• Expanding processing capacity and introducing new dairy products to the market. • Increased milk processing capacity at the Linggi facility, with yoghurt production now operating at 70% capacity. • Launched a yoghurt drink, malt powder, and single-serve kefir to diversify the product portfolio. • Strengthening market reach and distribution growth for Ladang’57 through wider retail and Hotel, Restaurant, and Cafe (HORECA) penetration. • Expanded distribution to 4,290 outlets, progressing toward the 5,000-outlet target. • Increased fresh produce and Paddy & Rice (P&R) distribution to 713 outlets, including unique Kedai FGV customers. • Distributed Ladang’57 products to 433 retail outlets, enhancing presence in hypermarkets and the HORECA sector. • Advancing sustainable contract farming to boost local rice and crop production. • Cultivated approximately 800 Ha of fragrant rice through contract farming, enhancing local food production, and sustainability. KEY INITIATIVES ACHIEVEMENTS BUSINESS PERFORMANCE REVIEW 2024 HIGHLIGHTS Business Review: Consumer Products Division CHALLENGES MITIGATION ACTIONS RESULTS CHALLENGES AND MITIGATION • Rising processing costs and increasing raw material prices, squeezing profit margins. • Rearranged manpower schedules, controlled overtime, and optimised raw material procurement planning to reduce costs. • Improved raw material procurement planning, and reduced cost by 4.6%. • Market volatility, impacting pricing strategies, and product demand. • Diversified product offerings and secured long-term agreements with buyers, stabilising pricing, and reducing reliance on a single crop or market. • Introduced six new SKU, including yoghurt drink, malt powder, and single-serve kefir. • Pests and diseases, impacting crop yields, and operational efficiency. • Strengthened farm monitoring and early detection systems, enabling early detection of issues. • Minimised crop losses by 4% and strengthened operational efficiency. INTEGRATED FARMING Achieved GLOBALG.A.P. certification for the Collection, Processing, and Packaging Centre (CPPC) in Chuping Agro Valley, ensuring compliance with export-quality standards. Received a RM5 million grant from the Northern Corridor Implementation Authority (NCIA) for the development of rock melon cultivation. Received GLOBALG.A.P. v5.4-1-GFS certification, the first for a Malaysian pineapple plantation. Granted the rights by the Malaysian Agricultural Research and Development Institute (MARDI) to commercialise MRQ111, an enhanced variety of fragrant rice. Launched FGV Agro Rangers, a RM15 million initiative with Agrobank agrobank, the Association Association of Tropical Agriculture Malaysia (ATAM), and Majlis Agama Islam dan Adat Istiadat Melayu Perlis (MAIPs) to support MD2 pineapple farming. 116 FGV Holdings Berhad | Annual Integrated Report 2024
RkJQdWJsaXNoZXIy NDgzMzc=