MVP at forefront of beefing up dairy industry

MANILA, Philippines —  Business tycoon Manuel V. Pangilinan plans to establish national dairy champions nationwide as he beefs up his investments in the dairy industry following his acquisition of Universal Harvester Dairy Farms Inc. (UHDFI), the  operator of Bukidnon Milk Co.

Metro Pacific Agro Ventures (MPAV), a wholly owned subsidiary of conglomerate Metro Pacific Investments Corp. (MPIC), has entered into agreements to acquire 100 percent of UHDFI as part of its goal of providing fresh and high-quality milk products to the public.

The acquisition valued at more than P700 million complements the current resources of The Laguna Creamery Inc., where MPAV is a majority shareholder, in Pangilinan’s plan of establishing a national dairy champion with farms across the country, a nationwide reach and a comprehensive range of products.

MPAV emphasized that the recent buyout is a testament to the company’s continued support for the dairy industry, which it noted is an “underserved” segment of the economy.

The country imports virtually 99 percent of its dairy requirement as local milk production remains minuscule. The government aims to increase local milk production to five percent of domestic demand by 2028.

“Establishing this strategic beachhead in Mindanao complements our dairy farms in Luzon, bringing us closer to our mission of achieving nationwide food security,” said Pangilinan, chairman and president of MPIC and chairman of MPAV.

“Our operations in Laguna have not only improved the accessibility of fresh dairy, but also fostered an ecosystem of milk farmers who supply to us, creating a virtuous cycle of increased domestic milk production,” he added.

UHDFI, located in Maramag, Bukidnon, produces fresh milk, flavored milk, yogurt and cheese products under the Bukidnon Milk brand, with presence in key cities across the Visayas and Mindanao.

MPAV said UHDFI is the largest state-of-the-art dairy production facility in the country, and a showcase for community, private sector and government partnership.

UHDFI is a major supplier of products for the National Dairy Authority (NDA)’s Milk Feeding Program, primarily focused on ensuring schoolchildren have regular access to high-quality fresh milk, according to the MPAV.

The acquisition of UHDFI is a “significant” step toward MPAV’s goal of becoming a “dairy masterbrand” that serves Filipinos with a full range of dairy products from ice cream, milk, yogurt, cheese and butter, among others, which are all fresh and locally produced, said MPAV president and CEO Juan Victor Hernandez.

MPAV said the completion of the acquisition is subject to various conditions, which include regulatory consents and other customary closing conditions.

Nonetheless, the How family, who founded UHDFI in 2015, will work with MPAV in ensuring a smooth transition of operations.

“We have narrowed the technology gap with our Asian and Western counterparts, pushing the boundaries of dairy innovation in the Philippines. UHDFI is a testament to Filipino ingenuity, perseverance, and the power of agriculture to transform lives,” said Milagros Ong-How, founder of UHDFI.

“We believe that MPAV is the right partner to take our vision to the next level. This partnership will not only expand our reach, but also enhance the quality and range of dairy products available to Filipino consumers. We look forward to contributing to the continued growth and success of the dairy industry in the Philippines,” Ong-How added.

MPAV is now also eyeing to invest in corn plantations and silage production to further enhance its dairy portfolio.

MPAV targets to expand the revenue of its dairy portfolio to P500 million by 2025 and P1 billion by 2027, confident that its recent business moves would speed up its growth.