F&N on track for dairy farm phase 1 completion by early 2025 - MIDA | Malaysian Investment Development Authority
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F&N on track for dairy farm phase 1 completion by early 2025

F&N on track for dairy farm phase 1 completion by early 2025

08 Nov 2023

Fraser & Neave Holdings Bhd (F&N) is on track to meet its Phase 1 completion of the group’s dairy farm in Ladang Permai Damai in Gemas, Negeri Sembilan by early 2025 when the first milking is expected to begin.

Chief executive officer Lim Yew Hoe said for Phase 1, the company would start to bring in 2,000 cows before slowly increasing the numbers in phases to about 4,000 cows in the first year, with a capital expenditure of around RM1.3 billion.

“We are creating an integrated dairy farm where there will be corn planting (the main feedstock for the cows), dairy farming, followed by milk processing and packaging all at the same site. Thus, we will be able to offer Malaysian consumers quality fresh milk at an affordable price.

“Our integrated farm will feature a milk processing capacity of producing 100 million litres per annum (Phase 1) and is likely the largest dairy farm in Southeast Asia.

“As of Sept 15, 2023, 202.34 hectares of land have been cleared, and we will then start planting the feed,” he said at the company’s financial year 2023 results briefing here today.

He further said the company also envisioned the fresh milk produced by its dairy farm to be sustainable, with the lowest carbon footprint end-to-end.

“F&N is committed to using 100 per cent Roundtable on Sustainable Palm Oil (RSPO) Certified Sustainable Palm Oil by 2025 and enhancing the circularity of its product packaging.

“For 2023, the group used 60 per cent Certified Sustainable Palm Oil and the remaining 40 per cent with RSPO credits,” said Lim, adding that currently, 25 per cent of its beverage and dairy packaging is sourced from recycled material.

Besides fresh milk, Lim said that the company plans to extend its product range into flavoured milk and cream-based milk in the future.

Spreading over 2,726 hectares, the integrated dairy farm would eventually house 20,000 dairy cows, producing 200 million litres of fresh milk yearly for local and international markets.

Meanwhile, following the acquisition of Cocoaland and Sri Nona, which have begun contributing to the group’s revenue, Lim said it hopes to move 100 per cent of Sri Nona’s factory to Rawang, where the current Cocoaland factory is situated, in 2024 so that both productions would share the same logistics facilities.

Currently, some of Sri Nona’s operations are still in Kepong.

On new products, Lim said the group plans to launch new plant-based oat milk for baristas and refresh Cocoaland’s brand products with a new look, among others.

Source: Bernama