FGV Annual Report 2020

I am happy to say that we have made significant progress with Integrated Farming. The Board approved the master plan for the development of the FGV Agro Valley in Chuping in December 2020. This is a 4,499 hectare integrated development, where FGV will cultivate high-value cash crops such as MD2 premium pineapples, cavendish banana, harumanis mangoes, and also the development of fully integrated dairy farming. Another significant area of progress was in India, one of the Top 3 markets for our CPO. In May, we formed a joint venture with the Hyderabad based Pre-Unique India Pvt Ltd (PreU) to establish a company based in India. This joint venture will become the springboard into the subcontinent’s growing fast-moving consumer food market, especially in South India. Also in 2020, we entered India’s oil palm seed market, by securing a contract to sell one million premium germinated seeds. We target to sell another 1.5 million seeds in 2021. As a result, we have now repositioned FGV as a food group, participating in the entire supply chain from farm-to-fork. Malaysia has a RM65 billion food import bill and thus if we focus on import substitution, we cannot go wrong. We have a domestic market that is ready to be served. SIGNIFICANT PROGRESS IN INTEGRATED FARMING We plan to take small steps, and our first move is to expand Integrated Farming and Consumer Products businesses, which are already part of the palm oil value chain. Internally, these two businesses have been elevated to divisions in their own right, and are expected to grow into noteworthy revenue streams for FGV in the future. FGV CHUPING AGRO VALLEY Integrated Development 4,499 Ha 31 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders