PUBLICLY LISTED AGRINURTURE INC. (Ani) is putting up a joint venture with Saudi firm Far Eastern Agricultural Investment Company (Feaico) to develop a total of 50,000 hectares of plantations for local consumption and exports.

In a disclosure to the Philippine Stock Exchange, Ani said it had signed a memorandum of agreement with Feaico for the creation of a new company with an initial capital of $1 million, with ANI holding the controlling stake of 60 percent.

Based on the agreement, the joint venture will put up ?commercial sized? pineapple, banana, rice and corn plantations and processing facilities in the Philippines.

They also agreed to jointly work on all the needed resources such as land, labor, farm technology and systems.

Ani and Feaico will initially establish demo plantations in target areas. They will gradually expand the plantations through contract growing up to a core area of 50,000 hectares.

?These plantations will be used for food crop production for local consumption and export to Kingdom of Saudi Arabia and other foreign markets that Feaico and Ani will jointly develop,? Ani said.

Ani added that the newly-formed company would avail itself of all applicable incentives from concerned government agencies such as the Board of Investments and the Philippine Economic Zone Authority.

Another signatory to the agreement is Philippine Agricultural Development and Commercial Corp., which was tasked by the Department of Agriculture ?to lead the facilitation of investments in farmlands and idle lands in the Philippines for agribusiness ventures.?