@ AGROBiz | JANUARY-FEBRUARY . 2024

THE THEN Plantation and Commodities Minister Datuk Seri Fadillah Yusof has unveiled Malaysia ’ s proactive approach to navigate forthcoming global challenges by expanding agricultural commodity markets .

Highlighting the European Union Deforestation Regulation as a significant challenge , Fadillah stresses its impact on agricultural commodities like palm oil , rubber , cocoa , and coffee . He reassures that the government will safeguard the plantation and commodity sectors , particularly smallholders , from adverse effects arising from stricter regulations .

Fadillah , also Deputy Prime Minister , underscores the significance of supporting smallholders , numbering over 500,000 nationwide , as compliance with stringent rules imposes higher costs on them than larger agricultural companies . Ensuring their resilience and sustainability is crucial for Malaysia ’ s agricultural sector ’ s long-term health and stability .

Amidst a projected three per cent global economic growth in 2024 , Fadillah anticipates heightened competition and challenges . He notes the 2023 dip in production attributed to global economic uncertainties and geopolitical conflicts , coupled with inflation in certain countries , further complicating the economic landscape .

Acknowledging these hurdles , the Minister advocates for Malaysia to explore new product markets to mitigate risks and sustain growth . Diversifying export destinations can help mitigate the impact of fluctuations in demand from any single region , ensuring a more robust and resilient agricultural sector .

He emphasised the substantial contributions of agricommodity products to the national income , with the sector contributing RM60 billion to the Gross Domestic Product ( GDP ) and nearly RM118 billion to total export earnings as of September . This underscores the importance of the agricultural sector as a key driver of Malaysia ’ s economy .

At the National Agricultural Commodity Day 2023 , themed “ Driving National Agricultural Commodity Sustainability ,” Fadillah presented the National Agricommodity Awards across six sectors — oil palm , rubber , timber , cocoa , pepper , and kenaf . This event celebrates excellence and serves as a platform to showcase innovative practices and sustainable approaches within the industry .

From �e�t� �ino ��mar �a�a�rishnan� �hie� ��ec�ti�e ��ficer o� ��antan �ort Consortium Sdn Bhd , Mohamad Fadzil Hitam , Board Member of FGV Holdings Berhad , Dato ’ Mohamad Nizar Najib , Fakhrunniam Othman , Group Divisional Director , Logistics & Support Division , FGV Holdings and Mohd Djunadi Samsuddin , �hie� ��ec�ti�e ��ficer o� F�� �efineries ��n �h��

FGV HOLDINGS Berhad ( FGV ) celebrated a significant achievement by inauguring its Fract750 Refinery Plant at Kuantan Port , Pahang . This milestone marks the company ’ s strategic expansion into premium product offerings , including high IV Olein ( IV60-IV65 ) and hard stearin .

The event , graced by Pahang EXCO of Investment , Industry , Science , Technology & Innovation , Dato ’ Mohamad Nizar Najib , not only signifies the establishment of the new facility but also underscores a commitment to local economic growth .

Nizar highlighted : “ The new refinery not only allows FGV to explore new areas in specialty fat products but also contributes to developing a specialised industry in Kuantan , diversifying the local economy and positioning Kuantan as a hub for innovative and premium fat products .”

Equipped with modern technology , the new plant is set to create job opportunities for local youth in Pahang , aligning with the government ’ s efforts to promote skill development in advanced sectors like the palm oil and specialty fats industry . The FRACT750 Refinery , featuring the Desmet iConFract System , integrates innovative 30-bar filter press technology to enhance efficiency , streamline premium downstream product production , and precisely separate various fractions

AGROZ Group Sdn Bhd , a Malaysian agriculture technology company , is leading the charge in agricultural innovation . The company is developing its Agroz during the refining process .

