MARKET DEVELOPMENT
FirstPac Eyes Cojuangco Mill
FirstPac Eyes Cojuangco Mill
29/10/2013 (Manila Standard Today) - Hong Kong-based First Pacific Co. Ltd. is scouting for investment opportunities in Philippine sugar milling, including the refinery owned by the family of President Benigno Aquino III in beleaguered Hacienda Luisita.
“We’re interested in sugar in general because Indofood is in sugar plantation and sugar milling and refining,” said First Pacific managing director Manuel Pangilinan, when sought for comment. Pangilinan is also president commissioner of PT Indofood Sukses Makmur Tbk.
Pangilinan earlier announced that First Pacific, together with PT Indofood, the largest integrated plantation and food company in Indonesia, planned to develop an oil palm plantation in Davao Oriental province.
President Aquino’s family owns Central Azucarera de Tarlac, a sugar mill inside the Luisita Agro-Industrial Complex in Tarlac that produces mainly sugar. CAT mills sugarcane produced from Hacienda Luisita, which is owned by the Cojuangco family and President Aquino’s late mother. It has been ordered by the Supreme Court to distribute its land to farmers.
“I think it’s a general interest, nothing has been finalized by anybody,” Pangilinan said.
“It’s a possibility because it’s a sugar mill,” Pangilinan said when pressed further if CAT could be a candidate for acquisition.
Tony Ligon, Hacienda Luisita spokesman, said “there is no formal talk yet” between CAT and First Pacific.
PT Indofood’s plantations cover over 300,000 hectares planted principally to oil palm, rubber, sugar, coffee and cacao. PT Indofood, controlled by the Salim family, is the world’s third-largest palm oil producer.
“Our interest in agriculture rests precisely because it can be a major creator of jobs in place where they’re desperately needed. Palm oil would be a start; we’re open to coffee, cacao, and rubber, as well,” Pangilinan said in a previous forum.
He said palm oil plantations require twice more workers than coconut farms.
Pangilinan said his group was pursuing an oil palm plantation in Davao Oriental because the global market for palm oil was nearly seven times in value than coconut oil.
“The cost of producing coconut oil is 27 percent higher than that for palm. And yet, palm oil yields about three times the profit for every hectare of production compared with coconut plantations,” he said.
He said palm trees could also be harvested a half the time it takes for coconut trees to mature.
“In this country, on average, 90,000 coconut hectares are needed to serve one coconut oil mill. For oil palm plantations, the ratio is one mill for every 5,000 hectares. This means more capital investment with 18 palm mills,” Pangilinan said.
“We’re interested in sugar in general because Indofood is in sugar plantation and sugar milling and refining,” said First Pacific managing director Manuel Pangilinan, when sought for comment. Pangilinan is also president commissioner of PT Indofood Sukses Makmur Tbk.
Pangilinan earlier announced that First Pacific, together with PT Indofood, the largest integrated plantation and food company in Indonesia, planned to develop an oil palm plantation in Davao Oriental province.
President Aquino’s family owns Central Azucarera de Tarlac, a sugar mill inside the Luisita Agro-Industrial Complex in Tarlac that produces mainly sugar. CAT mills sugarcane produced from Hacienda Luisita, which is owned by the Cojuangco family and President Aquino’s late mother. It has been ordered by the Supreme Court to distribute its land to farmers.
“I think it’s a general interest, nothing has been finalized by anybody,” Pangilinan said.
“It’s a possibility because it’s a sugar mill,” Pangilinan said when pressed further if CAT could be a candidate for acquisition.
Tony Ligon, Hacienda Luisita spokesman, said “there is no formal talk yet” between CAT and First Pacific.
PT Indofood’s plantations cover over 300,000 hectares planted principally to oil palm, rubber, sugar, coffee and cacao. PT Indofood, controlled by the Salim family, is the world’s third-largest palm oil producer.
“Our interest in agriculture rests precisely because it can be a major creator of jobs in place where they’re desperately needed. Palm oil would be a start; we’re open to coffee, cacao, and rubber, as well,” Pangilinan said in a previous forum.
He said palm oil plantations require twice more workers than coconut farms.
Pangilinan said his group was pursuing an oil palm plantation in Davao Oriental because the global market for palm oil was nearly seven times in value than coconut oil.
“The cost of producing coconut oil is 27 percent higher than that for palm. And yet, palm oil yields about three times the profit for every hectare of production compared with coconut plantations,” he said.
He said palm trees could also be harvested a half the time it takes for coconut trees to mature.
“In this country, on average, 90,000 coconut hectares are needed to serve one coconut oil mill. For oil palm plantations, the ratio is one mill for every 5,000 hectares. This means more capital investment with 18 palm mills,” Pangilinan said.