FGV, Bernas to Formulate Native Chicken Feed and Boost Chicken Production

September 2022

Two Malaysian firms, namely, FGV Holdings Bhd, a leading agribusiness and food producer, and Bernas, one of the largest rice suppliers in the country, have formed joint cooperation to introduce FGV ALMA-Bernas native chicken food and Ladang’57 native chicken to AEON Big supermarkets chain nationwide. The collaboration aims to help achieve Malaysia’s potential production of 74,000 tones of agricultural products per year or an estimated sales value of MYR 250 million (USD 54 million).

Native chickens are becoming more in demand in Malaysia, where they also command premium rates. Almost 10% of the eight million heads of native chicken produced in the country each year are sold to Singapore. In light of this, the partners will create a new formulation of native chicken feed from by-products sourced from rice and rice processing plants, with the goal of reducing dependency on imported chicken feed. By replacing imported grain corn components, the initiative will lower production costs by 10%. Additionally, 30,000 tons of byproduct material will be used per year to create ALMA native chicken feed.

In addition, FGV has teamed up with one of the largest supermarket retailers in Malaysia, AEON Big, to market native chicken products. The project will start with a weekly supply of 1,000 native chickens before expanding to 10,000 by end of 2022. FGV will buy native chickens that are reared by local farmers under a government-led contract farming management. The native chickens, called Ladang’57, will be sold as an alternative to the regular chicken supply in Aeon Big. Aeon Big Managing Director Sheikh Farouk Sheikh Mohamed emphasized the firm’s goal to help local farmers market their goods and ensure an adequate supply of chicken for improved food security.

(Sources: The Edge Markets; The Malaysian Reserve)

Our Services

Orissa International provides consulting services to companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 distributors, resellers, and system integrators, built through advising and guiding more than 5,000 companies with their market expansion into Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines over the last 25 years.