Aboitiz Foods announced plans to expand into East Malaysia (Borneo) by 2025, investing in an integrated feed-to-farm business model in collaboration with a local joint venture partner.
“We’re studying expansions in East Malaysia in 2025, and this will entail us building out an integrated feed-to-farm business model together with a joint venture partner in that country,” Aboitiz Foods president and chief executive Tristan Aboitiz said during the annual stockholders’ briefing Monday.
This follows a recent expansion of feed milling capacity in Vietnam, increasing the Long An plant’s output to 300,000 metric tons annually as the plant approaches full-capacity output.
The $45-million facility plans to increase its manufacturing capacity to 300,000 tons of animal nutrition feed annually from 200,000 MT.
Aboitiz said the company allocated capital expenditures this year for the construction of research and development farms in Malaysia, Vietnam and the Philippines to support its feed business growth.
“We have seen stronger-than-expected feed volume growth in the Philippines and Indonesia over the past 12 months, which has prompted further studies for expansion in these markets,” he said.
Aboitiz also cited the company’s recent expansion in China, where it opened a new feed mill in Yunnan under the Gold Coin brand.
The Yunnan facility has an initial capacity of 150,000 metric tons per year, with plans to increase capacity to 270,000 metric tons.
The company is also refurbishing several of its finisher farms in Tarlac province to support sow population growth.
Addressing global risks, Aboitiz pointed to the potential impact of trade tariffs on raw material costs, particularly for corn, soybeans and wheat, much of which is sourced from the United States.
“Initially, my concern was about short-term volatility because if US products like corn and soybeans become preferred under trade concessions, prices could jump. But long term, prices are more influenced by global supply and demand, not just tariffs,” he said.
