FGV Annual Integrated Report 2024

Our integrated farming maximises resources and synergies through contract farming initiatives to drive sustainable agricultural growth. The Integrated Farming segment capitalises on FGV’s palm oil operations to enhance Malaysia’s agricultural sustainability, promoting a circular economy that integrates fresh produce, animal feed and nutrition, paddy and rice, and dairy farming. Fresh produce, led by the Ladang’57 brand, promotes sustainable cultivation through intercropping and contract farming. The ALMA brand improves livestock productivity with nutrient-rich animal feed formulations. FGV’s paddy and rice initiatives contribute to national food security by improving paddy cultivation and rice production, while Bright Cow strengthens the local dairy supply chain through integrated dairy farming. Together, these initiatives empower local farmers, uplift rural economies, and foster a resilient, self-sustaining food ecosystem. KEY FOCUS AREAS BUSINESS ENVIRONMENT The agriculture and food sector is evolving due to food concerns, climate change, regulatory shifts, and changing consumer preferences. Demand for sustainable, high-quality produce is rising, intensifying competition in tropical fruit exports and livestock feed production. Malaysia’s National Food Security Agenda and National Agrifood Policy 2.0 (NAP 2.0) promote self-sufficiency, but challenges such as logistics bottlenecks, commodity price fluctuations, and climate variability remain. Investing in alternative proteins, resilient farming, and cold chain logistics is crucial to mitigating these risks. With increasing competition from Thailand, the Philippines, and Indonesia, differentiation through premium quality, sustainability, and innovation is essential to strengthening market presence in ASEAN and MENA. Agricultural Growth Expanding contract farming for rice, fruits, and vegetables while increasing exports to key markets. Market Expansion Strengthening the dairy sector through product diversification. Food Security Expanding paddy farming initiatives, increasing access to fragrant rice and UHT milk, and promoting sustainability by repurposing agricultural waste and integrating solar energy into farming. Sustainable Innovation Enhancing efficiency through factory upgrades, automation, and precision farming. INTEGRATED FARMING WHO ARE WE AND WHAT WE DO 115 Sec 05 DRIVING VALUE THROUGH BUSINESS GROWTH (BUSINESS REVIEW)

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