Farm Fresh invests RM85m in farm, plant in Australia

The Holstein Milk Company Sdn Bhd, which produces milk under the Farm Fresh brand, has invested RM85 million to acquire a dairy farm and a plant in Melbourne, Australia, to meet the demand for fresh milk in Malaysia.

Operations Director Azmi Zainal said of that amount, RM45 million was spent to take over the plant from a dairy company there while RM40 million was used to buy a 607-hectare farm as well as to establish a sperm bank for breeding cattle through artificial insemination.

“We started taking over the plant and the farm in July and are in the stage of renovation and bringing in the necessary machinery for processing fresh milk.

“When works are completed early next year, the plant will be able to produce 27,000 litres of milk daily, which will then be brought into this country to be re-processed at the Muadzam Shah Cattle Research and Innovation Centre,” he added.

He was speaking to reporters today after Pahang Mentri Besar Datuk Seri Wan Rosdy Wan Ismail paid an official visit to the company’s farm in Muadzam Shah here along with Pahang State Agriculture, Agro-Based Industry and Biotechnology Committee Chairman Datuk Seri Mohd Soffi Abd Razak.

Azmi said that with the additional production, The Holstein Milk Company was expected to control almost 30 per cent of raw milk production in the country compared with 17 per cent to-date.

The company operates a 12-hectare farm in Muadzam Shah with a production capacity of 80,000 litres of milk daily, comprising 60,000 litres of Ultra High Temperature (UHT) milk and 20,000 litres of fresh milk.

The milk comes from top-quality livestock comprising 2,800 dairy cattle, including Holsteins, at the farm.

“To meet the demand for fresh milk in the country, the company is also assisted by about 15 satellite breeders in the state, including from the Panching and Pekan areas,” he noted.

In its effort to expand its fresh milk market, The Holstein Milk Company recently launched UHT milk in a new 200 ml Tetra Edge pack in chocolate, kurma (date) and cafe latte flavours.

Azmi said the pack, introduced in July, was targeted at school students as the milk would last longer than that marketed by the firm previously.

“For a start, we are producing 12,000 litres daily. We have seen very encouraging response and are in the process of raising production to 30,000 litres daily,” he added.

Besides Malaysia, Farm Fresh is also marketed in Singapore and is expected to penetrate the Philippine market next year.

Source: Bernama