Vitarich shifts focus back to feeds business

Listed company Vitarich Corp. announced over the weekend that it is shifting its strategic focus back to its feeds business, where margins are better and the market is more stable.

In the process, Vitarich will significantly reduce its exposure in its poultry business that has been hit by oversupply and low demand during the past several years, leading to company losses.

Ariel Arias, Vitarich vice president for corporate affairs, said the decision to refocus on the feeds business will help the company regain profitability in the medium-term and at the same time position it for long-term growth.

"We expect a stronger Vitarich, with a more favorable outlook, because of this strategic shift," Arias said.

The chicken industry as a whole has been suffering from an oversupply. Coupled with weak consumer spending because of the economic slowdown, the oversupply has led to falling chicken prices while production costs have gone up. Also, the continued importation of chicken parts has likewise contributed to the industry’s downtrend.

With the strategic shift, Vitarich expects its feeds volume to increase significantly as the company channels resources from its poultry business towards this direction, Arias added.