Tyson Foods Inc. is investing in Malayan Flour Mills Berhad (MFM), a Malaysian flour, grain and poultry company. Tyson is planning specifically to invest in the company’s vertically integrated poultry division.
Tyson is purchasing a 49 percent stake in MFM’s poultry division. According to Tyson executives, this investment is designed to increase “supply flexibility” for both companies. Tyson Foods operates one plant and one innovation in Malaysia.
“Once completed, the poultry deal will optimize our existing Malaysia business and expand MFM’s poultry business,” Tyson Foods international president Chris Langholz said in a statement. “This partnership will add more supply flexibility for both companies in serving halal-certified poultry to consumers and customers in the country and across priority export markets.”
Reuters reports that Malayan Flour Mills Berhad, which was established in 1961, manufactures and sells animal feeds, in addition to processing and selling poultry products, breeding and selling chicks and performing contract farming. The company also has a flour division, which oversees the company’s milling and flour and grain trading.
Both companies are looking to increase halal poultry production. Based on figures from the Halal Industry Development Corporation, the halal industry in Malaysia is expected to hit a market value of $147.4 billion.
“We are pleased to partner with Tyson Foods to expand MFM’s long-established poultry business,” Teh Wee Chye, managing director for 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.”
Tyson’s investment in subject to approval by MFM shareholders.
Image courtesy of Malayan Flour Mills Berhad