FGV Integrated Farming ’ s initiatives redefine fairness and opportunity , fostering local empowerment

BY ADELINE ANTHONY ALPHONSO

As a subsidiary of FGV Holdings Berhad ( FGV ), FGV IF is focused on traditional farming practices , and transforming the industry by creating an ecosystem that supports local farmers , fosters sustainable agriculture , and leads the production of some of the country ’ s most loved food products .

At the core of this transformation is FGV IF ’ s unique approach to contract farming , which not only increases agricultural productivity but also benefits communities and contributes to food security .

FGV IF operates beyond palm oil and rubber plantations , diversifying into several food sectors , such as dairy production under the brand Bright Cow , animal feed through ALMA , and rice production under the iconic Saji brand .

Their overarching mission is clear : to become Malaysia ’ s leading food company while supporting local farmers and contributing to national food security .

EMPOWERING LOCAL FARMERS

One of the standout features of FGV IF ’ s model is its contract farming programme - FGV Agro-Ranges - which partners with local farmers to enhance their productivity without taking ownership of their land .

According to the Head of FGV Integrated Farming , Abdul Razak Aya , the programme is based on the principle of collaboration rather than control .

He explained : “ We do not take control of the land ; instead , we work with farmers as partners .

“ They retain ownership of their land while we provide them with the expertise , resources , and guaranteed buybacks for their produce .”

This partnership model is built on a foundation of mutual trust and shared goals .

Farmers are appointed as contract partners , which allows them to benefit from FGV ’ s extensive agricultural knowledge and expertise .

The company ’ s support is critical in ensuring the farmers adhere to specific standards for quality and production . FGV IF provides farmers with standard operating procedures ( SOPs ) that focus on improving crop yield , maintaining consistent quality , and ensuring sustainability .

Abdul Razak mentioned : “ Farmers just need to follow our SOPs , and we guarantee that we will purchase all crops produced under our programme .

“ This reduces the burden of uncertainty for farmers who would otherwise have to find buyers for their crops in a competitive market .

“ By eliminating this risk , FGV IF ensures that the farmers can focus on cultivating their crops and improving their yields without worrying about the logistics and marketing .”

Moreover , this model has proven successful , and many farmers in the programme have seen significant improvements in both yield and income .

SUSTAINABILITY THROUGH INNOVATION

FGV IF ’ s commitment to sustainability is another pillar of its operation .

The company adopts modern farming practices that prioritise environmental stewardship , such as water conservation and soil preservation , while minimising waste .

FGV IF ’ s farming practices embrace the concept of a circular economy , where waste generated during one stage of production is repurposed and reintegrated into the production process .

For example , when rice is being processed , byproducts such as rice straw and husks are not discarded . Instead , these materials are converted into ALMA animal feed .

This not only reduces waste but also helps reduce costs , as the feed is cheaper than traditional alternatives because its raw materials come from agricultural waste .

“ We tackle both the food and animal feed sectors . By converting agricultural waste into high-quality feed , we keep costs down while contributing to a sustainable , closed-loop system ,” Abdul Razak elaborated .

The company ’ s use of biomass waste for feed production is an example of how FGV IF integrates sustainability into its business model while improving efficiency . This process creates a double benefit : it reduces environmental waste and produces more affordable animal feed for local livestock farmers , creating a win-win scenario for all involved .

TRANSFORMING LIVES THROUGH PARTNERSHIP

One of the most compelling aspects of FGV ’ s contract farming programme is its ability to transform the lives of local farmers .

A prime example of this is the success story of one farmer who joined the programme after previously cultivating white rice . Prior to joining FGV , this farmer ’ s yield was just two tonnes per hectare , and they sold their rice for around RM1,500 per tonne .

However , after enrolling in the contract farming programme and following FGV ’ s SOPs , the farmer ’ s yield increased dramatically , reaching four to six tonnes per hectare .

What ’ s more , FGV began purchasing the rice at a higher price - RM2,000 per tonne .

Abdul Razak explained : “ Their income increased by almost 60 to 70 per cent . This dramatic increase in both yield and income has helped lift the farmer out of poverty , demonstrating the significant impact of