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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 integrated structure 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 operation 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 160,000 metric tons per annum. One of the largest single feedmills in Malaysia, it supplies 10% of the local market. The Group's breeder farms and contract broiler farms take up more than 90% of the production while the balance is sold in the open market.
Located at 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 laboratory tests at every stage of production. The feedmill also applies stringent quality controls to ensure that specific nutritional requirements are met for the optimal growth and liveability of the chickens. |
| Breeder Farms |
In 1988, KFC Holdings (Malaysia) Bhd, an associate of QSR Brands, started breeder farming with exclusive rights from Ross Breeders 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 320,000 parent stocks are imported and housed in the Group's five breeder farms. The farms produce 36 million day-old chicks per annum, catering to the Group's own requirements as well as supplying the open market.
The Group keeps abreast of new breeding technology to ensure the highest quality day-old-chicks. 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 delivery trucks to ensure their arrival at the farms in good condition. |
| Contract Broiler
Farms |
In order to meet its broiler requirements without having to incur capital expenditure, Ayamas Food Corporation, an associate of QSR Brands, operates a highly efficient contract broiler farming system. Day-old-chicks and feed are supplied to 68 contract farmers throughout Malaysia. The Company's qualified field extension specialists pay regular visits to these farms to check that the husbandry practices and feeding programmes established by the Group are 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 and Penang.
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 2003, Ayamas launched a joint programme with the Department of Veterinary Services and Bank Pertanian Malaysia to help more poultry farmers become contract broiler farmers for the Group. To further upgrade and expand its contract farming operations, Ayamas conducts regular seminars for its contract farmers. Annual awards are also given to outstanding contract farmers in recognition of best farming practices. |
| Poultry Processing |
Through its associate KFC Holdings (Malaysia) Bhd, 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, kiev, bologna, smoked chicken, satay, sausages, chicken balls etc. to be marketed under the Ayamas brand name.
Each day, the Group's two plants process 110,000 birds. The Ayamas plant in Port Klang, Malaysia, is the largest poultry processing plant in the country and one of the largest in the Asia Pacific region. It has modern equipment and processes more then 80,000 birds per day and 1,500 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 32,500 KFC, Pizza Hut, Taco Bell, Long John Silver and A&W restaurants in more than 100 countries.
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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