July 16, 2026
 

Malaysia's Farm Fresh doubles dairy cattle import target to 3,000 head by November as Muadzam Shah hub scales up

The two Muadzam Shah farms will have a combined capacity of approximately 8,000 cows upon completion, making it the group's largest integrated dairy farming hub.

Farm Fresh Bhd has doubled its dairy cattle import target for its Muadzam Shah 2 (MZ2) farm in Pahang to 3,000 head by November 2026, up from previous guidance of 1,500 head by October, with milk production from the enlarged herd expected to commence around March 2027.

MZ2 currently houses approximately 900 dairy cattle, including 200 to 250 milking cows. The farm is designed with 10 barns, six of which are completed and four under construction, with total capacity for approximately 4,000 cows upon completion. Together with the existing MZ1 farm, the two facilities will provide a combined capacity of approximately 8,000 cows, establishing Muadzam Shah as the group's largest integrated dairy farming hub, according to Kenanga Research.

Beyond the Pahang expansion, Farm Fresh is exploring a commercial dairy farm under the proposed Keningau Dairy Valley project in Malaysia's Sabah after signing a memorandum of understanding with the Sabah Rubber Industry Board and the Sabah Department of Veterinary Services.

Regionally, the group's new US$12.8 million (RM55 million) manufacturing facility in Cambodia is now expected to begin installing its first phase of production lines in October, with two pasteurised milk lines carrying combined capacity of 19.3 million litres per annum. A second phase comprising two UHT milk lines with combined capacity of 34.1 million litres per annum is targeted for January 2027. The facility is intended to serve the Cambodian market and support longer-term expansion into the broader Indochina region.

Farm Fresh's Enstek manufacturing hub remains on track to begin operations in August, which will more than double the group's ice cream production capacity from 450,000 to approximately one million pieces per day, with additional output earmarked for export including to Thailand.

Kenanga Research maintained a "market perform" rating with a target price of RM2.25, noting that much of the anticipated upside from the Muadzam Shah expansion had already been priced in, with production benefits likely to materialise in the next financial year.

- The Star