FGV reflects on excellent 2023

KUALA LUMPUR: Over the past decade, FGV Holdings Bhd has transcended its role as a contributor to national income and employment.

With 2023 having come to a close, FGV takes a moment to reflect on a decade of unwavering commitment to providing Malaysians with quality and affordable food products.

From wholesome fresh milk and farm-to-table produce to essential cooking ingredients like cooking oil, margarine and refined sugar, FGV told the Business Times that its dedication to meeting the nation's culinary needs had never been more robust.

Empowering Smallholders

Throughout 2023, FGV has reaffirmed its commitment to uplifting smallholders by focusing on education and sustainable practices.

The company's dedication is evident in its efforts to educate independent smallholders and fresh fruit bunches (FFB) suppliers on the significance of Malaysian Sustainable Palm Oil and the Roundtable on Sustainable Palm Oil certifications.

These initiatives are crucial steps toward aligning the company with the government's vision of having all palm oil entrepreneurs in the country certified.

In a sector where each player is dealt a unique hand, FGV stands out as the largest off-taker of smallholders' FFB in Malaysia, with 70 per cent of its processed FFB sourced from Felda settlers and independent smallholders. On the company level, beyond plantations, FGV oversees multiple sectors compared with other market players.

Supporting Food

Security Agenda

FGV is actively contributing to the country's food security agenda by ensuring the availability of high-quality, nutritious and affordable food products for all Malaysians, through its consumer goods brands such as SAJI, Adela, Seri Pelangi, Gula Prai, Ladang'57 and Bright Cow.

HORECA Fragrant Rice

In collaboration with the Agriculture and Food Industry Ministry, FGV continues to champion the Large-Scale Smart Padi Field

Programme (Smart SBB) with a focus on the Fortified Field️ Fragrant Rice (3FR) programme.

The programme is a planting system that integrates padi farming activities through smart agriculture practices, mechanisation, automation and Internet of Things technologies. To date, FGV has worked with 361 contract rice farmers who are cultivating more than 690ha of fragrant rice plots in northwest Selangor and Seberang Perak.

Ladang'57 Ayam Kampung

The Ladang'57 Ayam Kampung was launched in August to meet local demand for fresh, free-range chicken with excellent quality and affordable pricing.

In collaboration with FGV's retail and distribution partner, Aeon BiG (M) Sdn Bhd, the Ladang'57 Ayam Kampung is available at 21 Aeon BiG hypermarkets.

Bright Cow Acerola Yoghurt and UHT Milk

FGV entered the local dairy scene a few months before the Covid-19 pandemic struck.

Bright Cow, initially known for its fresh milk, UHT milk, flavoured kefir, milk yoghurt, yoghurt drinks, and cheese products, has reached a significant milestone.

In July, the dairy brand appointed new distribution agents, resulting in an extensive expansion with its products now available at an additional 5,000 retail locations.

Maintaining this momentum, the brand unveiled an addition to its product line in October — the Bright Cow Acerola Yoghurt.

Celebrating homegrown brand

SAJI is synonymous with cooking oil in Malaysia and continues to see growth in the consumer segment. It achieve 177 per cent growth in Consumer Reach Points (CRP) in the last decade, surging from 8.9 million in 2012 to 24.7 million in 2021.

It was recognised as the "Top outstanding brand with the most incremental shoppers in 2022" by world-leading consumer data, insights and consulting company Kantar Group in July last year.

The BrandLaureate has also awarded SAJI with the "Sustainable Best Brand" award for consumer products.

Exploring New Frontiers

FGV's premium cooking oil and margarine brand, ADELA, expanded into the flourishing Middle East and North Africa (Mena) market in February last year via the introduction of the ADELA Margarine.

The product was unveiled at Gulfood 2023, the world's largest food exhibition held at the Dubai World Trade Centre.

FGV's foray into the Mena market marks a step in the company's vision of exploring new frontiers.

The launch of ADELA Margarine underscores FGV's commitment to delivering premium products and showcases its adaptability and agility in responding to global market trends and demands.

Furthering commitment

to sustainability

At FGV, sustainability is at the front and centre of its business.

"We are committed to respecting human rights, protecting the environment and promoting economic growth, particularly in the communities we serve," it said.

In its continuous pursuit of ensuring sustainability as well as in addressing the withhold release order by the United States Customs and Border Protection Department, FGV successfully completed the third phase of its recruitment fees reimbursement on Sept 15 last year, which was part of the remediation process.

It disbursed RM72.2 million to 19,673 migrant workers in March, June and September.

On the environmental, social and governance (ESG) front, FGV was honoured at the ESG Positive Impact Awards 2023 when it bagged a Gold award in the renewable energy category.

FGV's Milestones

FGV has attained a series of achievements, affirming its commitment to excellence, integrity, and sustainability across various domains.

It recently bagged the Best Annual Report in Bahasa Malaysia (Gold) award at the NACRA Awards 2023.

FGV's biofuel business in Kuantan was awarded with the Malaysia Brand Leadership Awards 2023 by the World Brand Congress.

This culture of excellence, which permeates throughout FGV, has born fruit when FGV was recognised as Malaysia's Most Preferred Employers (conglomerate category) by the Graduan Brand Awards 2023.

Meanwhile, the World HRD Congress recognised FGV with the Malaysia Best Employer Brand 2023 award and the Top Most HR Leaders Malaysia award.

FGV's corporate zakat contributions amounting to RM35.3mil benefited underprivileged communities in urban and rural areas.

In the spirit of Rahmah, FGV has been engaging with Bottom 40 communities in Kuala Lumpur with FGV Seikhlas Hati packs from April last year.

More than 10,000 packs have been sold for RM10, each comprising basic food items such as 2kg of cooking oil, 500g of sweetened creamer, 200g of coconut cream from Saji and a 1kg packet of sugar from Gula Prai.

On Dec 15, FGV launched an upsized Sukuk Murabahah programme of RM3 billion and received an "AA" investment grade corporate rating from Malaysian Rating Corp Bhd with a stable outlook.

A Sustainable Future

Since its establishment in 2012, FGV has recognised its significant role in shaping the corporate landscape of Malaysia.

As the company looks ahead, it anticipates a promising 2024, driven by its steadfast mission of "RE-Defining" itself as a leader in championing sustainable foods and agriproducts.

"As one of the key food players in Malaysia, FGV aims to play a significant role in the country's national food security agenda by bringing high-quality and nutritious food products at affordable prices to all Malaysians.

"To learn more about FGV, check out the new corporate video on FGV's social media accounts on Facebook, Instagram, Tik Tok, LinkedIn and YouTube, as well as visiting www.fgvholdings.com."

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