Livestock to Malaysia

(Last updated: 11 Nov 2008)

Trends and opportunities

The market

The livestock industry in Malaysia is an important segment of the agricultural sector. The government in its efforts to achieve greater self-sufficiency levels has embarked on various plans to promote livestock production in specific zones. Policy guidelines for improvement and growth are in the National Agricultural Policy III.

Changing lifestyles have influenced demand for convenience foods and a protein-rich diet, eg. meat. Despite active government support and encouraging media publicity made in recent years, the ruminant sector is still unable to meet local consumption.

The main types of animals bred are: 

• cattle (cross breeds – majority Brahman crosses; Kedah-Kelanten – the dominant native breed and local Indian dairy)
• buffaloes
• goats
• sheep
• chickens
• pigs

Smallholder farmers still largely manage the cattle industry. However, more commercial rearing projects are being developed to rear cattle in developed pastures, confined feedlot systems and through integrated farming in oil palm estates.

Rearing of cattle is fairly well distributed throughout Peninsular Malaysia except for small states or those that are densely populated and thus have little land for agriculture (eg. Penang and Kuala Lumpur). A major percentage of the cattle are reared in the states of Pahang, Kelantan, Kedah, Johor and Terengganu.

Despite efforts to further develop the cattle industry, the following barriers still exist: 

• Lack of economies of scale. As a result of fragmented industry, characterised by a number of small farmers, it is difficult for local abattoirs to obtain the quantity and quality of cattle needed to achieve economies of scale.
• Increasing alternative uses of land.
• The small size of the native breed, Kedah-Kelantan. As a result, the cost of production is higher for local abattoirs. Research on crossbreeding is in progress.
• Price fluctuation of palm kernel cake. Most farmers use palm kernel cakes as cattle feed and prices fluctuate according to demand.

Poultry is the most popular meat consumed in Malaysia due to pricing and religious acceptability. In addition to poultry, Malays primarily consume beef, Indians mostly mutton and Chinese mainly pork. The current per capita consumption is estimated to be: 

• Poultry – 39.9 kg/year
• Egg – 17.2 kg/year
• Pork – 9.3 kg/year
• Beef – 6.6 kg/year
• Mutton – 0.7 kg/year

(Source: Department of Veterinary Services, Malaysia 2008)

Livestock farms and abattoirs are privatised and areas to improve the services of key economic foundation providers include: 

• Setting up livestock trading centres
• Increasing the number of centralised slaughterhouses
• Establishing cold room facilities
• Developing technological packages for modern, economic and sustainable system of large-scale livestock production and processing
• Developing technologies for the management of disease in intensive and bio-security systems of production
• Intensifying basic research on breeding and feed management to reduce the cost of production  

Opportunities

The major opportunities in the Malaysian livestock industry are:

• beef cattle
• live goats
• animal husbandry
• feedlot management
• abattoir construction and operation
• meat-handling equipment
• technology transfer
• education and training (related to livestock industry)

Competitive environment

Livestock from Australia is reputed to adhere to strict health and quality assurance and this gives Australia exporters a competitive edge over Thailand, the other main source of live cattle to Malaysia.

Tariffs, regulations and customs

There are no import duties, quotas or restrictions on the imports of live cattle, buffalo, oxen, sheep or goats.

Industry standards

An import permit and a health certificate are required for all livestock imports. These can be obtained from the Department of Veterinary Services, Malaysia. Application for these permits is the responsibility of the importer who is expected to know the import regulations. For large cattle shipments, importers need to notify the Department of Veterinary Services in advance to ensure that there are adequate holding yard facilities at the port to handle the cattle clearance.

In addition to the above health regulations, all beef based smallgoods for shipment to Malaysia must be halal (permitted under the Islamic law) and processed at a Malaysian-approved registered export establishment. A halal certificate issued by an Islamic organisation, recognised by the Malaysian Government, must accompany the meat products.

