LISTED Philippine agriculture conglomerate Calata Corp. said it signed a strategic partnership agreement with the local subsidiary of Topigs Norsvin International, allowing the company to tap into Topigs’ genetic expertise in hog breeding.
In a disclosure to the local bourse yesterday, Calata said the joint venture to be formed as a result of the partnership with Topigs Philippines, Inc., Topigs Norsvin’s wholly owned subsidiary, will produce additional revenue of P200 million and margins of 35%.
“With this cooperation, the country will have safe and high-quality pork produced efficiently and with the lowest cost,” Calata said.
Topigs Norsvin was formed from the merger of Topigs International and Norsvin International AS in June. The company is based in Vught, in the Netherlands.
The Dutch company is reputedly one of the biggest swine genetics suppliers in the world, producing different hog breeds according to specification, which will vary based on a breeder’s market conditions.
The company produces over 1.55 million crossbred gilts and over eight million doses of semen per year.
Over 90 million slaughter pigs are produced with Topigs Norsvin genetics, according to the company’s Web site.
In its disclosure, Calata said it will acquire a 1,100-head breeding herd from Topigs Norsvin. Topigs will also supply genetic and scientific support related to breeding and production of the joint venture.
“This will enable the company to operate said nucleus unit within its wholly owned nucleus farm to produce and distribute world-class Topigs Norsvim breeding and slaughter pigs all over the Philippines,” Calata said.
Under the joint venture, Topigs will also support Calata “with technical information necessary for marketing and distribution of the pigs.”
Calata is a vertically integrated agricultural conglomerate that operates across the agricultural value chain, from agricultural raw materials to fertilizers and end products.
In 2011, it entered into long-term agreements with the San Miguel group for poultry and hog growing, and through this supplies one-third of the country’s hog and poultry growing requirements.
It also has a controlling stake in the meat business of Galicia Group, which supplies pork, beef and chicken meet to SM Supermarket, Puregold and other supermarket chains. -- Eric B. Dorente