Barkat Frisian Agro Limited (PSX: BFAGRO) Friday announced a major backward integration initiative aimed at securing raw material supplies, cutting costs, and boosting quality oversight through the establishment of poultry layer farms and a feed processing unit.
In a notice to the Pakistan Stock Exchange (PSX), the firm said its Board of Directors have approved the plan in a meeting held on September 11, 2025, committing a total investment of Rs. 690 million. Of this, Rs. 300 million will go toward the procurement of birds, while Rs. 390 million will be spent on infrastructure and farm development.
As part of the project, two poultry farms with a combined capacity of 225,000 birds will be developed, producing about 200,000 eggs per day, enough to cover nearly 20% of the company’s current daily requirement of one million eggs. Additionally, a dedicated feed processing facility will be set up to serve both in-house and select third-party poultry operations.
One farm will be fully owned by Barkat Frisian Agro, while the second will be established under a joint operational arrangement with a third-party partner. Both will be managed under structured service agreements, with the company maintaining full oversight of its biological assets.
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The initiative is expected to enhance supply chain resilience, reduce reliance on external vendors, ensure quality and traceability, and provide a scalable model for the company’s long-term goal of producing 50% of its egg supply internally.
Funding will be sourced through a mix of debt and internal resources, with commercial production targeted within 15 months.
The company said the move will reduce volatility in input costs, improve margins, and support long-term sustainable growth, ultimately creating greater value for shareholders.
