Calata Corp. has partnered with Chinese firm New Hope Group (NHG) to “aggressively pursue” agribusiness opportunities in the country.
LISTED Calata Corp. on Monday said it has partnered with Chinese firm New Hope Group (NHG) to “aggressively pursue” agribusiness opportunities in the country.
Calata said the partnership with the Chinese firm, a family-owned corporation, will improve corporate revenues. It did not reveal details on how it would carry the business venture in the country.
“By virtue of its ever-aggressive business initiatives in the coming year the company envisions that it shall, likewise, be the leader in the agribusiness sector in the Philippines,” Calata said.
NHG claims as China’s leader in agribusiness, with annual sales of around $8.8 billion. The Chinese firm is one of the largest feed producers in China with annual production capacity of 26.6 million tons.
It is also one of the largest suppliers of meat, egg and dairy product in China providing more than 200 million poultry, and half million tons of milk each year.
NHG’s processing capacity for poultry is rated 750 million and 8.5 million pigs each year.
In 1996 NHG initiated its overseas strategy and set up the first overseas plant in Vietnam in 1999. It has established eight overseas plants in Vietnam, Bangladesh, the Philippines, India and Indonesia. It has more than 400 subsidiaries and over 80,000 employees.
Calata has been forging partnerships with various international companies since the start of the year.
In April it signed an agreement with Argentinian firm Agroservicios Humboldt SA to sell its product line in the Philippines.
Its board has authorized the company’s President and Chief Executive Officer Joseph Calata to enter into negotiations for possible acquisitions and expand the company’s reach other agriculture-related businesses.
The company’s net income dropped by 35 percent for the first six months of the year to P38.2 million, from last year’s P59.21 million as a result of the increase in operating expenses as it consolidated the expenditures of its retail stores.
Its sales, on the other hand, decreased by more than P300 million to P870.3 million from last year’s P1.17 billion as it tried to focus on selling products that have higher margins.
“The sales of the higher margin products have increased significantly and have even exceeded the company’s expectations, but it is still lower than the decrease in the low margin products,” it said.