DAVAO CITY - A processing plant for chicken will be put up to operate by July 2011 after San Miguel Foods, Inc. (SMFI) and North Star Asia Holding Corporations (North Star) signed a memorandum of agreement (MOA) here on Thursday.
SMFI was represented by Dr. Leo A. Obiar, general manager for Poultry and Meats Business while North Star by its president Engr. Vicente T. Lao.
The plant will be located at El Salvador in Misamis Oriental within a 3.7-hectare property where it will process chicken by sections of the desired requirement in SMFI's market in Japan.
Eric Irlandez, SMFI's Mindanao operations manager, said the new plant has a capacity of processing 30,000 birds per day and expandable to 40,000.
Irlandez said locating in the new site is ideal as it is near the source of raw product, making operating lower in cost.
He said the plant will strictly follow Good Manufacturing Practices and certified by the International Organization for Standards (ISO 9001 22000) and the Hazard Analysis and Critical Control Points (HACCP).
Meanwhile, Lao said they are now into the ground preparations including drilling of water source but it still has to pass quality assessment.
He said they already have picked three sites from the area where they intend to set up the plant.
He said when the plant's operation goes on stream, it will be a boost to the poultry production in Mindanao and we will be able to give more work to the chicken industry in the island.
On the other hand, the North Star is the toll processor for the export plant that will process the chicken produced by SMFI's contract growers particularly in Northern Mindanao.
Obiar said the new plant will boost their chicken production with the continuing demand in their market.
He cited that their Japan market is strict in terms of appearance and size and the products that they ship must follow specific quality and standard.
He said there is high demand of specific part for breast chicken sold in Japan as "yakitori" or the Japanese barbecue of packed 500 grams chicken part that comes with a barbecue stick sold in Japan market at about P300. This particular export product is processed in their Luzon processing plant.
With SMFI looking for other areas, Obiar said they consider Mindanao as a good site considering that it has good source of raw products.
He said operating a plant here would also provide more employment as processing is done manually and when the plant becomes operational, more manpower is needed.
At present, Obiar said about 400 to 600 metric tons of cut and packed chicken for the Japan market are processed in their Luzon plant and hopefully an additional 40 to 50 tons from the Cagayan de Oro plant.
He said with the new plant there will be other businesses that will be tapped considering that poultry growing would also need feeds. (PNA)