Dutch Lady expects better outlook in 2021


DUTCH Lady Milk Industries Bhd is cautiously optimistic of a better outlook this year as world economies recover from the impact of the Covid-19 pandemic.

Dutch Lady MD Tarang Gupta said the company will keep doing what it knows best which is meeting consumers’ demands.

“We will continue to engage with our consumers in terms of pricing,” he said in a response to questions by The Malaysian Reserve last Friday.

Earlier, Dutch Lady signed a memorandum of collaboration (MoC) with the Department of Veterinary Services Malaysia (DVS) to boost the nation’s supply of quality local fresh milk and to achieve a fully sustainable domestic milk supply for the future.

The objective of the MoC is to work together to achieve sustainable dairy cattle farming, which involves local dairy farmers in the Dairy Development Programme (DDP) with the aim of enhancing the quality and volume of raw cow’s milk in Malaysia.

The initiative will encompass the exchange and sharing of resources, facilities, data, knowledge and skills in their respective areas to ensure commercial and strategic advantages that are in the best interest of the participants.

This collaboration is a milestone on Malaysia’s path to achieve 100% self-sufficiency level for local fresh milk production by 2025 as part of the National Dairy Industry Development Programme. Current production levels meet 62% of domestic demand according to statistics by DVS for 2020.

Agriculture and Food Industry (MAFI) Minister Datuk Seri Dr Ronald Kiandee said the livestock industry in Malaysia has become one of the major industries under national agro-food development with a GDP contribution of RM15 billion (RM68 million from the dairy industry).

“Malaysia is, however, heavily dependent on the imports of milk and dairy products to meet domestic demand. Although the country’s fresh milk production has increased year by year, it is still unable to meet the growing demand.

“This has pushed the government to formulate policies and strategies to further increase the country’s fresh milk production and reduce import dependence,” he said in his speech last Friday.

Ronald said MAFI, through the National Food Security Cabinet Committee, is developing specific action plans to strengthen national food security by reducing import dependence.

“It is in line with the direction of the National Agrofood Policy 2.0, which will be launched towards a sustainable agricultural sector and food industry, and is based on modern technology by prioritising food security in driving the economy and improving the wellbeing of the people.

“This effort requires the involvement of all stakeholders in the state dairy industry. For example, the MoC between Dutch Lady and DVS is based on the concept of public-private partnership for sustainable dairy farming activities,” he added.

The collaboration will see Dutch Lady’s DDP and its Farmer2Farmer (F2F) Programme act as the ideal platform for Malaysia and the Netherlands to partner and achieve self-sufficiency of fresh milk supply to meet Malaysians’ growing needs.

Dutch Lady’s DDP, introduced in 2008, and the F2F Programme, which debuted in 2013, are two major dairy development initiatives by Dutch Lady with strong support from DVS, MAFI and the Embassy of the Kingdom of the Netherlands in Malaysia.

Dutch Lady is the first and only dairy company in the country to actively initiate, lead and develop the DDP.

The DDP initiative has trained and benefitted 357 Malaysian dairy farms and from 2010 to 2020 helped produce 36.5 million litres of fresh milk locally.

As the largest purchaser of local fresh milk from DVS milk collection centres in Malaysia, Tarang said Dutch Lady is committed to helping local dairy smallholders increase their yield and milk quality, including making dairy farming a steady and growing income source for its vendors.

“With our 58-year presence in Malaysia, we are well-positioned to be the conduit between Malaysia and the Netherlands to facilitate knowledge transfer to create a successful and sustainable dairy sector in the country.

“The Dutch dairy industry has achieved its strong competitive international position based on high standards for technology and quality, which Dutch Lady is happy to share with Malaysia,” he added.