to food production.

It also highlighted difficulties facing Philippine hog raisers, particularly when farmgate prices fall below production costs, affecting their ability to sustain operations and reinvest in their farms.

“A resilient food system must work for consumers, farmers, and businesses to remain sustainable over the long term,” Deocares said.

As part of its expansion, Aboitiz Foods is developing a Pilmico feedmill at West Cebu Estate in Balamban, Cebu, to increase production capacity and complement its existing facility in Iligan City.

Through subsidiary Pilmico Animal Nutrition Corporation, the company is also working with partners to reopen a meat-cutting plant in Butuan City, which will supply fresh pork to restaurants, food businesses and households.

The initiatives are intended to strengthen local processing and distribution while improving supply chain flexibility.

Deocares also emphasized the importance of cooperation among businesses, farmers, government agencies and consumers in reducing food waste and maintaining sustainable food supplies.

“Even at the household level, simple practices such as reducing food waste, using food and water responsibly, and avoiding unnecessary stockpiling can make a difference,” he said.

The company reiterated its commitment to strengthening food security through investments, regional partnerships and proactive supply chain management.