Barkat Frisian Agro commits Rs690m to backward integration in egg supply chain

September 12, 2025 (MLN): Barkat Frisian Agro Limited (PSX: BFAGRO) has made a Rs 690m investment aimed at backward integration in its supply chain through the development of poultry layer farming facilities.

The investment includes Rs 300m for procurement of birds and Rs 390m for infrastructure and farm development.

This strategic move is designed to strengthen supply chain resilience, optimize costs, and ensure greater quality control and traceability in egg production, according to the company's statement issued today.

The company will establish two poultry farms with a combined capacity of 225,000 birds. Together, these farms are expected to produce around 200,000 eggs per day covering 20% of Barkat Frisian’s current daily requirement of 1,000,000 eggs.

A dedicated feed processing facility will also be set up to serve both internal needs and selected third-party operations.

According to the ownership structure, one farm will be wholly owned by Barkat Frisian Agro, while the second will operate under a joint arrangement with a third-party partner.

Both facilities will be managed professionally under structured agreements, with the company retaining oversight and control over its biological assets.

The project will be financed through a mix of debt and internal resources, with commercial production expected to begin within 15 months.

Barkat Frisian Agro highlighted that this initiative will reduce volatility in input costs, strengthen margins, and support long-term sustainable growth, ultimately creating enhanced value for shareholders.

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