Malaysia’s CAB Cakaran Corporation Bhd has revealed plan to invest up to US$80 million to build 50 to 60 poultry farms in Indonesia over the next 5 years.
Group Managing Director Christopher Chuah Hoon Phong said the target is to supply 4 million birds monthly to cater to the Indonesian market. “We had engaged with Salim Group previously but the plans were put hold due to the pandemic and the closure of international borders,” he said during the launch of its Farm’s Best Omega 3 Chicken product. Salim Group is Indonesia’s largest conglomerate and CAB Cakaran’s 2nd largest shareholder (15.3% stake). The investment pilot project will commence in Java province.
Meanwhile CAB Cakaran is also aiming to export its Best Omega 3 Chicken product to Singapore. He added, “We already have our Singapore factory, office and marketing team to market and distribute our premium chicken product in the country.”
CAB Cakaran aims to capitalise on the new product to grow its market presence in Malaysia and expand its export markets. The product is branded under Farm’s Best Food Industries Sdn Bhd, which is 53% owned subsidiary of CAB Cakaran.
Currently, Farm’s Best chicken products are also exported to Japan, Hong Kong and the Philippines. Its domestic breeder farms are primarily located in Penang, Kedah, Negri Sembilan, Malacca and Johor. In the domestic Malaysian market, CAB Cakaran has an exclusive tie-up with Village Grocer supermarket to sell its Omega 3 Chicken product nationwide. It plans to market its product to other supermarkets and retailers, including the HoReCa segment.
Chuah projects that the company will gain 10% share of the premium chicken products segment in the next 5 to 8 years.
