Integrated Farming

In FGV, Integrated Farming leverages on the palm-based circular economy that taps into the lucrative synergies presented by the Group’s extensive palm oil operations.

The business components for Integrated Farming include cash crops, paddy and rice, animal nutrition and protein, livestock and dairy farming.

Under the FGV’s Integrated Farming blueprint, initiatives to be carried out in 2020 include;

  • Developing business model FGV Agro Farmers and contract farming schemes for cash crops and rice and paddy.
  • Animal Feed expansion – to R & D and create more new PKE and non-PKE based feed pelletized. Dairy cattle pellet (DCP) and goat’s pellet are the two new formulation that is targeted to be launched in 2020.
  • Venture into Dairy Cattle – value creation from our 60% acquisition of Red Agri Sdn Bhd will lead developing premium animal feed, utilisation of our Logistics in transportation and storage, incorporating the usage of molasses in our feed and leveraging the distribution network from our downstream.
  • Cash Crops
  • Animal Nutrition & Protein
  • Dairy Farming

Tab 1

Cash Crops

To fully realise the value of 15,000 ha of intercropping land available during oil palm replanting each year, FGV has already established an MD2 pineapple seed garden in Johor, to scale up both for the local and domestic markets. 

The Group has also established contract farming agreements for the supply of Cavendish bananas, besides other cash crops like jackfruit and melon, which are being tested for demand and viability. The biomass produced from pineapple and banana production can potentially be processed for animal feed production.

Tab 2

Animal Nutrition & Protein

The palm-based animal nutrition sector has tremendous potential for growth and has been identified as an important revenue stream in FGV’s integrated agribusiness sector. Derived principally from palm kernel expeller (PKE), which has traditionally been exported as a by-product with low-income margins, palm-based animal feed has been tested and proven to produce excellent results in livestock production. 

FGV currently produces 400,000 MT of PKE annually. As feed and animal nutrition manufacturer, we consistently ensure the feed quality and safety is of the highest standards as well as emphasise on increased productivity for sustainable livestock farming.

Tab 3

Dairy Farming

FGV has subscribed to new shares amounting to 60% equity interest in the enlarged share capital of RedAgri Farm Sdn. Bhd. (RedAgri), for RM10 million, marking the Group’s entry into the dairy farming business and fresh milk processing.

RedAgri currently processes 4,000 litres of fresh milk a day, which will be increased to 20,000 litres a day by 2022. Most of that increased production capacity is already committed to industrial and commercial customers. With the support of contract farmers, FGV will be able to increase production to meet more local demand. 


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