CAB Cakaran and Oiltek explore palm-derived animal feed venture
The partners plan to set up a company in Malaysia, subject to assessments and approvals. Its ownership structure remains undecided.
CAB Cakaran Corp Bhd is exploring a joint venture with Oiltek Global Pte Ltd to develop animal feed ingredients using products derived from palm oil, the company told Bursa Malaysia.
The proposed Malaysian venture would develop the ingredients and bring them to market. It remains subject to technical, commercial and regulatory assessments, along with the required approvals. The partners have not finalised their respective shareholdings.
Under the proposed collaboration, Oiltek Global would supply proprietary technology and engineering capabilities, alongside expertise in processing and refining palm oil, turning waste into useful products and developing downstream products. It is wholly owned by Singapore-listed Oiltek International Ltd.
CAB Cakaran intends to make its feedmills, processing capacity, supply-chain relationships and distribution network available to the collaboration. Its contribution would also draw on its experience in livestock production and animal nutrition.
CAB Cakaran said the partners see an opening in the feed market for palm-derived ingredients offering nutritional and cost benefits. The company said the collaboration could broaden its revenue sources and support more sustainable use of palm resources, with a possible benefit to future profitability.
