Dutch firm invests in RP potato plantation

Dutch firm Lamb Weston/Meijer, the world's number one frozen potato supplier, is investing in the Philippines through a 500 to 700-hectare potato plantation venture with AgriNurture Inc. (ANI).

LWM will initially test with ANI in Baguio, Benguet, and Sorsogon potato varieties developed in Europe which are known for their exclusive traits. One of a long list of potato varieties to be tried here is the red lily. LWM has big-sized potato varieties weighing 500 grams each developed as raw materials for processed potatoes like chips and fries.

When the trial proves local suitability of the varieties, the companies will go into a full-blown commercial production on 500 to 700 hectares.

This will have an important import substitution function, along with jobs generation and upgrade of local farming practice.

"All our potato factories import more than half (of their raw material requirement) from China , Vietnam . (With the venture with LWM), we'll be able to compete with other countries," said ANI Chief Executive Officer Antonio L. Tiu in an interview.

At 300,000 pesos per hectare production cost, the potato growing will need an investment of up to 210 million pesos.

The potato plantation is just one of the business integration efforts of ANI. It is now expanding its honeymelon production to 50 hectares first and then to 100 hectares. It already has 1 hectares in Arayat, Pampanga.

It plans to propagate honeymelon in Visayas and Mindanao (where they grow best due to the climate). This will make the honeymelon available not just during the dry season but year-round. It now seeks Department of Agriculture's help for the identification of lands there.

ANI first developed through research and fieldtesting the variety it thought is best—a succulent, extra sweet, disease resistant, and packing and transport-resilient Taiwan variety that grows to 1.2 kilos per piece and yields 40 metric tons per hectare, double the traditional yield in the Philippines.

On the other hand, LWM is a big farm production and processing firm associated with billion diversified food conglomerate ConAgra, Inc. which has processing facilities in 34 countries.