CAB boosting chicken and value-added processed food businesses


Cab Cakaran hicks

GEORGE TOWN: CAB Cakaran Bhd is investing RM40mil to expand its chicken and seafood business operations this year.

Managing director Chris Chuah told StarBiz the group was renovating its old seafood processing plant in Nibong Tebal.

“Once completed, the renovated facility will have a production capacity of 2,100 tonnes per month compared to 1,000 tonnes previously.

“The new plant will produce beef and chicken-based processed food. The investment for the project is RM20mil,” he said.

Chuah added that the group was spending another RM20mil on increasing its Kedah slaughtering house capacity to 10,000 live birds per hour from 4,000 at present.

“The upgraded slaughterhouse will meet the needs of the expanding food processing business. We hope to increase the contribution of the food processing business to 15% from 7% over the next two years.

“The export markets are countries in Asia and the Middle East. Both projects will be completed before the end of 2022,” Chuah said.

He added that the acquisition of Bernalab Sdn Bhd has given CAB Cakaran greater control over the quality, supply and prices of vaccines and medicines in poultry feed.

“As a result, this may help cushion CAB Group from the fluctuation and volatility in poultry feed prices,” he said.

According to Asian Agribiz regional correspondent Rajeswari Ramanee, South-East Asia’s poultry production will grow in 2022. (File pic: Cab Cakaran chicks)According to Asian Agribiz regional correspondent Rajeswari Ramanee, South-East Asia’s poultry production will grow in 2022. (File pic: Cab Cakaran chicks)

According to Chuah, the change in consumer behaviour arising from the Covid-19 pandemic and nationwide lockdown contributed to the recent improvement in the financial performance of its supermarket division.

The group plans to open two more supermarkets in the next financial year.

“In addition, management is sourcing for a suitable premise in Selama, Perak, to reopen the outlet which was damaged by fire in financial year 2020.

“With the ongoing pandemic, the group will continue to closely monitor and assess the effectiveness of its various measures to cater for any unforeseen adverse impact that may arise.

“Moving forward, the group will focus on increasing the production capacity of its value-added food manufacturing, as the current capacity is insufficient to meet the increasing demand for its products,” Chuah said.

CAB Cakaran operates about 10 breeder farms, including the breeding of black chicken and colourful birds, in Penang, Kedah, Negri Sembilan, Melaka and Johor.

It also operates about 100 broiler farms located throughout the northern, southern and eastern regions of the peninsula.

According to Asian Agribiz regional correspondent Rajeswari Ramanee, South-East Asia’s poultry production will grow in 2022.

A frozen seafood processing plant of CAB in Nibong Tebal A frozen seafood processing plant of CAB in Nibong Tebal

Rabobank’s Global Animal Protein report predicts a 3% to 4% growth, supported by rising vaccination rates, reopening of economies and the resumption of international travel – all set to boost market conditions with higher consumption levels.

“Costs will remain high with feed, labour, freight and energy expected to rise. Thailand and Vietnam are expected to grow by 4%, the Philippines and Malaysia by 2%.

“Thailand will benefit from improved global demand and opportunities for exports to Europe and Japan,” Rajeswari said.

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