Vitarich boosts supply of poultry products
Animal feed and food product manufacturer Vitarich Corp. entered into a memorandum of agreement (MOA) with its subsidiary to continuously meet its poultry requirements while managing the cost of sustaining operations.
The accord between Vitarich and its unit Barbatos Ventures Corp. (BVC) is a contract growing arrangement wherein the latter will produce chicken and other poultry products for the listed parent firm.
The MOA covers BVC’s dressing plants in Marilao, Bulacan, and Tugbok, Davao City. It has a five-year term and may be extended upon mutual agreement between parties.
BVC is a poultry production company that operates farms but specializes in dressing plant operations.
“Vitarich entered into this MOA due to the need to address regulations in each locality, to manage labor costs, and to avail of tax incentives and efficiencies of a contract growing arrangement,” Vitarich told the Inquirer in an email correspondence.
Vitarich explained that dressing operations are labor-intensive, which cover weighing, slaughtering, dressing, scalding, doing cut-ups, marinating and packaging.
It noted the transaction pricing varies depending on the service provided but the cost is typically 20 to 30 percent lower than having toll arrangements with other dressing plants.
“The MOA is part of [Vitarich’s] growth strategy to increase efficiency in operations and improve its capability for further processing of products for its hotel, restaurants and institutional clients, and its capability to produce quality Cook’s food products,” it added.
In 2022, Vitarich completed the acquisition of BVC from Luzon Agriventure Inc.
