Baladna to establish an integrated dairy farm in Malaysia

30 March, 2022

Doha, Qatar, 28 March 2022: Baladna has provided a letter of commitment to enter into an investment partnership with Malaysian companies FGV Holdings Berhad and FELCRA Berhad to jointly establish a large-scale, state-of-the-art integrated dairy farm in the Northern Corridor Economic Region in Malaysia.

The letter of intent was delivered on occasion of Prime Minister of Malaysia His Excellency Ismail Sabri Yaakob’s visit to Baladna Farm this week. H.E. and his accompanying ministerial delegation toured Baladna’s state-of-the-art facilities and met with His Excellency Dr. Sheikh Faleh Bin Nasser Bin Ahmad Al Thani, Minister of Environment and Climate Change, as well as Baladna board members and top officials of the agricultural company to discuss their strategic collaboration.

Commenting on the occasion, Piet Hilarides, Baladna CEO said: “We are honored to receive the Malaysian delegation at Baladna and extend our bilateral relationship in the agricultural sector. We are continuously working to reinforce Baladna’s international reach, in line with our dedication to consumer wellness through quality, locally-produced products.”

The integrated dairy facility will be climate-independent, using world-class technology and quality management systems. Once production commences in 2024, it will operate at a capacity of 100 million liters of fresh milk by the first year of operations in the Chuping Agro Valley (CAV) in Perlis, on the border to Thailand.

H.E. the Prime Minister noted: “The investment will generate over 2,000 new job opportunities during the initial phase of its first full year of operations, providing significant opportunities for domestic employment as well as addressing national food security concerns by reducing Malaysia’s reliance on milk and dairy imports.”

During the delegation’s visit to Qatar’s largest producer of fresh dairy and beverages, Mr. Moutaz Al-Khayyat, Chairman of Baladna, added: “Our recent discussions with the Malaysian leadership team symbolize our growing success. We have invested in the best people, leading technologies and globally recognized practices to gain international recognition while showcasing Qatar’s resilience and capabilities in expanding its global footprint.”

A crucial step in its international expansion plans, the new initiative aims to replicate Baladna’s success in Qatar, where the company bridged the gap in the dairy sector, helping the country achieve 100% self-sufficiency in milk and dairy.

Last year, a Memorandum of Collaboration (MoC) between Baladna, FGV Holdings Berhad and FELCRA Berhad was signed to mutually invest in a fully integrated dairy farm and produce fresh dairy products in Malaysia. The parties agreed to advance Malaysia’s local production of dairy products and draw on Malaysian agricultural land as part of their joint venture.

Given the deficit of domestic milk production in Malaysia, Baladna is also considering establishing a large-scale integrated dairy farm in the state of Pahang.