July 27, 2020
Malaysia's FGV to expand feed business through distributorships
Malaysia's FGV Holdings Bhd said in a statement last Friday that it will partner more small and medium-sized enterprise (SME)-linked distributors to expand its animal feed and nutrition business, and to better penetrate the domesticmarket, The Edge Markets reported.
The company plans to double the number of distributors of such products by end 2020.
FGV, through its subsidiary FGV Integrated Farming Holdings SdnBhd, has also signed a distributor partnership agreement with My Agro Hub Resources to market an estimated 30 tonnes of formulated animal feed every month, for dairy, beef and goat farmers in Negeri Sembilan and Melaka.
"As an appointed distributor of FGV animal feed products, My Agro Hub will enjoy all the benefits and tools provided by FGV. My Agro Hub will also be among the first few farms to test FGV's soon-to-be-launched formulated goat feed. Both parties are targeting local farmers, as well as feed shops and retailers in Negeri Sembilan and Melaka. My Agro Hub is already supplying Halal feed for local farmers in the two states.
Earlier this year, FGV signed agreements with six distributors in the states of Pahang, Kelantan, Selangor and Kedah. FGV plans to double the number of distributors by the end of the year and to include distributors for the other states in Peninsular Malaysia. To increase market reach to our farmers for our quality animal feed and animal nutrition, FGV would encourage more potential SMEs for each district to register with FGV as an appointed distributor.
With the encouraging growth in distributor partnerships, FGV (is) confident (that) the 50,000-tonne target for sales volume this year can be achieved," it said.
FGV group chief executive officer Datuk HarisFadzilah Hassan said that for the company's integrated farming business segment, animal nutrition and protein has been identified as an important revenue stream.
"With abundance of raw materials coming from our oil palm plantations and mills, we can produce up to 400,000 tonnes of highly nutritious animal feed every year. Internal sourcing of palm kernel expeller as one of the ingredients for our animal feed is very important to ensure these feeds are manufactured with high standards to safeguard the quality and health of the livestock.
Internal sourcing of the ingredient is also very important for traceability, which is a key feature of our products. We know the source of the animal feeds," Haris said.
FGV operates in nine countries across Asia, the Middle East, North America and Europe. FGV was initially incorporated as a commercial arm of Federal Land Development Authority (FELDA) in 2007 to oversee investments in the upstream and downstream palm oil businesses as well as other agri-businesses.