Agrinurture Inc., a listed company owned by businessman Antonio Tiu, expects to earn P6 billion annually from a partnership with Vietnam’s largest grains exporter Vietnam Southern Food Corporation-Joint Stock Company, or Vinafood II.
“With the passage of the Rice Import Liberalization Law, which opened the country’s doors to unimpeded importation of rice, the group is expecting to earn as much as P6 billion annually after it secured an exclusive deal to import rice from Vietnam’s largest grains exporter,” said Agrinuture in a regulatory filing.
Agrinuture in September confirmed that it reached an agreement with Vinafood II to supply exclusively two million metrics tons of long grain rice a year.
“The group is currently coordinating with VINAFOOD II for the initial shipment,” the company said.
Vinafood II is a state-owned corporation tapped by Vietnam to export rice and help achieve food security in Southeast Asia.
President Rodrigo Duterte in February signed the Rice Tarification Law liberalizing the importation, export and trading of rice.
Meanwhile, Agrinuture said it posted a first-quarter consolidated gross profit of P213.6 million on the back of the strong performance of both the local and foreign businesses.
The first quarter results reflected a strong double digit growth of 86 percent from P114.9 million posted a year ago.
“The increase was due to the increase in sales in exports, retail and distribution as well as the consolidation of Fucang’s operations from sale of commodities and real estate properties,” the company said.
Zongshan Fucang Trade Co. Ltd. is one of the company’s subsidiaries. It acquired 70 percent ownership of Guangzhou Lexian Fruit Industry Co. Ltd., a Chinese company engaged in wholesale trade.
Agrinurture’s Philippine operations in the first three months of 2019 contributed 39 percent, while sales from foreign operations accounted for 61 percent of consolidated sales.
Exports received a boost from the stable selling prices of banana and coco juice in the international market, the constant supply of raw materials and increased customers, especially in the China market. Jenniffer B. Austria
Agrinuture expects to continue increasing its sales volume of banana in the succeeding quarters, on top of higher shipments for mango and beverage products, such as canned coconut water.