Tyson Foods, Inc. and Malayan Flour Mills Berhad today announced a partnership under which Tyson Foods will invest in the Malaysia-based company’s vertically integrated poultry business.
Tyson Foods will buy a 49% stake in the poultry segment of the Malaysian food manufacturing company.
This partnership will add more supply flexibility of halal-certified poultry for both companies. The transaction is subject to approval by the shareholders of Malayan Flour Mills Berhad (MFM), amongst others.
Malaysia’s halal industry market value is expected to reach $147.4Bn (RM614.36 billion) by 2025, according to the Halal Industry Development Corporation (HDC). The country exports about $9Bn (RM35.4 billion) in halal-certified products.
A win win transaction
“Once completed, the poultry deal will optimize our existing Malaysia business and expand MFM’s poultry business,” said Chris Langholz, International President of Tyson Foods. “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 year 2020, Tyson Foods generated $6 Bn in international sales, which included U.S. export sales.
“Our global resources and robust innovation capabilities paired with MFM’s more than 30 years of expertise as a leading poultry player in the country, enable both companies to make halal-certified products more readily available and affordable,” said Tan Sun, President of Tyson Foods APAC.
“We are pleased to partner with Tyson Foods to expand MFM’s long-established poultry business,” said Teh Wee Chye, Managing Director for MFM. “Tyson Foods is one of the world’s largest food production companies with a strong global manufacturing and distribution footprint. 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.”
Around 60 years producing poultry in Malaysia
Established in 1961, Malayan Flour Mills Berhad (MFM) is the pioneer in the flour milling industry in Malaysia. Over the years, MFM has grown to become one of the leading flour millers in Malaysia. Outside of Malaysia, MFM also has presence in the flour milling industry in Vietnam and Indonesia. In Indonesia, MFM is one of the shareholders in PT Bungasari Flour Mills Indonesia, along with Toyota Tsusho Group (Japan) and PT FKS Food and Ingredients (Indonesia).
MFM ventured into the poultry feed business in 1983 and since then has expanded considerably across the poultry value chain in breeding, farming and processing, to become one of the leading poultry integrators in Malaysia.
In November 2019, MFM commissioned a new state-of-the-art poultry processing plant with a processing capacity of up to 280,000 birds per day. MFM’s group revenues in FY19 were RM2.7Bn.
MFM’s gold standard in Halal certified poultry products complements Tyson Foods’ Malaysia business, which is also recognized as one leader in the country’s Halal food industry.
Tyson Foods Malaysia currently operates one plant and one innovation center. MFM’s vertically integrated poultry business includes feed mills, hatcheries, farms and processing facilities.