40 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION Business Strategy ANIMAL FEED Milestones • Acquisition of land for the development of FGV Chuping Agro Valley • Launched Ladang’57 brand • Produce sold at selected AEON Big and Village Grocer outlets Our capabilities in cash crop farming within our plantation operations are strengthened through internal development and partnerships. This optimises the use of up to 15,000 Ha of land that lies fallow ever year. Earnest testing on business viability has streamlined our 2021 crop offerings to MD2 pineapple, cavendish banana, harumanis mangoes and sweetcorn. Milestones • Launch of high-quality animal feed brand ALMA with 12 feed types, eight minerals & additives • Established 16 distributorships across Malaysia • 10 product formulations for beef and dairy cattle, goats, poultry and rabbits We produce livestock feed and additives for cattle, goats, poultry and rabbits under the ALMA brand. We leverage on the Group’s R&D capabilities to formulate products with a competitive edge. These include new pellet formulations, Finisher Plus for goats and sheep, and the Lactation Plus+ additive to boost daily milk production when added to dairy livestock feed. CASH CROPS Milestones • 250 Australian dairy cows • Development of new flavoured fresh milk and single serve yoghurt offerings Our venture into dairy farming places us in growing market sector of milk and dairy products. It also supports national goals to gain self sufficiency levels in key food products. In 2021, FGV has employed contract farming arrangement with local farmers and assist them towards becoming FGV agropreneurs. We also work closely in partnership with smallholders and commercial dairy farmers to source the raw milk supply for our fresh dairy products, marketed under the Bright Cow brand. This covers a good selection of fresh dairy products, including freshmilk, yoghurt, kefir, and fresh cheese. We target to expand our market penetration to all retail chain stores nationwide and simultaneously raise the milk processing utilisation factor to 88% by 2026. This will be facilitated by the completion of the 10 million litres capacity milk processing plant in 2022. DAIRY FARM PADDY & RICE Milestones • Production of MRQ76 fragrant rice seeds garden • Obtained wholesale license from the Ministry of Agriculture and Food Industries We have secured 600 Ha area for MRQ76 fragrant paddy farming located at Barat Laut Selangor and Seberang Perak. The farming hectarage will increase annually and will extend through Perak and Selangor to Kedah, Pahang and Kelantan in order to achieve the 10,000 Ha target by 2026. For large-scale paddy farming, we have implemented a contract farming business model in order to reduce risk on operational activities. However all contract farmers are mandated to follow SOPs deployed via the Fortified Field Programme concurred by both parties and with the participation of Governmental agencies like Malaysian Agricultural Research and Development Institute, Department of Agriculture (DOA) and Integrated Agricultural Development Area (IADA). The venture not only brings FGV commercial benefits but also provides a chance for B40 communities to grow as agropreneurs in the paddy business. Milestones • Launched GOGOPASAR portal and mobile application as an online grocery marketplace for fresh produce • Comp l eted deve l opment of GOGOPASAR’s warehouse and distribution centre for fresh farm produce GOGOPASAR enables FGV to enhance its end-to-end agribusiness supply chain by offering our integrated farm produce directly to consumers. It is a quantum leap for FGV to embark into a disruptive and innovative integrated end-to-end food supply chain solution and virtual retail business for fresh produce. This strategic investment will also facilitate FGV’s long term goal of becoming a market leader in the fully integrated food and FMCG industry. The warehouse comes equipped with facilities including a multiple temperature cold room, dry storage area, and a large designated area for high volume processing and packaging activities. GOGOPASAR E-COMMERCE PLATFORM Our products are now available online via GOGOPASAR and ladang57.com.my Also retailing at 12 AEON Big and 4 Village Grocer outlets.
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