CAB Cakaran buys Cargill's Malaysian animal feed business for RM231 million
Upon completion, the deal will enable the CAB group to own all of Cargill Feed's four feed mills in Malaysia, transforming it from a customer of Cargill into the owner of all of the latter's feed mills in Malaysia.
CAB Cakaran group managing director Christopher Chuah Hoon Phong said: 'We are excited to announce the acquisition of a high-quality business in Cargill Feed Sdn Bhd, which has been a major supplier of feed for the group's poultry operations. Moreover, this acquisition delivers the last missing piece in our 'farm to fork' operating model.'
He added that the CAB Cakaran group is now fully vertically integrated across the entire poultry value chain, with its own feed mills, primary breeders, breeder farms, hatcheries, growout farms, processing plants, and logistics and distribution channels.
Chuah said securing a reliable and cost-effective supply of animal feed will enhance their operational efficiency and support their long-term growth plans. Beyond this, they aim to ensure consistent feed quality, reduce their dependency on external suppliers and minimise the group's exposure to raw material price volatility.
'We look forward to leveraging Cargill Feed's technical expertise and manufacturing capacity in animal feed, and will pursue opportunities for joint innovation in feed development,' Chuah said.
Cargill began its feed operations in Malaysia in 1986. Today, Cargill Feed and its 51% owned subsidiary, Desa Cargill, have four animal feed mills – in Malacca, Butterworth, Westports and Kota Kinabalu – with a total capacity of about 400,000 tonnes per year.
Cargill Feed produces a range of commercial compound feed tailored to meet the nutritional needs of various livestock and aqua species. The company has a diverse customer base, including commercial farms and retailers, while sourcing its raw materials from both domestic (Malaysia) and international sources .
Founded in 1865, Cargill provides food, ingredients, agricultural solutions, industrial products and animal nutrition products and solutions. Itemploys more than 160,000 people in 70 countries and operates in 125 markets.
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