“I source my raw materials directly from farmers. It works for me and the farmers because they get a higher price for their produce, while allowing me to operate in a cost-efficient manner,” said Magpayo in an interview over the weekend.
He said he buys sweet corn at P5 an ear compared to traders who buy the produce at only P3 per piece.
Because of his previous involvement in an agribusiness firm, Magpayo was able to establish a tie-up with seed producer Syngenta. The company in turn helped him hook up with farmers who sold him sweet corn.
“Sourcing directly from farmers eliminated additional costs, which I would have incurred had I bought corn from traders,” said Magpayo.
Launched two years ago, the company started out with only two franchises in Metro Manila. The company now has 30 franchises in Luzon, the Visayas and Mindanao.
Earlier, franchiser JM Peanut World Etc. announced that it was on the lookout for possible tie-ups with peanut producers. The company requires around four tons of the peanut variant “80-90” every month.
Company president Josephine Co See disclosed that she is facing difficulties in forging direct tie-ups with local peanut producers.