SADC expands with Ehsan Dairy Farm in Malaysia

MALAYSIA – The Selangor Agriculture Development Corporation’s Dairy Cattle Complex (SADC) has commenced the establishment of Ehsan Dairy Farm, which is aimed at lowering the nation’s dependence on imported dairy products.

The facility, located on a 9.7ha site at Sungai Tengi SADC Farm in Kuala Kubu Bharu, is expected to begin operations early next year.

The farm will house over 1,200 Jersey-Holstein Friesian cows, with an annual production target of 1.8 million litres of fresh milk.

This output is projected to generate more than RM7.5 million in revenue and create over 100 direct and indirect jobs. The initiative is part of the Selangor Food Security Action Framework 2021–2025 and is recognized as a national strategic project aimed at modernizing Malaysia’s agro-food sector.

Datuk Dr Mohamad Khairil Mohamad Razi, SADC’s Group CEO, highlighted the farm’s integration of smart technologies, including automated milking systems and digital animal health monitoring.

These innovations are expected to enhance efficiency and support downstream agro-industrial development, such as processing, packaging, and marketing of locally produced dairy.

The groundbreaking ceremony was attended by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi and Selangor Menteri Besar Datuk Seri Amirudin Shari, underscoring the federal and state governments’ joint commitment to food sovereignty.

The Ehsan Dairy Farm is envisioned as a model for future modern dairy operations across the country.

Farm Fresh Berhad to invest US$54.58M for expansion

To expand its operations, Farm Fresh Berhad, a Malaysia-based dairy and plant-based products company, earmarked 80% of its IPO proceeds (US$54.58 million) for a project.

The company noted that the multi-pronged expansion plan will capitalize on rising fresh milk consumption in the Southeast Asian region and will be backed by its strong research and development (R&D) culture and growing product portfolio.

The expansion will strengthen the dairy’s presence in the ultra-high temperature (UHT)/ambient milk segment, entering new export markets in Indonesia and the Philippines, and launching new products (including plant-based yogurt and dairy-free packaged foods and beverages).

RHB Investment Bank in a report that taking into account all this, Farm Fresh Berhad’s net profit is forecasted to grow at a CAGR of 21% in the next three-year, given the scarcity of quality consumer staple stocks in the local market.

Subscribe to receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world. SUBSCRIBE HERE