Agro Equities buys farm in Johor

PETALING JAYA: Agro Equities Bhd acquired a new aquaculture farm in Batu Pahat, Johor and introduced its first retail store in Guangzhou, China yesterday.
The new aquaculture farm in Kampung Bindu, which is expected to contribute 40% to the company's revenue, will be used primarily for the breeding of ornamental fish, specifically Arowana.
The farm has 80 breeding ponds on 25 acres with an additional five acres of land allocated for three reservoirs and two nursery centres.
The company said in a statement yesterday that the acquisition will enable it to meet overseas orders as the current demand for Arowana has far exceeded its supply abilities.
It also expects the farm to strengthen its trading activities in northern and southern parts of Malaysia and with its complete supply chain, it will be able to complement the local farm operators.
Meanwhile, the new retail outlet in Liwan District of Guangzhou named Dragon Golden Agro will focus on the sale of ornamental fish with an aim to capture a sizeable market share in China.
"The new farm in Batu Pahat will enhance our existing stable of local production farms while the new retail outlet opening in Guangzhou will open up a host of new opportunities aside from providing a new sustainable new revenue stream and a springboard for future expansion into mainland China.
"By combining matured asset acquisition with the pursuit of new business channels, we can increase our profitability while pursuing our strategic plans for steady growth. The management team is therefore optimistic that we can continue to create further value for both our shareholders and stakeholders," said its chairman Datuk Mohd Nasir Baba.
The company plans to open three to five outlets this year in Singapore and Malaysia to cater to increasing demand from the international market.