KUALA LUMPUR: FGV Holdings Bhd will team up with more small and medium enterprises (SMEs) to expand its animal feed and animal nutrition business.
In a statement issued on Friday, it said the partnership would enable it to penetrate the nationwide market more effectively as it seeks to achieve its target of 50,000 tonnes this year.
This week, its subsidiary FGV Integrated Farming Holdings Sdn Bhd signed a distributor partnership agreement with My Agro Hub Resources (My Agro Hub).
The agreement was to market an estimated of 30 tonnes of formulated animal feed every month, for dairy cattle, beef cattle and goat farmers in Negeri Sembilan and Melaka.
FGV group CEO Datuk Haris Fadzilah Hassan said under the integrated farming sector, animal nutrition and protein has been identified as a growing important revenue stream for the group.
“With abundance of raw materials coming from our palm oil plantations and mills, we can produce up to 400,000 tonnes of highly nutritious animal feed every year.
“Internal sourcing of palm kernel expeller as one of the ingredient for our animal feed is very important to ensure these feeds are manufactured with high standards to safeguard the quality and health of the livestock, ” he said.
Haris Fadzilah pointed out internal sourcing of the ingredient was also very important for traceability, which is a key feature of our products.
“We know the source of the animal feeds, ” he pointed out.
As an appointed distributor of FGV animal feed products, My Agro Hub will also be among the first few farms to test FGV’s soon-to-be launched formulated goat feed.
Both parties are targeting local farmers as well as feed shops and retailers in Negeri Sembilan and Melaka.
My Agro Hub is already supplying Halal feed for the local farmers in the two states.
Earlier this year, FGV signed agreements with six distributors in Pahang, Kelantan, Selangor and Kedah.
FGV plans to double the number of distributors by the end of the year and to include distributors for the other states in Peninsular Malaysia.
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