via CAAI News Media
Wednesday June 02 2010
A trade pact signed between Malaysia and Cambodia will boost the presence of fast food chicken chain KFC in the poor southeast Asian country as well as create new opportunities for a Malaysian fast food operator.
One contract in the US$1 billion (€816.2 million) deal was between Malaysia's QSR Brands Berhad and Cambodia's Royal Group and will initially expand KFC's presence in Cambodia.
QSR deputy chairman Ahamad Mohamad told a Cambodian newspaper, the Phnom Penh Post, that the agreement will see a $300,000 (€245 000) joint venture established, 51% owned by QSR and 49% by Royal Group. It will establish 25 farms to raise day-old chicks solely for the Kingdom's KFC restaurants.
Initially it will build 25 broiler houses to rent out to contract farmers, provide feed and day-old chicks, contract broilers to third parties for processing and supply KFC-size cut chicken pieces to KFC restaurants. Cambodia's seven KFC outlets are expected to increase to ten by the end of this year and 22 by 2014.
The capacity of the contract broiler houses is expected to be about 100 000 birds per cycle, which is sufficient to meet the total projected demand of KFC restaurants in Cambodia this year.
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