Overview of Premier Grain Sdn Bhd

Premier Grain Sdn Bhd is a joint venture company between Malayan Flour Mills Berhad (MFMB) and Toyota Tsusho Corporation (TTC).

The Company’s principal activity is in sourcing of grain commodity ranging from Corn, Soybean to Soybean Meal which are the major ingredients of animal feed production. The company acts as the procurement and trading arm of MFMB to supply mentioned ingredients to support its poultry business. Nevertheless, trading is one of the core competencies of Premier Grain, attaining yearly trading volume of about 1 million metric ton of feed grains in Malaysian’s livestock industry.

The Company covers an extensive supply-demand network across South America, United States, Europe and Asia for right quantity and right quality of feed grains. In collaboration with TTC, it equipped the Company with a strong upstream advantage in evolving the Company’s sourcing network across main exporter countries of feed grains to meet consumers’ demand. In downstream aspects, with the dedicated team of professionals from MFMB, it has contributed to growing economies of scale and improve efficiency of the business.

With the synergy effect, Premier Grain as one of essential entity in Dindings Poultry Integration has further enhanced the competitiveness of its poultry products in the market. Throughout the years, the Company has also successfully established itself as one of the largest importers of feed grain in Malaysia and having a strong presence in local trading market.

SIGNING OF JOINT VENTURE AGREEMENT BETWEEN MALAYAN FLOUR MILLS BERHAD (MFMB), TOYOTA TSUSHO CORPORATION (TTC) AND TOYOTA TSUSHO ASIA PACIFIC PTE. LTD. (TTAP)

KUALA LUMPUR
29 January 2010

Malayan Flour Mills Berhad (MFMB), today signed a Joint Venture Agreement (JV Agreement) with Toyota Tsusho Corporation (TTC) and Toyota Tsusho Asia Pacific Pte. Ltd (TTAP), to establish a joint-venture company named Premier Grain Sdn Bhd for the purpose of carrying out the trading of raw materials for animal feeds.

The JV Agreement was the result of numerous successful business dealings between MFMB and TTC group. The relationship between MFMB and TTC started after the successful merger of TTC with Tomen Corporation in 2006. Tomen Corporation, a listed Japanese trading company, had a long-standing relationship with MFMB since 1976. The idea of the joint venture was mooted in 2008 as both parties envisaged that a strategic joint venture will have a synergistic effect on the trading business in Malaysia. By September 2009, both parties had decided to move forward on the joint venture culminating in the signing of the JV Agreement on 29 January 2010.

The Joint Venture is expected to benefit from the established relationship that MFMB has developed with its customers over the years and TTC’s global supply network, given the strength of the Toyota Group.

The Joint Venture is also in line with the expansion plan of MFMB to leverage on the potential demand and growth in the food business arising from the growth of the world population. The Joint Venture will enable the Group to achieve its key success factor, which is to grow further in economy of scale as well as enhancing the efficiency of its business.