75 SUSTAINABILITY REPORT 2018/2019 04 S E C T I O N ENVIRONMENTAL STEWARDSHIP Palm-based circular economy As part of FGV’s Business Plan 2021, we have begun to integrate a palm-based circular economy strategy in our business to create greater value and visibility in our value chain. FGV, in collaboration with the Department of Veterinary Services (DVS) Malaysia, is exploring two avenues to tap into the synergies within the palm-based circular economy: 2017 6,701 MT Production 2018 10,182 MT Production 2019 21,653 MT Production FGV’s waste generation Waste generation increased significantly in 2019 due to full operation of the new MSM Sugar Plant in Tanjung Langsat and more scheduled waste being registered. We will continue to monitor our waste generation and aim to provide more information in future reports. Tonnes 2017 2018 2019 Plantations1 Hazardous Waste Reused - - - Recycled - - - Recovered 29.28 116.49 163.82 Incinerated 662.19 78.29 76.65 Physical/Chemical Treatment 1.72 1.71 3.73 Solidification 0.06 0.25 0.53 Secure Landfill 5.83 773.51 1142.92 Off-Site Storage 3.37 2.46 1.75 Total 702.46 972.71 1389.39 Non-hazardous Waste Recycled - - - Landfill - 395.62 421.53 Total - 395.62 421.53 Production of animal feed FGV has been producing animal feed pellets since 2017, creating a diversified product range and a sustainable, cradle to cradle business among our kernel crushing plants and animal feed plant. With the focus to penetrate the domestic market, FGV is currently expanding its palm kernel expeller-based formulated animal feedmeal. Sales increased by over 100% in 2019 and in 2020, FGV targets to achieve 50,000 MT of feed production and to launch two new premium feed formulations for dairy cattle and goats. In addition, we have appointed an animal nutrition specialist to add value to the products and increase profit margins. Dairy farming To become a truly integrated agri-food company, FGV is investing in the new growth area of dairy farming. This will not only strengthen FGV’s downstream business but also address the national agenda for self-sufficiency in fresh milk supply. The majority of the cost of livestock rearing in Malaysia is from animal feed, and as we continue to ramp up our production of animal feed, it is envisioned that a significant synergy will be created between these two adjacent businesses. Through the adoption of a palm-based circular economy, FGV is generating more value from existing resources and has become an industry leader in creating a truly circular supply chain. Animal feed production
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