Fraser and Neave Holdings Bhd (F&N) is venturing into the upstream fresh milk business following the groundbreaking ceremony of the group’s integrated Agrivalley dairy farm in Gemas, Negeri Sembilan, with an investment of at least RM1 billion (US$220 million) for the Phase 1 development of the farm.
The farm is expected to place F&N to be on track to becoming one of Malaysia’s largest milk producers once the full production capacity of 100 million litres of fresh milk is realised during Phase 1.
The 2,726 hectare farm will eventually house 20,000 dairy cattles and produce 200 million litres of fresh milk per year by 2027 for the local and international markets.
This mega dairy project will also reduce the country’s dependence on imported milk, aside from enhancing the nation’s food security. The project will also see the establishment of F&N Centre of Excellence (R&D) for dairy and agriculture.
F&N CEO Lim Yew Hoe said operationalising the integrated dairy farm would result in a vertical integration of the group’s business and operations. He said, “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, benefitting Malaysian consumers.”
Lim added that the processing and packaging line will be situated right next to the milking parlour, thereby offering Malaysian consumers quality fresh milk at an affordable price.
In the longer term, F&N also aims to be a net exporter of fresh milk.
