Philippines: AgriNurture bets big on fruit exports

Listed AgriNurture Inc. expects fruit exports this the year to post significant increases as the company expands its network in Asia and the United States. The company is setting up joint-venture subsidiaries for expansion as "good fundamentals" encourage the company to take an aggressive stance, Tony Tiu, AgriNurture president, told Malaya Business Insight. Last year's revenue increased substantially as a result of higher food prices, a trend seen to continue next year, he said. Tiu said mango, banana and pineapple exports go mainly China. Demand for banana in China continues to be good, Tiu said. China picked up the slack following a drop in demand in the Middle East. But Tiu said AgriNurture is looking for a wider market.
To meet its export targets, the company is looking for more partners to supply its needs. "We are looking for area expansion to increase our supply," said Tiu. Tiu said they expect the contribution of banana to reach 30 percent this year with the increased demand from China, exceeding the contribution of mango, which for this year is expected to contribute 15-20 of revenues. Tiu said the company is finalizing a joint-venture unit that will handle the pineapple distribution business. The unit will likely be in place in 90 days. Tiu declined to give specific details, saying "we will make a disclosure in time." Market players, however, appeared to have got wind of the company's plans, with AgriNurture's share rising 8.07 percent in the past three days at P8.43 per share from P7.80 on Friday. There were also reports of a planned acquisition by AgriNurture of the master franchisee of Washington-based Tully's Coffee for the Philippines.