Malaysian feed producer Yenher Holdings Berhad and European Protein announced a joint venture to transform plant proteins and byproducts into high-value feed ingredients through European Protein’s unique biotechnological fermentation process.
“This joint venture represents a strategic alignment of Yenher’s commitment to sustainability and innovation with European Protein’s unparalleled expertise in biotechnology. Together, we are poised to deliver exceptional value to the agricultural sector in Southeast Asia and beyond,” said Dato Cheng Mooh Tat, executive chairman of Yenher Holdings Berhad.
Bringing high-quality protein to Malaysia
Though Asian countries are known for their expertise in fermentation, industrial scaling of solid-state lacto-fermentation is a technology patented by European Protein and its parent company, Fermentationexperts from Denmark. Solid-state lacto-fermentation uses less water and energy and generates less waste, leaving an environmental impact of up to 63% less than traditionally refined soy protein sources.
The core of European Protein’s business is the fermentation of rapeseed meal, seaweed and soybean meal with lactic acid bacteria. The process enhances the feedstock’s nutritional value and digestibility while reducing antinutrients to a safe level. Feeding lacto-fermented protein increases animal health and productivity, ensuring a profitable business for animal producers.
The fermentation plants will join a family of three plants in Denmark, Ukraine, and the US, respectively. The first of two Malaysian plants will produce fermented proteins based on rapeseed meal, seaweed and soybean meal. The second plant will ferment a new product based on palm kernel meal.
Converting palm kernel meal into high-quality feed
Indonesia and Malaysia are the world’s biggest palm oil manufacturers, producing 83% of the total market volume (USDA, 24). After pressing to remove oil, the byproduct, palm kernel meal, is used as a medium-grade protein feed and exported – some for EU’s ruminants. Due to its high fiber content and low digestibility, the 8.9 million tons of palm kernel meal (USDA, 24) is considered a low-value feed and rarely fed to monogastric animals, making Southeast Asia reliant on importing soy for pigs, poultry and aquaculture.
Using lactic acid bacteria, European Protein has significantly increased the digestibility of fibers, protein, and minerals in palm kernel meal, making it suitable for monogastric animals. As a result of the technological breakthrough, the second fermentation plant will convert low-quality palm kernel meal into a new high-quality feed, increasing Southeast Asia’s access to local protein for pigs, poultry, and aquaculture.
“We are thrilled to join forces with Yenher in this transformative venture. Our combined efforts will elevate the quality of feed ingredients and address critical global challenges like ensuring food safety and solving scarcity, naturally boosting animal health, and reducing the environmental impact of food production. This is merely the beginning of a new era for biosolutions in agriculture,” said Jens Legarth, CEO and founder of European Protein.
The first factory in the joint venture, YH European Protein Asia Sdn. Bhd. (YHEPA), is anticipated to be ready to supply the Southeast Asian markets by Q4 2025. The EUR 13.5 million first-stage investment will convert an existing facility in Penang into a state-of-the-art, GMP+-certified manufacturing plant. The timing of the second manufacturing plant has not yet been finalized.
