Overview of Poultry and Livestock Production in Malaysia: Challenges and

Opportunities

Department Of Veterinary Services Malaysia

Ministry of Agriculture and Agro-based Industry

42nd APHCA MEETING AND WORKSHOP 2019

Construction4.9%

RM 66.2 B

Manufacturing22.4%

RM 304.8 B

Services 56.7%

RM 771.8 B

Mining & quarrying7. 6%

RM 103.1 B

Agriculture7.3%

RM 99.5 B

GROSS DOMESTIC PRODUCTS (GDP) 2018

2018

Agrofood49%

RM 48.7 BCommodity

51%

RM 50.8 B

Food Crop

1.6%

RM 21.5 B

Fisheries

0.9%

RM 12.4 B

Livestock1.1%

RM 14.8 B

2018

2018

RM 1.36 TRILLION(2015=100)

RM 99.5 B

RM 48.7 B

5 Food in 2018Main deficit

Feed

RM-3.9B

Cereals & products

RM-3.4B

vegetables

RM-3.3B

Meat & products

RM-3.2B

Sugar, Products & Honey

RM-3.2B

RM 0.069 B RM 2.174 B RM -2.104 B

Beef

RM 0.004 B RM 0.733 B RM -0.729 B

Mutton

Daging BabiRM 0.038 B RM 0.251 B RM -0.212 B

Milk & milk products

RM 1.097 B RM 2.825 B RM -1.728 B

Eggs

Poultry

RM 0.477 B RM 0.635 B RM -0.158 B

EXPORT IMPORT BOT

RM 0.589 B RM 0.023 B RM 0.567 B

Pork

Livestock Production & Value of Livestock

Beef Mutton Pork Poultry EggMilk(Mil.

Litres)

2017 46,333 4,400 218,177 1,664,90 770,900 36.6

2018 47,597 4,572 217,360 1,707,6 816,900 40.4

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

M. T

ON

2017 2018

Beef Mutton Pork Poultry Egg Milk

Value 2017 1,528.66 167.58 3,243 10,883.96 5,480 91.53

Value 2018 1,618.45 178.42 3,600 12,046.48 6,232 108.98

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

RM

Mill

ion

Value 2017 Value 2018

Per capita consumption & Self sufficiency

0

10

20

30

40

50

60

Beef Mutton Pork# Poultry Egg Milk

(Kg)

Per capita Consumption

2014 2018

0

20

40

60

80

100

120

140

2012 2013 2014 2015 2016 2017 2018

%

Self-sufficiency in livestock products

Beef Mutton Pork Poultry Egg Milk

# Based on population of 40% non-muslim

6

05CONSUMER

TERTIARY

PROCESS

04PROCESSING

PLANT

03LAYER/

BROILER

02PARENT/

GRANDPARENT

STOCK

01FEEDMILL

POULTRY INDUSTRY

POULTRY INDUSTRY STATUS

7

Grandparent Stock

4 Companies

10 Farms

470,000 birds

Broiler

parent

23

Companies

106 Farms

12 million

birds

Layer parent

5 Companies

11 Farms

494,500 birds

Broiler

Commercial

2676 Farms

140.62

million birds

Layer

Commercial

301 Farms

56.41

million birds

800.89

million DOC

104% SSL

44.35 million

pullets

114% SSL

Ross Cobb

Hisex BrownLohman Brown

Poultry industry is fully integrated, regulated and serviced by DVS

Raw Material Breeding & Growing Processing

Distribution & Retail

Feed Milling

Grand Parent Stock

Parent Stock

Farming Processing2nd

processingDistribution Retail

All integrators

have feedmills

Independent mills

10 integrators

produce ~70% of DOCs for

sale internally and open market

13 non-integrators

produce ~30% of

DOCs

Integrator owned farms

Dominated by contract farming by integrators

(~70%)

Independent broiler

farms (~30%)

Integrated players have larger plants

Non-integrators

typically with farms

or secondary processors

Traditional slaughter (DVS to

regulate in near

future)

Integrated players have larger plants

(e.g: Ayamas,

Farm’s Best, Dinding,

Ayam A1)

Independent factories

Independent wholesaler

Own outlets

Restaurant

Modern retail hyper &

supermarket

Wet markets dominate

retail

Integrator owned

distributors

4 integrated

players control 100% of

production

Factory Licensing Ingredients monitoring(Feed Act 2009)

Farming licensing (FarmingEnactment)MyGAP

Farming licensing (FarmingEnactment)MyGAP

Farming licensing (FarmingEnactment)MyGAP

Veterinary Health Mark (VHM)Certification

Veterinary Health Mark (VHM) Certification DVS

BEEF INDUSTRY

• Malaysia aimed to increase selfsufficiency level of beef to 30%by year 2023.

• Aimed on Integration systemunder oil palm to increase theproduction and to achievetargeted SSL by year 2023.

INTEGRATION SYSTEM

50,941farmers

Cattle integration under oil palm plantation

• Cattle integration system with oil palm = Biological Lawn-mower

• Low input, using weeds under oil palm plantation as source of feed. Rotational grazing 60 – 90 days

• Plantations = 5,811,145 Ha (currently used ~ 10% for integration projects)

1 2

34

Cattle integration in oil palm:Reduced labour cost up to 50% per haReduced pesticide cost 30 - 50%Increase oil palm fresh bunch yields by 6–30%(Lam et al. 2009)

DAIRY INDUSTRY

Management system

Dairy breeds

856 farmers

28,448 breeders

Semi Intensive

Intensive

Jersey x

Friesien x

Mafriwal

AIM TO PRODUCED ADDITIONAL 20 MILLION LITER OF MILK

THROUGH INCREASING 10,000 BREEDERS IN 5 YEARS

EPP 13

Pilot project Dairy

Valleys

PIG INDUSTRY

0

20

40

60

80

100

120

140

160

180

Farms

• Intensive system

• Used of technology, especially for waste treatment

SWIFTLET RANCHING

• Mostly export

Premises = 10,513

S/N: 00002-13

6 0 A 0 0 1 0 0 0 1 - 13

PRODUCT IDENTIFICATION NUMBER

TRACEABILITY SYSTEM

ISSUES AND CHALLENGES

Issues Poultry Pig Swiflet Beef Dairy Goat & Sheep

Diseases √ √ √ √ √ √

Feed cost √ √ √ √ √

Land √ √ √ √ √

Labour √ √ √ √ √

Imported Products √ √ √

Low Productivity

√ √ √

Pollution √ √ √ √

OPPORTUNITIES

• Increase demand for meat and poultry as protein source

• Strong support from government to produce livestock products

• Support to used modern technology in livestock production

• Existing farm and livestock product certification program

Farm certification and Veterinary Health Mark Program

FEED PROGRAMMES

• Palm kernel Cake/Expeller (PKC)• By-product of palm

oil processing

• Produced 2.59 million Mt in 2018; more than 90% PKC exported

• Research on the used for poultry

• Specific feed program• Napier grass

• Grain corn

• Sweet corn

• Integration in oil palm plantation• Making used of

weeds under plantation

• Ratio 1 breeders for 4 ha (oil palm age ≥ 5 years