A news from Interaksyon.com which will surely drum up DNL’s price to a new level soon. Just be careful some trader’s may sell on news on short term. I am becoming more interested in investing for long term on this stock.
Here is the news:
MANILA – Australian food ingredients firms have tapped the wholly owned subsidiary of D&L Industries Inc (DNL) as their exclusive marketing and distribution partner for canola derivatives and wheat products in the Philippines.
In a statement, DNL said Oleo-Fats Inc (OFI) will handle the sales, marketing, and distribution of the products of the Manildra group and Mac-Smith Manildra Milling (MSM), thus expanding the listed firm’s specialty product portfolio.
The agreement will allow OFI to leverage its vast distribution network and deep customer relationships to extend Manildra and MSM’s reach into the Philippine canola and wheat market, while enjoying the operating efficiencies of having a local agent for sales and marketing.
“The partnership is also part of our strategy to focus on products that will give us better margins, while moving away from low-margin commodities. This vote of confidence from a global player like Manildra shows how we have transformed ourselves from being a vegetable oil refiner into a leading developer and manufacturer of customized and specialized food ingredients in the Philippines,” said Vincent D. Lao, OFI managing director.
Peter Simpson, general manager of the Manildra group, said the firm is noticing and embracing the increased demand for Australian wheat-based products, such as flour for noodles and glucose for use in confectionery production.
As an increasingly popular ingredient due to its nutritional qualities and low saturated fat, canola and its derivatives can be found in a variety of food applications in retail, household, and industrial markets. Wheat, meanwhile, is a staple in the bakery, biscuits, and snacks industries.
“Canola oil is the number one soft oil in the Filipino oil market. MSM can see the rapid growth in canola oil usage in the Philippines as disposable income among the middle class increases, allowing these consumers to make healthier discretionary purchasing decisions,” said Bob and Peter McSmith, directors at MSM Milling.
OFI uses canola and wheat products, combined with an extensive portfolio of customized food ingredients, to service food and beverage manufacturers. The company has over 500 food ingredient formulations.
Since starting as a flour miller in 1952, the privately owned Manildra group has diversified into flour, pre-mixed, glucose syrups, gluten, specialty protein products, and ethanol. The company now exports high quality value added wheat products to over 30 countries worldwide, with production facilities in Australia, United States, and Thailand.
A joint venture between Manildra and the McSmith brothers, MSM Milling is a fully integrated oilseed crushing, refining, and packaging company in New South Wales, Australia. The company recently diversified its product range, adding a line of high quality refined, bleached, and deodorized soft oils, like canola oil and sunflower.