Dutch Lady Milk Industries proposes to acquire 35% of Jemaluang Dairy Valley for US$4.3M

MALAYSIA – Dutch Lady Milk Industries has proposed to acquire 14.49 million shares representing 35% equity interest in Jemaluang Dairy Valley Sdn Bhd (JDV) from Kulim for US$4.29 million.

In a filing with the stock exchange, Dutch Lady Malaysia said its acquisition of the equity in JDV will provide it with access to the fresh milk segment and enhance DLMI’s ability to meet the growing demand for fresh milk.

This will also strengthen its position in the Malaysian ready-to-drink (RTD) milk market, which is expected to be increasingly driven by the fresh milk segment.

According to the filing, JDV’s dairy farm, which commenced operations in 2025, is expected to o expand its herd from the current 1,000 milking cows to 2,000 milking cows by 2030. 

JDV also intends to construct a production facility with an annual production capacity of approximately 16 million to 20 million litres of pasteurised milk by 2027.

The proposed acquisition, which is anticipated to be completed in the first quarter of 2027, is expected to contribute positively to the future revenue and earnings of DLMI, thereby enhancing shareholders’ value in the long-term.

“For more than 60 years, Dutch Lady Malaysia has grown alongside Malaysia, nourishing generations with quality dairy nutrition. As consumer preferences continue to evolve, we see opportunities to build on this legacy and further strengthen our relevance in the Malaysian market,” said Veronika Utami, Managing Director of Dutch Lady Malaysia, in a statement.

JDV is 65% owned by Kulim, a subsidiary of Johor Corporation, while the remaining 35% is held by A2 Fresh Holdings Sdn Bhd, a subsidiary of Rhone Ma Holdings Bhd.

The company was incorporated to operate a dairy project in Sungai Ambat, Jemaluang, Mersing, Johor, in collaboration with the East Coast Economic Region Development Council (ECERDC).

Jemaluang Dairy Valley targets 5.5M litres fresh milk production

The Jemaluang Dairy Valley project recorded progress, with fresh milk production reaching three million litres as of July 26, 2026, close to the initial target of 3.6 million litres set for this year.

Its Chief Executive Officer, Qasem Alhasan, said the dairy valley currently has 1,900 dairy cows, with the number of milking cows steadily increasing as they enter the lactation phase, contributing to higher milk production.

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