Victorias Food to expand its canned meat business

Victorias Food Corp. (VFC), a subsidiary of the Negros Occidental-based Victorias Milling Corp. (VMC), is setting its sights next year on the lucrative pork meat market in Metro Manila.

VFC general manager Nelson M. Sotomil said the company is gearing up to expand its production and distribution of canned meat products such as lechon paksiw and luncheon meat by 2005.

Sotomil was a resource person during last Tuesday’s FMD Kapihan at the Bacolod Chicken House inside the Quezon Memorial Circle in Quezon City. The forum was sponsored by the Philippine Agricultural Journalists, Inc. and the National FMD Task Force of the Bureau of Animal Industry.

VFC opened last year an P80-million meat processing plant that produces sardines, canned meat products and fresh processed meats such as ham and bacon.

The food unit of VMC generates about P60 million in sales annually. Its 2002-2003 annual report shows that VFC made P48 million in sales at the end of its fiscal year in August last year despite the drop in canned fish sales. A 27-percent increase in exports helped it reverse a net loss of P1.9 million in 2002 to make a net profit of P2.6 million last year.

The meat processing plant, according to Sotomil, complements VFC’s vision to eventually market its products nationwide. Its slaughterhouse or abbatoir has a Triple A rating, servicing both pork and beef product requirements. Sotomil said the slaughterhouse is capable of processing 200 head of pork daily.

"The company is bent on launching its canned meat products next year in Metro Manila because it is an even bigger market than Visayas where we currently do business. We are just making sure that we have enough volume to be able to sustain the market," said Sotomil.

VFC also supplies its institutional clients with fresh frozen choice pork cuts such as pork leg, pork belly and pork chops.

"Eventually, our plan is to also go into retailing of our premium cut pork products and fresh processed meats and go into branding such as our Victorias bangus and sardines," said Sotomil.

Aside from Metro Manila, VFC is also planning to launch its canned meat products, fresh processed meat and choice pork cuts to Cebu, the biggest market in the Visayas region.

VFC’s long-term plan, according to Sotomil is go into the export market, especially after the government completes its program to make the entire country foot-and-mouth disease free by June 2005.

As this developed, Sotomil said VFC expects its export revenues from canned/bottled bangus and canned sardines to increase by 20 percent this year. The company exports 60 percent of its fish processing plant’s output to the US. It is also currently developing the Middle East and Southeast Asian markets.