Below is an excerpt from milk producer Farm Fresh Bhd Group Managing Director and Group Chief Executive Officer (CEO) Loi Tuan Ee's letter to stakeholders in the company's first annual report since Farm Fresh's listing on Bursa Malaysia's Main Market on March 22, 2022. Farm Fresh's annual report was filed with the bourse on Friday (July 29, 2022).

Dear Stakeholders,

As we gear up to capitalise on the opportunities of the modern day, we are conscious that we are operating in a market environment and global context that is unprecedented in the scale of its challenge.

With conflict returning to the developed world and global economic uncertainty looming, commodity and logistics prices have surged, causing many global companies to cut spending and adopt caution.

While we have undoubtedly been affected by this turbulent macro environment, its impact has been limited due to the internalisation of our operations as a vertically integrated dairy company. Indeed, our “grass-to-glass” model — with a presence across the upstream, midstream and downstream segments of the dairy industry — is our greatest strength, providing us with the flexibility to adapt to operational challenges and scale to meet demand alike, all while minimising costs of farming, processing and distribution.

In this statement, I will outline the various strategies we have employed to drive expansion, enable innovation and enhance our reputation as an organisation, while detailing the ambitious plans we have formulated to accelerate growth in future.

Looking ahead, we’re excited by the potential presented by our entry into new and underpenetrated product segments. In July 2022, we are slated to launch our own brand of growing up milk for children aged two- to six years old, made from fresh milk with fortification such as DHA, inulin, zinc, iron, and vitamins such as A and D, and does not contain preservatives, artifical flavouring, vegetable oil, calcium carbonate (from limestone) and most importantly, hidden sugar in the form of maltodextrin. This product offers parents a healthier alternative compared to powder-based products, in line with our goal to nurture healthier future generations. Concurrently, we aim to meet demand for quality dairy from lower-income populations through our Yarra by Farm Fresh range of products, which utilises whole milk powder as a base and will be positioned at a lower price point than our existing ready-to-drink product range. 2022 will also see the launch of a new range of plant-based yoghurt products, a further extension of our plant-based line which will offer additional options for consumers with lactose-intolerance and other dietary restrictions.

Loi Tuan Ee
Group Managing Director & Group Chief Executive Officer