FGV Annual Report 2020

Dairy Farming In February 2020, FGV became a 60% equity partner of RedAgri Farm Sdn. Bhd. (RedAgri) with a RM10 million investment. This partnership marks the Group’s entry into the dairy farm and fresh milk processing business. The joint venture is now called FGV Dairy Farm (FGV DF). FGV Dairy Farm’s milk is marketed under the Bright Cow brand. Currently, FGV DF processes 1,250 litres of fresh milk a day, and targets to increase production to 30,000 litres a day by 2022. Most of the increased production is already committed to industrial and commercial customers. FGV plans to increase production to meet more local demand with the appointment of contract farmers. MD2 Pineapple Seed Garden A total of 237,309 suckers have been planted in Maokil 7, Johor since November 2019. The suckers are to be used for FGV’s commercial-scale plantations. Cavendish banana plantation In 2020, there were 64,500 Cavendish banana trees planted in Paloh, Johor. Integrated Farming targets to replicate banana intercropping on 1,000 ha of FGV’s replanting area. FGV nucleus dairy farm in Linggi, Negeri Sembilan On 14 December 2020, a new batch of 120 dairy cows arrived from Australia, and increased the total number of cattle here from 130 to 250. FGV fresh milk processing plant The milk processing plant in Ara Damansara is to be relocated to a state of the art facility at the dairy farm in Linggi in 2021. The new facility will have a production capacity of 10 million litres a year. FGV multiplier farm FGV’s new dairy farm to support the production of fresh milk marketed under the Bright Cow brand. Contract farming (agro-entrepreneurs) Contract farmers from the B40 group are to be assisted to become FGV agro farming entrepreneurs. Calf farm in oil palm plantations Male calves raised for feedlot farming in FGV’s oil palm plantations. 61 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders