4 days ago
- Business
- New Straits Times
Huat Lai to launch Malaysia's largest cage-free egg facility by late 2025
KUALA LUMPUR: Huat Lai Resources Bhd, one of Malaysia's top egg and poultry producers, is set to launch the country's largest cage-free egg production facility in Melaka by the fourth quarter of 2025.
The new facility will house 200,000 hens in a state-of-the-art multi-tier aviary system, significantly boosting the company's cage-free capacity and reinforcing its position as a regional leader in sustainable egg production.
This expansion builds on Huat Lai's cage-free journey, which began in 2012 through its Singapore-based subsidiary, Chew's Agriculture Pte Ltd. In the coming months, the company will convert 10 of its existing barns, currently housing 200,000 birds, into cage-free systems, making it the largest such operation in Malaysia.
Once operational, the new facility will more than quadruple Huat Lai's current cage-free capacity of 60,000 hens, enabling a more affordable, stable, and scalable supply of cage-free eggs for both local and international markets.
"In the past two to three years we've seen a remarkable shift in corporate demand for cage-free eggs," said Edvin Lim, business development manager of Huat Lai Group.
"While consumers have long shown interest in animal welfare and sustainable sourcing, the corporate sector, hotels and retailers have driven the recent surge in demand. Clients now expect 100 per cent cage-free supply once they make the switch, including shell, liquid, and powdered eggs."
Lim added that once clients make the switch, they expect 100 per cent cage-free supply, including shell, liquid, and powdered eggs, and rarely return to conventional options.
"You need to take a bold move before your clients demand it. Our new facility in Malaysia will allow us to supply cage-free eggs at a larger scale, ensuring a consistent supply for our clients," he said.
A GMO Research survey commissioned by the company found that 77 per cent of Malaysian consumers believe businesses should source eggs from cage-free farms. Additionally, 62 per cent are willing to pay more for cage-free eggs, with over half willing to accept a price premium of 10 per cent to 25 per cent.
Cage-free farming allows hens to move freely in open environments, enhancing both animal welfare and food safety. Research by the European Food Safety Authority shows that cage-free farms can have up to 25 times lower contamination rates of major Salmonella strains.
"Huat Lai's evolution from a small family business to becoming Malaysia's pioneer in large-scale cage-free egg production demonstrates remarkable entrepreneurial vision," said Bagas Kusuma Jati, sustainable supply chain manager at Lever Foundation, which partnered with the company on the expansion.
He added that the company's willingness to invest ahead of demand reflects the type of leadership needed across Southeast Asia's food sector.
