SAN MIGUEL Corp. (SMC) is studying how it can tap more farmers to source raw materials for its food products while helping farms stay profitable, the company said, as the country grapples with the health emergency brought about by the coronavirus disease 2019 (COVID-19).
“We are looking for ways to be able to tap more farmers for rice production, corn, cassava, coconut oil, pork, chicken, among others,” said SMC President and Chief Operating Officer Ramon S. Ang in a statement on Friday.
“Through this, we hope to be able to support the livelihood of our farmers and secure our future supply of food,” he added.
He said the move would also spur economic activity across the food value chain that includes farmers and other participants such as suppliers of agricultural inputs, processing facilities, and shipping to retailers.
The diversified conglomerate said that in recent weeks, it had “intensified” buying of cassava from more than 17,000 farmers nationwide through 130 assemblers.
SMC’s food unit San Miguel Foods Inc. is among the country’s biggest producers of fresh meats, poultry, processed meats, flour, dairy products, spreads, and coffee. It said it was willing to buy products at guaranteed prices for the benefit of farmers.
“We want to make sure that farmers will directly benefit. It’s not only people in Metro Manila who are in need of help but also, our kababayans in the provinces, including our farmers,” Mr. Ang said.
“Our local farmers have long been a major part of San Miguel’s supply chain. We source many of the raw materials for a lot of our products from them. They are even more important and critical now, especially given the tight competition for products in the global market,” he added.
He urged more farmers to plant and assured them of a ready market for their produce.
“Right now, we have more than enough inventory for our present needs, up to over six months. But we will still buy their produce, so we can further ensure supply. This will also allow us to start preparing for the succeeding months,” Mr. Ang said.
The company said that since the start of the Luzon-wide enhanced community quarantine in March, it had been expanding food production to ensure supply in store shelves.
SMC has so far donated nearly P1 billion to support the response to COVID-19. Of that amount, P227 million worth of its food products has been distributed to so-called vulnerable sectors in Metro Manila and provinces in the Visayas and Mindanao.
“At this point, lives are more important than profits. Once all of this is done, we can always go back to business and start anew. Once a life is lost, you can never bring it back. It’s gone forever. We choose life over anything else,” Mr. Ang said.
