KUALA LUMPUR: FGV Holdings Bhd (FHB) will partner with more small and medium enterprise (SME) distributors to expand animal feed and animal nutrition business and penetrate the nationwide market more effectively.
This week, FHB, through its subsidiary FGV Integrated Farming Holdings Sdn Bhd, signed a distributor partnership agreement with My Agro Hub Resources (MAH) to market an estimated 30 metric tonne (mt) of formulated animal feed every month for dairy cattle, beef cattle and goat farmers in Negeri Sembilan and Melaka.
FHB group chief executive officer Datuk Haris Fadzilah Hassan said under the Integrated Farming sector, animal nutrition and protein has been identified as a growingly important revenue stream for the group.
"With an abundance of raw materials coming from our palm oil plantations and mills, we can produce up to 400,000 mt 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," he said in a statement today.
He said internal sourcing of the ingredient is also very important for traceability, which is a key feature of FHB products.
"We know the source of the animal feeds," Haris said.
As an appointed distributor of FGV animal feed products, MAH will enjoy all the benefits and tools provided by FHB.
MAH will also be among the first few farms to test FHB'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.
MAH is already supplying halal feed for the local farmers in the two states.
Earlier this year, FHB signed agreements with six distributors in the states of Pahang, Kelantan, Selangor and Kedah.
FHB 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 farmers for quality animal feed and animal nutrition, FHB would encourage more potential SME for each district to register with the company as an appointed distributor.
FHB noted that with the encouraging growth in distributor partnerships, the company is confident the 50,000 mt target for sales volume this year can be achieved.
Source: https://www.nst.com.my/business/2020/07/611404/fgv-expand-animal-feed-business-nationwide