KUALA LUMPUR (April 26): Malayan Flour Mills Bhd (MFM) said the wheat flour milling company is working on a price adjustment proposal among several measures to mitigate business uncertainties due to volatile commodity prices as the global economy contends with the lingering impact of Covid-19-driven movement restrictions.

In MFM's latest 2021 annual report, which was filed with Bursa Malaysia on Tuesday (April 26), its chairman Tun Arshad Ayub said the group is also mindful of the effects from the ongoing Ukraine geopolitical situation and the potential unfavourable impact of global weather on its business.

According to MFM's website, the company's businesses include poultry operations besides corn and soybean trading.

In the annual report, Arshad did not specify the details of MFM's price adjustment proposal. He, however, indicated that MFM intends to "drive more efficient trade spend to protect our [profit] margin".

Among MFM's other uncertainty mitigating measures, he said, "The positive effect of the partnership with Tyson [International Holding Company] on the poultry integration business will allow us (MFM) to leverage on their strength and technical expertise to increase our sales volume, venture into export markets and to improve operational efficiency."

Arshad said MFM's uncertainty mitigating measures include the company's progressive efforts to improve feed quality and invest in the best state-of-the-art technology through the application of Internet of Things and artificial intelligence to upgrade existing broiler farmhouse to improve efficiency and performance.

He said MFM will continue to work with reputable vaccine companies to implement a holistic vaccine programme to curtail diseases at its poultry farms.

At 11:47am on Tuesday, MFM shares were traded up 0.5 sen or 0.75% at 67.5 sen, which gives the company a market capitalisation of about RM688.5 million.

MFM has 1.02 billion outstanding shares, according to the company's Bursa filing on March 10.