To support our core business, we operate several complementary businesses based on the “Farm to Fork” model, which ensures a steady supply of Halal-compliant and high-quality ingredients. These operation lines form a vertically integrated business ecosystem from farming to primary processing, to secondary processing, before reaching our wholesale and restaurant operations.
Malaysia’s operations are the largest amongst all Yum! Brands’ franchisees worldwide
Poultry integration is a crucial segment for our restaurant operations. It not only provides a stable source of quality chickens at very competitive prices, it gives us the flexibility to supply to the fast-expanding open poultry market located locally and abroad. Furthermore, greater control over our supply chain and costs helps us to improve our profitability, ensuring reliability, safety and Halal compliance of our food supply.
In line with this, we are party to a long-term supply agreement with Ayamas, which accounts for a significant portion of the poultry supply to our KFC restaurants as well as providing a steady and secure supply of key ingredients for our business. We also have assurance about the quality of the food, as well as confidence that our supplier is fully compliant with the relevant Halal certification and food safety requirements.
We operate one feedmill located in Port Klang with a capacity of 14,000 metric tonnes per month. Our integrated poultry business starts at the feedmill, where high-quality poultry feed is produced to ensure quality poultry from farm to fork.
We operate four breeder farms located throughout Malaysia which produce hatching eggs, supplying a regular monthly quantity of hatching eggs to our hatchery at Salak Tinggi in Sepang, Selangor. Breeder farms produce eggs for hatching and are the genesis of our poultry. The breeder farms operate 64 breeding houses with a total capacity of 70.5 million hatching eggs per cycle. Our breeder farms typically supply a regular monthly quantity of hatching eggs to our hatchery.The hatching eggs laid by breeder chickens are sent to our hatchery to be hatched into day-old chicks (DOC).
Our hatchery in Salak Tinggi registered a total hatching eggs capacity of 4.1 million eggs per month based on an average of 136,000 eggs per incubator per month. Incubators and hatchers facilitate the hatching process, ensuring utmost care to our hatchlings. Hatching eggs produced by our breeder farms are delivered to our hatchery to be hatched into DOCs, which are then supplied to our broiler farm and our contract farmers for rearing.
We work with 32 contract broiler farms located in Kedah, Perak, Selangor, Pahang and Johor. Many of our contract broiler farms are required to rear DOCs exclusively for us. Broiler farms nurture the growth of reared chickens to the desired weight.
Our primary processing operations involve the Halal slaughtering of poultry and production of processed poultry products. JAKIM, the agency responsible for Halal certification in Malaysia, has acknowledged our poultry supply from our integrated poultry operations to our Restaurants business as a reference point for robust Halal compliance procedures due to our stringent and effective quality controls. The primary product of our processing operations is the ‘9-piece cut’, which is supplied to our KFC outlets.