(MENAFN- The Peninsula) The Peninsula
DOHA: Baladna has entered into a shareholders' agreement (Conditional SHA) with Malaysian companies FGV Holdings Berhad (FGV) and Touch Group Holdings Sdn Bhd (TGH), to develop an integrated dairy farming business in Malaysia.
The agreement was signed by Piet Hilarides, Chief Executive Officer of Baladna; Dato' Mohd Nazrul Izam Mansor, Group Chief Executive Officer of FGV; and YM Raja Dato' Idris Raja Halid, Group Chief Executive Officer of Touch Group Holdings, in the presence of the Malaysian Prime Minister YAB Dato' Sri Ismail Sabri Yaakob and the ambassador of Qatar in Malaysia, Mr. Fahad bin Mohammed Kafood.
Expected to be commercially operational by 2025, the project will produce 100 million litres of fresh milk per annum within the first three years and is expected to reach 300 million litres of fresh milk within 10 years. Based on Baladna's highly successful“grass to glass” concept, the joint venture will be fully integrated, from crop production to feeding the cows, to the processing and sale of the highest quality fresh milk.
Baladna will own 40% of the joint venture, FGV owning 40% and Touch Group will own the remaining 20%. The project, covering an area of 3,259 hectares in FGV Chuping Agro Valley (FCAV), is expected to involve an investment of circa QAR 3.6 billion in phase one.
Commenting on the initiative, Piet Hilarides said:“As a partner, Baladna will use its extensive experience in fresh milk production and brand development to substantially improve Malaysia's self-sufficiency in milk. We are delighted to be able to partner with FGV Holdings Berhad and Touch Group Holdings”
FGV's Dato' Mohd Nazrul commented:“This joint venture will be a springboard for FGV to become one of the world's leading integrated and sustainable agribusinesses. As an organisation which is already involved in the food industry, our latest venture into this integrated dairy farming business strongly positions us in growing milk and dairy industry, thus strengthening our presence in the food industry,”
“We hope that our participation in this joint venture would strengthen and add value to the composition of the shareholders of the joint venture, in line with the National Food Security Agenda,” said Raja Dato' Idris of Touch Group.
The project also aims to position FGV Chuping Agro Valley (FCAV) as one of the leading agro-valley hubs in Malaysia, creating more than 2,000 job opportunities via the integrated dairy farming business. For Baladna, Qatar's largest locally owned food and dairy supplier with a production output of 500,000 litres of milk per day across more than 250 products, the initiative is part of an outward orientation towards key international markets. The initiative is part of Baladna's ambition to become an international dairy producer.
Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.