Dairy Production in Malaysia - Danish Farmers Abroad

Title written in CAPITAL letters,

broken into 2 lines, if it fits

with the length of the words

Optional:

Cover this area

with photo.

Proportions are

approx 2*1

(24,46 * 11,65 cm)

Fixed text margin

Minimum clear margin for text

UDENRIGSMINISTERIET, MINISTRY OF FOREIGN AFFAIRS OF DENMARK

Dairy Production in Malaysia

Minister Counsellor Ms. Nina Hvid Talvela

& Christien Bas, Danish Farm Design


Fixed margin

Keep heading in CAPITALS

AGENDA

i. Introduction to Malaysia

ii. Dairy Production and Farming in Malaysia

iii. Market study visit – dairy production


2


Fixed margin


MALAYSIA AND SOUTHEAST ASIA


3


Fixed margin


MALAYSIA – ONE OF THE RICHEST

ECONOMIES IN ASEAN


4 Source: World Bank


Fixed margin


MALAYSIA – HIGH INCOME LEVEL BY 2020


5 Source: World Bank

High Income

Upper Middle Income


Fixed margin


OPPORTUNITIES FOR DANISH COMPANIES

Equipment / Know-how for

• Farm management

• Breeding

• Nutrition

• Dairy production

• Cold chain handling

• General AgroTech


6


Fixed margin


AGENDA



iii. Market study visit – dairy production


7


Fixed margin


FEDERAL STRATEGY

• State deficit: 2 billion RM due to

extensice import.

• Aim to replace re-constituted milk

with fresh milk school milk

program.

• Too few big enterprises. Still

primarity traditional farmers with

under 25 heads.

• Interest in increasing number of

cows in country from current

20.000.

• Set up a national dairy board

(how?):

• Appointment of anchor

farms under EPP13.

• Danish Embassy

cooperation.


8


Fixed margin


DAIRY MARKET

• Self-sufficiency rate for milk in

Malaysia is about 5% (2015)

• More than 90% of milk and

milkproducts are imported

(mainly from Australia and New

Zealand)


9

• Small farmers: up to 25 heads.

• Semi-commercial farmers: up to

50 heads.

• Commercial: over 50 heads.


Fixed margin


DAIRY MARKET

• Focus areas in Malaysia for dairy

production: Johor, Sabah,

Selangor and Kedah.

• Different and same challenges in

the states.


10

Milk production (mio. Litres) 2013

Sabah 9.3 (2016)

Johor 7 (2016)

Selangor 3.3

Perak 3.1

Melaka 2.8

N. Sembilan 2.6

Kedah 1

Pahang 0,7

P. Pinang 0,33

Kalantan 0,17

Perlis 0,05

Terengganu 0,04

Total 30.4

Dairy cattle population 2013

Johor 9267

(2016)

Selangor 5283

Perak 4651

Melaka 2506

N. Sembilan 4876

Kedah 2554

Pahang 1354

P. Pinang 1131

Kalantan 441

Perlis 83

Terengganu 106

W. P. KL 81

Sabah 8119

(2016)

Total 40452


Fixed margin


DAIRY MARKET

Primary expenses / main costs:

• Land

• Feed

• Farm to processing

• Retail prices

• Land

• Johor: 10.000RM per acre

• Selangor: 250.000RM per

acre (buy), 5.000RM for

rent/month.

• Usually (Selangor)

• 35% feeding cost

• 35% salaries and

miscellaneous

• 30% profit


11


Fixed margin


AGENDA



iii. Market study visit – Dairy Production


12


Fixed margin


MARKET STUDY VISIT


13


Fixed margin


MARKET STUDY VISIT ON SUSTAINABLE

DAIRY PRODUCTION IN MALAYSIA

• 27 March – 5 April 2017.

• Key hubs: Johor, Sabah, Kedah and

Pahang.

• Programme:

• Forums on Dairy

Production.

• Site visits.

• Meetings with governmental

authorities (DVS).

• Meeting with potential co-

investors.


14


Fixed margin


JOHOR

• Facts

• Agro Dairy Farm


15


Fixed margin


JOHOR - FACTS

• Cattle population: 9300 Heads.

• Average production: 10L/day per

cow.

• 158 Dairy Farmers. State strategy:

upgrade 40 small farmers to semi

commercial farmers.

• 14 EPP13 Farms (Holstein anchor

farm).

• Willingness to work on a

government to government exchange

programme. Good working

relationship between DK and Johor,

interest in future cooperation and

assistance from DK experts.


16


Fixed margin


JOHOR – AGRO DAIRY FARM

• 135 heads, 45 milking cows (10-10.5 litres per day per cow).

• Friesian genetics.

• Climate biggest challenge.

