CAB CAKARAN PLANS US$80M INVESTMENT
Company to build up to 60 poultry farms in Indonesia over next 5 years
CAB Cakaran Corporation Bhd will invest US$70 million to US$80 million to build 50 to 60 poultry farms in Indonesia over the next five years.
Group managing director Christopher Chuah Hoon Phong said the target was to supply four million birds monthly to cater to demand in the Indonesian market.
“We had engaged with Salim Group previously but the plans were put hold due to the Covid-19 pandemic and the closure of international borders,” he said at the launch of its Farm’s Best Omega 3 Chicken product yesterday.
Salim Group is Indonesia's biggest conglomerate and CAB Cakaran’s second-largest shareholder with a 15.3 per cent stake.
Chuah said the pilot project would start in Java.
On the export market, he said CAB Cakaran was targeting to export its Best Omega 3 Chicken product to Singapore.
“We already have our Singapore factory, office and marketing team to market and distribute our premium chicken product in the country. We are in negotiations with several supermarkets in Singapore.”
CAB Cakaran aims to capitalise on the new product to grow its market presence in Malaysia and expand its export markets.
The value-added food product is branded under Farm’s Best Food Industries Sdn Bhd, a 53.04 per cent-owned subsidiary of CAB Cakaran.
CAB Cakaran attributed the success of its value-added food product to the synergy derived from the acquisition of Farm’s Best Food in 2016.
Farm Best’s chicken products are also exported to Japan, Hong Kong and the Philippines.
Currently, its domestic breeder farms are primarily located in Penang, Kedah, Negri Sembilan, Melaka and Johor
CAB Cakaran has an exclusive tie-up with Village Grocer to market and sell the Omega 3 Chicken product nationwide. It also plans to market the Omega 3 Chicken product to other supermarkets and retailers, including the hotel, restaurant and cafe sector.
He also said the premium chicken product would not affect the company’s broiler chicken product segment.
The average selling price for its broiler chicken products was RM5.62 per kg in the fourth quarter of its financial year ended Sept 30 last year, compared to RM4.79 in the same period in 2021.
Chuah expects to secure a 10 per cent market share for its premium chicken products in the next five to eight years.