Mindanao agribiz firm gears up for Chinese market
The Anflo Banana Corp. (ABC) is signing a marketing contract with GoodFarmer Banana Trading Corp. (GoodFarmer) for its banana production in Davao Occidental.
Alex Valoria, president of the Anflo Group subsidiary, said the marketing contract will allow ABC to have a better price for its produce, while providing the buyer with the best harvest possible.
“We are excited to partner with GoodFarmer because we know they are good in what they do,” said Valoria.
He added the company also decided to partner with GoodFarmer because of its access to the China market. “This will provide us with opportunities for huge market and will also allow us to study possible expansion of our farms,” said Valoria, adding that the company is always on the lookout for expansion areas.
The agreement comes at a time when the Philippines and China have strengthened their trade and diplomatic linkages.
A year ago, President Rodrigo Duterte visited China and the two countries have since been discussing about strengthening their trade linkages with the Chinese government as the two countries signed about $24 billion in trade agreements during the President’s visit to the middle kingdom.
In a press statement released after his visit to China, President Duterte said the two countries “have opened formal lines of communications between our government and agreed on the full resumption of the regular bilateral consultations mechanisms which were put on hold for several years.”
The President has also been quoted as saying that if there is “(an) investment, we can have more businesses, make the economy grow and China would likewise benefit from it.”
Citing that the initiative of his company is in response to the call of the President to look for opportunities in China, Valoria expects that the engagement will allow both companies to grow their respective businesses as the banana producer will have a stronger marketing arm, while the trading company will have a primary source of premium produce.
“This is a very good synergystic relationship,” said Valoria.
Under the marketing contract, the ABC is selling 840,000 boxes of Class A bananas to GoodFarmer for two years.
The banana company will source the premium bananas from its 165-hectare farm in Don Marcelino, Davao Occidental.
GoodFarmer has been able to penetrate the Chinese market, considered among the biggest markets for banana with about 1.4 million in population based on government estimates.
In 2015, based on government data, the country exported about 448,000 metric tons of fresh bananas, most of them coming from Davao Region, with a value of about $157.5 million. (Ms. Carreon is with Corporate Communications at Anflo Management & Investment Corporation)