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WELCOME TO ENTREPENEUR BLOG

09/11/2011

Poultry Integration

KFCH invests in a variety of related activities that support our core restaurant business. This integrated structure is crucial to our 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.


Our processing plants process poultry for restaurants throughout KFCH, and focus on achieving cost-efficiency while maintaining halal and high quality standards.
Ayamas Food Corporation Bhd is Malaysia's foremost poultry integrator and its operations consists of breeder farms and hatchery, feedmills, poultry farms, contract broiler farming and processing and further processing plants. The Ayamas operations supply whole chicken and cut chicken parts and further processed chicken products to the domestic market as well as to export markets such as Singapore, Bangladesh, Brunei, Hong Kong and the Middle East.
Feedmill
Our 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 us to increase the feedmill's capacity to 160,000 metric tons per annum. One of the largest single feedmills in Malaysia, it supplies to all its breeder farms, broiler farms and contract farms. 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 feeds are specially formulated to ensure that specific nutritional requirements are met for the optimal growth and liveability of the chickens.
Breeder Farms
In 1988, KFCH started breeder farms 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 our five breeder farms. The farms produce 36 million day-old chicks per annum, catering to the KFCH's requirements.
We keep 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 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 KFCH delivery trucks to ensure their arrival at the farms in good condition.
Contract Broiler Farms
In order to meet its broiler requirements Ayamas Food Corporation operates a highly efficient contract broiler farming system. Day-old-chicks and feed are supplied to 100 contract farmers throughout Malaysia. The Company's qualified field extension specialists pay regular visits to these farms to check that the established husbandry practices and feeding programmes are followed. To further motivate the contract farmers, incentives and fees are paid 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 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 KFCH. 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
KFCH engages in primary processing and secondary poultry 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, our three plants process 140,000 birds. The Ayamas plant in Port Klang, Malaysia, is one of 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 than 85,000 birds per day and 1,500 metric tonnes of secondary processed poultry products per month. Our new poultry processing plant was built in Johor state and started operating in December 2008 with line capacity of 4,000 birds per hour.
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.
Our 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 37,000 KFC, Pizza Hut, Taco Bell, Long John Silver and A&W and WingStreet restaurants in more than 110 countries.
The company is HACCP, ISO 9001 and Halal certified in its management systems, to provide assurance that the products are manufactured under stringent quality control safe and hygienic condition and to boost the confidence of the Muslim population. The systems are supported by an ISO 17025 accredited in-house microbiological laboratory.
Currently, secondary processed products are exported to Singapore and Brunei. The company is exploring opportunities to export to Indonesia, the Middle East and elsewhere.