KFC Holdings (Malaysia) Bhd - Process involved

Poultry Integration
KFCH invests in a variety of related activities that support their core restaurant business. This
integrated structure is crucial to their operations, providing consistent support services; a
stable source of quality chicken at very competitive prices; better cost control; and the ability
to supply the fast-expanding open poultry market, locally and abroad.
The processing plants process poultry for restaurants throughout KFCH, and focus on
achieving cost-efficiency while maintaining halal and high quality standards.

1. Feedmill
KFCH has feedmill capacity up to 160,000 metric tons per annum. Located at Port
Klang, Malaysia’s premier port, the feedmill imports the best quality feed grains and
raw materials from Asia, Australia, Europe, the USA and South America. It conducts
regular quality control laboratory tests at every stage of production. The feeds are
specially formulated to ensure that specific nutritional requirements are met for the
optimal growth and liveability of the chickens.
2. Breeder Farms
Each year, some 400,000 parent stocks are imported and housed in the five breeder
farms. The farms and hatcheries produce 48 million day-old chicks per annum,
catering to the KFCH’s requirements. The breeders are reared in temperature-
controlled chicken houses and fed with nutritionally formulated-feeds to optimize
production. Strict sanitation and bio-security controls are practiced in the farms at all
times. Each chicken house is well spaced out from the others so as to minimize
disease outbreak and contamination. A diagnostic laboratory monitors the health of
the breeders and the quality of the chicks produced. A diagnostic laboratory monitors
the health of the breeders and the quality of the chicks produced.

3. Hatchery
The hatchery uses incubators and hatchers imported from Chickmaster, USA. Here,
an evaporative cooling system creates an environment conducive to the hatching
process. To ensure quality chicks, strict sanitation procedures are practiced. In
addition, the chicks are delivered in KFCH delivery trucks to ensure their arrival at
the farms in good condition.

4. Contract Broiler Farms

In order to meet its broiler requirements Ayamas Food Corporation operates a highly
efficient contract broiler farming system. Day-old-chicks and feed are supplied to 100
contract farmers throughout Malaysia. The Company’s qualified field extension
specialists pay regular visits to these farms to check that the established husbandry
practices and feeding programmes are followed. Upon reaching the desired weight,
the chickens are sent to the Ayamas processing plants in Port Klang, Penang and
Johor. To further upgrade and expand its contract farming operations, Ayamas
conducts regular seminars for its contract farmers. Annual awards are also given to
outstanding contract farmers in recognition of best farming practices.

5. Poultry Processing
KFCH engages in primary processing and secondary poultry processing. Primary
processing involves the halal slaughtering and production of chicken and chicken
parts to the required specifications. Secondary processing involves the processing of
poultry products into convenience foods like burgers, nuggets, bologna, smoked
chicken, satay, sausages, chicken balls, etc. to be marketed under the Ayamas brand
name. Each month, our three plants process 3 million birds. The Ayamas plant in Port
Klang, Malaysia, is one of the largest poultry processing plan in the country. It has
modern equipment and processes more than 80,000 birds per day and 1,600 metric
tonnes of secondary processed poultry products per month. Distribution is handled
internally by a large fleet of refrigerated trucks. This direct delivery from plant to
customer ensures the freshness of products as well as consistency of supply.