But Rafizi lied that the project was doomed from the start NFCorp supplies top quality Malaysian Halal beef nurtured in Gemas from the best livestock breeds imported from overseas. The cattle are brought in at an average weight of 300 kg and fattened locally at the NFC until 600 kg before slaughtering.
Between 2008-2010, NFCorp had imported 8,897 heads of cattle exceeding the target of 8,000 heads of cattle by 11.21 per cent. In 2011, NFCorp imported 4,860 heads of cattle. All these numbers were on track in accordance to the planned beef production targets outlined in the Implementation Agreement signed in 2010, at least until Rafizi came to play in the fields.
For the unfamiliar, NFCorp had at its height, supplied 34% of its beef production to the hypermarkets and supermarkets, 27% to the wet markets, another 20% of its beef to meat supply manufacturers, and 18% to the hotel, restaurant and cafe (HORECA) sector.
More than 160 anchor customers count in NFCorp’s portfolio who buy beef products in seven digit RM each month.
In its 72-page report report on the Viability Study and Business Model for the National Feedlot Centre Project, UPM Holdings Sdn Bhd had thoroughly adjudicated the business model of NFCorp. It best sums the project as follows,
“On the whole, the NFC Project represents a viable project both from an implementation and profitability standpoint, and is in line with the aspiration to develop entrepreneurs in the feedlot sector provided the project is carried out as outlined in the Implementation Agreement.”
The UPM study was led by a distinguished panel of professors, scientists and experts in the field of agri business management, marketing, accountancy, food agriculture, agronomy and animal science.
The viability study had chosen to examine the merits of NFCorp’s business model and structure. It obviously indicated the fact that the beef project business undertaken by NFCorp was a serious business to be adjudicated and considered.The study underscored that if all the elements for the NFC were in place in full swing, the beef supply would reach 59 per cent by 2015.
“Walaubagaimanapun, sekiranya projek Pusat Fidlot Nasional ini di jalankan dengan sepenuhnya mengikut kerangka konsep PFN, NFCorp akan dapat meghasilkan sebanyak 78,352 MT (metric tonne) daging dan produk simpangan seperti tulang dari organ dalaman dimana sebanyak 44,097 MT adalah daging lembu. Ini juga bermakna tahap sara diri negara dapat ditingkatkan dari 28% pada tahun 2009 kepada 59% pada tahun 2015, iaitu peningkatan tahap sara sebanyak 32% dalam tempoh tersebut. Oleh itu, pertumbuhan tahap sara diri tersebut adalah merupakan satu lonjakkan yang sangat menggalakkan.”
The study added the business model adopted by NFCorp was meritorious and entirely complete as a total beef venture. The business model also demonstrated that the integration component had its merits. The study went on to reveal that the project encouraged entrepreneurial development through which collaboration between the integrator and the contract farmers would enrich the industry tremendously through shared learning.
According to the UPM study, the contract farmers would create 1,550 job opportunities in these contract farms in Gemas and foster an industry in the country.
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I really have to say this, the UPM study really amazed me! So all this while Rafizi was really lying about NFC not viable.
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