FGV HOLDINGS BERHAD | SUSTAINABILITY REPORT 2022/2023 29 PROMOTING ECONOMIC GROWTH Integrated Farming Integrated farming is one of the two new business lines developed by FGV as part of our diversification from our oil palm mainstay. In collaboration with the Ministry of Agriculture and Food Industry, FGV continues to champion the Large-Scale Smart Padi Field Programme (SMART SBB), focusing on the Fortified Field Fragrant Rice (3FR) programme as part of its role to support the country’s food security agenda. The programme involves fragrant rice contract farming scheme implemented through smart agriculture practices such as mechanisation, automation, and Internet of Things (IoT) technologies. To date, FGV has collaborated with 371 contract farmers who are cultivating close to 700 ha of MRQ76 fragrant rice plots in northwest Selangor and Seberang Perak to produce our home brand, Saji Aroma Malaysian fragrant rice. Driving Operational Improvements With Research And Development (R&D) We operate one of Southeast Asia’s largest oil palm research and development centres, focusing on innovation and scientific research, enhancing yields, and milling processes. We produce the award-winning planting material, Yangambi ML161, and have a fertiliser manufacturing capacity of 700,000 MT annually. The sales volume of Yangambi ML161 seed increased by 8% in 2023. The group is dedicated to enhancing productivity through the 25:23 initiative, promoting estate modernisation through the Internet of Things (IoT) and upskilling programmes. We achieved two research breakthroughs in 2023: a value-added fertiliser and an improved high-yield planting material set to launch in 2024, aiming to boost palm oil industry efficiency and productivity. FGV Agri Services Sdn Bhd has partnered with Pertubuhan Peladang Kebangsaan (NAFAS) and Pandawa Agri Indonesia to introduce Weed Solut-Ion, an environmentally-friendly weed management product that reduces herbicide use by 50%. Our R&D division remains steadfast in our dedication to sustainability through innovation, exemplified by our research centre, Pusat Penyelidikan Pertanian Tun Razak (PPPTR), which has been instrumental in the oil palm industry for 55 years. The division has also commercialised a controlled-release fertiliser in sachet form. In the years ahead, the division’s R&D efforts will focus on increasing FFB yield and OER, addressing labour challenges through IoT and advanced technologies, and promoting sustainability-driven innovations. New projects include developing bioplastics from palm oil mill waste, Napier pellets for ruminant feed, and poultry feed with Palm Kernel Expeller. As Malaysia’s sole producer of Green Rubber products, we faced a significant sales volume reduction in 2023 due to a decrease in raw material purchases and increased production costs. We addressed these challenges by securing raw materials, optimising diesel and electricity consumption, expanding into Green Rubber products, and obtaining Forest Stewardship Council certification. Our expansion into integrated farming promotes sustainability and enhances modern agricultural practices.
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