FGV HOLDINGS BERHAD | ANNUAL INTEGRATED REPORT 2023 75 GROUP BUSINESS REVIEW INTEGRATED DAIRY FARMING Overview Under the Integrated Dairy Farming segment, we specialise in producing top-quality dairy products, including fresh and ultra-high-temperature (UHT) milk, cheese, yoghurt, and kefir under the Bright Cow brand. These are produced in a milk processing facility located in Linggi, Negeri Sembilan, equipped with a daily capacity of 30,000 litres. We source our fresh milk from the Holstein Friesian and Jersey cow breeds. During the review period, FGV undertook several key initiatives to broaden our market penetration in the retail sector while complementing our existing presence in the Hotel, Restaurant, and Cafe (HORECA) market. Bright Cow has now broadened its reach to over 2,426 outlets nationwide in Peninsular Malaysia, doubling our market presence compared to the previous year. To further improve our capabilities, we upgraded the facility with additional capabilities to package yoghurt into new single-serve packages. We continued to focus on product development, and in 2023, we introduced seven new SKUs including single-serve Greek yoghurt in mango peach, strawberries and mixberries flavours, Acerola yoghurt in pineapple and coconut gula melaka flavours, and UHT milk in full cream and chocolate variations. With the introduction Acerola yoghurt, making FGV the first in Malaysia to incorporate Acerola Cherry, and firmly establishing the Bright Cow brand in the local dairy market. Additionally, the brand appointed its first product ambassador, Dato’ Muhammad Azizul Hasni Awang, a Malaysian professional track cyclist, also known as ‘The Pocket Rocketman’, to further strengthen our brand presence, promote healthy lifestyles and better engage with our target audience. We have expanded the Contract Farming Programme by engaging farmers to supply fresh milk to our Linggi facility. Our engagement involves assisting farmers in boosting productivity and enriching their knowledge, which includes a cattle health and nutrition programme developed in partnership with FGV’s in-house animal feed brand, ALMA. FRESH PRODUCE Overview The Fresh Produce segment manages the Ladang’57 brand in large-scale and high-quality agricultural production. We employ intercropping and contract farming approaches to cultivate various products, including MD2 pineapples, cavendish bananas, Harumanis mangoes, and native chicken, among others. We also ventured into large-scale fragrant rice farming, utilising our in-house Fortified Field Farming® Model to ensure top-quality Malaysian Fragrant Rice (MRQ76) production, from seeding to processing. The Ladang’57 brand has seen remarkable growth, expanding its footprint in the domestic market. Currently, the brand offers 10 products encompassing over 15 SKUs and is distributed across 433 retail outlets nationwide, including major hypermarkets. Additionally, our products are featured in the HORECA segment, available in establishments like Kedai Ayamas and QBistro. In 2023, we made inroads in our market expansion strategy as our MD2 Pineapple from the FGV Chuping Agro Valley (FCAV) farm successfully entered the export market with the first shipment of pineapples to the Middle East. While we have already attained MyGAP Certification for our farm at FCAV, we continue to enhance the capabilities of our Collection, Processing and Packaging Centre (CPPC) facilities to meet global GAP standards. With ‘the Pocket Rocketman’ at the launched of the Acerola yoghurt. INTEGRATED FARMING
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