Holstein Milk Company Sdn Bhd (Holstein), 30 per cent owned by Khazanah Nasional Bhd, has invested RM85 million to buy dairy farms and mills in Melbourne, Australia.
This latest investment by the firm, which produces local dairy brand Farm Fresh, is to cater for the domestic demand of fresh milk.
Its operations director Azmi Zainal said of the total amount, some RM45 million will be used to buy an area of 607 hectares with 2,000 cows from the Holstein breed, including creating a sperm bank for breeding cattle.
He said the company also invested RM40 million for a dairy production plant bought in July.
Azmi said the plant, located in Victoria, Melbourne, can produce 27,000 litres of milk a day to be sent back to the factory at the Muadzam Shah Cow Research and Innovation Centre (MSCRIC), Rompin for production and domestic distribution.
"We invest there (Australia) to increase the country's raw milk production to about 30 per cent compared to 17 per cent currently.
"It will also help increase the company’s market share of its product to 43 per cent by the end of this year compared to 39 per cent at present.
"In fact, our 12-acre milk processing plant in MSCRIC, which began operating in July with a cost of RM26 million, also helped the company meet the needs of the local dairy market, thus fulfilling the target of being the largest fresh milk producer in Southeast Asia," he said.
Azmi had earlier briefed Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail who visited the research center and milk processing plant in Muadzam Shah, Rompin.
Azmi said the factory at MSCRIC produced 80,000 litres of milk per day with 60,000 litres of UHT (Ultra High Temperature) and 20,000 litres of fresh milk per day.
Additionally, the company also introduced the 200 ml box for UHT milk starting in July, for pupils and schoolchildren.
"Currently, about 15,000 litres of milk a day is used to produce UHT milk in the box and we will increase its production up to 30,000 litres a day in the future,” he said.
Azmi said the company also intends to explore new markets in the Philippines next year after successfully entering the fresh milk market in Singapore.