FGV ’ s Group Chief Executive Officer , Nazrul Mansor , emphasised : “ The introduction of the new facility strategically positions FGV to serve emerging industries , with an anticipated annual production volume of 150,000 MT . This move enhances cost-efficiency by leveraging high free fatty acid ( FFA ) feedstock , a by-product of crude palm oil milling and refining , to produce palm methyl ester ( PME ).”

With operations spanning 136,617 hectares of plantation estate , 28 mills , and various processing and logistic facilities , FGV remains a key player in the palm oil industry . In 2023 , the company purchased and processed 4.91 million MT of fresh fruit bunches ( FFB ) in Pahang , with a significant portion sourced from FELDA and independent smallholders .

Nazrul reiterated : “ As the world ’ s leading producer of crude palm oil ( CPO ), FGV continues solidifying its position . With the establishment of this new plant , FGV will produce premium palm olein and explore new markets , further strengthening its position as a global leader .”

Operated by its subsidiary , FGV Refineries Sdn Bhd , this plant completes the Group ’ s business ecosystem , reflecting its commitment to sustainability and responsible practices for the industry and communities it serves .

Farm Operating System ( Agroz OS ) and Agroz Copilot for Farmers , harnessing a suite of Microsoft AI and cloud solutions , including Microsoft Azure OpenAI Service , GitHub , GitHub Copilot , Microsoft Copilot Studio , Microsoft AI Studio , Microsoft Fabric , and Microsoft Power BI .

Agroz is utilising Azure OpenAI Service to create Agroz Copilot for Farmers , an AI-driven application aimed at assisting farmers in cultivating various crops in Controlled Environment Agriculture ( CEA ) Vertical Farms and , soon , in Agroz CEA Greenhouses . This innovative

MANAGING Director of Emma Hydroponic Farm , George Yu , asserted that while large-scale hydroponic farms may require significant startup capital , their sustainable farming method ensured a consistent yearly vegetable supply .

He acknowledged that setting up a hydroponic system entails substantial initial investment in equipment and technology . However , Yu emphasised the inherent advantages of hydroponics , such as providing farm workers with a conducive environment and the ability to work regardless of rainy weather — a stark contrast to traditional agriculture .

Yu highlighted the impact of climate change on conventional farming , citing instances of droughts and floods leading to price fluctuations due to market demand ’ s growth and decline . He believed that the stability of prices hinges on maintaining a constant supply , underscoring the feasibility and economic viability of large-scale hydroponic farming .

Expressing optimism about Sarawak ’ s economic growth and agricultural sector , Yu envisioned a self-sufficient Sarawak that reduces its dependence on imported vegetables through hydroponic farming .

Since its establishment in 2020 , Yu has invested over RM5 million in his Batu Kawa farm , cultivating 14 types of vegetables , including Japanese cucumbers , yielding an average of 35,000 metric tonnes per month .

The success of Yu ’ s second farm in Batu Kawa stems from his initial hydroponic farm pilot project in Sejingkat in 2016 and his experiences in Cameron Highlands , Pahang , and agricultural exhibitions in Peninsular Malaysia .

Yu revealed that the hydroponic farming project receives no government subsidy but is a research joint venture with Universiti Malaysia Sarawak ( Unimas ).

During his second visit to the farm , Sarawak Deputy Premier Datuk Amar Dr Sim Kui Hian lauded its progress , advocating for aspiring agropreneurs to adopt modern farming techniques and learn from experienced operators . He asserted that agricultural projects need not be confined to rural areas but can thrive in semi-urban regions with adequate access to utilities and infrastructure .

software application exemplifies Agroz ’ s dedication to leveraging cutting-edge technology to advance agricultural practices .

Founder and CEO of Agroz , Gerard Lim ,, underscored the company ’ s comprehensive technology blend to operate highly digitalised and automated indoor vertical farms , incorporating IoT sensors , data analytics , AI , automation and more . These farms yield clean , nutrient-rich , pesticide-free vegetables , demonstrating the harmonious integration of technology and agronomy .