PETALING JAYA: CAB Cakaran Corporation Bhd
, an integrated poultry farming producer, intends to re-enter the Indonesian market through a joint-venture (JV) with the republic's biggest conglomerate, Salim Group, by investing between US$50 million and US$80 million (US$1=RM4.37) over the next five years.
Its group managing director, Christopher Chuah Hoon Phoong, said that due to the COVID-19 pandemic, the company ceased activities in Indonesia and its expansion plan in the country, and both parties are currently resuming negotiations to continue the cooperation.
"We are still negotiating with Salim (Group), and we are looking at a production of four million, so we are roughly looking at 50 broiler farms or 60 broiler farms in the Java region.
"In terms of investment, the actual figures are yet to be determined,” he said after launching its new Omega-3 fortified chicken at Village Grocer at Tropicana Gardens Mall here, today.
CAB Cakaran had signed an agreement with Salim Group in 2015 to set up an integrated poultry business in the country, of which the latter owns Indofood Sukses Makmur Tbk, the largest noodle maker in Indonesia.
The Salim group is also the second largest shareholder in CAB Cakaran, with a 15.19 per cent stake.
Chuah said exports contributed about 10 per cent of the company’s revenue and this was expected to increase to 15 per cent within the next five to eight years.
Commenting on the launch of the new Omega-3 fortified chicken, he said the company would focus on establishing the product in the local market before exporting to the overseas markets.
"The effects of the COVID-19 pandemic have prompted consumers to become increasingly more conscious of their health and choose healthy food products that fuel their bodies. This, coupled with the increasing number of educated consumers, has created a demand for healthier products,” he said.
Chuah further said that the new product would be available exclusively at Village Grocer for the next six months before making it gradually available at other retail stores.
"The Omega-3 chicken will be available in premium and reputable grocers and supermarkets.
"Our strategy to expand the downstream product targeting the premium segment will help the group cushion the fluctuations of its margin and boost its financial performance,” he said, adding the next target market for the Omega-3 chicken would be Singapore.
-- BERNAMA
TAGS: CAB Cakaran, poultry, broiler, premium chicken, export, Farm’s Best
