News From : DagangHalal.com (04 Jun 2009)
BESTARI JAYA: Zikay Group, via subsidiary Rumpun Berkat Sdn Bhd, plans to invest RM5mil in an expansion programme to boost its production of halal beef products to meet rising demand and capture 4% of the local beef market, said group managing director Datuk Mohd Khay Ibrahim.
“The market is big. We currently have a market share of 1% and we are targeting 4% by year-end,” he told reporters during a media visit to the company’s facilities here.
The company currently raked in average sales of RM400,000 per month from sales of beef products, he said.
Also present at the event was Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir, who said the size of the halal market was worth some RM7.6 trillion annually.
“Demand for halal beef products would exceed 170,000 tonnes by 2010 and production is expected to be 310,000 tonnes in 2020,” Khay said. Based on statistics, local producers could only supply 18% of domestic beef demand, he noted.
Khay said the company’s expansion plan would entail upgrading its current infrastructure and adding machinery at its 35-acre Bestari Jaya cattle farm and slaughterhouse.
At present, its farm at Bestari Jaya has a feedlot that can accommodate 1,500 cattle.
The expansion programme would also include diversifying its processed meat products to include meatballs, burger patties, sausages and satay meat, he added.
The company also plans to export to the region in the future and is in the process of getting approvals from the relevant parties, according to Khay.
The company distributes its meat under the Amal brand to hypermarkets such as Carrefour and Giant.
By EILEEN HEE
Source:thestar online