Calata inks P1.6-B deal with Argentine firm

MANILA, Philippines - Publicly-listed Calata Corp. announced recently  that it has signed an exclusive 20-year contract with Siembra Directa Corp. for the supply of agricultural inputs for the latter’s farm operations in the Philippines.

Calata Corp. chairman and CEO Joseph Calata said the deal is worth P1.6 billion.

Calata said it welcomes the partnership with Siembra, an agricultural technology company registered in the Philippines and affiliated with Argentinian firms JM and Fimaco.

Calata said its partnership with Siembra will help “promote and advance the use of environmentally-responsible and state-of-the-art farming technologies in the country”. Siembra is known worldwide for its promotion of the Argentinian farming method using “automated planting, fumigation and harvesting techniques”. It also uses modern post-harvest facilities, Calata said.

Calata also said the “entry of Siembra to the Philippine agriculture industry underscores the vast potential of the food production sector in attracting international investments”.

Calata Corp. also recently disclosed to the Philippine Stock Exchange that is has generated gross sales of P2.07 billion for the first nine months of 2012, close to 100 percent more than its sales revenue of P1.2 billion for the same period last year.

Calata Corp. also registered gross profits of P217 million as of the end of the third quarter, nearly twice the P153 million generated during the first nine months of 2011.

According to Joseph Calata, the developments “have further strengthened the leadership of the conglomerate in the agriculture sector and boosted our plans for continuing expansion”. Calata Corp. had earlier announced that it intends to increase the number of its outlets to 140, mainly in agricultural areas in Luzon.

“With our aggressive approach, we expect to reach more Filipino farmers and provide them with access to more modern and environment-friendly farming technologies,” he said.

This is in line with Calata Corp.’s goal of helping Filipino farmers become more productive and competitive through the use of more efficient farming methods and inputs, he added.