LISTED agriculture firm AgriNurture Inc. (ANI) is set to import as much as 2 million metric tons (MMT) of rice annually, starting next year, following its $1-billion supply deal with Hanoi-run Vietnam Southern Food Corp. (Vinafood) II.
ANI said it has entered into a memorandum of agreement (MOA) with Vinafood II to be its exclusive supplier of long-grain rice annually.
The MOA was signed by ANI President and CEO Antonio Tieu and Vinafood General Director Nguyen Ngoc Nam over the weekend, the firm said.
The MOA was meant to help address the country’s rice-supply issues, ANI said.
Vinafood II is a state-owned corporation duly designated and assigned by the government of Vietnam to export rice and help achieve food security in Southeast Asia, ANI said.
“The terms and conditions of the exclusive supply agreement shall be finalized in accordance with applicable Philippine laws, including but not limited to, the proposed rice tarification bill,” the firm said in a disclosure to the local bourse on Monday.
Last month ANI said the National Food Authority (NFA) has granted “original proponent status” to its unsolicited joint venture (JV) proposal for the financing and purchase of 500,000 MT of imported rice to augment the country’s buffer stock.
Under its proposed JV agreement, the ANI consortium would shoulder all the expenses for the supply of NFA’s stockpile.
“Both parties shall jointly determine the origin, suppliers, delivery and arrival periods, packing and loading and discharging ports,” the company said.
“NFA will solely determine the type of commodity to be imported, specifications and quantity,” the company added.
The NFA would not spend even a single peso under the proposed JV agreement, ANI said.