Its chairman, Dr Mohamad Salleh Ismail said as the 30-year contract was only in the third year, teething problems during initial stage were to be expected.
"In fact, NFC has raised 8,016 head of cattle in 2010, surpassing its target of 8,000 head of cattle," he was quoted as saying by Bernama.
"We are importing cattle from Australia and we have to feed them for between four and six months. We do not slaughter them soon after arrival.
"We will not slaughter the cattle if there is no market. And when they are not slaughtered, cattle feed costs will also increase," he told reporters at the NSC office in Gemas today. The press conference was limited to selected media outlets.
The A-G's Report said that NFC was in a mess and its production last year were only 3,289 head of cattle or 41 per cent of the target set.
Mohamad Salleh said at the outset of its operation in 2009, NFC had yet to find the market while the abattoir was only approved in April that year, halal certification two months later and the Veterinary Health Mark, which was compulsory before meat could be sold, in 2010.
He said NFC also needed to send its employees for training to acquire specific skills to run the operation.
"We chose Mont Kiara because it's cosmopolitan and the response was very good. The bosses at Tesco, Carrefour, Jusco ate there and placed orders straight away for our meat," he said.
He further said that NFC also supplied meat to wet markets and hypermarkets, while 22% went to processing meat for burgers and patties and 11% to hotels, restaurants and catering.
Mohamad Salleh also justified NFC purchase of two condos in Bangsar, saying it was a sound investment.
He said NFC had bought the condos for RM6.9mil each, and each was rented out at RM70,000 a month giving NFC a yield of RM900,000 each which was a 12.9% return on investment.
This return was better than what NFC would have earned from a fixed deposit.
On the poor condition of the road leading to the farm, he said it was a public road and the maintenance was not included in NFC's budget.
NFC is holding a discussion with relevant ministries to plant grass on the road shoulder while the damaged pond will be repaired in stages, he added.
Mohamad Salleh said the farm had just been affected by floods when it was visited by officers from the Auditor-General's Department.
The news conference was also attended by NFC lawyer Mohamed Shafee Abdullah, corporate and finance consultant Zakaria Mohammad and director Wan Shahinur Izmir Mohamad Salleh.Read More @ Source
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