Turning Strategy Into Outcomes ANNUAL INTEGRATED REPORT 2022 43 In the year under review, FGV has grown its dairy business to a level that will allow us to compete effectively from both a production and distribution viewpoint. Firstly, we completed the expansion of the Linggi fresh milk processing plant, increasing its production capacity from 4,200 litres per day to 30,000 litres per day. To support this increase in production, FGV has also expanded its market reach by distributing its products to 369 additional retail outlets, mainly stores under the Giant and Mydin supermarket chains. We have also grown our partnerships through a collaboration with Gigi Coffee, a local coffee company, to supply 40,000 litres of fresh milk per month. This partnership aligns with FGV’s strategic plan to expand its presence in the Hotel, Restaurant, and Cafe (HORECA) sector. To further strengthen our capabilities, FGV has entered into a conditional shareholders’ agreement with Baladna Q.P.S.C. and Touch Group Holdings Sdn Bhd to establish an integrated dairy farm business within an area of 3,259 Ha in FGV Chuping Agro Valley (FCAV) located in Chuping, Perlis. This venture is a springboard for FGV to become one of the world’s leading integrated and sustainable agribusinesses, positioning the Company in a growing milk and dairy industry and strengthening its presence in the food segment. The project is also aligned with FGV’s long-term plan to position FCAV as one of the leading agro-valley hubs in Malaysia. It aims to deliver sustainable value for stakeholders and improve living conditions for the local community while addressing food security concerns in the country. Fresh Produce Through our Ladang’57 brand, we produce fresh and high-quality agricultural products on a large scale through intercropping farming and contract farming. Our range of products comprises MD2 pineapples, Cavendish bananas, Harumanis mangoes, and sweet corn. In addition to our fruit and vegetable products, we also specialise in large-scale fragrant rice paddy farming via a Fortified Field contract farming model. Our fully integrated, high-tech rice production system ensures that we produce the best quality Malaysian Fragrant Rice (MRQ76), from seed to processing, for our customers. Throughout the year, we continued to strengthen our position by expanding our fresh produce business. To complement our current offerings, we successfully introduced imported potatoes, frozen meat, and artichokes. Despite being a trial import, the higher sales volume of 711 MT compared to 186 MT in 2021 has encouraged us to expand our reach and explore new markets further. Treat your taste buds to a delectable experience with our wide range of rich and creamy dairy products. Business Strategy
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