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Company Looks to Other Countries for Chicken Feed

by 5m Editor
2 October 2009, at 8:16a.m.

MALAYSIA - Malaysia’s largest poultry producer Leong Hup Holdings Bhd is looking at Argentina, Indonesia and India to source for chicken feed.

Executive director Tan Sri Francis Lau Tuang Nguang said the company would like to reduce its dependency on the United States for raw materials such as corn and soybean.

“It is important not to depend on a single country for the import of the raw materials due to the supply and pricing factors," he told StarBiz after the company’s AGM.

Mr Lau said that by having more than one source of supply of corn and soybean, the company could avoid the risk of shortage and paying high prices.

He said poultry producers in the country still depended on imported raw materials as Malaysia did not produce corn or other crops for animal feed.

The higher cost of importing corn and soybean, especially from the United States, was the main problem that bogged down most local poultry producers, he added.

However, he said, the company was still upbeat about the local poultry industry despite the high cost of raw materials as this was mitigated by lower fuel prices now compared with last year.

Mr Lau said consumers would continue to consume chicken meat and eggs as they were among the cheapest sources of protein.

The prices of the two products had seen little change in the last nine to 10 years, reports The Star Online.

Mr Lau also said the company had not finalised its plan to set up a new chicken-processing plant in the halal hub in Pedas, Negri Sembilan.

The company is still looking at several details and will probably embark on the project upon the study’s completion. “The facility will further strengthen our position in the downstream activities," Mr Lau said.