Driving operational improvements with research and development (R&D) Research and development (R&D) takes prominence in our business strategies to drive innovation in our business processes, operations and product offerings, which in turn fortifies the sustainability of our business. FGV has consolidated over four decades worth of research expertise towards becoming a front-runner in the oil palm research and this has culminated in one of South East Asia’s largest Biotechnology Centre, FGV Innovation Centre (FGVIC) in Bandar Enstek, Negeri Sembilan. The Centre specialises in the production of oil palm clones with specific traits and focuses in bio-molecular marker research. This led to the pioneering of marker-assisted oil palm breeding and selection which will ensure that its current award-winning oil palm germinated seeds, FGV Yangambi ML161 and FGV 3 Way, continue to remain as the market leader in Malaysia. We currently supply more than 40% of the country’s annual germinated seed requirements. We have also established bio-fertilisers, bio-pesticides and bio-augmentation using beneficial microbes and other biological agents through our R&D initiatives at the Beneficial Microbes Centre established in 2011. FGV has an award-winning R&D arm to drive operational improvements across the upstream, downstream and integrated farming activities. The R&D activities cover our entire supply chain to improve yields, milling processes and customise our downstream products. It includes improving the yield of selected crops through breeding, tissue culture, agronomy and crop protection in a sustainable manner and the provision of high quality agro-based products and services. Our R&D efforts also have a significant Responsible Business focus on sustainability and the circular economy, for instance optimising waste and by-products with an aim to generate new products with higher-growth in higher-margin industries. At the same time, we are stepping up the commercialisation of our R&D products in the external marketplace. Our initiatives are further intensified with research and development in technology related to engineering, milling, biomass, food, oleochemicals and industrial biotechnologies, to be adopted in both the upstream and downstream segments. The aim is to not only improve quality, productivity and efficiency of FGV’s operations, but to also create and tap into new revenue streams. • Good agronomic practices to increase yield • Reduce inorganic fertilisers • Increase mechanisation to reduce dependence on manual labour • Develop niche fertiliser products and expand into external markets • Improve efficiency through mill modernisation • Produce new products for Downstream FMCG • New products for Specialty Chemicals Upstream Downstream • Support Integrated Farming ventures Integrated Farming In 2021, we have developed five food formulation for FGV Delima Oil Products. For non-food, R&D has conducted research in the development of palm kernel expeller (PKE) based products for animal feed and new formulation to enhance dairy production. Another achievement of the R&D Division included the FGV Geotagger prototype, a solution to assist oil palm replanting activity in improving productivity through precision planting. In 2022, amongst others, FGV will focus on the following initiatives: Accelerate replanting Strictly adhere to fair labour practices and uphold human rights Strengthen and modernise mill process control Expand and enhance our presence at destination market via collaboration and strategic partnership Increase efficiency across FGV’s supply chain i.e. estate, mills, refineries, logistics and operations Expand to export markets such as South East Asia, Asia and Middle East and North Africa New product development R&D to support increasing oil yield per hectare across the Group Reduction of inorganic fertiliser usage/cost via bio fertiliser/soil enhancement 58 FGV HOLDINGS BERHAD RESPONSIBLE BUSINESS ABOUT THIS REPORT RESPECTING HUMAN RIGHTS
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