KUALA LUMPUR: Fraser & Neave Holdings Bhd plans to set aside RM1.7 billion in capital expenditure for its integrated dairy farm called F&N AgriValley in Gemas, Negri Sembilan.
F&N has completed the social impact study of the project, with land clearance and site preparation of the dairy barn site near completion, its chief executive officer Lim Yew Hoe.
The company had also selected the first batch of dairy cattle on schedule to meet the farm's first milking target date of early 2025, Lim told a briefing on F&N's latest interim results here today.
"For Phase 1, the company will start bringing in 2,000 cows featuring a milk processing capacity that can produce 100 million litres per annum," he added.
The project, slated to begin the first milking by early 2025, aims to break even in three years.
He noted that the dairy farm, which spreads over 2,726 hectares, will also plant corn as a feedstock for the cows.
The company plans to export to other countries after three years of operation, eyeing Hong Kong, Macau and the Middle East in the near future.
"For the first two or three years, we will focus on Malaysia, Singapore and Cambodia," he said.
The Ladang Permai Damai dairy farm project is part of F&N's plan to become one of the largest milk producers in Malaysia.
F&N ended its second quarter on March 31 2024 with higher revenue, registering a 12.1 per cent growth to RM1.35 billion from RM1.21 billion a year ago.
The performance was driven by continuing momentum for both F&B Thailand and F&B Malaysia, festive sales in Malaysia and aided by favourable foreign exchange translation from stronger Thai baht.