Qatari shareholding firm Baladna has entered into a conditional shareholders’ agreement with Malaysian companies FGV Holdings Berhad (FGV) and Touch Group Holdings Sdn Bhd (TGH) to develop an integrated dairy farming business in Malaysia.
The project will produce 100mn liters of fresh milk per annum within the first three years and is expected to reach 300mn liters of fresh milk within 10 years.
The company said in a statement that the project is expected to be commercially operational by 2025. “Based on Baladna’s highly successful ‘grass to glass’ concept, the joint venture will be fully integrated – from crop production to feeding the cows – to the processing and sale of the highest quality fresh milk,” according to the statement.
Baladna will own 40 percent of the joint venture, while FGV will own 40 percent and Touch Group will own the remaining 20 percent. The project, covering an area of 3,259 hectares in FGV Chuping Agro Valley (FCAV), is expected to involve an investment of $988 million (QR3.6 billion).
“The project also aims to position FCAV as one of the leading agro-valley hubs in Malaysia, creating more than 2,000 job opportunities via the integrated dairy farming business,” the company added.
Mr. Piet Hilarides, chief executive officer of Baladna said that, “As a partner, Baladna will use its extensive experience in fresh milk production and brand development to substantially improve Malaysia’s self-sufficiency in milk. We are delighted to be able to partner with FGV Holdings Berhad and Touch Group Holdings.”
“This joint venture will be a springboard for FGV to become one of the world’s leading integrated and sustainable agribusinesses. As an organization that is already involved in the food industry, our latest venture into this integrated dairy farming business strongly positions us in the growing milk and dairy industry, thus strengthening our presence in the food industry,” commented Mr. Mohd Nazrul Izam Mansor, Group CEO of FGV.
