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LR Group boosting local dairy sector in the Philippines; Joint venture with Metro Pacific Dairy Farms

14 February 2023

 “We share the same values with MPIC and MPAV in terms of maximizing what their country has to offer primarily in land, natural resources and skills, and in turn helping their local communities thrive,” LR Group co-founder and CEO Ami Lustig said.

Teaming up with Metro Pacific Dairy Farms (MCIP), using our modern technology in agriculture, we are able to launch dairy facility to boost Philippines dairy production.

This joint venture present a significant growth opportunity for MPIC and the Philippines, as the country currently imports 99 percent of its annual dairy requirements. Our aim is to build a world class and modernized increase in the country’s fresh quality milk production and to reduce the amount of imports of the Philippines milk supply targeting to meet 20 percent of the country’s daily demand.

Laguna is expected to produce 6.5 million liters of fresh milk a year. There will be an initial capacity of up to 2,000 cows where, therefore, it will have an initial of 1,000 cows, which will undergo regular health monitoring to ensure quality milk.

The farm facility will also have highly mechanized and automated operations to maximize fresh milk’s shelf life, which will ensure adherence to quality and safety standards. It will also be equipped with solar farms that will produce power for the dairy facility, a water treatment plant that will provide human-grade drinking water for the cattle, and a waste management facility that will allow the facility to produce fertilizer.
Apart from locally produced fresh milk, there will also have processing plant capabilities to produce other milk-derivative products such as low-fat milk, chocolate milk, yogurt and other popular dairy products for the local market.

The construction of the facility will start in 2023 and take approximately two years to finish, while commercial operation is projected to commence by late 2025 to early 2026.

Apart from ramping up the Philippine dairy industry, MPDF also plans to solidify a relationship with local corn farmers for the cattle feed rations. It also aims to be a future training facility for future farmers and experts in agriculture, in partnership with academic entities.

“Our investment in agriculture is synonymous to food security and substantial independence, but will ultimately become a means of alleviating hunger in our country – a pressing issue that we have taken as a challenge to address,” MPIC chairman, president and CEO Manuel V. Pangilinan said.

MPIC earlier said it was ramping up investments in the agriculture sector to help reduce the country’s dependence on food imports amid ongoing global supply chain disruptions and high inflation.