Malaysian poultry and food producer CAB Cakaran Corp. has signed a memorandum of understanding with palm oil processing technology company Oiltek Global to develop feed ingredients from palm oil by-products.
The primary aim of the agreement between the two parties is to develop premium raw materials for livestock feeds based on palm oil, according to CAB Cakaran Corp. Berhad (CAB).
The parties are looking to improve the digestibility and nutritional quality of palm-derived ingredients, as well as creating additional commercial value. At the same time, the memorandum of understanding with Oiltek Global Pte. Ltd. involves supporting more sustainable farming practices in Malaysia.
CAB is among the country's largest poultry and food producers, while Oiltek is a wholly owned subsidiary of Oiltek International Ltd., and contributes decades of experience in technologies for processing palm oil.
For Christopher Chuah Hoon Phong, CAB's managing director, the agreement is an opportunity to combine his firm's expertise in animal nutrition and food production with Oiltek's strengths in oil processing and technology.
"This collaboration marks an important step forward in our efforts to expand beyond our existing strengths, and create greater value through innovation, technology and the development of new downstream applications for palm-based products," he said.
Meanwhile, Oiltek's contribution to the joint venture is rooted in its long-term focus on extracting greater value from palm oil processing, according to Henry Yong Khai Weng, CEO of Oiltek International.
"Our collaboration with CAB provides an opportunity to explore potential applications of our engineering expertise in the animal feed industry, leveraging CAB's existing infrastructure and industry experience," he said. "We look forward to jointly evaluating opportunities that may create value for the Malaysian palm oil and animal feed industries."
More on the joint-venture partners
The CAB Group became fully involved in the livestock feed sector last year, when it completed its acquisition of Cargill Feed Sdn. Bhd. (CFSB). This transaction brought four feed mills in Malaysia under its ownership, namely in Butterworth, Melaka and Westport in Peninsular Malaysia, and Sabah in East Malaysia. Previously, CAB had purchased feed for its poultry meat production.
In November 2025, it was announced by the board of directors of CAB that CFSB — its indirect wholly owned subsidiary — had entered into a new joint venture agreement with Desa Plus Sdn. Bhd. This was a sale and purchase agreement under which CAB Cakaran Sdn. Bhd., a wholly owned subsidiary of CAB and Cargill Holdings (Malaysia), acquired 100% equity interest in CFSB. Upon completion, CAB Cakaran became the holding company of CFSB, and hence the effective controlling shareholder in the joint venture.
Currently, CAB's main businesses comprise the breeding and raising of grandparent stock, parent stock and broilers, poultry feed milling, chicken processing, and the manufacturing and trading of processed meat-based foods. The group has breeding farms in the states of Johor, Kedah, Melaka, Negeri Sembilan and Penang, and it raises broilers at farms across Peninsular Malaysia. Its six slaughterhouses and processing facilities are in Johor, Kedah, Kuala Lumpur, Melaka, Pahang and Singapore.
Additionally, CAB operates distribution networks in Malaysia and Singapore, supplying the retail, wholesale, restaurant, hotel, supermarket and hypermarket sectors. The group's own supermarkets operate as Pasaraya Jaya Gading and HomeMart Fresh & Frozen, and Kyros Kebab is its franchised fast-food chain in Malaysia.
Founded in Malaysia in 1980, Oiltek International Ltd. specializes in refinery processes and engineering solutions for all sectors of the vegetable oils industry value chain worldwide. Its three key business areas are edible and nonedible oil refinery, renewable energy, and product sales and trading.
