PETALING JAYA: Poultry company Teo Seng Capital Bhd expects to stage an improved performance in 2021, supported by its efforts to enhance efficiency across its businesses.
In its latest annual report, the group said it will invest in new equipment to enhance efficiency and competitiveness.
“Farm improvement and expansion are always the most important agenda as they represent the core business of the group.
“Our farms are all (equipped with) closed-house systems and the All-In-All-Out (AIAO) layer farming management system.
“Both systems have better hygienic and safety standards to contribute higher production efficiency, ” it said.
In addition, Teo Seng said it will continue to invest in waste management facilities along with the expansion of its production capacity.
The investment into waste management facilities would allow the group to mitigate any negative risks from its operations on the environment, human resource, workplace, social and community.
“We continue to pursue opportunities to increase our presence overseas and sourcing right partners to enter into new markets and capturing more market share in existing domestic and overseas markets by promoting our brand.
“Last but not least, the management embarks on investment into downstream business as part of our business pillars.
“The board of directors is confident to face the challenges by taking proactive actions to widen its customer base through e-commerce, retune its business direction and mitigate the possible risk impact on Covid-19 pandemic.” stated the group.
Moving forward, Teo Seng pointed out that the poultry farming industry may face consolidation, given the uncertain operating conditions and market challenges arising from the Covid-19 pandemic.
Many players in the supply chain have been suspending their expansion plans in the aftermath of the pandemic, according to the group.
“Those local farmers who lack competitive advantages may opt to phase out from the market, defer or cancel their expansion plans.
“Thus, we will be prudent to manage our financial resources, operational costs and capital expenditure requirements for the purpose of improving efficiency across the whole organisation, eventually to gain competitive advantages and continue to be integrated and sustainable in this industry, ” it said.