Saudi Arabian far East Agricultural Company to invest in Philippine Agriculture

Saudi Arabia-based far East Agricultural Holdings plans to invest 6 billion pesos (about 128.4 million on average) in the Philippines in the next three years to reclaim about 20, 000 hectares of arable land.

The far East Agricultural Company will set up a joint venture with AgriNurture, a producer and trader of agricultural products in the Philippines, to take charge of the investment project.

The cultivated land will grow rice and corn, as well as cash crops such as bananas and pineapples.

AgriNurture said that the far East Agricultural Company would provide the funds, while AgriNurture would be responsible for running the project. Most of the products planted will be exported to the Middle East.

The company will begin to implement the project early next year, and the proportion of shares in the branch still needs to be implemented. The reclamation cost per hectare of rice or corn is about 100000 pesos, while that of bananas and pineapples is as high as 500000 pesos.

If the initial 20,000 hectares of arable land reclamation project is successful, then the far East Agricultural Company plans to develop more arable land in the Philippines.