45 ANNUAL INTEGRATED REPORT 2021 ADDITIONAL INFORMATION HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY OPERATIONAL IMPROVEMENT Labour shortages and adverse weather conditions impacted the plantation industry in 2021. Like every other plantation player, FGV had a challenging year. Our replanting efforts were ongoing except that due to the year’s challenges, we only managed to complete felling 13,127 Hectare (Ha) and replanted 2,815 Ha of our landbank. Going forward, we commit to get back on track with targeted replanting of 15,000 Ha yearly. We made good progress on our mechanisation plans, adding on about 30,391 Ha to our mechanised areas. We now have 115,000 Ha landbank fully mechanised using the Mechanised Assisted Infield Collection (MAIC) method. From a manuring perspective, during the year, we applied 297,178 Metric Tonne (MT) of fertilisers to our plantation area, achieving 100% target coverage. This shall improve our estates’ performance in the long term. Our Sugar Sector under MSM Malaysia Holdings Berhad (MSM) was awarded an estimated RM290 million contract with The Coca-Cola Company for domestic and international production. This is a key achievement, solidifying its place as Malaysia’s leading and preferred refined sugar producer. Our Logistics & Others (LO) Sector also grew in capabilities and strength to maximise unrealised business potential for external markets. Our fleet size expanded to 549 units through new asset acquisitions, and total liquid storage capacity surpassed 1 million MT as 10 new tanks were installed, in addition to a new warehouse in Kuantan for 20,000 MT of storage space. During the year, the segment had recorded oleochemical storage throughput of 0.95 million MT, the highest achieved by the Group. PRODUCT AND MARKET PENETRATION As part of the Product & Market Penetration strategy, we successfully completed the development of seven new products in 2021, for both food and non-food categories. Under non-food, three new pellet formulations, a high IV olein, and Palm Mid Fraction (PMF) were formulated. In the food category, a healthier improved recipe for Adela margarine was developed along with a new pastry margarine. Strategies to enhance brand value in Downstream and Sugar businesses paid off. During the year, we embarked on branding campaigns for our flagship brands; Saji and Seri Pelangi, as well as Gula Prai, which were created to build distinct brand leadership. We were thus delighted when Gula Prai was ranked 3rd and Saji 7th as the topmost chosen FMCG brands in Malaysia8. During the year, the Research & Development (R&D) Division developed a prototype called the FGV Geotagger. This is a high accuracy device that is able to improve the precision of oil palm replanting, and deliver potential cost savings of RM2 million a year, as well as additional revenue of RM6 million for 15,000 Ha replanting area per year. In addition, our Sugar Sector also signed an agreement with Singapore-based Wilmar Sugar Pte Ltd (Wilmar) to establish a sustainable sugar supply chain. As Singapore is a potential export market for our Sugar business, this will open a path to the Group and eventually improve our sales volume in the long term. The LO Sector expanded its service solutions beyond traditional transportation activities towards more specialised areas among others, transporting military equipment from overseas, forwarding activities involving customs clearance, ocean freights and haulage, as well as inward clearance and land transportation. NEW GROWTH AREA By expanding capabilities, LO is strengthening and supporting the Group in meeting rising demand and efficient logistics management for external market segments. The Sector introduced cold chain transportation services for Fast-Moving Consumer Goods (FMCG), having acquired 10 refrigerated trucks during the year. In our new Integrated Farming venture, the completion of land acquisition for FGV Chuping Agro Valley project also means we are ready to kick-start the transformation of the area into a large scale farm for major agriculture activities. The aim is to develop an integrated high-value cash crop plantation with the potential development of a fully integrated large-scale dairy farming. In 2021, we harvested 600 Ha of FGV’s Fortified Field Fragrant Rice, yielding 3,751 MT of fragrant paddy to produce “Saji Aroma” rice. This will support our aspirations to grow as one of the agribusiness market leaders to produce varieties of services and products from farm to fork. 8 Based on Kantar’s Asia Brand Footprint 2021
RkJQdWJsaXNoZXIy NDgzMzc=