14 Jul 2025
MFM powers poultry biz with upgrades, RTE, and regional push
Despite earlier challenges, Malayan Flour Mills is strengthening its poultry integration with farm upgrades and a bold push into RTE markets.
Despite setbacks from the pandemic and global conflicts, Malayan Flour Mills Bhd (MFM) is strengthening its poultry integration.
In fiscal year (FY) 2023, its poultry unit Dindings Tyson Sdn Bhd (DTSB) was hit by a consumer boycott of Western quick service restaurants (QSR), including key clients like KFC and McDonald’s.
The situation has since improved, with DTSB now supplying other QSR chains, supermarkets, and food services. However, the impact lingered, reducing the valuation of its joint venture with Tyson International from the original USD 88.9 million to around USD 61.4 million due to missed financial performance targets.
Leveraging Tyson partnership
DTSB is now modernizing farm operations by adopting Tyson International’s closed-house systems for better climate control and productivity. This upgrade could more than double coop capacity from 25,000 to 52,000 birds.
The group is pushing for government tax incentives to encourage farmers to adopt closed-house systems. MFM is also collaborating with the Perak state government to secure land for GP, PS, and commercial broiler farms to meet Malaysia’s 2030 target of 140% poultry self-sufficiency, up from 90% in 2023.
For FY2025, MFM has allocated USD 46 million of its USD 90 million capital expenditure for poultry integration expansion. This covers:
- new hatcheries and parent farms,
- upgrades to existing farms to enhance productivity and efficiency.
MFM is also exploring regional export initiatives (including Singapore) while developing ready-to-eat (RTE) products like satay curry chicken for both local and international markets.
Focus on RTE
MFM is betting on the ready-to-eat (RTE) segment as part of its strategy to diversify and modernize its product portfolio.
Its marketing team is leading the development of Malaysian-style RTE offerings to tap into local demand and regional export opportunities. This aligns with changing consumer behavior and a growing preference for convenient, locally-flavored meals.
Beyond poultry, MFM is also looking to strengthen upstream supply for its broader animal protein business. Key moves include automation and better farming systems to reduce import reliance and stabilize supply chains.
Eggs are crucial element
While eggs are not specifically highlighted in this update, the upstream development of breeder farms and hatcheries is crucial to future expansion into layer production and enhanced integration across the poultry value chain.
With a strategic push across poultry, hatcheries, and RTE innovations, MFM is rebuilding its momentum and aiming for long-term regional competitiveness.
