Invigorating Supply Chain In the Agri-Food Sector – MIDA | Malaysian Investment Development Authority

Integrated Agribusiness and its Contribution to Sustainable Development Goals

Case Study: F&N AgriValley

• Project: A large-scale, integrated dairy farm by Fraser & Neave Holdings Bhd (F&NHB), marking a strategic entry into upstream dairy production.
• Investment: Up to RM1.8 billion.
• Scale: 2,726 hectares located in Gemas, Negeri Sembilan.
• Projected Output: Up to 200 million litres of fresh milk annually upon reaching full capacity.
• Core Infrastructure: Includes milking parlours, processing and packaging plants, and advanced agricultural technologies.

Alignment with Sustainable Development Goals (SDGs)

1. SDG 2: Zero Hunger: The project directly addresses national food security by increasing the local supply of affordable, high-quality dairy products. This initiative aims to reduce Malaysia’s reliance on imported milk, contributing to a more resilient domestic food system.
2. SDG 12: Responsible Consumption and Production: F&N AgriValley implements a sustainable circular farming model. Key features include on-site crop cultivation for animal feed and the use of biodigesters to convert manure into resources, minimising waste and promoting a circular economy.
3. SDG 7: Affordable and Clean Energy: The utilisation of biodigesters to transform agricultural waste into renewable energy supports the goal of sustainable energy production and consumption within the facility’s operations.
4. SDG 9: Industry, Innovation, and Infrastructure: The development represents a significant investment in resilient agricultural infrastructure, utilising advanced technologies to create an efficient and sustainable production system.
5. SDG 8: Decent Work and Economic Growth: The substantial investment and scale of the AgriValley project contribute to economic growth and value creation within the agricultural sector.
6. SDG 17: Partnerships for the Goals: The project’s success is reinforced by strong policy backing and facilitation from government agencies such as the Malaysian Investment Development Authority (MIDA), demonstrating effective public-private partnerships.

Broader Implications for Integrated Agribusiness Models

• Investor-driven initiatives in integrated agribusiness are shown to be effective mechanisms for enhancing food security and achieving scalable returns.
• Other models contributing to sustainable development include:
  • Napier grass cultivation for sustainable animal feed.
  • Aquaculture, including shrimp and crocodile farming.
  • Specialised poultry farming, such as quail production.
  • High-value crop cultivation, like durian farming, integrated with on-site processing facilities to unlock further value.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 2: Zero Hunger: The article’s primary focus is on advancing food security in Malaysia through large-scale agribusiness, specifically by increasing local dairy production to reduce reliance on imports.
• SDG 7: Affordable and Clean Energy: The project incorporates the use of biodigesters to convert animal waste into renewable energy, directly contributing to clean energy generation.
• SDG 8: Decent Work and Economic Growth: The significant investment of RM1.8 billion and the development of a large-scale integrated farm imply substantial economic activity and job creation, boosting local economic productivity.
• SDG 9: Industry, Innovation, and Infrastructure: The development of a modern, large-scale facility with “milking parlours, processing and packaging plants, and advanced technologies” represents a significant investment in sustainable industrial infrastructure.
• SDG 12: Responsible Consumption and Production: The project’s “sustainable circular farming model,” which includes converting manure into energy, exemplifies sustainable management of resources and waste reduction.

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 2: Zero Hunger

• Target 2.1: By 2030, end hunger and ensure access by all people… to safe, nutritious and sufficient food all year round. The article states the project aims to provide “affordable, high-quality dairy products,” which directly addresses the accessibility and availability of nutritious food.
• Target 2.4: By 2030, ensure sustainable food production systems and implement resilient agricultural practices. The facility’s “sustainable circular farming model” is a direct application of this target, aiming for long-term, environmentally sound food production.

SDG 7: Affordable and Clean Energy

• Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The use of “biodigesters to convert manure into renewable energy” is a specific action that contributes to this target by creating a new source of clean energy.

SDG 8: Decent Work and Economic Growth

• Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The project’s investment in “advanced technologies” for dairy farming and processing is an example of technological upgrading to boost productivity in the agricultural sector.

SDG 9: Industry, Innovation, and Infrastructure

• Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies. The entire F&N AgriValley concept, with its circular model and biodigesters, is an example of building sustainable and innovative industrial infrastructure.

SDG 12: Responsible Consumption and Production

• Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. The conversion of manure, a waste product, into renewable energy is a clear example of waste reduction and reuse.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

SDG 2: Zero Hunger

• Indicator for Target 2.1: The projected annual production volume of “200 million litres of fresh milk” serves as a direct quantitative indicator of increased local food supply. Another implied indicator is the reduction in “reliance on imports,” which measures progress towards national food security.

SDG 7: Affordable and Clean Energy

• Indicator for Target 7.2: While not quantified in the article, the “use of biodigesters to convert manure into renewable energy” is a qualitative indicator. A quantitative measure would be the amount of energy (e.g., in kWh) produced by these biodigesters annually.

SDG 8: Decent Work and Economic Growth

• Indicator for Target 8.2: The investment of “up to RM1.8 billion” is a strong financial indicator of economic activity and commitment to increasing productivity in the agribusiness sector.

SDG 9: Industry, Innovation, and Infrastructure

• Indicator for Target 9.4: The implementation of a “sustainable circular farming model” and the installation of “advanced technologies” and “biodigesters” are tangible, albeit qualitative, indicators of upgrading infrastructure to be more sustainable.

SDG 12: Responsible Consumption and Production

• Indicator for Target 12.5: The process of “convert[ing] manure into renewable energy” is a specific indicator of waste being repurposed and diverted from traditional disposal methods, contributing to a circular economy.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators’ to present the findings from analyzing the article.

Source: mida.gov.my