KUALA LUMPUR: Qatar’s Baladna Food Industries WLL has teamed up with Felcra Bhd to set up its maiden dairy production business in Malaysia.
The collaboration will involve a development of an anchor farm which is expected to be the largest in the country with 10,000 heads capacity targeting annual production of 50 million litres of milk per year.
Within the next two years, the two firms aim to double Malaysia’s current fresh milk production, in line with National Food Security Agenda.
Baladna is one the largest livestock and dairy farm owners in Qatar.
Felcra chairman Datuk Nageeb Wahab said the collaboration allows the agency to leverage on its landbank to diversify its business, increase its revenue base and reduce its reliance on plantation commodities.
Under the collaboration, Baladna would bring its investment, expertise and technology to Malaysia, he added.
“The integral part of the proposed collaboration is the development of satellite farms and supply of dairy cattle feedmeal, which will involve participation of Felcra’s participants.
“It will serve as a new source of revenue for Felcra towards reducing its over-reliance on oil palm and rubber, while capturing dairy technology and expertise brought in by Baladna,” Nageeb said after a Memorandum of Understanding signing ceremony here today.
“We are hopeful that the collaboration would be positive in upholding standard of living for Felcra participants,” he added.
The MoU signing was witnessed by Qatar Commerce and Industry Minister Ali Ahmed Al-Kuwari and Malaysia’s Foreign Affairs Deputy Minister Datuk Marzuki Yahya.
Under the MoU, Nageeb said the parties would undertake further study on the dairy project, including project scope, site evaluation, financial and risks management.
Qatar has successfully addressed the self-sufficient level of dairy supply in the country through Baladna’s development of its dairy farm in Al Khor, Qatar housing 20,000 heads with annual production of over 100 million litres of milk per year.