The Land Bank of the Philippines has approved a P1.3-billion financing package for Sagittarian Agricultural Philippines Inc. (SAPI), backing the construction of a large-scale feed mill complex in Ilagan City, Isabela.
The deal, finalized last month, includes a P1.2-billion term loan for the development of the 15-hectare Isabela Feed Mill Complex and a P100-million working capital credit line. The facility will be leased to Charoen Pokphand Philippines Corp., the local arm of Thai agribusiness giant Charoen Pokphand Group.
“This investment reaffirms Land Bank’s commitment to modernizing the agricultural sector, empowering local farmers, and strengthening the country’s food security,” said Lynette Ortiz, Land Bank president and CEO.
Strategically positioned in corn-rich Isabela province, the project is expected to boost logistical efficiencies in feed production, significantly reducing transportation costs tied to sourcing corn from Northern Luzon to mills in Tarlac and back.
Land Bank said the mill’s operations could raise corn prices by P1 to P2 per kilogram and benefit an estimated 97,734 smallholder farmers in Isabela and nearby regions. According to 2024 data from the Philippine Statistics Authority, farmgate prices average P18.63/kg for white corn and P15.45/kg for yellow corn.
The country produced 8.14 million metric tons of corn in 2024, down 3.2 percent from the previous year, amid fluctuating agricultural yields. The partnership aligns with Land Bank’s broader goal of strengthening the agriculture value chain and fostering rural development through targeted infrastructure investments.
