MVP Group dipping into dairy

MANILA, Philippines — After scooping up a majority stake in a luxury ice cream brand, the MVP Group is setting its sights on dairy production, with the goal of minimizing the country’s dependence on imported food products.

In an interview with reporters, Metro Pacific Investments Corp. (MPIC) chairman and president Manuel V. Pangilinan said the company would focus its expansion projects next year on food production.

In particular, Pangilinan said MPIC plans to enter the dairy segment to increase the country’s output of products like milk and its derivatives.

In June, MPIC signed a deal with the Carmen’s Best Group as part of its moves to expand its portfolio in the agriculture sector. In turn, the Carmen’s Best Group integrated its assets into The Laguna Creamery Inc., of which the MPIC bought a 51 percent stake for P198 million.

The Carmen’s Best Group makes the premium brand Carmen’s Best Ice Cream and the locally pasteurized Holly’s Milk. It runs a cow farm in Bay, Laguna, where it sources 80 percent of its milk requirements for its dairy products.

“We have several interests in food production apart from Carmen’s Best, which is quite small, but the opportunity to expand in the dairy business is there because we import more than 90 percent of our dairy products,” Pangilinan said.

“And we want to remedy that to the extent that we are able to locally produce milk products and derivative milk products like yoghurt and cheese that the Philippines can consume,” he said.

This way, he said the country can somewhat cut its imports of dairy and milk, benefitting consumers hurting from rising costs as the peso weakens against the dollar.

“We don’t have to import that much dairy products. It then helps save up on dollars,” he said.

In a report, the US Department of Agriculture’s Foreign Agricultural Service said the Philippines imports 99 percent of its dairy requirements.

The agency explained that domestic output fails to meet the annual demand of around 2.9 million metric tons of milk equivalent.

“Following the declines in demand in 2021 due to the pandemic, dairy imports are expected to recover in 2022, as the economy reopens, most of the population is vaccinated and customers return to restaurants,” the report said.