CPF Philippines to lease new US$20M feed mill under construction in Isabela
The Land Bank of the Philippines is extending a US$21.3 million loan to fund the mill’s construction, along with a US$1.77 million credit line for working capital support.
PHILLIPINES – Charoen Pokphand Foods Philippines (CPF Philippines) is set to lease a major new feed mill currently under construction in Isabela province, a move that promises to strengthen the company’s integrated poultry and livestock operations across Luzon.
The 15-hectare Isabela Feed Mill Complex is being developed by Sagittarian Agricultural Philippines, Inc. (SAPI) with significant financial backing from the Land Bank of the Philippines (Landbank).
Under the financing agreement, Landbank is extending a PHP 1.2 billion loan (US$21.3 million) to fund the mill’s construction, along with a US$1.77 million credit line for working capital support.
The project aims to bolster CPF Philippines’ ability to meet the growing demand for high-quality feed in its farming and food operations.
CPF Philippines, one of the country’s leading agro-industrial companies, runs fully integrated poultry operations that span from feed production to food processing and distribution.
By sourcing feed ingredients locally, the new facility is expected to boost demand for corn in the region and support smallholder farmers. Isabela province, the country’s top corn producer, accounts for roughly 20% of the Philippines’ total corn output.
This strategic investment is seen as a catalyst for rural economic development and agricultural modernisation.
“With this investment, Landbank reaffirms its commitment to modernising the agricultural sector, empowering local farmers, and strengthening the country’s food security and supporting the agriculture value chain,” said Lynette V. Ortiz, president and chief executive officer of Landbank.
The loan and credit line agreement was formally signed on April 23, with key executives and local officials in attendance. Representing Landbank were Eduardo N. Reyes Jr., first vice president of the Northern Luzon Lending Group, and Myra Myrtha M. Padolina, head of the Northern Isabela Lending Centre.
SAPI was represented by President and CEO Jose Avelino C. Diaz and corporate secretary attorney Danver Albert R. Arzaga. Witnesses included City of Ilagan Mayor Josemarie L. Diaz, Vice Mayor Kyrill S. Bello, CPFPC Vice President Suchart Panparn, CPFPC Assistant Vice President Darwin Lictawa, and Landbank Account Officer Honeylee B. Gomez.
Thailand’s CPF to buy Itochu’s stake for US$1.1 billion
This expansion in the Philippines coincides with significant corporate activity by CPF’s parent company.
In a separate announcement, Thailand’s Charoen Pokphand Foods revealed it will acquire the 23.8% stake in C.P. Pokphand held by Japanese trading house Itochu Corp for US$1.1 billion, making CPF the sole owner.
Bermuda-based C.P. Pokphand, which focuses on animal farming and processed food sales in China and Vietnam, was previously jointly owned by CPF and Itochu. It was delisted from the Hong Kong stock exchange in 2022 following a joint offer.
“Being the sole shareholder will allow CPF to have greater flexibility in management and be able to carry out strategic operations more effectively,” Charoen Pokphand Foods said.
Itochu expects an impact of approximately 125 billion yen (US$888.1 million) on its net profit for fiscal year 2026 as a result of the sale.
Sign up HERE to receive our email newsletters with the latest news updates and insights from Africa and the World, and follow us on our WhatsApp channel for updates.
