Farm Fresh Bhd, a leading producer of fresh milk and yogurt, expects strong and steady demand for its products in Malaysia, as it seeks to further expand its business.
Farm Fresh’s dairy business especially its UHT products showed strong growth while its relatively new ice cream business segment surpasses expectations.
According to a research house, Farm Fresh’s extruded stick ice cream line, launched in July this year, is now operating at a 70% utilisation rate, producing about 50,000 pieces per day, up from 30,000 per day or 42% utilisation in August. Two new lines are expected to arrive in November with moulded stick lines capable of 180,000 pieces per day and cone lines at 70,000 pieces per day.
Farm Fresh also expects to see higher growth in under-penetrated Sabah and Sarawak, that historically contributed just 5% to its total revenue. Farm Fresh aims to increase its market penetration there while it continues to expand its market share in Peninsular Malaysia via the hotel, restaurant, and cafe channels.
The research house also projected a CAGR growth of 38% for Farm Fresh products over the next 3 years, noting that its forecasts remain conservative due to the relatively low utilisation rate modelled for the ice cream lines.
