MANILA, Philippines (July 11, 2024) — Business titan Manuel V. Pangilinan is dipping further into the dairy business as he will buy out for around P700 million a Bukidnon-based milk company to increase the supply of his ice cream venture
Pangilinan confirmed to The STAR that he will be acquiring Bukidnon Milk Co. to raise the dairy supply for premium ice cream brand Carmen’s Best of The Laguna Creamery Inc., where he has a controlling stake.
“Sales of our ice cream products have been growing exponentially and we are slowly running out of milk supply from our dairy farm in Bay, Laguna,” Pangilinan said.
“We are buying another dairy farm in Bukidnon to supplement the supply. Maybe we could ship some of the milk to Manila because we want to expand our fresh milk supply and we want to get into yogurt and cheeses,” he added.
Sources privy to the buyout told The STAR that the transaction is estimated to cost at least P700 million. This would make it larger than Pangilinan’s P198 million acquisition of a majority stake in The Laguna Creamery in 2022.
Sources said Metro Pacific Agro Ventures (MPAV), a subsidiary of Metro Pacific Investments Corp., is wrapping up negotiations with Bukidnon Milk with the goal of closing the deal this July, in time for Pangilinan’s birth month.
Pangilinan said Bukidnon Milk has a capacity three to four times bigger than MPAV’s dairy farm in Bay, Laguna.
Based on data from the US Department of Agriculture’s Foreign Agricultural Service in Manila, the Philippine market for ice cream products is estimated to reach $408 million, of which $105.3 million is imported.
Pangilinan made his first dip into the dairy business in 2022 when MPAV took on a 51-percent share in The Laguna Creamery, the maker of Carmen’s Best. Pangilinan views his entry into the dairy industry as another step toward food sufficiency.
Apart from this, MPAV partnered with Israel’s LR Group Ltd. to put up the Metro Pacific Dairy Farms through a 60:40 sharing in favor of the Metro Pacific Group. The facility can produce as much as 6.5 million liters of milk every year once it begins operations in 2025.
MPAV hopes to grow the revenue of its dairy business to P500 million by 2025 and P1 billion by 2027.
In earlier interviews with reporters, Pangilinan aired his frustration over the dairy supply in the Philippines, lamenting that 99 percent of the demand is served by imported milk and 70 percent of the supply is powdered, not fresh.
Pangilinan said this import dependency is caused by low yields in dairy farming, as farmers are unable to go beyond traditional practices.
This is where Bukidnon Milk pours into the glass. The company runs a 460-hectare grazing farm in Maramag, Bukidnon—the first and biggest of its kind in Mindanao—where cows are allowed to wander freely.
Bukidnon Milk practices a kind of dairy farming that gives cows a stress-free landscape, as opposed to the usual confined animal feeding operations method. The company also boasts that it neither enriches nor fortifies its milk products, doing nothing more to them than light pasteurization and homogenization to retain their natural nutrients.
In its facility, Bukidnon Milk uses RFID readers and automated sensors for safety and sanitation, and it also employs indigenous peoples in the community to provide them with jobs.
To date, Bukidnon Milk sells its milk products in select outlets of Balai ni Fruitas, Landers, S&R, and SM, and supplies dairy items for coffee shops in Mindanao.
Bukidnon Milk takes care of around 2,000 cows in its land and the company supplies to at least 50 businesses nationwide. (Jasper Emmanuel Arcalas, Elijah Felice Rosales /The Philippine Star)