PLS Plantations Berhad has entered into a joint venture MYFARM, Inc Japan to launch 1,000 hectares of durian, agriculture, and aquaculture cultivation in Pahang.
The RM210 million investment by MYFARM into the JVC marks the largest Japanese investment in durian plantations. MYFARM, a Kyoto-based Japanese integrated agriculture company, is backed by various established Japanese corporate shareholders, which include among others, Tsumura & Co (a Japanese traditional herbal medicine manufacturer listed on Tokyo Stock Exchange with market capitalization of USD1.57 billion). The company operates the largest private agricultural school in partnership with the Tokyo University of Agriculture and has produced 2,300 graduates over the past 12 years.
In addition, the JVC has entered into an offtake agreement with Dulai Fruits Enterprise Sdn Bhd to purchase all of the harvests produced from the Project. Dulai Fruits had an exclusive distribution agreement with China Oil and Foodstuffs Corporation, Shanghai. COFCO is China’s largest food processor, manufacturer, and trader, with a global footprint and with fully integrated value chain.
PLS Plantations Chairman, Tan Sri Nazir Razak, said: “This marks the first step of PLS in transforming into Malaysia’s leading agrifood company, where further strategic partnerships wil be identified and expand into other plantation activities such as forest plantation, cash crops, and other agricultural & aquacultural activities to be identified as part and parcel of the National Food Security Enhancement (an on-going initiative with the Ministry of Agriculture and Food Security).
MAT & MYFARM is expected to complete the first tranche of the investment in JVC on or before 30 April 2023, with an automatic extension of 14 days, where any further extension(s) following the first extension shall be granted at PLS-LESB’s sole discretion. The subscription price for each tranche of the subscription of JVC Shares may be adjusted subject to the parties’ mutual agreement.
