Fraser & Neave Holdings Bhd has moved into the dairy farm business by launching an integrated dairy farm in Gemas, Negeri Sembilan in an effort to become one of the largest milk producers in Malaysia when its integrated farm reaches its Phase 1 full production at 100 million litres of fresh milk.
Spread over 2,726 hectares, the farm will eventually house 20,000 milking cows, producing 200 million litres of fresh milk yearly for the local and international markets. The processing and packaging line will be sited right next to the milking parlour. F&N said the operation 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.
F&NHB’s Chief Executive Officer, Lim Yew Hoe said “Operationalising the integrated dairy farm will result in a vertical integration of F&NHB’s business and operations, reducing our reliance on imported milk for downstream production and distribution. This integration will also help lower the cost per litre of fresh milk, benefitting Malaysian consumers. We also aim to export the fresh milk, potentially making Malaysia a net exporter of fresh milk in the future.”
He further added that in addition to the dairy farm, F&NHB’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.
As for ESG factor, Lim said that by reducing the need to import milk, the Group will also be able to reduce its overall carbon footprint due to the reduced need for transporting materials from overseas. The farm he said will also be designed around sustainable farming and circular economy practices, employing green technology throughout the farm’s processes. The Group is looking to invest at least RM1 billion into developing Phase 1 of the farm.
