Listed agribusiness firm Calata Corp. has partnered with China’s leading feed producer New Hope Group (NHG) as part of the aggressive expansion of its business in the Philippines.
In a disclosure to the Philippine Stock Exchange, the Bulacan-based farm input distributor said that the partnership with NHG is expected to dramatically increase additional corporate revenue streams, and further increase the company’s continuing business growth.
“By virtue of its ever aggressive business initiatives, in the coming years, the company envisions that it shall likewise be the leader in the agribusiness sector in the Philippines,” Calata said.
“Under the agreement, we will be creating our own brand from NHG’s product line, which will be distributed all over the country,” Joseph Calata, Calata chairman and chief executive officer, said in a text message. Calata also said that it is exploring other possible expansion of their partnership with NHG, adding that the company might also supply the Chinese firm with raw materials from Argentina.
“The partnership with NHG is expected to strengthen our position as one of the largest distributor of agricultural products in the Philippines,” he said.
With annual sales of around $8.8 billion, NHG is a national leader in the field of agribusiness enterprise in China.
NHG is one of the largest feed producers in China with annual production capacity of 26.6 million tons. NHG is also one of the largest suppliers of meat, egg and dairy products in China providing more than 200 million poultry, and half million tons of milk each year.
NHG’s processing capacity of poultry comes to 750 million and that of pigs comes to 8.5 million heads each year. Calata is the country’s largest combined distributor of farm inputs.
At present, Calata has an exclusive 20-year contract with Argentina’s Siembra Directa Corp. for the supply of agricultural inputs for the latter’s farm operations in the Philippines.
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.
Agroservicios is an agribusiness company primarily engaged in wholesale and storage of grains, oilseeds, soybean, maize, sorghum, wheat, sunflower and other related products; and production of a complete line of food and mix for animal nutrition.
James Konstantin Galvez