February 28, 2023

CAB Cakaran expects the Malaysian poultry industry to face more challenges

Malaysian poultry group CAB Cakaran Corp Bhd anticipates the domestic poultry sector to face more challenges such as rising feed costs, disease outbreaks, and changes in weather conditions, The Star reported.

The group said government subsidies provided to the industry will ensure that Malaysian poultry farmers will not be badly affected by these challenges.

According to CAB Cakaran, the demand for chicken meat is expected to remain high because it is the least expensive source of animal protein and that Malaysia has one of the highest per capita consumption rates of chicken meat in the world, at about 50 kg.

The group said the prices for chicken meat are anticipated to remain high in the upcoming quarter due to a strong demand and an unstable supply situation.

CAB Cakaran's net profit rose to MYR 41.9 million ~(US$9.3 million; MYR 1 = US$0.22) in the first quarter ended December 31, a significant increase compared to the MYR 18.2 million (~US$4.05 million) reported a year ago.

The group's revenue was MYR 557.3 million (~US$124 million), 12.8% up compared to MYR 494.2 million (~US$110 million) a year ago due to higher sales, especially in the group's integrated poultry division.

-      The Star