FGV inks deal to explore investment in integrated dairy farm biz
16 Aug 2021
FGV Holdings Bhd has inked a collaboration to explore investment in an integrated dairy farm business in Chuping, Perlis.
In a bourse filing today, FVG said its unit FGV Integrated Farming Sdn Bhd (FGVIF) has entered into a memorandum of collaboration with FELCRA Bhd, and Qatar-based Baladna Food Industries Co WLL to carry out a comprehensive feasibility and technical study on an opportunity to potentially co-invest in an integrated dairy farm business in Chuping.
The group said the project is aligned with its long-term plan to position FGV Chuping Agro Valley (FCAV) as one of the leading agro-valley hubs in Malaysia delivering sustainable value for its stakeholders, better livelihood for the local community, and addressing food security concerns for the country.
FGV said the collaboration initially aims to double the current production of Malaysian fresh milk within two years as well as create a 10,000 milking-cow farm with an annual production of 100 hundred million (100,000,000) litres of milk.
Further, FGV said the plan is to use Malaysian agricultural land to produce largely the required animal feed for the dairy farm.
It said in the second phase, the farm will be used as a hub that supports small rural farms in developing small cattle fattening farms’ animal feed farms by 2024.
It added that the project will build an industrial farm and commencement of dairy production, and operate an industrial farm producing two million litres of milk on a weekly basis with the aim of doubling the production of fresh milk in Malaysia, and reduce imports as well as substantially provide fresh healthy milk to consumers, and to support the Malaysian farmers.
Trading in the shares of FGV was halted for one hour from 9am to 10am, and at 11.06am, FGV edged up 0.76% or one sen to RM1.32, valuing it at RM4.82 billion.
Source: The Edge Markets