Officials with Tyson Foods Inc. said it will expand its presence in Malaysia by purchasing 49% ownership in Malayan Flour Mills Berhad’s (MFM) vertically integrated poultry business in a deal the companies said will increase the availability of halal-certified poultry to domestic customers and export partners. Terms of the purchase were not disclosed and finalizing the deal requires the approval of MFM stakeholders.
Tyson operates a plant and an innovation center in the country currently and a Tyson international business official said the partnership will increase its footprint and diversify its offerings and distribution of products. MFM was established in 1961 and has evolved to become a leading flour miller in Malaysia. MFM also maintains feed mills, processing facilities, hatcheries and farms in the country and has become a leading poultry company there for the past 30 years. The value of the halal poultry market is forecast to top $147 billion in the next five years with halal exports accounting for $9 billion.
“Once completed, the poultry deal will optimize our existing Malaysia business and expand MFM’s poultry business,” said Chris Langholz, Tyson’s international president. “This partnership will add more supply flexibility for both companies in serving halal-certified poultry to consumers and customers in the country and across priority export markets.”
In fiscal 2020, Tyson’s international sales topped $6 billion including exports from the United States, which makes the partnership favorable for both companies, according to MFM’s top executive.
“Tyson Foods is one of the world’s largest food production companies with a strong global manufacturing and distribution footprint,” said Teh Wee Chye, MFM’s managing director. “Malaysia is one of the key poultry markets in Southeast Asia, with a high per-capita consumption of poultry. Together with Tyson Foods, we look forward to increasing our halal poultry product offerings in the country, especially in the further processed poultry segment, as well as exporting to demand markets with the help of Tyson Foods’ global network.”
By Joel Crews
Source : meatpoultry.com