QSR Brands closed 108 of its KFC outlets in Malaysia late last week, citing poor economic conditions, the company said April 29, with market sources adding that imports of feed grains and chicken could see some impact from the move.
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Register NowThe company runs over 700 KFC outlets in Malaysia in total.
The decision to close the outlets has been linked to ongoing boycotts as a result of the war between Israel and Hamas, multiple news outlet have reported.
QSR Brands wasn't immediately available for comment on the matter.
One Malaysian poultry integrator estimated that QSR Brands produces some 2 million chickens a month, but it also supplements meat demand with local suppliers and imports.
According to a report by the Department of Veterinary Services, Malaysia imported 176,191 mt of chicken meat in 2022.
Total poultry imports to Malaysia are likely to see only a limited impact from the closure, market sources said.
"If KFC is closed, citizens will start looking at other options instead," the sources added.
Corn demand unaffected
The slowdown of chicken meat demand will have only a limited impact on Malaysia's corn imports in the long run, according to market sources.
"Someone will pick up the slack for feed production and poultry production," said a trader.
Corn imports to Malaysia average 3.5- 4 million mt/year.
Corn prices have been trading rangebound for the past months due to subdued demand in Asia and a slow rate of farmer selling in Argentina.
Platts, part of S&P Global Commodity Insights, assessed corn CFR Northeast Asia at $244/mt April 30, down $1/mt on the day.