DEL Monte Pacific Ltd. (DMPL) has created a Plantation Rehabilitation Task Force to reset current standard operating procedures and support systems.
"A task force has been formed to restore gross margins both in the US and the rest of DMPL from the second half of 2025, as the group will still be carrying over high inflationary costs from [fiscal year (FY) 2024] in the first half of FY [2025], particularly in the US," DMPL Executive Chairman Rolando Gapud and Managing Director and Chief Executive Officer Joselito Campos Jr. said in a joint statement in its FY2024 annual report.
Some of the measures include the reduction of inventories in its US subsidiary, Del Monte Foods Inc. (DMFI), reduction of waste and inventory write-offs across the group, and cutback in warehousing and distribution costs in the United States.
DMPL also plans to consolidate its manufacturing footprint in the US, improve planning through digitization and clear organization accountability, rightsize its workforce, and reduce fixed costs.
It aims to boost productivity for the processed pineapple C74 variety.
In addition, DMPL will start land preparation by revisiting a suitable land acquisition at low elevation of around 350 to 450 meters above sea level, concentration of land preparation operations from January to May, and skewed planting during the rainy season.
Field maintenance, crop protection and nutrition are also part of the task force's plan through weed management, regular nutrition and pest control management, aggressive expansion in the use of drones for spraying and containment of mealybugs and white grubs, and modified production practices for marginal C74 fields to reduce cost per ton of fruit.
Shares of DMPL were up by 14 centavos on Monday, closing at P4.30 apiece.
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