This story was first published on Stewardship Commons.

Farm Fresh’s sustainability efforts are anchored in three focus areas: quality dairy, stronger communities and a healthier planet.

Farm Fresh farms in Malaysia are the first in Asia to receive the Certified Humane Raised and Handled® certification, certifying that the dairy products from the farm meet the precise and objective standards for the humane treatment of farm animals. All of Farm Fresh’s processing facilities operate in accordance with the Hazard Analysis Critical Control Points control system and the Good Manufacturing Practices. The company continuously strives to create a safe environment for all cows as it believes happy cows produce the best milk.

Compost barn at Farm Fresh farms

Home Dealer Programme

To cultivate long-term benefits for the local economy, Farm Fresh strives to build positive community impact in the upstream and downstream segments of the dairy industry. In 2016, Farm Fresh established its home dealer programme, a multi-channel distribution network that provides sustainable income for rural and sub-urban micro-entrepreneurs to become distributors. Home dealers are estimated to be able to earn RM700 to RM5,000 (US$142 to US$1,050) per household each month while also expanding Farm Fresh’s network across Malaysia.

As of March 2022, the home dealer programme, which accounts for 30 per cent of the company’s revenue in financial year (FY) 2022, encompasses 45 stockists spanning all the states in Malaysia. Additionally, as the network grows to more than 900 home dealers, who in turn manage 1,772 agents, the empowerment programmes have seen women make up 80 per cent of the micro-entrepreneurs’ network base.

Educating Youth

Farm Fresh takes an active role in the Malaysian government’s supplementary food and nutrition campaigns, allowing the company to create interest, engagement and dialogue with children and youth regarding the importance of health and balanced nutrition. The company has been supplying 200 ml chocolate milk packets (ultra-high temperature processed) to primary school students from rural areas and low-income households as part of the Ministry of Education’s Supplementary Food Programme.

Students enjoying milk packets as part of the Ministry of Education’s Supplementary Food Programme

Regenerative Agriculture and Water Management

Farm Fresh’s most significant environmental impact arises in its dairy farming operations and associated land use. The company has worked on improvements in various areas, particularly regenerative agriculture and water management, to combat an increase in carbon emissions and degradation of the environment. By implementing regenerative agriculture practices at its Muadzam Shah and UPM farms, the company has focused on the treatment of solid animal waste and liquid animal waste for reuse in operations. The company additionally uses vermiculture (earthworm farming) to recycle organic waste into bio-fertiliser to minimise the non-recyclable organic waste generated and maximise the use of natural resources. Treated solid waste is also utilised to form part of the mix for animal bedding, increasing herd comfort and health, and as organic fertiliser for the grass growing at both farms, which forms a major component of the feed provided to cows.

Through these practices, the company has diverted animal waste discharge from landfills and sewerage systems, indirectly reducing the amount of methane released into the environment through landfill decomposition and the use of chemicals to treat waste in sewerage systems. Consequently, Farm Fresh benefits from reduced reliance on external sources of water for operations and usage of chemical fertilisers, which are known to degrade soil health.

Vermiculture systems to recycle organisc waste into bio-fertiliser

Farm Fresh has taken climate action even before its listing on the Main Board of Bursa Malaysia. The company has measured its greenhouse gas emissions using the Greenhouse Gas Protocol Agriculture Guidance. The total greenhouse gas emissions for 2020 were the equivalent of 47,400 metric tonnes of carbon dioxide, of which 67 per cent was from farms and 33 per cent was from manufacturing plants. The company targets to achieve 25 per cent of greenhouse gas emissions over the next five years, with measures such as rooftop solar photovoltaic (PV) projects and biogas plants. Presently, the company has completed the installation of rooftop solar PV at the Larkin and Muadzam Shah facilities plants with a total capacity of 1.7 MWp and has just inked an agreement to have a biogas plant in the Muadzam Shah farm.

Rooftop solar panel developments at Farm Fresh processing facilities

Regarding ongoing sustainability efforts, Farm Fresh has committed to supporting the responsible management of the world’s forests through its packaging. In FY2022, 28 per cent of Farm Fresh’s revenue came from products that use fully recyclable and Forest Stewardship Council (FSC®) certified packaging. All paper boards used in suppliers’ packaging must therefore come from FSC®-certified and other controlled sources. Through these combined practices, the company is continuously investing in sustainable farming practices that will integrate business and sustainability in ways that nourish the environment, empower local micro-entrepreneurs and employees, and promote positive nutritional habits for future generations.

Photo by Megumi Nachev on Unsplash.