February 8, 2012
Cargill Philippines confident on 2012 sales of coconut oil, animal feed
Cargill Philippines, Inc. expects profits to grow by double-digits this year as it looks to export more coconut oil as well as sell more animal feed, an official said.
Cargill country representative Philip G. Soliven said they are anticipating growth by 10 to 20%.
Soliven said the growth will be fuelled by the company''s core businesses such as coconut oil and animal feeds production. He said coconut exports will be hopefully relatively robust this year plus as well as its wheat grains processing for the animal industry.
Soliven said they are expecting an across-the-board growth since the economic growth is seen to be better this year than 2011 on government spending for 2012.
Coconut oil, which is exported to the United States and Europe, has not been affected by the unhealthy economic conditions in the West, he claimed.
Soliven states that the Philippineshas been a "successful geography for Cargill in the last three years."
Despite the slow growth, he said the county remains to be a venue to grow market share. However, the company is not keen on expanding this year as the focus is instead on existing business. Soliven claims that Cargill is bullish in Mindanao and they are eyeing for more business activities in the region.
The company processes its coconut oil in General Santos City and has an animal feed plant in Cagayan de Oro City.
The company is also exports carrageenan, which is being used for ham and gelatin processing.
Soliven went on to clarify reports that Cargill is investing in listed firm AgriNurture, Inc. after Black River Capital Partners Fund (Food) LP reportedly bought shares in the listed agribusiness firm.
Soliven stated that there is a "hedge fund managed by Black River Capital and it is one that is looking for an investment in AgriNurture.
He further said that the fund itself is owned by Cargill, but the money in the hedge fund is not by Cargill as the company doesn''t have a close association with the planned investment in AgriNurture.