Corn-y Success

Chances are, the fresh Japanese sweet corn sold in any Metro Manila grocery or supermarket comes from Pentagon Agribusiness Corp. It wasn’t always so.

Pentagon started out in 1990 with P172,000 capital and six hectares of leased farm lands in Rizal. "With one hectare, I harvested 50,000 to 60,000 ears a day. From that six hectares alone, I grew by 1,000%, which was why I kept expanding the area," said president Arleen Valera.

From the start, Pentagon chose not to plant one contiguous area. Instead, the land was divided into several plots, which were properly labeled as to the time and day of planting and expected hour of harvest after 65 days. As a result, the company was able to plant and harvest daily, on the one hand, and sell the harvest immediately to retail outlets, on the other hand.

"I reached my goal of 100 hectares on the fifth year," said Valera, who took up plant science at the University of the Philippines-Los Baños and finished his MBA at the Asian Institute of Management. "When I talk of 100 hectares, it is not 100 hectares of contiguous flat area but an accumulation of plots that have been planted and harvested daily because it is difficult to talk to so many farmers," said Valera.

Partnership

Today, Pentagon’s operation is concentrated in 120 hectares of land in Mexico and in Floridablanca, Pampanga.

Farmers who agree to having their farms planted to sweet corn (when palay is not being grown) are provided the hybrid seeds and inputs (including organic fertilizers and pesticides) and trained on the proper timing and application of inputs as well as when to harvest and sow the seeds and plow the fields.

"I do not only rent their farm; I also pay them salaries, including the laborers hired in harvesting and plowing the field. For this reason, my operation has an economic impact on these localities," said Valera.

Canned Corn

To increase consumption, Pentagon intends to diversify into the canned sweet corn market, which is currently dominated by foreign companies.

"We intend to test-market our canned corn to our regular institutional buyers such as the ice cream makers in the summer of 2005," said Valera. "Our objective is import substitution so that the country not only saves precious dollars but also creates employment and props up the economy in the predominantly mono crop (rice) countryside."

Right now, the company is busy working with the Department of Science and Technology on two projects. One is a technology that would increase the shelf life of canned corn to as much as three years. The other is the fabrication of a de-kernelling machine that would cost millions of dollars if it were imported.

The company is also expanding the hectarage planted to corn to Basa Air Base, also in Pampanga, as well as to Mindanao. Particularly attractive are Davao and Bukidnon, which shipping facilities that could ship products daily to Metro Manila.

"This project is going to need more money than Pentagon can raise alone. We’re open to local and foreign investors, either through stock option, issuance of company bonds, or outright financing," said Valera.