KUALA LUMPUR, June 15 — Fraser and Neave Holdings Bhd (F&NHB) is venturing into the upstream fresh milk business following the groundbreaking ceremony of the group’s integrated dairy farm in Gemas, Negeri Sembilan, with an investment of at least RM1 billion for the development of Phase 1 of the farm.

The farm is expected to put the group on track to becoming one of Malaysia's largest milk producers when Phase 1 reaches full production of 100 million litres of fresh milk.

Spanning over 2,726 hectares, the farm will eventually house 20,000 dairy cattle, producing 200 million litres of fresh milk per year for the local and international markets.

F&NHB chief executive officer Lim Yew Hoe said operationalising the integrated dairy farm would result in a vertical integration of F&NHB's business and operations.

"It means reducing our reliance on imported milk for downstream production and distribution and will also help lower the cost per litre of fresh milk, benefitting Malaysian consumers,” he said in a joint statement with the Malaysian Investment Development Authority (MIDA) today.

Lim said the processing and packaging line will be situated right next to the milking parlour, enabling it to offer Malaysian consumers quality fresh milk at affordable prices.

"This will also help promote the growth of the local agricultural industry by fostering a skilled workforce and generating job opportunities in the dairy and agriculture industries,” he said, adding that F&NHB also aims to export fresh milk, potentially making Malaysia a net exporter of fresh milk in the future.

The groundbreaking ceremony was officiated by Negeri Sembilan Menteri Besar, Datuk Seri Aminuddin Harun, alongside Negeri Sembilan state secretary Datuk Mohd Zafir Ibrahim, MIDA deputy chief executive officer Sivasuriyamoorthy Sundara Raja and F&NHB chairman Tengku Syed Badarudin Jamalullail.

Meanwhile, Lim said F&NHB's plans for feed crop farming within the facility align with the government's goal of increasing feed crop production to reduce the nation's dependence on imported feed.

Malaysia currently imports nearly 100 per cent of its animal feed from Brazil and Argentina. — Bernama