39 ANNUAL INTEGRATED REPORT 2021 ADDITIONAL INFORMATION HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY The value cycle created by these five businesses ensures future business sustainability for FGV and expands our impact across the agribusiness value chain. It also embraces renewables to maximise potential returns from a circular economy. Promising strides on investments were made in the year. The acquisition of 4,499 Hectare (Ha) of land in Chuping Agro Valley from MSM Malaysia Holdings Berhad (MSM) was completed on 29 September 2021 which kickstarts our plans to develop a large scale farming area for major agriculture activities. We are making good progress on building a milk processing factory in Linggi, Negeri Sembilan targeted for completion in 2022. This will expand our fresh milk processing capacity to 10 million litres annually. Our performance in 2021 puts us on track to become a key player catering to the domestic demand for animal feed and dairy products. INTEGRATED FARMING FGV’s Integrated Farming Division epitomises the Group’s strategic venture towards optimising the value from land assets in our overall business operations, and leveraging on new growth areas in agribusiness. It is anchored on principles of circular economy and directed to meet sustainable goals of contributing to the National Food Security Strategy, provide opportunities for local farmers to participate in the food supply chain led by FGV as the anchor company, and tap into a premium agri-food market with a focus on nurturing healthy living. The business encompasses five identified agro-food sectors, prudently chosen for their easy assimilation into current land terrain, and to capitalise on the Group’s competitive edge by leveraging on synergies across the Group’s businesses to bring in additional revenue. Large scale fragrant rice paddy & rice contract farming for fully-integrated, high-tech rice production from seeds-to-plate and processing of Malaysian Fragrant Rice (MRQ76) for the production of Saji rice Fully integrated dairy production capabilities for fresh dairy products Cash crops (MD2 pineapple, cavendish banana, harumanis mangoes and sweetcorn) through Large Scale Oil Palm Intercropping Farming and Contract Farming PKE-based animal feed, minerals and additives for livestock and poultry industry GOGOPASAR e-commerce platform for fresh produce marketing and distribution 2 4 1 3 5 2022 PROSPECTS FOR CONSUMER PRODUCTS With the lifting of pandemic restrictions, there will be a heightened focus on the consumer products market. Higher costs in the current market scenario will make the oil and fats segments challenging but the Group is optimistic that our Consumer Products business will continue to expand and grow within the domestic market, while we streamline operations and processes to protect margins. We have set clear goals and priorities to achieve volume growth of 12% sales in 2022. This will be driven by strengthening both Saji & Seri Pelangi market share leadership in their respective categories. Leveraging on the success of the Saji brand, we seek to expand and grow Saji’s range of products in the cooking essentials portfolio. This will include new product development catering for meal preparation in line with the emerging lifestyle trend of more households choosing to cook simple and healthy meals at home. Further in the future, we will continue to conduct research to develop and launch household kitchen products which are in high demand by end-consumers. On the marketing front, we are specifically focused on growing our distribution in sub-urban and rural areas. We target to aggressively expand market distribution, increase visibility and stock weight on-trade wherever the brand is available. We will continuously engage in competitive brand building for FGV’s Saji, Adela and Seri Pelangi signature brands to grow customer loyalty while gaining new customers via aggressive brand building, in-store promotions and visibility drive activities.
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