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| Through its stake in KFC Holdings (Malaysia) Bhd, QSR Brands has invested in a variety of related activities that support the Group's core restaurant business.
This poultry integration is crucial to the Group's operations, providing consistent support services; a stable source of quality chicken at very competitive prices; better cost control; and the ability to supply the fast-expanding open poultry market, locally and abroad.
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| Feedmill |
 The Group's modern, computer-controlled feedmill began operations in 1990 with an installed capacity of 120,000 metric tons per annum. Since then, the demand for its high quality poultry feed has prompted the Group to increase the feedmill's capacity to 150,000 metric tons per annum. One of the largest single feedmills in Malaysia, it supplies to the Group's breeder farms, broiler farms as well as contract broiler farms.
Located in Port Klang, Malaysia's premier port, the feedmill imports the best quality feed grains and raw materials from Asia, Australia, Europe, the USA and South America. It conducts regular quality control checks at every stage of production. The feedmill also applies stringent quality controls to ensure that the best quality feeds are produced to meet the optimal growth and liveability of the chickens. |
| Breeder Farms |
In 1988, KFC Holdings (Malaysia) Bhd, an associate of QSR Brands, started a broiler breeder farm using the Ross Breeds of Scotland. A premier breed, the fast-growing Ross broilers are noted for their good body conformation, liveability, efficient feed conversion and high meat yield.
Each year, some 400,000 parent stocks are imported and housed in the Group's five breeder farms. The farms and hatcheries produce 48 million day-old chicks per annum, catering to the Group's own requirements.
The Group keeps abreast of new breeding technology to ensure the highest quality day-old-chicks are produced. The breeders are reared in temperature-controlled chicken houses and fed with nutritionally formulated-feeds to optimize production.
Strict sanitation and bio-security controls are practiced in the farms at all times. Each chicken house is well spaced out from the others so as to minimize disease outbreak and contamination. A diagnostic laboratory monitors the health of the breeders and the quality of the chicks produced. |
| Hatchery |
The Group's hatchery uses incubators and hatchers imported from Chickmaster, USA. Here, an evaporative cooling system creates an environment conducive to the hatching process. To ensure quality chicks, strict sanitation procedures are practiced. In addition, the chicks are delivered in the Group's own specially designed delivery trucks to ensure the day-old-chicks arrive at the farms in good condition.
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| Contract Broiler
Farms |
In order to meet its broiler requirements, Ayamas Food Corporation, an associate of QSR Brands, operates a highly efficient contract broiler farming system. Day-old-chicks and feed are supplied to over 100 contract farmers throughout Malaysia. The Company's qualified field extension specialists pay regular visits to these farms to ensure that the husbandry practices and feeding programmes established by the Group are strictly followed.
To further motivate the contract farmers, fees are based on their performance and the quality of the chickens reared. Upon reaching the desired weight, the chickens are sent to the Ayamas processing plants in Port Klang, Penang and Johor.
Ayamas has recently taken further steps to expand its poultry production to meet increasing consumer demand. Its target is to raise monthly fresh bird production from three million to four million.
In 2009, Ayamas embarked on an Intrapreneur Broiler Farming Scheme whereby company staff are encouraged to become Intrapreneur broiler farmers, with qualifying staff each being given a farm to manage with a capacity of 100,000 broilers per cycle. The Intrapreneur will hold a 25% stake while Ayamas will hold a 75% stake. This scheme helps to increase the broiler production to meet the Group’s growing demand for chicken.
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| Poultry Processing |
Through its associate KFC Holdings (Malaysia) Bhd, the QSR Group engages in poultry processing and secondary processing.
Primary processing involves the halal slaughtering and production of chicken and chicken parts to the required specifications. Secondary processing involves the processing of poultry products into convenience foods like burgers, nuggets, bologna, smoked chicken, satay, sausages, chicken balls and etc. to be marketed under the Ayamas brand name.
Each month, the Group's three plants processes 3 million birds. The Ayamas plant in Port Klang, Malaysia, is the largest poultry processing plant in the country. It has modern equipment and processes more then 80,000 birds per day and 1,600 metric tones of secondary processed poultry products per month.
Distribution is handled internally by a large fleet of refrigerated trucks. This direct delivery from plant to customer ensures the freshness of products as well as consistency of supply.
The Group's emphasis on processing quality has won international recognition, including awards from Yum! Brands International. Yum! Brands International is the world's largest restaurant system with over 38,000 KFC, Pizza Hut, Taco Bell, Long John Silver A&W and WingStreet.
Currently, secondary processed products are exported to Singapore and Brunei. The company is exploring opportunities to export to Indonesia, the Middle East and elsewhere. |
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