Fraser and Neave Holdings (F&N) has entered into the upstream fresh milk business following the groundbreaking ceremony of the group’s integrated dairy farm in Gemas, Negri Sembilan.
The company has invested at least MYR 1 billion (approx. $216.48m) for the development of phase one of the farm.
According to Fraser and Neave, the completion of phase one of the project will position F&N as one of the leading milk producers in Malaysia, capable of supplying 100 million litres of fresh milk per year.
Once complete, the farm – which will span over 2,726 hectares – will accommodate 20,000 milking cows, yielding an annual output of 200 million litres of fresh milk for both local and international markets.
The proximity of the processing and packaging line to the milking parlour will ensure Malaysian consumers have access to affordable, high-quality fresh milk. Moreover, this initiative will drive the growth of the local agricultural sector, creating employment opportunities and fostering a skilled workforce in the dairy and agriculture industries.
F&N’s CEO Lim Yew Hoe said: “Operationalising the integrated dairy farm will result in a vertical integration of F&N’s business and operations, reducing our reliance on imported milk for downstream production and distribution. This integration will also help lower the cost per litre of fresh milk, benefitting Malaysian consumers. We also aim to export the fresh milk, potentially making Malaysia a net exporter of fresh milk in the future.”
Furthermore, F&N’s intention to incorporate feed crop farming in the facility aligns with the government’s goal of increasing feed crop production to reduce the country’s reliance on imported feed. Currently, Malaysia imports almost 100% of its animal feed from Brazil and Argentina.
Yew Hoe stated that by decreasing the reliance on imported milk, the group will be able to lower its carbon footprint due to the reduced need for international transportation. The farm will also be designed around sustainable farming and circular economy practices, incorporating green technology throughout its processes.
Sivasuriyamoorthy Sundara Raja, deputy CEO of Malaysian Investment Development Authority, commented: “F&N’s development of the integrated dairy farm represents a significant milestone for Malaysia’s self-sufficiency of fresh milk and dairy-based food supply. Apart from economic benefits, the comprehensive agri-food project aids Malaysia’s quest towards sustainable food supply and animal feed supply. The vast prospects of smart farming in dairy production, using technologies for best possible results in cattle care, feed mixing, circular management and diversified dairy products, will certainly revolutionise the agribusiness segment in Malaysia.”
He continued: “In addition, Malaysia is the location for enterprises wishing to create a presence in the booming global halal market due to the country’s well-established food production ecosystem, skilled manpower and globally accepted halal certification system. Global players are welcome to diversify into innovative processes and advanced technology in the agriculture and food processing industries.”
“By leveraging Malaysia’s business ecosystem and our established local supply chain, it serves as an ideal destination for companies to establish regional production hubs while enabling the country to fortify its food production.”
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