Melewar Industrial Signs MoU With RusGrain Union To Secure Grain Supply

KUALA LUMPUR, Nov 8 (Bernama) – The Melewar Industrial Group Bhd has signed a memorandum of understanding (MoU) with the Russian Union of Grain Exporters (RusGrain Union) to secure a long-term grain supply, in response to the Malaysian government’s initiative to strengthen the nation’s food security sector.

Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said Russia is the world’s largest wheat supplier, accounting for approximately 20-23 per cent of the world’s wheat supplies, and around 13-15 per cent of global grain exports like barley and corn.

As such, it poses significant potential as one of Malaysia’s global supply chain partners.

“It is important that the various players in the production, distribution and supply segments develop and maintain strong working relationships to ensure continuous supply at all times.

“This way, Malaysia will have a broad network of global suppliers for essentials such as agriculture and food products in our pursuit to provide food security for the rakyat,” he said in his speech at the MoU signing ceremony here today.

He added that the signing of the MoU between trade entities from both Malaysia and Russia was a manifestation of the government’s effort towards ensuring the establishment of broader supply chains to guarantee food security for Malaysia

The event was also attended by Russian Ambassador to Malaysia, Naiyl Latypov, RusGrain Union chairman Eduard Zernin and Melewar Industrial chairman Tunku Datuk Yaacob Khyra.

Mohamad said that Malaysia and Russia have maintained bilateral relations since 1967, and while trade between both countries hit a record RM1.6 billion in 2022, direct cooperation in agriculture remains limited due to the perception among many Malaysians about Russia, which faces sanctions from various countries and international entities.

According to Latypov, the MoU was a symbol of both countries' mutual commitment to develop bilateral cooperation -- the evidence of high standards, trust and a shared vision to create unique solutions that will benefit Russia and Malaysia.

“This marks one of the first steps for Russia and Malaysia towards strengthening food security and expanding cooperation in agriculture and trade, following the meeting between President Vladimir Putin and Prime Minister Datuk Seri Anwar Ibrahim in Vladivostok.

“The journey to reach this day required effort, mutual understanding, and a strategic approach...We are confident that this partnership will open new horizons and lay the foundation for long-term success,” he said.

Meanwhile, Zernin said Malaysia has long remained off the radar of Russian grain exporters, and the MoU has now addressed the situation, being the first major agreement on supplies.

“We believe that we will be able to supply 600,000 to 700,000 tonnes of wheat to the Malaysian market annually,” he said.

Tunku Yaacob said Melewar Industrial has a long history in the food industry, adding that the company has an 80,000-hectare cattle farm in Kazakhstan, a poultry farm and processing facility, a chicken farm in Cambodia, a prawn farm in Malacca, as well as a food and beverage business focusing on the sale and distribution of local and imported food products in Malaysia.

“Working closely with the Ministry of Agriculture and Food Security, we have identified various food items which would contribute towards the diversification of sources of our country’s food supply chain, thus strengthening our country’s resilience to food security threats,” he added.

-- BERNAMA