May 19, 2008

Malaysia to build two new chicken plants along east coast

Malaysia is setting up two new chicken processing plants in the East Coast Economic Region (ECER) to make iots poultry industry more efficient and allow it to tap into South-East Asia's rising demand for poultry, according to industry experts.

They said the plants earmarked for Gambang, Pahang and Gua Musang, Kelantan would complement an existing one in Chendering, Terengganu.

Malaysia produces 764,000 tonnes of chicken meat and seven billion eggs annually.

The ECER currently contributes 11.9 percent of the total poultry production in the country.

Gambang has been identified as the location for a large-scale poultry processing plant, which could process one million birds annually.

Executive consultant for Federation of Livestock Association of Malaysia, Abdul Rahman Md Saleh, said as chicken demand rises in Malaysia, the processing centres' modern facilities would help to ensure cleanliness as well as authenticate the meats' halal status.

The chicken plants could also reduce wastage of chicken by-products by converting byproducts that are traditionally thrown away such as chicken feathers, legs and stomach lining which can be processed into fertiliser, he said.

The plants could also help to reduce pollution of chicken by-products into the environment, he added.

RAM Holdings Bhd's chief economist, Dr Yeah Kim Leng, said the new plants were timely with demand and food prices rising.

The new plants would also reduce the country's reliance on imports.