ANI, Saudi partners to put up commercial farms in RP

MANILA, Philippines - AgriNurture, Inc. has entered into an agreement with a Saudi Arabian company to put up commercial plantation for pineapple, banana, rice and corn, as well as processing facilities.

In a disclosure to the Philippine Stock Exchange, ANI said that it signed last May 4 a memorandum of agreement (MOA) with Far Eastern Agricultural Investment Co. (FEAICO) to establish commercial sized pineapple, banana, rice and corn plantations and processing facilities in the Philippines.

ANI and FEAICO plan to establish demo plantations initially and grow gradually, through contract growing up to a core area of 50,000 hectares.

The plantations will grow food crops for local consumption and for export to the Kingdom of Saudi Arabia and other foreign markets.

ANI and FEAICO will enter into a joint venture agreement to set up a Philippine corp. with an initial capitalization of $1 million under a 60-40 percent equity ratio in favor of the Filipino partners.

The joint venture firm will seek fiscal and administrative incentives from the Board of Investments and the Philippine Economic Zone Authority.