ONLINE: Chicken processing plants for ECER

TWO new chicken processing plants to be set up in the East Coast Economic Region (ECER) will
make the poultry industry more efficient and allow it to tap into South-East Asia’s rising demand for
poultry said industry experts.
They said the plants earmarked for Gambang, Pahang and Gua Musang, Kelantan would
complement an existing one in Chendering, Terengganu.
In a statement in Kuala Lumpur today, ECER said the poultry production was expected to rise by 35
per cent to 175.37 metric tonnes in 2010 from 129.74 metric tonnes in 2005.
The ECER contributes 11.9 per cent of the total poultry production in the country.
It said under the Ninth Malaysia Plan, Gambang has been identified as the location for a large-scale
poultry processing plant, which could process one million birds annually.
Executive consultant for Federation of Livestock Association of Malaysia, Abdul Rahman Md Saleh,
said as Malaysia experienced a demand-driven livestock evolution, the association welcomed the
proposal as the processing centres modern facilities would help to ensure cleanliness as well as
authenticate the meats halal status.
“The additional processing plants will help to better streamline supply of processed chicken and
reduce wastage of chicken by-products that are traditionally thrown away such as chicken feathers,
legs and stomach lining that can be processed into fertiliser,” he said.
Abdul Rahman said these plants could help improve productivity and provide additional income to the
“They will also help to reduce pollution of chicken by-products into the environment.
“We have been asking for more processing centres, so this proposed plan comes at an opportune
time. As processing plants need to be big with a minimum workforce of more than 80 people to
achieve economies of scale, they will provide ample job opportunities for people in the region,” he
RAM Holdings Bhd’s chief economist, Dr Yeah Kim Leng, said the new plants were timely with
demand and food prices rising.
He said the opportunities for the new plants were good as local and overseas demand for chicken and
especially halal meat was encouraging.
“With the current global food shortage and the need for self sufficiency, I believe the new plants will be
good investments which will be looked on favorably by market forces,” he said.
Yeah said the new plants would further enhance the country’s plans in becoming a “halal hub” as
chicken is one of the region’s major sources of protein.
Meanwhile, both Abdul Rahman and Yeah agreed that the new plants would also help to reduce
imports and increase production capacity of processed chicken in chilled meat products.
They said the local poultry industry produced 764,000 tonnes of chicken meat and seven billion eggs
annually.”Some 80 per cent of 1.2 million tones of meat produced annually is chicken, while about 10 to 15 per
cent of chicken meat produced locally is exported to Singapore.
“Per capita demand for broiler meat is expected to increase from 28kg per person in 2005 to 29kg per
person in 2010 while the projected production increase is 9,503 metric tonnes in 2005 to 11,286
metric tonnes — valued at RM4.64 billion – in 2010,” they said.
The projected production of processed poultry meat in 2010 is valued at RM59.5 million to cater to
both domestic and export markets. — Bernama