June 19, 2013

 
Calata sees higher profit in 2013
 

Philippine agricultural products distributor Calata Corporation is projecting higher profit margins this year from increased sales on its own brand of agricultural chemicals and veterinary medicines.

Company president Joseph Calata said selling these products under their own brand will allow the firm to expand its product margins by "200 % to 300 %, from the present 15 %."

He declined to disclose the brand name pending proper disclosures with the Philippine Stock Exchange, and registration with the Intellectual Property Office.

Calata explained that the patents on most of these chemicals and animal health products have already expired, allowing him to have these manufactured as a generic brand which he promised to sell cheaper than the multinational companies.

The company is also looking to acquire an animal health company that will enable it to double its retail store outlets from the current 116 in Luzon.

The firm posted a net income of PHP110 million (US$2.5 million) in 2012 on the back of gross revenues amounting to PHP2.2 billion (US$50.90 million). Calatasays they are targeting higher profits, while declining to reveal the firm's targets.

Calata Corp. is a publicly listed company and is considered the biggest distributor of agrochemicals, feeds, and fertilizers in the country.

Calata recently partnered with SiembraDirecta Corp., a company that imports state-of-the-art agricultural machines from Argentina. He said he wants to introduce mechanized farming in the country to boost the productivity and incomes of farmers.

He said the traditional farming practices used in the country have lowered soil fertility resulting in the "loss of valuable moisture and nutrients." Using farm machines, Calata hopes to introduce "zero-tillage farming," a proven technology that has raised the yields of farms in advanced agricultural economies like Argentina, Brazil and the United States.

The partnership was launched here on Wednesday at Calata's 300-hectare corn farm, which the company is leasing from some 60 farmers at PHP11,000 (US$254.12) per hectare. It is touted as the first fully mechanized corn farm in the country.

Calata said he hopes to inspire the other corn farmers in Isabela to adopt the new technology. One small mechanical planter is estimated to cost US$16,000 (PHP688,000) which can plant 20 hectares a day.