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Friday, January 05, 2001
 
AC ( 01/05/2001 : PDI )
The Ayala group is shutting down the operations of Ayala Seeds Corp., a subsidiary engaged in the hybrid corn seed business, due largely to tough competition posed by multinational companies. In a disclosure to the Philippine Stock Exchange yesterday, Ayala Corp. managing director Renato Marzan said its subsidiary Ayala Agricultural Development Corp. (AADC) decided to discontinue the hybrid corn seed business, which falls under Ayala Seeds Corp., "following a number of reverses which impaired the organization’s operational efficiency." Marzan said Ayala Seeds would cease operations this month. "Following an increasing trend toward globalization and the reduction of tariffs, local players have faced stiff competition in the past few years against multinational corporations with extensive reach and easy access to vast research facilities," he said in the disclosure. "The corn seed business is highly dependent on the introduction of newer and better hybrids, the product of extensive biotechnology. To remain competitive, local players would need to match the resources of the more dominant market players," he added. Marzan said the unfavorable weather conditions, particularly the frequent occurrence of the El Niño dry spell and a number of devastating typhoons, had likewise affected the viability of Ayala Seeds in the past 10 years. Despite the closure of Ayala Seeds, however, AADC said it would continue its other viable business interests, namely: copra, cattle-raising and coconut seed gardening which produces high-quality hybrid coconut seeds. AADC president Antonio Laurel said: "The competition to offer the farmer in the countryside cheaper and better-performing corn seeds has become fierce in the past few years." "A company that does not have the scale necessary to quickly respond to the needs of the times will have difficulty competing. For the Filipino farmer, nevertheless, this has been a positive development." The Ayala group, one of the country’s biggest conglomerates, also has interests in real estate, banking, telecommunications and food businesses.
- posted by StockMarket @ 2:27 PM

Wednesday, January 03, 2001
 
AC ( 01/03/2001 : AFX )
Ayala Corporation said its agriculture unit would discontinue its hybrid corn seed business due to the poor weather that affected growing conditions and stiff competition from multinational companies. Ayala Corporation said the unit involved in this business, Ayala Seeds, will close its operations this month. The move does not, however, signal a groupwide withdrawal from agriculture. Ayala Agricultural Development Corporation will continue its copra, cattle raising and coconut seed gardening businesses, the company said.
- posted by StockMarket @ 2:26 PM


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