ARMM eyes Nestle for cassava production

• Source: http://www.pna.gov.ph/articles/1001780
• Wednesday, July 19, 2017 6:35 pm

(EOF/PNA)

COTABATO CITY, July 19 -- The Regional Board of Investments in the Autonomous Region in Muslim Mindanao (RBOI-Armm) Wednesday said the region is prepared to supply Nestle Philippines with cassava and cassava flour for its P2 billion Protomalt processing plant for Milo health food drinks.

Once a deal is sealed, the effort would help Lanao del Sur and Marawi City recovered economically from the devastation of the on-going armed conflict since the firm is based in Lanao and some of its workers are from Marawi City, Armm investment officials said.

Recently, Nestle announced that the construction of the Milo malt plant in Lipa, Batangas that started in late 2015 is expected to be completed and operational by October this year.

Lawyer Ishak Mastura, RBOI-Armm chair, said it was it was reported that Nestle sought the help of the Department of Agriculture to source and increase supply of cassava for its MILO plant. The main ingredients for the MILO drink processing plant are barley and cassava.

Last year, Armm has recorded the highest production of cassava in the country at 423,650 metric tons and contributed 55.6 percent to country’s total cassava output.

"We have discussed with the Armm economic cluster agencies that the Armm has a great economic opportunity with the planned establishment of the Nestle protomalt plant, whose main ingredient is cassava, because we are the country's biggest producer of cassava," Mastura added.

"In line with the rehabilitation and recovery of Marawi City and Lanao del Sur after the Marawi Siege and considering that cassava in the Armm is mainly produced in Lanao del Sur, the government can support our cassava farmers to expand their production and encourage new planters by building the logistics supply chain to meet the huge demand from Nestle and other end buyers," Mastura said.

The top producer of cassava in the ARMM Matling Industrial and Commercial Corporation (Matling) based in Malabang, Lanao del Sur, one the country's oldest corporations. Founded in 1928, Matling Corporation is the leading cassava plantation and cassava flour milling.

Armm Governor Mujiv Hataman welcomed the opportunity for cassava farmers in the region to increase prices for their produce with the establishment of Nestle's protomalt plant.

"What we want to happen is that economies of scale can bring the cost of production down, which will in turn bring up the net profit for our cassava farmers," said Hataman.

Both Hataman and Mastura were optimistic Nestle would consider cassava products from because it will help the economy of Lanao Sur and Marawi City recover fast.