Listed agribusiness firm Calata Corp. said on Wednesday that it is in talks for a possible partnership with a leading retailer of agricultural products for the expansion of its distribution network in Luzon.
Joseph Calata, president of Calata Corp., said that the company is pursuing an aggressive expansion of its distribution network, noting that the partnership with the local retailer would enable them to more than double their number of stores and suppliers offering their products.
“Once we finalized the partnership, our distribution network will more than double,” the executive said during the launching of its large-scale corn production and processing technology in Isabela province.
The farming executive, however, refused to disclose the local retailer but stressed that they are focused on expanding their retail outlets in Luzon.
“The partnership is expected to strengthen our position as one of the largest distributor of agricultural products in the Philippines,” he said.
At present, Calata Corp. has 116 stores located in various parts of Luzon that are operated by Agri Phil Corp., which it acquired at the end of 2012.
Besides expansion of its distribution network, Calata is looking to acquire a manufacturer of animal nutrition products to beef up its sales and income in the coming years.
The acquisition is expected to complement the company’s previously signed supply agreement with Argentinian firms, he said.
Recently, Calata signed an exclusive 20-year contract with Siembra Directa Corp. for the supply of agricultural inputs for the latter’s farm operations in the Philippines, worth some P1.6 billion.
The Bulacan-based agricultural product distributor is also currently the exclusive distributor in the Philippines of animal nutrition products made by Argentina-based Agroservicios Humboldt S.A.
Under the agreement with Agroservicios, Calata has the exclusive right to identify and represent business opportunities in all aspects of animal feed production, cereal mix, protein concentration, vitamin-mineral pre-mix and every product related to animal nutrition throughout the Philippines.
Agroservicios is an agribusiness company primarily engaged in wholesale and storage of grains, oilseeds, soybean, maize, sorghum, wheat, sunflower and other related products; production of a complete line of food and mix for animal nutrition.
On Wednesday, Calata and Siembra Directa showcased to farmers’ organization in Isabela the so-called “direct farming” method, a state-of-the-art technology in corn production that will help address the declining and ageing labor force and increase farmers income.
“Today, we are introducing a proven technology in tandem with effective farming practices such as zero tillage farming, which are already accepted norm in more advanced agricultural economies like Argentina, Brazil and the United States,” Calata said.