Tyson Foods and Malayan Flour Mills Berhad announced a partnership in which Tyson Foods will invest in the Malaysia-based company’s vertically integrated halal poultry business, which will add more supply flexibility for both companies in their target markets.
The transaction is subject to approval by the shareholders of Malayan Flour Mills Berhad (MFM), amongst others.
“Once completed, the poultry deal will optimize our existing Malaysia business and expand MFM’s poultry business as well,” 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 in the export markets.”
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.
“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 strong global manufacturing and distribution footprint. Malaysia is one of the key halal 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 other markets via Tyson Foods’ global network.”
Malaysia’s halal industry market value is expected to reach $147.4 billion USD (RM614.36 billion) by 2025, according to the Halal Industry Development Corporation (HDC). The country exports about $9 billion USD (RM35.4 billion) in halal-certified products all over the world.
“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.
MFM’s gold standard in Halal certified poultry products complements Tyson Foods’ Malaysia business, which is also recognized as a leader in the country’s Halal food industry.
In FY20, Tyson Foods generated $6 billion USD in international sales, which included U.S. export sales. Rabobank Singapore acted as the international financial advisor to MFM to finalize the deal.