SMC to buy 4 million kilos of surplus corn from DA, to utilize its Petron stations as outlets for farm produce

BUSINESS
April 26, 2020

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San Miguel Corporation (SMC) is teaming up with the Department of Agriculture (DA) to mass purchase agricultural produce, starting with four million kilos of surplus corn, to provide a lifeline to farmers and help secure the country’s food supply in the midst of COVID-19.
    The surplus corn is enough to produce feeds for over 7 million live broilers that can eventually feed 4 million families in one day.
    SMC is also in talks with the DA to utilize strategic Petron stations nationwide as outlets for government’s “Kadiwa ni Ani at Kita” rolling store program, to make farm produce such as fruits and vegetables accessible to consumers. The program is the market system project of the DA that links local farmers to consumers to ensure the sale of agricultural produce at reasonable prices.
    “Through this program with the Agricultural department, we will be able to keep our farmers afloat as we navigate these uncertain times. At the same time, we also help people stay safe, healthy and nourished by providing them a convenient way to buy fresh fruits and vegetables from our local farmers,” SMC president and COO Ramon S. Ang said.
    Petron stations that will be initially tapped as venues for Kadiwa stores are Filinvest, Dasmarinas/Edsa and Katipunan/La Vista. The company said that more gas stations will be added in the coming days. Currently, SMC’s Petron stations also serve as sites for SMC’s Manukang Bayan refrigerated vans, which bring fresh chicken and other refrigerated and canned meats closer to consumers.
    He thanked the DA for offering its network of corn and cassava farmers to supply its San Miguel Foods, Inc. with raw materials for continuous food production.
    “We thank the DA for helping us identify possible sources of corn and cassava and farmers who are in need of help. By helping them, we will also ensure that we get the needed raw material supplies for our various food products,” he said
    Among these are some 25,000 hectares of corn farms in Cagayan, where much of the surplus corn will come from. The company is also looking to the DA to link it with cooperative heads in Tuguegarao for sourcing of cassava.
    SMC said it will buy the produce at pre-agreed prices and volume, as part of a long-term partnership.
    The company has also reiterated its call to farmers nationwide to supply rice, corn, cassava, sweet potato, coconut oil and other farm products that will be bought at guaranteed prices for the farmers benefit. 
    Ang emphasized the need to sustain economic activity in the food value chain, which includes agricultural products suppliers, processing, and shipping to retailers. 
    SMC has assured a stable food supply for at least six months even beyond the ECQ with the 24/7 operation of its food facilities. SMC’s food facilities can produce a daily output of 1.96 million kilograms of fresh meats (poultry, beef, and pork); 524,000 kilograms of processed meats (canned meat, nuggets, and hotdogs); and 2.11 million kilograms of flour/baked goods (flour, biscuits, pandesal, and nutribuns).
    It also continues to donate food products, rice, and flour to vulnerable communities in support of the government’s Covid-19 relief efforts.

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