Qualampur: Fraser and Nav Holdings BHD (F&N) RM1.8 billion is being done in its high-tech integrated dairy farming project F & n Agrivalley at Gemas, Negeri SemBilan.
CEO Lim U Hoo said that the target is reaching profitability within three to five years.
“The first phase of the enterprise focuses on scaling up to 10,000 milk -giving cows, is part of a comprehensive plan to reduce Malaysia’s dependence on imported dairy and place the company as a leading player in the regional milk supply.
“Our RM1.8 billion venture shows a long -term strategy to reduce dependence on imported dairy and increase self -sufficiency in the supply of raw milk. Step will focus on reaching a 10,000 milk -giving cows, with the final plans to scale 20,000 lactating cows, with final plans, integrated dairy operations, F & N, a conference was said Is.
Of the RM1.8 billion capital expenditure, about the RM600 million facility was spent on the infrastructure, while the purchase of less than RM100 million was allocated to the purchase of cows, Lim said.
“Other costs were directed towards manufacturing, equipment and dairy processing capabilities. The depreciation of assets is expected to begin in the near period as the operation. Project extends to about 10 barn units (Buns), the first 2,500 cows have already been captured on the site.
“Full ramp-up in all facilities is expected to take about three years in collaboration with progressive cow’s delivery and milk production cycle.”
Lim said that feed cost control is the largest variable affecting the timeline for profitability.
“We have started planting corn silge of more than 500 hectares with a plan to double the ingredients next year. However, complete self -sufficiency in target feeds at 40% of the total dietary requirements will be received only by 2026.
He said, “Malaysia’s climate allows us to place 2.5 cycles a year compared to the US single cycle. It helps in feed efficiency and even gives us a lower cost structure than American farms,” he said.
Animal welfare is central for F&N’s strategy, Lim said, because the barn is fitted with noise-nine fans, sleeping systems for cooling, and tempora-peadic comfort designed to mimic comfort.
“We have invested heavily in comfort technology. Cows have not been emphasized. It will translate into better productivity and low mortality.”
Lim confirmed that F&N has resolved the former procurement issues that include American cows, instead Chile has been selected to continue sourcing cattle, which have been proved to get the amount of milk compared to their American counterparts.
He said, “Chile’s cows are genetically close to American hosts and provide high daily milk yield than Australian or New Zealand breeds,” he said that low -yielded cows will require more barn, negatively affect the internal rate of return.
Lim said that F&N is taking advantage of encouragement from the Ministry of Finance, allowing tax offset associated with the scale of capital investment.
He said, “We can confirm that we are accounting for biological assets like cows based on fair price, with changes in the cost of goods sold on productivity and market price. Future biological asset gains or losses will be reflected according to the prevailing accounting guidelines,” he said.
Further, Lim said that F&N is setting up a dairy processing plant in Cambodia under its Thai subsidiary.
“The decision was operated by the group’s established market base and low entry barriers in Cambodia compared to large markets like Vietnam.”
At global risks such as a spike in the demand for US beef, Lim said that cattle prices may fluctuate, its selective genetic sourcing models and long-term supplier will help reduce partnerships.
F&N recorded a 4.3% year-to-year growth in the operating profit for the first half of March 31, 2025 (H1’25), which is supported by revenue hike and low input costs, despite the sale of market headwinds and soft celebrations.
The group’s revenue rose by 1.4% to RM2.72 billion in H1’25, wide-based sales growth in trade units, especially in Cambodia, reduced strong export speed through its food and beverages Indochina segment.
Benefits before tax improved at 4.9% year-on RM430.1 million, operated by better margin and prudent advertising expenses. However, the group’s profit after tax slipped 7.6%, up to RM310.4 million, was affected by the full use of the Investment Promotion Board for its Indochina operations.
In the second quarter alone, the group revenue declined by 1.4% to RM1.33 billion to RM1.33 billion due to slow-and-introduced festive sales in Malaysia and inventory adjustment in Thailand. As a result, the quarterly operational profit fell 7.6% year-on-year.
F&N declared an interim single-level dividend of 30 Sen per share equal to RM110 million to be paid on 30 May.
