KUALA LUMPUR: Fraser and Neave Holdings Bhd
(F&N) plans to expand its product range to include butter, cream, and yoghurt, viewing these as additional opportunities beyond fresh milk, depending on the success of the F&N AgriValley.
F&N chief executive officer Lim Yew Hoe said the F&N AgriValley is currently in its Phase 1.1 stage, and it is important to produce local butter to replace the imported varieties currently used by the industry, while locally produced cream, which is widely used in hotels, can also help reduce reliance on foreign supplies.
He added that the company is also in talks with stakeholders about utilising green energy at its Gemas farm.
"That will require quite a fair bit of investment, as we need to invest in solar panels and batteries.
"Given our size of operations, we are looking at quite a substantial investment," he said in F&N's 2025 Financial Year (FY2025) results briefing here today.
Lim stated that F&N will share the information with the media once the company has the details and has concluded discussions with the relevant stakeholders.
He said this in response to a question about the company's intention to quickly reduce its loans to create opportunities for major capital investments.
In the FY2025 ended Sept 30, 2025, F&N's total loans decreased to RM592 million from RM706 million in the previous corresponding period, while its total debt declined to RM656.2 million from RM760.9 million.
At the group's 2,000-acre (809.37 hectares) integrated dairy hub, F&N AgriValley, development of the dairy manufacturing plant is nearing completion with commercial milk production slated for the first quarter of FY2026, marking an exciting phase in the group's journey towards upstream dairy integration.
Located in Pasir Besar, the farm now houses over 4,000 cattle - including lactating cows, pregnant heifers and calves - thriving in modern, climate-controlled barns designed to optimise animal comfort and productivity.
This month (November), an additional 2,500 pregnant heifers from Chile are scheduled to arrive, further expanding the herd and accelerating milk production under the Magnolia Brand.
Looking ahead, Lim said the group remains committed to long-term growth through strategic investments that broaden its consumer reach and reduce environmental impact.
"Strategic initiatives such as F&N AgriValley reflect our ambition to offer Malaysians world-class fresh milk at affordable prices and contribute to the nation's food security goals. While these investments may temporarily affect margins, we are confident with the potential returns in line with our plans and milestone targets," he said.
. - Bernama
