Leading agricultural machinery and equipment distributor Ada Manufacturing Corp. (ADAMCO) successfully raised 1 billion pesos through the issuance of notes backed by the Development Bank of the Philippines and Security Bank Corp.
Proceeds from fundraising activity through the issuance of five-year corporate bonds arranged by GIV Capital Holdings Corp. will be used to fund ADAMCO’s capital expenditures and working capital requirements related to the development of its branch network.
ADAMCO Founder and Chairman Roberto Alingog thanked GIV Capital, DBP and Security Bank for supporting the company’s advocacy.
“My conviction is that agriculture should be seen as a promising activity and not as a dreaded professional destination for children of farmers. We achieve this by providing access to top notch equipment with reasonable financing terms. Through this fundraiser, we will further strengthen our presence in the industry and show the country as a whole a simple truth: that farmers can make money through modernized agriculture,” said Alingog.
ADAMCO brings a glimmer of hope with its simple and powerful solution: the farmer as entrepreneur. It advances this solution, a paradigm shift, by presenting to the farmer-entrepreneur that he can make his acquisition of agricultural machinery profitable by using them to provide services to his fellow farmers in land preparation, tillage , transplanting and harvesting. .
The agricultural machinery and equipment distributor is also accelerating the acquisition in 37 branches located in the main rice-producing regions of the country.
The DBP and Security Bank provided the funding to ADAMCO, responding to the national government’s call for banks to dedicate a portion of their loan portfolios to supporting agriculture.
“DBP shares ADAMCO’s vision in promoting modernity and technological progress in the agricultural sector, and in providing our farmers with access to modern agricultural machinery. Like ADAMCO, we also believe that modernization is a key part of agricultural productivity, which is why we are honored to be part of this fundraising activity which aims to benefit our Filipino farmers and agripreneurs,” said Emmanuel G. Herbosa, President. and CEO of DBP.
Security Bank believes that its funding extension to ADAMCO will go a long way in supporting our farmers who produce our food. It is also a clear way to respond to the government’s call for banks to devote part of their portfolio to supporting the agricultural industry. “This corporate ticket facility is an important step in ADAMCO’s mission to help transform the agricultural sector, and we look forward to supporting the company in its future endeavours. We are proud to support these projects that align with our mission to enrich lives, empower businesses and build communities sustainably through excellence in financial services. shares Charles M. Rodriguez, executive vice president and head of Security Bank’s wholesale banking segment.
The Chairman and CEO of GIV Capital Holdings, Mr. Conrado Gloria Jr., said there is still a lot to be done to help the agricultural sector in the Philippines.
“This transaction is just the beginning for ADAMCO. Its mission to drive grassroots development in agriculture is of utmost importance to the country, and ADAMCO’s unique approach, the farmer as entrepreneur, is transformative,” said Mr. Gloria .
New private and public sector initiatives are needed to fully address the country’s food security challenges.
At least one player is eager for the challenge. “As long as people eat, there will be agriculture and as long as agriculture is needed to provide food, there will be ADAMCO,” Alingog promised.
ADAMCO has its humble roots in the 1970s after its founder witnessed the lack of even the simplest power equipment in his home province of Isabela.
Alingog said mechanization is essential in rice farming and the rice combine harvester (RCH) is a hit with farmers. In addition to reducing crop loss at an average rate of 10% through a superior process, the RCH also reduces crop loss due to the speed and speed that comes with it.
Before the introduction of the RCH, 25 farm workers were needed to harvest one hectare in one day. Despite promises made by the labor contractors to bring 25 farm workers, they end up bringing only five people, thus delaying the harvest.
“Like any fruit, the grain of palay, when ripe, falls to the ground. This is called bursting. Palay has a bursting rate of two percent per day. Therefore, the delay caused by the lack of labor leads to substantial losses for the farmer,” Mr. Alingog said.
According to Alingog, the labor shortage situation is partly explained by planting schedules that are aligned with the availability of irrigation water.
“When the irrigation dams have enough water and are released for irrigation of the fields, all the beneficiaries of the irrigation start plowing. Therefore, they all also harvest in a short period of time. That is to a farmer’s advantage if he keeps to the schedule, otherwise if he is late in planting and late in harvesting, all the pests from the surrounding harvested fields will converge on that remaining unharvested field, causing losses high for the farmer,” Mr. Alingog said.
Federico De Guzman, director of product development at ADAMCO, also denied claims that farm machinery is displacing farm labor, leading to massive unemployment in the countryside.
De Guzman said there have been no reports of a significant displacement of agricultural labor resulting in mass unemployment since the adoption of mechanized farm machinery began in the 1970s.
Instead, what has since been observed is that agricultural labor has always been in short supply.
“One of the reasons was that the farming families didn’t want (and still don’t want) their children to become traditional farmers who, with manual labor, cultivate the farms,” De Guzman explained.
Instead, farmers want to send their children to become employees in other industries or even become Overseas Filipino Workers (OFW).
“As a result, aging and retiring farmers are not replenished at the same rate, resulting in fewer and older farmers at a high average age of 57. Hence the continuing labor shortage. agricultural labour,” said De Guzman.
On her part, ADAMCO President, Mrs. Ada Alethea Alingog-Nanayakkara, said the company wants to take the country’s agricultural sector to the next level through mechanization.
“It is always very heartening to see the excitement in the eyes of the farmers when we deliver the agricultural machinery to them and teach them how to use it. Their sense of moving to the next level of economic life is intense and palpable,” Ms. Alingog-Nanayakkara said.
Well-established Japanese brand Yanmar, manufacturer of a wide range of agricultural machinery such as rice combines, tractors and transplanters, has chosen ADAMCO as its sole dealer in the Philippines.
“We are very pleased to see the strong growth that ADAMCO has shown since we partnered with them. The Philippine agricultural sector has so much untapped potential and we believe that Yanmar and ADAMCO have found the right approach to mechanize the industry and help bring the country to the status it deserves,” said Mr. Masatoshi Suyama, President of Yanmar Philippines Corporation (YPC). .
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