SEREMBAN: FGV Holdings Berhad (FGV) is keen to develop Palm Kernel Cake (PKC)-based animal feed for the ruminant industry.
Its group chief executive officer Datuk Haris Fadzilah Hassan said this was part of the company’s strategic plan to expand the 'Waste to Wealth' product offerings into a new market that is interrelated with its core business.
“PKC is used as the basic ingredient for making animal feed for ruminants such as cattle and sheep.
"It is a by-product of palm kernel, and can be used as an alternative main raw ingredient for animal feedstock. The price is cheaper compared to soybeans, corn and wheat which are widely used in animal feed.
"As the biggest PKC producer with 380,000 tonne metric produced annually, of which 97 per cent are exported, we are confident we can offer premium animal feed products at a competitive price and help farmers reduce their animal feed costs," he said after a memorandum of understanding (MoU) signing between FGV and the Department of Veterinary Services (DVS) in Nilai Square here today.
Haris Fadzilah said the rational for venturing into the project was to create new growth areas.
"The business of PKC or any of the cattle segments (milk or meat) will definitely create a natural synergy between downstream (mills operations and wider product range), research and development (R&D) for feed, meal, genetics, milk quality and logistics," he said.
"In addition, FGV would also keen to address the gap in milk and meat supply. By leveraging on our strength in R&D and downstream, we hope to achieve a significant impact in the first three years."
Based on DVS report, a total of 4 billion metric tonne animal feed was imported in 2017 totalling RM7 billion.
Under the MoU, DVS is expected to assist FGV's Feed Meal strategy in both domestic and international market, providing direction on effective ruminant programme, and assisting in developing Cattle Farming Business Model for both dairy and meat.
DVS will also provide advice on government grants, incentives, subsidies and other related aids applicable to FGV.
Also present at the signing were Veterinary Services Department director-general Datuk Dr Quaza Nizamuddin Hassan Nizam and State Agriculture and Agro-based Industry committee chairman Bakri Sawir.
The new venture is expected to become a game changer for both Animal Feed Meal and Dairy Cattle Farming as it represents a new income stream for FGV which was compelling, significant and sustainable.