CALATA Corp. on Friday said it will invest P100 million in the joint-venture entity it will form with Dutch firm Topigs Norsvin International. Calata said in a statement that the company will be sole operator and manager of the nucleus farm with the breeding herd from Topigs.
As such, the company will own all of the profits.
Revenues from the joint venture are expected to reach some P200 million with an annual margin of 35 percent, it said. According to its deal with the firm based in the Netherlands, Calata will acquire from Topigs a nucleus unit with a 1,100-head breeding herd composed of great-grandparent and grandparent breeding stock.
Topigs will also supply genetic and scientific support, knowledge and technical expertise related to the breeding and production activities of the joint venture, and will support the company with technical information necessary for marketing and distribution of the pigs in the Philippines.
“Considering that Calata Corp. already owns and operates the nucleus farm where the breeding herd will reside, it is currently in compliance with all necessary legal permits,” the company said.
“With this new operation, the company will have its own source of breeding and growing hogs to be distributed to other breeders and growers in the Philippines. This additional operation shall complement the company’s meat-distribution business by providing the latter with stability and sufficiency in its supply, thereby establishing consistency in its revenue stream,” it added.
Topigs claims to be one of the biggest swine-genetics suppliers in the world with a production of more than 1.55 million crossbred gilts and over 8 million doses of semen per year.
More than 90 million slaughter pigs are produced with Topigs and Norsvin genetics annually, it said.
VG Cabuag