Tyson invests in Malaysian feed and poultry processing firm, looks to expand in halal market
The US meat group has invested in the poultry segment of the Malaysian company, Malayan Flour Mills Berhad (MFM), which operates a poultry business that includes feed mills, hatcheries, farms and processing facilities.
The move is aimed at adding more flexibility for both companies in term of supplying halal-certified poultry to consumers and customers in Malaysia and across priority export markets, said the partners.
The transaction is subject to approval by the shareholders of MFM, amongst others.
“Once completed, the poultry deal will optimize our existing Malaysia business and expand MFM’s poultry business,” said Chris Langholz, international president of Tyson Foods.
Tyson Foods Malaysia currently operates one plant and one innovation center.
Teh Wee Chye, managing director, MFM, said: “Tyson Foods is one of the world’s largest food production companies with a strong global manufacturing and distribution footprint. Malaysia is one of the key poultry markets in Southeast Asia, with a high per capita consumption of poultry. Together with Tyson Foods, we look forward to increasing our halal poultry product offerings in the country, especially in the further processed poultry segment, as well as exporting to demand markets with the help of Tyson Foods’ global network.”
Malaysia’s halal industry market value is expected to reach US$147.4bn by 2025, according to the Halal Industry Development Corporation (HDC). The country exports about US$9bn in halal-certified products.
Tyson Foods’ Malaysia business has been active in the halal market, and now, evidently, wants to shift up a gear in respect of that segment.
“Our global resources and robust innovation capabilities paired with MFM’s more than 30 years of expertise as a leading poultry player in the country, enable both companies to make halal-certified products more readily available and affordable,” said Tan Sun, president of Tyson Foods APAC.
Rabobank Singapore acted as the international financial advisor to MFM.