Dairy Board deal in Philippines

Press, 9 May 1981, Page 19

Dairy Board deal in Philippines

The Dairy Board has entered into a joint venture company with the highlydiversified San Miguel Corporation of the Philippines, the chairman (Mr K. F. Mehrtens) announced. The new company has been formed with the object of expanding and diversifying the dairy products market in the Philippines. San Miguel is one of the largest publicly-owned companies in the Philippines. The company's Magnolia Division processes and distributes butter and cheese, sourcing the major share of its raw materials from the board. It is one of the board’s oldest customers in South East Asia, and San Miguel has the major share of the butter and cheese market in the Philippines. Announcing the formation of the new company from

Kuala Lumpur during the course of a series of Government and business visits in South East Asia, Mr Mehrtens said that the formation of the joint venture company will strengthen the board’s position in a dairy products market in which it is now earning around S7OM annually. During the last five years the Philippines butter market has enjoyed a growth rate of more than 12 per cent and in the same period the cheese market has averaged an annual growth of more than 13 per cent. By joining forces with San Miguel, the board will be better placed to promote the further expansion of the market for butter and cheese — and in due course, other dairy products — and to strengthen, the position of its Anchor brand in the market, he said.