• Currently expanding in Johor.


17


Fixed margin


SABAH

• Facts

• Evergreen Dairy Farm (anchor farm)

• Steven Liew Dairy (trainee farm)

• Desa Dairy Farm


18


Fixed margin


SABAH - FACTS

• 80% Small farmers.

• 15% Semi commercial farmers.

• 5% Commercial farmers.

• 10L/per day per cow in average.

• 3 local milk factories.

• COP milk: 1.20RM.

• Current breed make-up: Friesian and

Mahawak.

• Mainly self-sufficient with fresh milk.

• Milking prices subsidized with approx. 50%

(2.6-2.8RM). Subsidy is phasing out.

• AI breeding programs advanced ”in-house” in

commercial farms.


19


Fixed margin


SABAH – EVERGREEN DAIRY FARM

• Commercial eco dairy farm.

• Anchor farm under EPP13.

• Largest farm in Sabah.

• 1000 milking cows (20 litres per day

(?)).

• Expansion on the way.

• Full value chain.

• Land to grow Napier grass.


20


Fixed margin


SABAH – STEVEN LIEW DAIRY FARM

• One of Evergreen’s mentee farms under EPP13.

• 50 heads, 22 milking cows (14 litres per day).

• Challenge with production of enough feedstock and climate.


21


Fixed margin


SABAH – DESA DAIRY FARM

• Agro-tourism farm (Finance Ministry).

• 900.000 litres milk produced a year.

• Need for new genetics.

• Need for down stream (processing) knowledge

• Interest in foreign expertise for training.


22


Fixed margin


KEDAH

• ADMC Dairy Farm (anchor farm)


23


Fixed margin


KEDAH - ADMC DAIRY FARM

• Anchor farm in Kedah.

• Mix of Jerseys, Friesians and Thai Friesians.

• 275 heads (700 litres annually).

• Interest in more knowledge on dairy farming (including group of smaller farms).

• Challenges: climate, feed.


24


Fixed margin


PAHANG

• Holstein Dairy Farm (anchor farm)

• Pekan Dairy Farm (private investor)


25


Fixed margin


PAHANG - FACTS

• Goal of over 35 million litres of milk. Currently around 4-5 litres in dairy valley

10.000 cows.

• Cost of production: around 1RM, price of one litre: 2.70RM.

• Interest in setting up a ”Pahang Dairy Valley”.


26


Fixed margin


PAHANG – HOLSTEIN DAIRY FARM

• Under the East Coast Economic

Region (ECER) Project.

• 36 % market share in 2014 (Farm

Fresh).

• Facilities in Johor + Pahang.

• 2500 heads, 800 milking cows

(25 litres per day).


27


Fixed margin


PAHANG – PEKAN DAIRY FARM

• Funds to improve facilities.

• 140 heads (10 litres per day per

cow).

• Challenges: climate, management.


28


Fixed margin


OVERALL CHALLENGES IN MALAYSIA

• Lack of land for grass + lack of knowledge on feeding + nutrition.

• Differences in the size of farmers and their capability of adapting (mind-set).

• New housing technologies (closed house and tunnel ventilations) for dairy in tropical

climate.

• Handling of pollution control and waste-water handling.

• Calving rates are low (65%) – lack of knowledge / breeding programs.

• High baby calf mortality.

• Currently lack of high-quality milk. Cooling and storage. Milk collecting centres.

• Average milk production is low (approx. 10 litres per day per cow).

• Milk prices – gap between production costs and final milkprices vary.

• Subsidized milk production (Sabah).

• Cold-chain challenges and logistics of milk transportation to end users.

• Lack of finance for infra-structure, breeding (AI-centers), pasture, optimization processes.

• Management challenges – education, training.

• Education and training to support technical improvements.

• Analysis of feed – digestibility – local testing facilities.


29


Fixed margin


BUT THE CHALLENGES CAN BE OVERCOME

CASE: NOR LIVESTOCK FARM

• Located in Selangor.

• Visited by Market Study Group.

• Study trip to Denmark.

• afterwards milk production

increased by 25% (by installing big

fan and water shower (mist)).


30


Fixed margin


MARKET STUDY VISIT 2018

(March/April) – application December 6th 2017


31


Fixed margin


THANK YOU

Contact us:

Minister Counsellor Ms. Nina Hvid Talvela

[email protected]

+ 60 12 652 2659

Website: www.malaysia.um.dk

Facebook: Embassy of Denmark in Malaysia

Twitter: DKAmbinMalaysia

Christien Bas

[email protected]

+ 45 30323028

www.danishfarmdesign.dk


32

Dairy Production in Malaysia - Danish Farmers Abroad

Documents

Transcript of Dairy Production in Malaysia - Danish Farmers Abroad