FGV, Felcra and Baladna Food to Double Dairy Production in Malaysia

Aug 2021

FGV Holdings Berhad, Malaysia’s leading agri-commodities firm through its subsidiary, FGV Integrated Farming Sdn Bhd (FGVIF) has inked a collaboration with FELCRA Bhd, a government-owned entity, and Baladna Food Industries Co, a Qatar-based agricultural company, to conduct a feasibility and technical study on the prospect of co-investing in an integrated dairy farm business.

The integrated dairy farm will take place in the Chuping Valley Industrial Area (CVIA) of Perlis state in the Northern region of Malaysia. CVIA is 2,482-acre development land that is centered around the green and halal industries. FGV stated that the project is in line with its FGV Chuping Agro Valley’s long-term goal of becoming one of Malaysia’s top agro-valley centers that can generate long-term value, improve local livelihood and address the country’s food insecurity issue.

According to the agreement, the partnership will foresee Malaysia’s current fresh milk production to double within two years through the establishment of a 10,000 milking-cow farm with an annual production of one hundred million liters of milk. Moreover, the companies plan to utilize the agricultural land to provide the majority of the dairy farm’s animal feed and turning it into a hub to support small rural farms in building small cattle fattening farms and animal feed farms by 2024.

In the longer term, the partners will collaborate for the construction of an industrial farm that can produce two million liters of milk per week. Doubling the fresh milk production will help to reduce the country’s dependency on milk imports by supporting local farmers thus providing healthy quality milk to the domestic market.

(Sources: Business Today; Dairy Reporter)

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