Logo of Phnom Penh Post newspaper Phnom Penh Post - Malaysian poultry producer to set up Cambodian operation

Malaysian poultry producer to set up Cambodian operation

Content image - Phnom Penh Post
The owner of a family-owned chicken farm feeds chicks in the capital’s Por Sen Chey district. Hong Menea

Malaysian poultry producer to set up Cambodian operation

Malaysia-based poultry producer Leong Hup International Bhd unveiled its plans to set up operations in Cambodia, where it already exports chicks and chicken feed, after successfully raising $247 million from its initial public offering (IPO) on the Malaysian stock exchange.

A Reuters report about the firm’s debut on Bursa Securities last week quoted its chief financial officer Chew Eng Loke as saying that sales of chicks and chicken feed in the Kingdom have been promising and a warehouse is under construction to boost growth.

“Once the sales volume of day-old chicks reaches an adequate scale, we will then establish breeder farms to supply the market instead of exporting from Vietnam,” Chew said.

The majority of chickens in Cambodia are raised in non-commercial farms as family operations. The two main commercial operators in the Kingdom are CP Cambodia Co Ltd and Betagro (Cambodia) Co Ltd – both of which have parent firms in Thailand.

In the company’s release in 2017, CP Cambodia claimed that millions of chickens and egg are raised annually as a source of food in Cambodia.

Tan Phannara, the director-general of the General Directorate of Animal Health and Production under the Ministry of Agriculture, Forestry and Fisheries, said on Sunday that he is unaware of Leong Hup’s proposal to invest in Cambodia.

However, he said the ministry welcomes poultry producers as Cambodia needs more local chicken suppliers to fill existing demand.

Phannara said only 81 per cent of the Kingdom’s total chicken demand is supplied by local poultry producers while the rest needed to be imported from neighbouring Vietnam and Thailand.

“We still have a shortage of supply as we import about 10,000 to 15,000 chickens per day from neighbouring countries to fulfil local demand,” he said, adding that it is a good opportunity for new producers to seize the Cambodian market.

He expressed hope that more competition will benefit end users.

Phannara said a major challenge for poultry producers in the Kingdom is dealing with the high cost of feed due to a lack of raw materials and high electricity prices.

“If producers are able to find lower prices of feed for their operations in Cambodia, I think they will succeed and profit in this market,” he said.

MOST VIEWED

  • Would you like fries with that? US burger chain makes Phnom Penh debut

    California-based The Habit Burger Grill restaurant chain is all set to serve up a delicious array of charbroiled burgers and sides at its newest international location in the centre of Phnom Penh. The Habit is “renowned for its award-winning Charburgers grilled over an open flame,

  • Phnom Penh underpass opens to ease traffic

    Prime Minister Hun Sen has announced a temporary opening of the 488m underpass at the Chaom Chao roundabout in Phnom Penh’s Por Sen Chey district, which was recently completed to connect traffic from National Road 4 to Russian Federation Blvd. The move is to reduce

  • Banteay Meanchey flood victims receive aid

    Prime Minister Hun Sen on Wednesday provided aid to more than 10,000 families affected by flooding in Banteay Meanchey province’s Mongkol Borei district and offered his condolences to the 18 victims who drowned in the province over the past week. He said flooding had occured in

  • PM urges caution as Polish man tests positive for Covid

    The Ministry of Health on Wednesday reported that a 47-year-old Polish man tested positive for Covid-19 after arriving in Cambodia on Monday. There are a total of six Covid-19 patients currently in the country, all of whom are being treated at the Khmer-Soviet Friendship Hospital

  • Show evidence of Chinese military base, critics told

    Prime Minister Hun Sen on Monday said he had had enough of certain countries and opposition groups claiming Cambodia had allowed China to base its military in Cambodia and dared critics to show clear evidence. Hun Sen made the remarks while presiding over a groudbreaking

  • Serving coffee with a side of robots

    The eye-catching glass building surrounded by greenery at the intersection of Streets 371 and 2002 in Phnom Penh’s Sen Sok district is more than just another coffee shop where you can while away a few hours. UrHobby House cafe is filled with robots and characters from