The facility of oil palm-based Balung Animal Feed Mill (BAFM) will be built in the town of Tawau, Sabah, Malaysia, and is expected to spur growth in both the state and country's livestock sectors, Daily Express reported.

Constructed by government-linked Kumpulan Sawit Kinabalu, the site's establishment is line with Sabah's plans to raise food supply and cut dependence on meat imported into Malaysia, Chief Minister Datuk Seri Musa Aman said.

"Production of livestock feedlot from the factory could reduce importation of meat and cut down the flow of exchange currency and the most important thing is that this establishment could boost the gross domestic product (GDP) of the nation," Aman commented following the officiation of BAFM in June. Additionally, he welcomed Sawit Kinabalu's decision to expand its core businesses through the setup of BAFM. The facility will use oil palm waste, such as the fronds and kernel, for feed production. The supply of these raw materials is adequate and can be sourced from oil palm plantations and mills.  

According to Aman, BAFM's expected output of animal feed is 15,600 tonnes yearly. The quality of the product is suited for consumption by imported animals and thus will be sold at a competitive price.

Sawit Kinabalu will soon harvest its oil palm yield, a development encouraged by the rearing of feedlot cattle, Aman remarked.  The company currently possesses about 10,000 cattle for beef production and the number could climb to 20,000 by 2018 once BAFM goes into operation.

"Therefore, we are encouraging other agencies to make efforts and initiatives to look for new discoveries in food material that can be used for animal feed that will help other breeders and increase (Sawit Kinabalu's) income," Aman said.