Backward integration: Barkat Frisian Agro to invest Rs690mn in poultry farms, feed facility

Barkat Frisian Agro Limited (BFAGRO), a joint venture between the Netherlands’ Frisian Egg Group and Pakistan’s Buksh Group, has approved a strategic backward integration project aimed at strengthening its supply chain, enhancing cost efficiency, and improving quality control.

The newly listed company informed its stakeholders in a notice to the Pakistan Stock Exchange (PSX) on Friday.

“We are pleased to inform that the Board of Directors of Barkat Frisian Agro Limited, in a meeting held on 11 September 2025, has approved a strategic backward integration initiative aimed at improving raw material supply security and cost efficiency through the establishment of poultry layer farming and feed operation,” read the notice.

Under the initiative, the company would invest Rs690 million in the development of two poultry farms with a combined capacity of 225,000 birds.

“These farms will collectively produce approximately 200,000 eggs per day, covering around 20% of the company’s current daily egg requirement of 1,000,000 eggs.

“The project also includes the setup of a dedicated feed processing facility to support internal and selected third-party poultry operations,” read the notice.

One farm will be fully owned by Barkat Frisian, while the second will be developed through a joint operational arrangement with a third-party partner, with the company retaining full oversight of its biological assets.

The project will be sourced through a combination of debt and internal resources, and the project is expected to commence commercial production within 15 months.

Earlier in April, BFAGRO announced to set up a dried egg powder production facility with an amount of Rs500 million.

Barkat Frisian Agro Limited hit the maximum price limit on the first day of the Dutch auction on February 17, 2025, raising equity worth totalling at Rs1.23 billion through selling 67.74 million shares at the PSX.

Established in 2017, Barkat Frisian specialises in pasteurised egg products, including whole eggs, yolks, whites, and derivatives, catering to the HoReCa (hotel, restaurant, and cafe) sector, sauces and mayonnaise industry, as well as the baking and confectionery market.