Pangasius contract growing
Vitarich is a company well-known for their poultry contract growing and aqua feeds. Years back (70-80’s) vitarich poultry feed is very popular that even hog growers used to feed it to their animal. Currently Vitarich is into the hog feeds, aqua feeds, specialty feeds (panabong), poultry and livestock. And they are now venturing in Pangasius contract growing.
Here is an excerpt of an article taken from Manila bulletin online by Melody M. Aguiba tackling the details of the said program.
Vitarich has set up three schemes with pangasius farming entrepreneurs — contracts for growing, contract to buy, and contract for commercial growing.
“Investors start-up capital varies depending on whether they have the facility or not. On operation side the smallest is 5,000 fingerlings which can cost him around P400,000,” said Vitarich.
A technical assistance will be extended by Vitarich to growers. Technology transfer also involves details of distribution of fish products including fillet, live fish, frozen fish (chilled, gutted, headless), and other by-products such as trimmings, skin, and head and belly.
Under the contract growing agreement, Vitarich, which supplies fingerlings and feeds to a contract-grower, has a standard growers fee of P10 per head. Ownership of fish and feeds remains with Vitarich, but operating expenses are incurred by the grower.
While the grower pays an equity of P15 per fingerlings, he has no right to sell the fish or feeds as he will receive payment for the fish after harvest.
For the contract to buy (CTB), fingerlings and feeds will be paid by the CTB partner, and the CTB partner also owns fish and feeds. Vitarich buys at P50 per kilo the fish from the CTB partner who also has an equity of P5 per fingerlings.
“Payment is on cash-offsetting transaction. Operating expenses to be shouldered by CTB partner,” according to the contract terms.