With the outbreak of the foot-and-mouth disease, imports of live cattle, goats and sheep from affected countries are banned (refer to http://agrolink.moa.my/jph/dvs/import/ban.html). Australia is not affected by the ban. For suspected cases, laboratory tests on cattle, and goats or sheep will be conducted at the port of entry.

The Animal Quarantine Services of the Department of Veterinary Services Malaysia provides services for quarantine on live animals for the purpose of import and export.

Marketing your products and services

Market entry

The options to consider when entering the Malaysian livestock industry include:

• Pre-entry study of market desirability
• Entering a strategic alliance with a Malaysian firm through joint venture or technical transfer arrangements
• Tailoring a training program for local livestock breeders to modernise husbandry methods – spin-offs could result in purchases of livestock, equipment and services

Large feedlot operators and government agencies such as the Rubber Industry Smallholders Development Authority and Federal Land Development Authority, which are involved in integrated livestock programs, source their livestock direct from overseas suppliers or via local importers.

To maintain Australia’s supply position in Malaysia, livestock exporters should:

• Assist livestock importers to be proactive in using more efficient animal husbandry techniques
• Encourage livestock importers to liaise with local media to feature their livestock in tabloids and industry-specific magazines such as Mardi News published by the Malaysian Agricultural Research and Development Institute (MARDI).
• Participate in major industry-related trade fairs such as Livestock Asia & MAHA in Kuala Lumpur. This event is supported by Austrade Kuala Lumpur and the event organisers are AMB Exhibitions & Malaysian International Exhibition & Convention Centre.

Distribution channels

The distribution and marketing of livestock basically follow these channels:

• Overseas suppliers to livestock importers (also act as distributors)
• Livestock importers to butchers or small feedlots or smallholders

Links and industry contacts

Livestock–related resources

Malaysian Directory of Services in the Livestock industry – http://agrolink.moa.my/jph/dvs/directory.html

Malaysia Agricultural Directory & Index 2005/06 – www.agriquest.com.my

Malaysian Meat Importers Association

No. 10 Jalan Pinggiran Satu

Taman Pinggiran Ukay

Off Jalan Hulu Kelang

68000 Amapng, Kuala Lumpur

Tel: +60 3 4251 4616

Fax: +60 3 4252 0580

Federation of Livestock Farmers Associations of Malaysia – www.geocities.com/flfam

No.93A, Jalan SS15/5A

47500 Subang Jaya

Selangor

Malaysia

Tel: +60 3 5633 1779

Fax: +60 3 5634 2015

Farmers’ Organization Authority of Malaysia

Block C Utara, Pusat Bandar Damansara

Bukit Damansara

50460 Kuala Lumpur

Malaysia

Tel: +60 3 2094 5222

Fax: +60 3 2095 4239

Government, business and trade resources for Malaysia

Ministry of Agriculture and Agro-Based Industry, Malaysia – http://agrolink.moa.my/moa

Level 13, Tower Block

Wisma Tani , Lot 4G1

Precinct 4 , Federal Government Administrative Centre

62624, Putrajaya,

Malaysia

Tel: +60 3 8870 1000

Fax: +60 3 8870 1241

Department of Veterinary Services Malaysia – http://agrolink.moa.my/jph

Wisma Tani, Lot 4G1

Precinct 4G2, Federal Government Administrative Centre

62680 Putrajaya 

Malaysia

Tel: +60 3 8870 2000

Fax: +60 3 8888 8178

Malaysian Agricultural Research and Development Institute – www.mardi.my

Strategic Livestock Research Centre

P.O. Box 12301

50774 Kuala Lumpur

Malaysia

Tel: +60 3 8943 7111

Fax: +60 3 8948 3664

Federal Land Development Authority (FELDA)

FELDA Headquarters

Wisma FELDA

Jalan Perumahan Gurney

Off Jalan Semarak

54000 Kuala Lumpur

Malaysia

Tel: +60 3 2693 5066

Fax: +60 3 2692 0087

Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

• Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
• Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
• Administers the Export Market Development Grants scheme.
• Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
• Provides advice to the Australian Government on its trade and investment development activities.
• Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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