A unit of the Federal Land Development Authority (Felda) will invest RM688 million (US$206.45 million) on a livestock project located at several of its oil palm estates in a joint venture with Felda Iffco Sdn Bhd and Middle East Oils Grains Ltd (MEOGL).

 

Felda Iffco is a 50:50 joint venture company between Felda Global Ventures Livestock Sdn Bhd (FGVL) and Felda IffcoAllana Malaysia Sdn Bhd (FIAM). The project will take off in the third quarter this year at Felda oil palm estates in Kuala Lumpur, Penang, Johor and Sabah.

 

"FIAM has been set up to undertake the development of an integrated livestock business in Malaysia to address the issues of Malaysia's low self-sufficiency in local beef and milk production as well as leading Malaysia into becoming the largest halal meat producer in the region," Felda chairman Tan Sri Dr Mohd Yusof Noor said.

 

Currently, Malaysia only produces 25% of local beef consumption and 5% of its domestic milk supply, said Prime Minister Datuk Seri Najib Razak. The project hopes to raise the country's production of beef to 40% and milk to 7% within five years.

 

"FIAM has major involvement in all key activities across the value chain of livestock industry namely livestock rearing, feedlot farming, dairy farming, feedmill and livestock products processing," said Yusof.

 

Both FGVL and MEOGL own 40% of the joint venture each and FIAM 20%.

 

FGVL will provide access to over 850,000 hectares of oil palm land while MEOGL, which is owned by India-based meat producer Allanasons Limited, will contribute technical expertise in setting up abattoirs of international standards, said Yusof.

 

Allanasons is the largest meat exporter to Malaysia and has 40 years of experience in halal meat processing, he added.

 

Felda Iffco owns about 20% of the Australian Agricultural Company, which is the largest cattle breeding company in Australia with approximately 610,000 cattle on around 1% of Australia's total land area.

 

FIAM will acquire the 20,000 head of cattle owned by a Felda Holdings Berhad subsidiary called Felda Farm Products to kickstart the project.