Farm Fresh Expands Across Southeast Asia Amid Rising Dairy Demand

The expansion is part of Farm Fresh’s strategy to maintain an annual growth rate of 10 to 20 percent, with anticipated revenue exceeding 1 billion ringgit (approximately $240 million) this financial year. CEO Loi Tuan Ee has emphasized the potential for significant growth in these Southeast Asian markets over the next three to five years.

Farm Fresh’s revenue, primarily from Malaysia, increased by 21% to 981 million ringgit for the fiscal year ending in March, with a net profit rise of 67% to 106 million ringgit. The company is also diversifying its product offerings to include chilled milk, UHT milk, ice cream, butter, and infant formula, with plans to produce cream cheese in Malaysia for export.

The company is also benefiting from its local brand momentum in Malaysia, as economic conditions drive consumers toward less expensive domestic products. A consumer survey indicated that 74% of Malaysians have opted for cheaper brands in at least one category over the past year, a trend favorable to Farm Fresh, according to Macquarie analyst Amanda Foo.

Farm Fresh's shares have risen by more than 30% this year, enhancing the value of CEO Loi’s 40% stake to around $440 million. Khazanah Nasional Bhd., an initial investor, has also profited significantly from its stake in the company.

Farm Fresh plans to commence operations at its Cambodia factory in April, with potential farm establishments in the country within one to two years, aiming to serve northern markets, including Vietnam and Laos.