FGV’s milk processing business looking bright

“Our fresh milk production in Linggi will see the opening of a brand new fresh milk factory with a processing capacity of 30,000 litres per day," said FGV group chief executive officer Datuk Haris Fadzilah Hassan.

PETALING JAYA: FGV Holdings Bhd (FGV) is positioned for strong growth in the fresh milk processing and dairy farming business as it targets to produce 30,000 litres of fresh milk per day in the first half of 2021.

The group’s capacity has increased following the implementation of a fully-integrated dairy farm project in Linggi, Negri Sembilan, and the addition of 130 crossbred dairy heifers imported from Australia, amounting to a dairy herd size of 258.

“Our fresh milk production in Linggi will see the opening of a brand new fresh milk factory with a processing capacity of 30,000 litres per day.

“We have also installed an automated milking parlour and a cloud-based daily milk recording system to ensure the quality of our dairy products and the productivity of our dairy farm.

“These efforts are scheduled for completion in the first quarter of 2021, ” said FGV group chief executive officer Datuk Haris Fadzilah Hassan in a statement.

The overall upgrading work of its Linggi dairy farm is almost complete, with improvements on the farm’s infrastructure, feedstock areas, milking parlour and cattle barn.

It is also looking to finalise its Hazard Analysis and Critical Control Point (HACCP) and the foundation for Food Safety System Certification 22000 (FSSC 22000) certifications.

Haris said the new shipment of cattle would help FGV fulfill higher volume of fresh milk production and increased local demand in the hotel, restaurant and cafe market segment.

He added that in less than nine months since the inception of the dairy farm project in March, its premium house brand, Bright Cow, has been processing more than 500,000 litres of fresh milk for local consumption.

The plantation group had ventured into the dairy farm business last February with the acquisition of a 60% stake in RedAgri Farm Sdn Bhd for RM10mil.

RedAgri owns the Bright Cow brand of dairy products.

The purchase enabled the group to create more value from its existing resources and tap into synergies within the palm-based circular economy.

FGV said dairy farming is one of the identified pillars of its integrated farming business.

Malaysia imports about RM3.9bil worth of dairy products a year, as local production amounts for only 67.1 million litres annually, or 61% of current domestic demand.

The remaining 40 million litres is imported.

Under the National Dairy Industry Development Programme, the government aims to ensure self-sufficiency in domestic fresh milk productions by 2025.

This gives an opportunity for FGV to benefit from import substitution and aspire to become a significant industry player for locally produced fresh milk in Malaysia, said Haris.

Several new Bright Cow product formulations, flavours and packaging are also in the pipeline and are now undergoing product testing and stability tests prior to launch which is targeted to take place in April 2021.

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