MANILA - Dairy product trader Lacto Japan Co. is foraying into the Philippines to meet growing dairy demand there.
The company will establish a wholly owned sales unit, Lacto Asia (Philippines) Inc., in October due to increasing demand for dairy ingredients, it said Friday.
"Our shipments in the Philippines have rapidly grown in the past few years and sales there now account for 30 percent of total sales in Asia outside Japan," Kenji Bundo, executive officer, told NNA on Monday, adding the company expects further growth in demand thanks to the country's fast-growing economy, and young, large population.
Lacto Asia Pte. Ltd., the Tokyo-based firm's 100 percent subsidiary in Singapore, will fully fund the Philippine unit with capital of $500,000, it said in a statement.
Lacto Japan has set up cheese processing and sales units in Indonesia, Singapore and Thailand, and a sales arm in Malaysia, as it cashes in on rising demand for dairy and cheese products in the region, helped by a growing population and the spread of western food culture, it said.
The Japanese company procures and sells dairy ingredients, cheese, processed meat and other products globally.
It says it is gearing up business in the Asian market as free-trade deals, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, bring about a changing business environment and opportunities for dairy product trading. (NNA/Kyodo)