Farmiera upbeat on poultry sector’s 2026 outlook

KUALA LUMPUR: Poultry producer Farmiera Bhd is upbeat of the sector’s outlook in 2026 on the back of steady demand for chicken which remains Malaysia’s most affordable source of protein and consumption expected to rise with Visit Malaysia Year 2026.
Chief financial officer Chin Chien Hwi said poultry will continue to be the most affordable protein option for consumers, while higher tourist arrivals are expected to lift demand.
“So, as long as the population is there, 2026 is the tourism year with more tourists coming to Malaysia, we expect consumption to be higher,” he said during a press conference in conjunction with its listing ceremony yesterday.
The company, which debuted on the ACE Market of Bursa Malaysia yesterday, said efficiency-focused operations will drive its next phase of growth.
Chin said Farmiera’s upstream integration plan, including new parent stock farms and a hatchery, will strengthen supply stability and cost efficiency.
“Moving forward, we are continuously expanding our broiler farms to improve efficiency and strengthen our bottom line. We remain focused on our core poultry business and pursuing upstream integration to enhance profitability,” he said.
The parent stock farm is scheduled for completion in the second quarter of 2026, with the supporting hatchery expected to be operational by the first half of 2027. At present, Farmiera sources all its day-old chicks from third-party suppliers.
Chin also expressed support for a liberalised market environment following the end of the chicken price subsidy on Nov 1, 2023.
“We are welcoming the open market because, after all, the open market means our results are based on our operational efficiency. So we welcome an open-market kind of supply and demand,” he said.
Chin explained that chicken prices are subject to market forces such as supply and demand, and the company manages this by focusing on operational efficiency.
“Pricing is still determined by supply and demand.
“For us, we can only focus on operating efficiency because that’s how we cut costs and improve profit,” he said.
The subsidy, introduced in February 2022, was aimed at stabilising chicken prices during the Covid-19 period, when labour shortages and feed costs disrupted supply.
Its removal was intended to boost domestic production, reallocate fiscal savings to targeted welfare programmes, and prevent leakages to unintended beneficiaries.
The company’s shares opened flat at 25 sen with an opening volume of 12.14 million shares, giving a market capitalisation of RM112.50 million.
Through the IPO, Farmiera has raised RM29.25 million through the issuance of 117.00 million new shares.
The proceeds will be utilised primarily to support the company’s upstream vertical integration expansion, with RM12.55 million and RM9.60 million allocated for the construction of two new parent stock farms and a hatchery, respectively.
In addition, RM2.80 million will be used as working capital for day-to-day operations, while the remaining RM4.30 million is earmarked for listing-related expenses.
The company operates 15 self-owned farms and 44 contract farms across Peninsular Malaysia, supported by processing facilities in Lukut and Ipoh with a combined daily capacity of 45,000 broilers.
Its operations are halal- and MeSTI-certified, and the counter is Syariah-compliant.
For FY2024, Farmiera recorded RM561.1 million in revenue and RM7 million in net profit, up from RM535.8 million and RM6.4 million, respectively, in FY2023.