FGV Annual Report 2020

STRONG WORKFORCE e-Commerce Platform A grocery marketplace that sells fresh produce * inclusive of migrant workers and FGV employees INTEGRATED FARMING 2020 MILESTONES In 2020, we established an MD2 pineappple seeds garden in Maokil Estate for the plan to scale up the MD2 pineapple farming next year. Currently, the pineapple industry has experienced shortage of MD2 pineapple suckers and this has slowed our progress. But that will not stop us from going to the market with our development of contract farmers programme. In fact, we have already made some off-take arrangements and are looking at launching our own ”Ladang 57” brand. In 4Q FY2020, we started the development of MRQ76 fragrant rice seeds garden and obtained a rice wholesale licence from the Ministry of Agriculture and Food Industries (MAFI). For animal feed, we launched four new products formulated for beef and dairy cattle in 2Q FY2020, and achieved 39,093 MT of sales in 2020, 80% higher than the previous year. We plan to partner with SMEs to grow our animal feed and animal nutrition business. Since most animal feed inMalaysia is imported, our goal is to penetrate the domestic market as part of the import substitution policy promoted by the Government. In February 2020, FGV ventured into the dairy farming business with the acquisition of 60% stake in Red Agri Sdn. Bhd. for RM10 million. Red Agri owns the Bright Cow brand of dairy products. The purchase of majority stake would enable the Group to create more value from its existing resources and tap into synergies within palm-based circular economy. At present, we are building a fresh milk factory with a capacity of 30,000 litres per day. CONSUMER PRODUCTS 2020 MILESTONES FGV is well known in the Malaysian retail food market, where we sell a wide range of consumer products. In 2020, we launched three new products under our flagship brand SAJI. They are SAJI Rice, SAJI Coarse Sugar and SAJI Coconut Milk. We are already a market leader in cooking oil and margarine with 40% and 42% domestic market share for SAJI and SERI PELANGI, respectively. In May 2020, during the first MCO period, Kedai FGV, an e-Commerce platform selling FGV’s consumer products was launched to make our products more accessible to all. Then in November 2020, GOGOPASAR was launched as a grocery e-Marketplace that sells fresh produce, sourced directly from farmers and suppliers, processed and packed in our warehouse and delivered directly to consumers. Both websites are accessible via www.kedaifgv.com and www.gogopasar.com . In 2021, we target to strengthen our market leadership in Malaysia by diversifying our range of household essentials such as creamers, instant noodles and sauces. Also in our plan is to enter new food segments such as confectionery, nutritional snacks, and beverages. Internationally, we are looking to expand to the ASEAN and MENA markets. There is already a distribution network established there for our palm oil. We plan to leverage on the existing network to drive sales and increase market share for our consumer products. Product innovation is another priority, to enable us to keep rolling out exciting new food products for both the retail and industrial segments. 47,497 zakat workforce revenuee 43 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders