Additionally, Loi said Farm Fresh intends to roll out regenerative agriculture practices across all its farms by 2024. "These are practices that involve the recycling and reuse of liquid and solid waste generated by our herd for key functions across our farms." Recently, the company announced that it had entered into a share purchase agreement with Edmund Tan Jun Hua, Wu Chuang Yang (Derrick), and Harsh Rajpal to acquire 53% equity stake of The Inside Scoop Sdn Bhd (TISSB) for MYR68.4m (via MYR48.4m cash and the balance MYR20m via the issuance of 13.2m new FFB shares at MYR1.52 each). Industry Overview The Malaysian consumption of milk and milk products per capita grew from 53.3 kg per person in 2015 to 54.3 kg per person in 2020, at a compound annual growth rate CAGR of 0.4%. The consumption per capita recorded in Western developed countries in 2020 (e.g., Australia 287.3 kg, United States 276.2kg) was higher in general when compared to developing countries in Southeast Asia (e.g., Philippines 23.1 kg and Indonesia 17.2 kg). Malaysia's dairy industry has the potential to be developed for guaranteed food supply and eventually reduce dependence on imported dairy goods.. In 2020, domestic milk consumption was 69.4 million liters a year, however the local dairy industry was only able to produce 43.3 million liters per year although this has shown an increase compared to 2015 which was 36.4 million liters. This shortfall resulted in the country needing to import 26.1 million liters from overseas. Under the National Agro-Food Policy 2021- 2030 subsistence level (SSL) fresh milk is targeted to be at 100% by 2030 compared to 62.4% 4. Presume you need to advice the management of Farm Fresh Bhd to judge the best strategy matching for the company, select TWO (2) strategies that you would undertake and justify chosen of the strategies. (20 Marks) 5. Relating to Question 4, assess FIVE (5) issues that Farm Fresh Bhd may encounter while implementing the strategies. (20 Marks) by 2020 which means Malaysia does not want to import this commodity by then. To achieve the target, the Ministry of Agricuture and Food Industries through the Services Department Veterinarians has introduced a Strategic Plan for the Development of the Dairy Industry State (Dairy Plan) 2021-2025. These efforts will deliver the desired results but will need the support and cooperation from the industry players towards the development of the dairy industry. For instance according, Deputy Secretary General (Development), Datuk Badrul Hisham Mohd, cooperation of the Ministry with Farm Fresh Bhd is an exmaple how public private partnership was initiaitied to increase milk production and marketing to consumers through various platforms. The strategic collaboration with Farm Fresh Bhd has successfully created job opportunities by producing a total of 45 stockists, 832 homedealers and 1,302 agents in Malaysia and Singapore which is largely made up of housewives. The approach was to ensure that accessiblility to source of nutritious food was at an affordable price, in addition helping the dairy industry continue to grow which will benefit breeders. Young entreprenuers are encouraged to tap into the many opprtunities that lies in the industry, those who are interested can get support from the Ministry through its Young Agropreneur Grants where applicants can apply for assistance up to RM20,000 for marketing purposes and facilities such as equipment and mobile food trucks. https://www.thestar.com.my/business/business-news/2022/10/12/farm-fresh-on- (Source: expansion-mode. Retrieve 14 March 2023) Questions in this section are based on the following article. Farm Fresh on Expansion Mode Milk producer Farm Fresh Bhd aims to expand its presence both locally and in the region, as part of its strategy to maintain competitive advantage. While its expansion will allow the company to meet its near-term demands, group managing director and group chief executive officer Loi Tuan Ee said the group's longer-term plans "promise an even more transformative outcome". "Currently, we are in the planning phase of developing a new manufacturing hub in Bandar Enstek, Negri Sembilan, which will function as a central-processing facility for our products in Peninsular Malaysia. "By integrating our research and product development capabilities, we intend to use the facility to develop and test new product offerings for the Malaysian market," he said in the company's latest annual report. Loi added that Farm Fresh had also earmarked Sabah and Sarawak as a growing market for its products. "We aim to set up a farm and integrated processing facility, which will allow for raw milk to be processed and a greater volume of our products delivered to key market centres in this region of Malaysia." Separately, Loi pointed out that Asian countries had historically relied on imports, primarily from Australia, to meet their dairy needs. "Due to the vast distance needed to be covered in the importation process, however, the dairy reaching these countries' shores have mostly consisted of powdered or reconstituted dairy." Loi said this was a gap that Farm Fresh intends to address through its fresh-milk based products. "Furthermore, we believe that we possess a compelling competitive advantage due to our superior breeding capabilities, whereby we have leveraged our ownership of one of the largest gene banks of the original Australian Friesian-Sahiwal cattle to deliver unrivalled milk yield and cattle resilience in tropical climates." Presently, Loi said Farm Fresh had identified three key markets in Asia-Pacific, namely, Indonesia, the Philippines and Hong Kong. "Both Indonesia and the Philippines are rapidly developing economies with large populations and both offer the potential to replicate our highly successful home dealer network to drive penetration in rural areas. "Meanwhile, Indonesian consumers have a high demand for halal products, which we intend to capitalise on through our strong reputation in Malaysia." In both countries, Loi said Farm Fresh plans to establish processing facilities and manufacture its products locally by importing milk ingredients from its Kyabram facility, Australia, which will enable the production of chilled products. "Our initial focus will be on the greater Jakarta and metro Manila areas." Loi said Farm Fresh will employ a different model in Hong Kong. "We have already incorporated a subsidiary (FFM HK) to drive the importation, marketing and Food and Drug Administration approval of some of our dairy and plant-based products," he said. Additionally Lai said Farm Frash intends to roll out regenerative agriculture practices across