Dolefil sets expansion plans

POLOMOLOK, SOUTH COTABATO — Pineapple giant Dole Philippines, Inc. (Dolefil) is looking at expanding internationally as well as domestically in the near term, a top executive of the company said over the weekend. In a talk with members of the media, Kevin Davis, Dolefil managing director, said the company was eying China and a remote village in Lake Sebu as expansion sites. Mr. Davis disclosed the expansion plans amid fears that the company would pull out from Polomolok. The Dolefil official categorically denied the speculation. "We’re looking at China [as an expansion area] because it makes economic sense. We do have to spread our economic risks," he said in a briefing held at the company’s clubhouse in Kalsangi district. "What a lot of people don’t understand is that we import a lot of products from China, repack them here and export them. Quite honestly that does not make economic sense," Mr. Davis added. He stressed that the expansion to China would allow the company to directly pack goods from there and export them to other countries. This, he said, would allow the firm to remain competitive. Talk that the company would stop operations in Polomolok was floated by local labor militants after the company was nominated in the embarrassing Public Eye Global Award, a distinction accorded to the world’s most "irresponsible companies." It is traditionally given in Switzerland during the World Economic Forum by civil society groups. Mr. Davis shrugged off the nomination, claiming that a "few disgruntled people are out to stain the reputation" of the company that has been operating here since the early 1960s. Locally, he said the far-flung village of Ned in Lake Sebu town is being considered as an expansion area. He noted that the company has a facility in Surallah, South Cotabato that was previously owned by the T’boli Agro-Industrial Development, Inc. Both towns are in the upper valley area of the province and another town. T’boli is also a source of pineapple products for the company. Dolefil acquired the cannery of T’boli Agro in 2006 for P311 million. Mr. Davis said that Dolefil would continue to expand its facilities in the area at a 10% year-on-year growth. The company is also increasing its farm size for pineapple plantations, targeting a 10% to 15% hike by 2010, he said, adding the company is three years ahead in terms of its goal. A company presentation two years ago showed Dolefil has 24,000 acres (9,600 hectares) of pineapple plantation maintained by the firm and another 10,500 acres (4,200 hectares) planted by contract growers. "What we plant this year is already for 2010," Mr. Davis said. Dolefil’s existing pineapple plantations span the towns of Polomolok, Tupi, T’boli and Surallah in South Cotabato province and the municipalities of Maasim and Malungon in Sarangani. — Romer S. Sarmiento/BusinessWorld