FGV Annual Report 2020

Group Strategy & Business Plan Review Paddy & Rice In 2020, Integrated Farming has identified approximately 10,000ha area for large scale mechanised paddy farming which will take full execution by 2025. The estimated optimum production capacity is 70,000 tonnes net paddy which align with The Ministry of Agriculture and Food Industries (MAFI) objective. In order to achieve the desired production capacity, integrated farming has initiated collaboration with Malaysian Agricultural Research and Development Institute (MARDI), Department of Agriculture (DOA), Integrated Agriculture Development Area (IADA)as well as Federal Land Consolidation and Rehabilitation Authority (FELCRA) to improve current mechanisation. As of now, Integrated Farming has secured 300ha area for MRQ76 fragrant paddy farming which located at Barat Laut Selangor and Seberang Perak. The farming hectarage will increase annually and not limited at Perak and Selangor, but also Pahang and Kelantan in order to achieve the 10,000ha by 2025. For large-scale paddy farming, Integrated Farming has implemented Contract Farming business model in order to reduce risk at operational activities. However all contract farmers are compulsory to follow standard operating procedure (SOP) that has been concurred by both parties and with the participation of governmental agencies like MARDI, DOA and IADA. e-Commerce with GOGOPASAR In November 2020, FGV invested in a local start-up company which we then launched GOGOPASAR an online grocery marketplace. GOGOPASAR enables FGV to enhance its end-to-end agribusiness supply chain by connecting directly to consumers. GOGOPASAR is a subsidiary of FGV Integrated Farming Holdings Sdn. Bhd. that was established for cash crop cultivation, paddy farming, livestock and dairy farming and animal feed production. GOGOPASAR represents a convergence of technology and commerce, connecting business-to-business (B2B) and business-to-consumer (B2C) markets. There is no limit to the quantity of sales or purchases. GOGOPASAR functions as an end-to-end virtual retailer that integrates suppliers, warehouses and logistics. It is also a virtual retail platform for direct sales to consumers at competitive prices and assurance on high quality products. Purchases can be made through GOGOPASAR’s website at www.gogopasar.com or through the App Store and Google Play Store. 62 FGV HOLDINGS BERHAD Annual Integrated Report 2020