KUALA LUMPUR (April 7): Food producer CAB Cakaran Corp Bhd has tied up with Felcra Food Industries Sdn Bhd to mutually explore the possibility of collaborating in the agriculture and aquaculture business activities.

In a filing with the stock exchange it announced that it has signed a non-binding letter of intent with Felcra.

“The company will make further announcements on the matter in the event both parties reach a formal agreement on this matter,” said CAB Cakaran, which operates 10 Kyros Kebab outlets Kuala Lumpur and Selangor.

Felcra Food Industries is a wholly-owned subsidiary of Federal Land Consolidation and Rehabilitation Authority (Felcra), the sister government agency of Federal Land Development Authority (Felda).

Prime Minister Datuk Seri Najib Razak had in December last year said Felcra would spearhead government efforts to reduce dependence on imported food and improve food security.

In 2015, Najib had said the food import value exceeded RM45.4 billion.

Of this, he said, RM5.2 billion was for staple food and edible product imports, RM3.4 billion for dairy products, RM1.8 billion for fruits and vegetables, and RM1.5 million for cocoa.

CAB Cakaran closed six sen or 2.59% up at RM2.38 today, giving it a market capitalisation of RM430.91 million.