Baladna Q.P.S.C. (“Baladna” or the “Company”), Qatar’s largest dairy and beverage producer, has signed a Memorandum of Collaboration (‘MoC’) to produce fresh dairy products in Malaysia.
The MoC agreed with Malaysia’s state-owned FELCRA Berhad (‘FELCRA’) and agriculture giant FGV Holdings (‘FGV’) aims to produce 100 million litres of fresh milk within the first full year of operation, pending the satisfactory completion of a feasibility study. The MoC is a key step forward in Baladna’s international expansion plans, which include replicating the company’s achievement in shifting Qatar from milk import dependency to self-sufficiency during the regional diplomatic crisis.
Baladna will jointly invest in an integrated dairy farm in the town of Chuping in Perlis, which borders Thailand and is Malaysia’s smallest state. The initial focus is to establish a dairy herd of 10,000 high yielding milking cows.
The parties aim to reduce Malaysia’s reliance on milk and dairy imports and to support local communities. Other potential areas include utilising Malaysian agricultural land to produce most of the required animal feed for dairy farming, as well as using the joint venture farm as a hub that supports small rural farms in developing small cattle fatting farms and animal feed farms by 2024.
Moutaz Al-Khayyat, Baladna Group Chairman, said: “We are proud to partner with FELCRA and FGV to transfer Baladna’s know-how and business model. This will ensure that Malaysia’s fundamental nutritional needs are no longer majority dependent on imports. With the support of our shareholders, we are increasingly transitioning into a truly international company. We look forward to sharing Baladna’s experience and growing our footprint in Southeast Asia as part of our international expansion plans.”