Leong Hup Converts to Closed System

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30-Day Archives? Click here! / The Star OnlineLast 7 Days16Sep, 2004Business
Thursday September 16, 2004
Leong Hup converts to closed system
BY ZAZALI MUSA IN JOHOR BARU
INTEGRATED poultry company Leong Hup Holdings Bhd says it will take two years to convert all of its existing broiler houses to the closed house system.
Executive director Datuk Lau Tuang Nguang said the company had already converted 60% of the broiler houses.
“The system provides for better disease control and assure that we’ll produce poultry products of the highest quality,” he told StarBiz after the company’s AGM last Friday.
Lau said the company had converted all of its breeder houses to the system and this had resulted in a big improvement in the survival rate for chickens.
He said the company was looking at an increase of between 30% and 40% in production when the present system was fully converted.
Lau said chickens reared in the closed house, which incorporated the air-cooling system, fared better as they were less exposed to heat.

Datuk Lau Tuang Nguang
“Like humans, the birds also suffer from heat stroke if the weather is too unbearable,” he added.
Lau said although it was quite costly to build a closed house system, which cost between RM15 and RM18 per bird, it would however pay off in the future.
He said the system also resulted in better utilisation of space, taking up only 0.67 sq ft per bird compared with 1.3 sq ft in the old system.
Lau said these measures were also to comply with the Singapore Agri-Food and Veterinary Authority ruling, which allowed only chicken farms that practised the system to export the birds to the republic.
“Farms in Johor, Malacca and Negri Sembilan export 95% of their chickens to the republic,” he added.
Lau said chicken consumption among Malaysians was still high despite the outbreak of the avian flu among kampung chickens.
For the financial year ended March 31, Leong Hup registered RM552.51mil revenue compared with RM500.59mil previously.
It reported a net loss of RM1.61mil compared with that of RM25.76mil in 2003.
LHH : [Stock Watch] [News]
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