A MEMORANDUM agreement was signed between Laak Multi-Purpose Cooperative (Lamco), the Local Government Unit (LGU) of Laak, Compostela Valley, and Vitarich Corporation was signed Monday, May 29 at the Department of Agriculture (DA) Davao Regional Office for the production and purchase of clean and dry corn.
As Vitarich Corporation recently opened their aqua feed mill plant in Bunawan, Davao City, the production and market demand for yellow corn in the region was also expected to increase. The company is known in the agribusiness sector to be a pioneering brand in poultry and feeds production in the country. Their recent expansion in Davao City is an advantage for farmers in the region especially of yellow corn producers.
“Usually the problem of our farmers is they do not have buyers after harvest. So, Vitarich will act as guaranteed buyers of Lamco. We guarantee a minimum of 200 tons per month for one year as long as it passes the quality and specs. We also have the lock on price of P14 for the first 200 tons. Any excess of that will be negotiated,” said Vitarich Corporation President and Chief Executive Officer (CEO) Ricardo Manuel Sarmiento.
“This should help Lamco to start operations in planting corn and hopefully, their production increases and spill over other areas in Mindanao. We will also be helping them improve their quality. We will be working together to bring their quality up to our specs,” added Sarmiento.
In a separate interview with DA Davao Regional Director Ricardo M. Oñate, Jr. last December he said their office will act as a “middle man” between the corporation and the local farmers, promising help to local farmers to ensure that the corns they produce are also of high quality.
“What is good is the mayor of Laak (Antonio L. Libuangan) has his all-out support to the farmers that he allotted P4 million for the seeds and fertilizers of the yellow corns. For DA’s part, we will provide the dryer and the production equipment. We will provide tractor and other post-harvest facilities,” Oñate said.