FGV unit to increase supply of milk to 90,000 litres a month
12 Sep 2022
FGV Holdings Bhd through its subsidiary FGV Dairy Farm Sdn Bhd (FGVDF) targets to increase its milk supply to 90,000 litres a month under its flagship dairy brand, Bright Cow, by partnering with home-grown coffee company Gigi Coffee.
FGV said in a statement on Sept 12 that Gigi Coffee, which already has 36 outlets nationwide, would further drive Bright Cow’s dairy farming and milk production.
Currently, Bright Cow is supplying up to 40,000 litres of fresh milk per month to Gigi Coffee.
Located in Linggi, its local dairy farm houses more than 200 cows and is currently processing one million litres of fresh milk annually.
The farm’s location, which is near to focused consumer areas such as Kuala Lumpur, Selangor, and Putrajaya, enables the fresh milk to reach its market destinations within 24 hours, FGV added.
“FGV aspires to become one of the world’s leading agribusinesses, with a greater focus on food and consumer products in contributing towards the national food security agenda.
“By being one of the main players in the industry, we can lower the market price and reduce dependency on exports of goods. We also want to make sure the dairy product supply is always fresh and viable and dairy farming remains sustainable,” said its group chief executive officer Datuk Mohd Nazrul Izam Mansor.
Besides Gigi Coffee, Bright Cow is currently supplying its fresh milk and dairy products to other brands such as Inside Scoop, Yees Yogurt, Café Mesra, Yogurt Ballet, Yogurt King, Big Singh Chapati and San Francisco Coffee.
FGV is no stranger to the dairy business. On Aug 6, the group formed a joint venture company to develop an integrated dairy farm business in Chuping, Perlis, according to a filing with Bursa Malaysia.
The plantation giant said its wholly owned subsidiary FGV Integrated Farming Holdings Sdn Bhd had entered into a conditional shareholders agreement with Qatar-incorporated Baladna for Trading and Investment WLL, and Touch Group Holdings Sdn Bhd.
According to FGV, Baladna’s principal activities are trading feed, investment and management of agricultural projects and investments outside Qatar.
At market close on Monday (Sept 12), FGV settled unchanged at RM1.50 per share, valuing the group at RM5.51 billion.
Source: The Edge Markets