The Pusat Fidlot Nasional (PFN) or National Feedlot Centre (NFC) was set up by the Government as a concept zone to meet the goals and objectives in accordance with the National Meat Policy (Ruminant Sector) 2006. They include to develop the National Feedlot Centre concept for commercial and integrated cattle feedlot farming; to establish a beef production system through contract farming with a sustainable and integrated chain of product marketing throughout Malaysia; and to establish an integrated supply chain for beef production involving downstream and upstream activities through companies such as National Feedlot Corporation Sdn Bhd.

To facilitate the attainment of these objectives, the Government and National Feedlot Corporation agreed that the scope of the project would include NFCorp having the mandate to undertake and develop the Project including monitoring, guiding and nurturing contract farmers; subject to existing laws, both parties shall jointly facilitate free movement of any livestock cattle and/or beef for the project throughout Malaysia; and the parties shall cooperate with each other to encourage local cattle farming to progress towards self-sufficiency level of 40% of the total local beef production, increase local beef production in Malaysia, and consequently reduce the importation of sub standard beef so that it meets the objectives of the National Meat Policy.

The PFN/NFC’s success hinged on a government-built Export Quality Abattoir (EQA) capable of slaughtering 350 heads of cattle a day which according to the Auditor General’s 2010 Report had been suspended by the government in May 2009 pending the findings of an independent viability and business model study commissioned by the government. Without an EQA, the slaughter of cattle in large numbers was not possible.

According to the Auditor General, UPM Holdings was appointed to conduct the study in June 2009 which was completed and tabled to the government on 5 April 2011. To date, the government EQA has yet to be constructed to fulfill the aspirations of the government’s National Meat Policy (Ruminant Sector) 2006.