PLS, MYFARM in durian cultivation joint venture

PETALING JAYA: PLS Plantation Bhd has formed a joint venture with MYFARM Inc of Japan to undertake 1,000ha of durian, agriculture and aquaculture cultivation in Pahang.

The Japanese agritech company will invest some RM210mil into a joint venture between PLS Plantation’s 49% associate PLS LESB Sdn Bhd, Millennium Agriculture Technology Sdn Bhd (MAT), MYFARM and Akar Barat Jaya Sdn Bhd.

The joint venture is valued at RM429mil and is the largest Japanese investment in durian plantation in Malaysia.

“This marks PLS Plantation’s first step in transforming into Malaysia’s leading agrifood company.

“Further strategic partnerships will be identified and expand into other plantation activities such as forest plantation, cash crops and other agricultural and aquacultural activities to be identified as part and parcel of the National Food Security Enhancement (NFSE),” said PLS Plantation chairman Tan Sri Nazir Razak at the joint-venture agreement signing ceremony.

The NFSE is an ongoing initiative with the Agriculture and Food Security Ministry.

Nazir said the tie-up will facilitate the transfer of Japanese technology and expertise in agriculture and help boost PLS Plantation’s core competencies as a leading producer of export-quality agriculture and aquaculture produce.

MYFARM Inc founder and CEO Kazuma Nishitsuji said the company’s goal is to promote sustainable agriculture practices while reducing the environmental impact of agricultural activities to ensure food safety.

“Malaysia and Japan has a long history of friendship and cooperation, and we believe this collaboration will strengthen the relationship even further and build a more sustainable and prosperous future for everyone,” he said.

MYFARM is a Kyoto-based integrated agriculture company that focuses on the regeneration of abandoned farmland and the monetisation of farmland, as well as connecting agri-asset and farmers to a broader horizon of working towards a more sustainable future.

MAT is wholly-owned by MYFARM.

The JV has also entered into an offtake agreement with Dulai Fruits Enterprise Sdn Bhd, an indirect 70%-owned subsidiary of PLS Plantation, to purchase all of the harvests produced from the proposed project.

According to a PLS Plantation statement, MAT/MYFARM has the option, exercisable within six months from the completion date of the project, to further expand the acreage for the project by another 1,000ha upon and subject to terms and conditions to be mutually agreed by the parties.

PLS Plantation executive director Lee Hun Kheng said the company produced around 30,000 tonnes of durian annually and one of its main focus is to export to Singapore along with China and Thailand.

The company targets to have up to 10,000 ha of land dedicated to durian as well as other crops such as pineapples through partnerships and via its own effort.