• Farm Fresh (FFB) actively builds communities by supporting local economies, providing scholarships to the natives’ children, and implementing programs for comprehensive growth.

• Farm Fresh’s commitment to using genuine ingredients sets it apart from competitors and resonates with the principle of TOYYIBAN, which emphasises cleanliness, purity, and adherence to Shariah standards.

• In conjunction towards sustainable packaging and environmental initiatives, FFB introduced the innovative Milk on Tap initiative, now operational at nine outlets spread across Kuala Lumpur and Johor Bahru.

• FFB listed in the upper quartile (51%-75%) of ESG ratings among public listed companies (PLC) in FBM EMAS, as according to FTSE Russell, as at December 2023. We have a ‘Good' ESG rating for FFB, with total score of 3.08 out of 5.00.

Pioneering Quality Dairy Production and Product Innovation

FFB prioritises food quality throughout its supply chain, by ensuring better dairy which leads to producing fresh products that meet the highest food and safety standards, whilst providing nutritional needs through maintenance of a healthy dairy livestock. The company also collaborates closely with partner-farmers to uphold rigorous standards. Being the first farm in Asia, the company’s facilities are certified humane, ensuring that animals are raised and handled according to the Group's Good Animal Husbandry Practices (GAHP). All completed Malaysian farms under their purview have earned the Certified Humane accreditation. Notably, 82.3% of their cows’ benefit from tunnel-ventilation barns, while 96.8% have access to dry sandbedded areas for relaxation. FFB's overarching aim is to reduce medicinal care expenses, reallocating resources to preventive measures, thereby enhancing milk yields through heightened animal well-being and productivity.

Additionally, FFB has diversified its product offerings to meet changing consumer preferences, introducing various items like organic A2 milk, date milk, lactose-free milk, oat milk, and almond milk in Malaysia, all devoid of preservatives and rich in natural goodness. For instance, their yogurt provides customers with the pure taste of dairy, thanks to its unadulterated milk content and absence of thickeners. This commitment to using genuine ingredients distinguishes FFB from competitors and aligns with the principles of TOYYIBAN, which greatly emphasising on cleanliness, purity, and adherence to Shariah standards.

In 2023, FFB demonstrated its commitment to transparency and consumer welfare through the launch of Farm Fresh Grow, a range of healthy children's milk devoid of undesirable additives.

This initiative was further expanded during the year with the introduction of a powdered variant, reaffirming the company's unwavering dedication to utilising premium ingredients throughout its product portfolio. It is worth noting that, Farm Fresh Grow's distinguishing feature of ingredient exclusion, whereby the milk formulation deliberately omits substances like maltodextrin, vegetable oil, and calcium carbonate from limestone, frequently present in competing formulas but potentially harmful when consumed excessively. Additionally, FFB adopts a pragmatic approach to meet the evolving demands of contemporary parents by offering the milk in convenient 30-gram sachets, designed for portability and suitability for on-the-go consumption. Despite these advancements, FFB remains steadfast in its advocacy for breastfeeding, underscoring the irreplaceable nutritional benefits of breast milk for infants during their first six months to a year of life, emphasising its provision of essential nutrients crucial for comprehensive growth and development.

Source: BIMB Securities Research - 29 Apr 2024