Business

Pilmico to boost flour exports to ASEAN

October 25, 2016 | 10:30am

Pilmico is set to complete before year-end the P200-million packing line for flour solely dedicated for the export market.

Louise Maureen Simeon

ILIGAN CITY— Pilmico Foods Corp., the food unit of conglomerate Aboitiz Equity Ventures Inc., continues to beef up its export, both in flour and feeds, as the ongoing ASEAN integration hinders the growth of the company’s local market penetration.

Pilmico is set to complete before year-end the P200-million packing line for flour solely dedicated for the export market to boost its production and penetrate more areas.

"That will cater to export flour requirement because the export market is sensitive. They have different specifications and requirement. The quality will be affected if it will be combined with requirements locally," Pilmico Operations Vice President for Iligan Florencio Sebandal told reporters.

While Pilmico is relatively new in exporting its flour, Sebandal said the company aims to double its export volume to at least 4,000 metric tons (MT) per month from the current 2,000 MT.

With about 10 percent of total production, Pilmico exports to Indonesia, Vietnam, Thailand, Hong Kong, Myanmar and Malaysia.

Sebandal said the company’s move to focus on exporting is to counter the ASEAN integration that has been affecting the overall growth of Pilmico, and other companies as well.

"Because of the integration, they are now in the Philippines and that’s one of the reasons why we cannot grow since the volume is being eaten by the imported market and they are even building their own mill," he said.

"Local demand is being taken by imported flour because they are cheaper. This is like a counter attack on the entry of imported ones," he added.

While Pilmico continues to bank on exports, Sebandal said the company has yet to identify new markets outside of the ASEAN region.

"The first thing that we need to have is the complete understanding of the market and we are targeting different market segments," he added.

Producing 800,000 bags of flour on a monthly basis, Pilmico supplies 40 percent of its production to Mindanao, 30 percent to Luzon, 20 percent to Visayas and 10 percent to the export market.

The company’s flour supplies to food chains Yellow Cab, Jollibee and Shakey’s, and manufacturing companies Gardenia, Rebisco, WL Foods and Zest-O.

In terms of feeds, Pilmico is also starting to look into exporting to the Indonesian market before the end of the year for feeds for game fowls and poultry.

All of Pilmico’s feeds production is being consumed by the Visayas and Mindanao market.

Pilmico produces an average 23,000 MT of feeds per month, 70 percent of which is for swine while the remaining is allotted for poultry, game fowls, and others.

Pilmico is primarily engaged in the manufacture and sale of flour, feeds, and their by-products. It has a network of distributors and dealers located in the major cities of Manila, Cebu, Davao, Iloilo, Bacolod and Cagayan.