Ayamas sets up JV firm for broiler farm (3492)

KUALA LUMPUR: FELDA and KFC Holdings (M) Bhd's (KFCH)

unit, Ayamas Integrated Poultry Industry Sdn Bhd (Ayamas IPI), have
set up a joint-venture company to run a modern broiler farm in
Tenggaroh, Johor.



The joint-venture company, 49 per cent owned by FELDA and 51 per
cent by Ayamas IPI, will initially have an authorised capital of RM10
million and a paid-up capital of RM5 million.


FELDA chairman, Tan Sri Mohd Isa Abdul Samad, said the project was
part of the authority's efforts to encourage more settlers, especially
the new generations, to get involved in other viable agro-based
businesses.



"They can get involved in poultry farming for their livelihood and
thereby help stem urban migration from our schemes," he told reporters
after witnessing the ceremony to sign the joint-venture agreement here
today.






This pilot project could also become a model for comprehensive
broiler farming, covering broiler farm and training centre, he said.


The joint-venture company will occupy 3.2 hectares at FELDA Tenggaroh 3.



Under the agreement, FELDA will manage the selection of workers who will be trained by Ayamas IPI.



Ayamas IPI will undertake overall management of the project and
build modern poultry pens and other infrastructure for the farm and
management aspects of running the farm.



The farm, which is expected to be operational between three to six
months, will have a total production capacity of 100,000 broilers per
cycle and would be supplied to Ayamas Bandar Tenggara poultry
processing located nearby.



Johor Corp Bhd president/chief executive officer, Kamaruzzaman Abu
Kassim, said 70 per cent of the output would go to the KFCH group of
companies and the rest would be sold in the open market.



"Our requirement for day-old chicks is expected to grow by eight
per cent a year for the next five years in tandem with rapid growth in
the number of KFC and Pizza Hut restaurants and open market sales," he
said.



He said the local consumption of live broiler meat was around 1.2
to 1.3 million birds per day, however there was shortfall in the supply
of broiler meat.



Johor Corp has several core businesses, namely the specialist healthcare services and quick service restaurants. -- BERNAMA