Calata invests P100M on hog breeding facility

MANILA, Philippines - Listed agribusiness firm Calata is investing P100 million to put up a hog breeding facility in Santa Maria, Isabela that could supply both breeding and slaughter stocks to farmers.

In an exchange filing yesterday, the company announced that it has recently signed a joint venture agreement with Topig Norsvin International through its wholly-owned subsidiary Topigs Philippines Inc.

As provided for in the joint venture, Calata is acquiring from Topigs Norsvin a nucleus unit with 1,100 head of breeding herd composed of great grand parent (GGP) and grand parent (GP) breeding stock.

Calata Corp. chairman and CEO Joseph Calata said the nucleus unit would be multiplied in the company’s wholly-owned nucleus farm in Sta. Maria, Isabela. From the initial herd, he estimates that 24,000 heads could be produced annually, 28 percent of which are breeder stock while the rest are for slaughter.

Topigs would also provide the technical support related to breeding and production activities in the nucleus farm. The hog supplier would likewise provide Calata with the technical information for marketing and distribution of hogs in the country.

“All breeding facilities and growing facilities can buy from our facility. Demand for pigs nowadays is very high and supply is low,” he said in a text message.

With this new project, Calata Corp. projects to earn a minimum additional annual revenue of P200 million. The company’s investment in the project covers the cost of the breeding herd, importation of additional GGP A line gilts (young pigs) and as well as production licensing fees.

Calata identified Topigs Norsvin as one of the largest swine genetics suppliers in the world. To date, it produces 1.55 million crossbred gilts and over eight million doses of semen annually. The hog supplier also produces more than 90 million slaughter pigs.

Topigs Norsvin, said Calata, is known for its innovative approach to implementing new technologies and cost-efficiency measures in pig production. These include a state-of-the-art breeding program, combination of high-throughput phenotyping, large-scale tomography of boards, global nucleus breeding, massive gathering of production data and genonomic selection.

The joint venture agreement was signed between Martin Bijl, CEO of Topigs Norsvin International; Ramon Jimenez, general manager of Topigs Philippines Inc.; Joseph Calata, chairman and CEO Calata Corp.; and  Glenn Illing, regional director for Asia and Pacific and Africa of Topigs Norsvin International.