KUALA LUMPUR: Fraser and Neave Holdings Bhd (F&N) is venturing into the upstream fresh milk business following the groundbreaking ceremony of the group’s integrated dairy farm in Gemas, Negeri Sembilan, with an investment of at least RM1 billion for the development of the first phase.
The farm is expected to put the group on track to becoming one of Malaysia’s largest milk producers when Phase 1 of the farm reaches full production of 100 million litres of fresh milk.
Spanning more than 2,726 hectares, the farm will eventually house 20,000 dairy cattle, producing 200 million litres of fresh milk annually for the local and international markets.
F&N CEO Lim Yew Hoe said operationalising the integrated dairy farm will result in a vertical integration of the group’s business and operations.
“It means reducing our reliance on imported milk for downstream production and distribution, and will also help lower the cost per litre of fresh milk, benefiting Malaysian consumers,” he said in a joint statement with the Malaysian Investment Development Authority (Mida) today.
Lim said the processing and packaging line will be situated next to the milking parlour, enabling it to offer Malaysian consumers quality fresh milk at affordable prices.
“This will also help promote the growth of the local agricultural industry by fostering a skilled workforce and generating job opportunities in the dairy and agriculture industries,” he said, adding that F&N also aims to export fresh milk, potentially making Malaysia a net exporter of the produce.
The groundbreaking ceremony was officiated by Negeri Sembilan Menteri Besar, Datuk Seri Aminuddin Harun. Also present were Negeri Sembilan State Secretary Datuk Mohd Zafir Ibrahim, Mida deputy CEO Sivasuriyamoorthy Sundara Raja and F&N chairman Tengku Syed Badarudin Jamalullail.
Meanwhile, Lim said F&N’s plans for feed crop farming within the facility align with the government’s goal of increasing feed crop production to reduce the nation’s dependence on imported feed.
Malaysia currently imports nearly 100% of its animal feed from Brazil and Argentina. – Bernama
