An Giang on the up

October 31, 2012 | 09:32
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An Giang Plant Protection is closer to its dream of a vertically integrated agricultural service provider in Vietnam.

The Ho Chi Minh Stock Exchange-listed company  plans to complete construction of its fourth rice mill in Long An province, which  is scheduled to start operations by the end of this year with a designed capacity of 200,000 tonnes of paddy per year.

In March 2012, the company opened its third rice mill in An Giang province. The expansion plan reflects recent positive business results despite the economic slow-down. The company announced its revenue in 2012’s first half reached VND3,605 billion ($173 million) with a net profit of VND266 billion ($12.7 million).

By the end of June, An Giang Plant Protection accounted for about 30 per cent of the crop protection chemicals market, based on fund management firm Mekong Capital’s estimation and the Vietnam Custom Office’s import value.

The company announced that it will further exploit the strength in plant protection chemicals, seeds and its large sales force to expand into downstream businesses into rice processing and trading. In 2012, the company plans to focus on areas such as strengthening relationships with strategic partners in developing products, increasing market share and maintain its leading position. As one of the pioneers in launching large-scale rice farming model in the Mekong Delta, the company has achieved significant acknowledgement from Ministry of Agriculture and Rural Development, provinces’ authorities and farmers for its initial successes. 

With this model, farmers signed contracts with An Giang Plant Protection to participate in a large-scale farming area that is centered by the company’s rice mill. According to the contracts, the company supplies farmers with crop protection chemicals, seeds, fertilisers, free technical assistance and a 120-day interest subsidy. In return, farmers sell paddies to An Giang Plant Protection at a reasonable price.

This vertically integrated model allows An Giang Plant Protection to cut out all the middlemen and has control over the entire production process to ensure consistently high rice quality for customers.
 

By Nhu Ngoc

vir.com.vn

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