Aboitiz Foods Strengthens Supply Chain Planning for El Niño and Market Disruptions

Aboitiz Foods is strengthening procurement, freight and operational planning to help maintain supply continuity amid potential El Niño impacts and market disruptions.

In its World Food Day announcement, the regional food and agribusiness company outlined preparations covering raw-material availability, inventory requirements, water supply and feed quality. It also detailed planned production and processing projects in Cebu and Butuan intended to strengthen its Philippine operations.

“Food security is not just about having enough food available today. We also need to consider how reliably we can produce and distribute food, and how we can withstand disruption and continue serving communities over time,” said Teddy Deocares, First Vice President for Supply Chain at Aboitiz Foods.

“That requires us to look ahead, understand potential risks, and work closely with our partners to maintain continuity across the supply chain.”

Preparing Purchases, Freight and Inventory

Aboitiz Foods, which operates across eight countries, said it is monitoring commodity trends, market developments and shipping conditions while coordinating with suppliers on advance arrangements where possible.

Its teams are also reviewing the availability of key ingredients and inventory needs for selected commodities. Operational preparations include assessing water availability and maintaining feed quality.

These measures aim to support customers whose farms and businesses depend on a reliable supply of animal nutrition products.

“We are taking a proactive approach by monitoring developments early, planning our purchases and freight arrangements, and coordinating across our teams, so we can make more informed decisions and reduce avoidable disruption. We also look at how we can help customers respond to changing conditions,” Deocares said.

Planned Feedmill to Add Flexibility in Cebu

The company’s planned Pilmico feedmill at West Cebu Estate in Balamban, Cebu, is expected to increase production capacity and complement its existing feedmill in Iligan City.

The Iligan facility serves customers across the Visayas and Mindanao. Aboitiz Foods said the additional Cebu facility would provide greater flexibility within its Philippine manufacturing network.

In Butuan City, subsidiary Pilmico Animal Nutrition Corporation is working with partners to relaunch a meat-cutting plant. The initiative aims to bring the facility back into operation to supply fresh pork to restaurants, food businesses and households.

Supporting Producers Across the Food Chain

Deocares emphasized that supply reliability also depends on whether farmers and businesses can sustain their operations.

The company highlighted the pressure on hog raisers when farmgate prices fall below production costs, making it harder to reinvest and maintain production.

“A resilient food system must work for consumers, farmers, and businesses to remain sustainable over the long term,” Deocares said.

He called for closer public-private collaboration to strengthen local production, improve the ability to respond to disruptions and address producers’ challenges.

Deocares also encouraged households to reduce food waste, use food and water responsibly, and avoid unnecessary stockpiling—extending the company’s call for preparation from production facilities to everyday consumption.