RM250 Million From Govt A Loan, Not Grant - NFC

(Bernama) - GEMAS -- The National Feedlot Corporation(NFC) obtained a loan of RM250 million from the government and it is not a grant, said its . executive chairman, Dr Mohamad Salleh Ismail.

He said the loan must be repaid as any commercial loan, albeit certain concessions given.

The RM250 million, at an interest rate of two per cent, was repayable commencing on the third year of full disbursement of the said loan and upon completion of the construction of an export quality abattoir, he said.

"Currently the loan has not been fully disbursed to the NFC. There is RM69 million of the remaining loan to be utilised," he told a press conference to address allegations by PKR on the NFC's performance here, yesterday.

Mohammad Salleh said the loan was placed in Special Loans Account but a drawdown process was required before funds could be utilised by the NFC.

On the allegation that the Meatworks chain of restaurants received special discount amounting to RM2.9 million in 2009, Mohammad Salleh said the same discount was received by all 70 customers it had during that time.

Creating Meatworks as a brand name in selling quality meat had enabled NFC to penetrate into an already tightly managed and controlled market, Mohammad Salleh said.

"People cannot believe that Malaysia can produce good quality premium meat," he added.

On the higher price of NFC cattle compared to cows purchased in Malaysia, Mohammad Salleh said the NFC cows usually weighed 70-100 per cent more than local cows.

Mohammad Salleh said NFC now had 150 client companies and a few of its biggest clients were Jusco, Giant and Cold Storage.

NFC supplied 46 per cent of its meat to wet markets, 20 per cent to hypermarkets, 22 per cent went to processing meat for burgers and patties and only 11 per cent to hotels, restaurants and catering companies, he said.

He said in the three years since its inception, NFC had managed to develop infrastructure such as feedlot, abattoir, feedstore and cold rooms.

Next year, he said NFC would embark on contract farming.

"We have already broken-even and expect to register a profit," he added.