CAB Cakaran, Oiltek explore palm-based feed ingredients

MALAYSIA – CAB Cakaran Corporation Bhd has signed a non-binding memorandum of understanding (MoU) with Oiltek Global Pte Ltd to explore a joint venture to develop animal feed ingredients from palm oil-derived products.

The proposed collaboration will assess converting selected palm-based products into ingredients for livestock and poultry feed, aiming to improve nutritional quality, digestibility, and commercial value.

The partnership would combine CAB’s expertise in poultry farming, animal nutrition, and feed milling with Oiltek Global’s palm oil processing technologies. 

Oiltek Global is a wholly owned subsidiary of Singapore-listed Oiltek International Ltd.

The initiative would build on CAB’s feed manufacturing capacity following its November 2025 acquisition of Cargill Feed Sdn Bhd. 

The business, now known as CAB Feed Sdn Bhd, operates four feed mills in Westport, Butterworth, Melaka and Sabah.

The acquisition expanded CAB’s role in the feed supply chain by providing infrastructure to support the development and potential commercialisation of new feed ingredients.

CAB group managing director Christopher Chuah Hoon Phong said the collaboration would help the company explore downstream applications for palm-based products.

The partnership would allow CAB to pursue opportunities beyond its existing operations through innovation, technology and new product development, he said.

Oiltek International executive director and chief executive officer Henry Yong Khai Weng said the proposed partnership would provide an opportunity to explore applications for the company’s processing technologies in animal feed, drawing on CAB’s infrastructure and industry experience.

The two companies will evaluate the technical, commercial and operational feasibility of the proposed venture, including product development, processing technologies and potential markets.

For the animal feed sector, the initiative could open additional routes for incorporating suitable palm oil-derived materials into feed formulations. 

However, technical assessment will need to establish the nutritional suitability, digestibility, safety, and cost-effectiveness of any resulting ingredients.

The MoU is non-binding, and the proposed joint venture remains subject to further evaluation, definitive agreements and the necessary regulatory and corporate approvals. 

CAB said it would make further announcements once the collaboration framework was established.

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