ANIMAL PROTEIN AND ANIMAL FEED PRODUCTION IN MALAYSIA

Dr .Abu Hassan Muhammad Ali Department of Veterinary Services MALAYSIA

Introduction

Animal proteins are more biologically complete than plant proteins.

Plant proteins lack one or more amino acids.

Besides fish livestock products are major source of animal proteins

Eggs

Milk

Meat

>60% of livestock production cost is feed

Consumption of livestock products

Total consumption of livestock products increased

from 1.7 mmt (1991) to 3.16 mmt (2012)

Average 3.6% increase per year

Eggs and poultry meat constitute 60% of total consumption

74% of total meat consumption was poultry meat.

173,815 , 5%

24,523 , 1%

248,409 , 8%

1,348,630 , 43%

561,300 , 18%

807,990 , 25%

CONSUMPTION in 2012 (Metric tons)

Beef Mutton Pork Poultry Eggs Milk

Per Capita Consumption

Milk and dairy products remained the highest per capita consumption

Poultry meat registered the highest rate of increase, average 5.2% per year

Declining trend of pork consumption, -0.6% per year

Increasing per capita consumption @ 4.1%, 3% , 0.6% and 0.3% per year for mutton, beef, eggs and milk 3.47

5.75

0.42 0.80

9.78 8.39

20.31

43.50

16.38 18.48

45.56 48.61

0

10

20

30

40

50

60

1991 2012

Beef Mutton Pork Poultry Egg Milk

Projected demand in 2020

The human population is projected to

be 32.4 million in 2020.

The government policies is gearing

towards Malaysia being a high income

society.

Demand for meat especially beef and

poultry are expected to increase by

>58.8% and 53.3% respectively in 10

years (2010 2020)

Demand for mutton, eggs and milk are

expected to register >30% increase

while pork will register the lowest

increase of slightly >10%

154,402

209,413

245,203

19,669 20,816 23,782

-

50,000

100,000

150,000

200,000

250,000

300,000

2010 2015 2020

Beef

Mutton

1,227 1,507 1,845

8,572 9,879

11,459

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2010 2015 2020

Poultry meat

Eggs pcs

Production of livestock products

Total production

increased from 1.05 mmt (1991) to 2.38 mmt (2012)

Average increase 5.8% per year

Poultry meat and eggs contribute 87.3% of total production

The ruminant subsectors (milk, beef, mutton/sheep) contribute only 5.6% of total production

51,277 3,156

233,183

1,374,500

642,600

75,000

PRODUCTION in 2012 (metric tons)

Beef Mutton Pork Poultry Eggs Milk

Beef

10,000

30,000

50,000

70,000

90,000

110,000

130,000

150,000

170,000

1998 2000 2002 2004 2006 2008 2010 2012 2014

MT

YEAR

Production

Consumption

15.8

3

16.0

6

17.8

9

18.4

9

17.9

5 21.1

5

21.7

8

24.1

7 28

.22

28.2

6

30.1

2

29.1

7

29.5

4.75 5.01 5.06 5.18 5.81 5.32 5.49 5.33 4.89 5.35 5.45

8.86

5.76

0

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

SSL (%) Per Cap (kg)

Parameters 2000 2012 % Increase

Production (mt) 17,510 51,277 192.8

Consumption (mt) 110,593 173,818 57.2

SSL (%) 15.83 29.8 88.3

Per Capita (kg) 4.75 5.75 21.1

Beef

Population 2000 2012 % change

Buffalo 142,042 122,778 -13.56

Cattle 733,892 784,684 6.92

Total 875,934 907,462 3.60

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

Buffalo Cattle

No. of Farms (N=12,219) Commercial (n=971) Semi commercial (n=1,234) Traditional (n=10,014)

Main source of imported beef India (buffalo meat - 98,650MT)) Australia (beef 12,081MT)

Mutton & Lamb

-

5,000

10,000

15,000

20,000

25,000

30,000

1998 2000 2002 2004 2006 2008 2010 2012 2014

Production

Consumption

Parameters 2000 2012 % Change

Production (mt) 888 3,156 255.42

Consumption (mt) 13,889 24,523 76.56

SSL (%) 5.96 12.87 115.94

Per Capita (kg) 0.64 0.80 25.00

5.9

6

5.9

4 7.

7

10.3

6

8.7

6

8.6

8.9

9

10.1

7

10.3

11.2

12.1

3

11.7

3

12.8

7

0.6

4

0.6

6

0.6

0.5

0.5

9

0.6

5

0.6

7

0.6

4

0.6

9

0.6

9

0.6

9

0.6

2

0.8

0

2

4

6

8

10

12

14

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

SSL (%) Per Cap (kg) Linear (SSL (%))

Mutton & Lamb

Population 2000 2012 % Change

Goat 237,634 505,034 112.53

Sheep 145,257 124,787 -14.09

Total 382,891 629,821 64.49

-

100,000

200,000

300,000

400,000

500,000

600,000

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

Goat Sheep

No. of Farms (N= 4,598 ) Commercial (n = 22) Semi commercial = 235) Traditional (n = 4,241)

Importation of goat/sheep meat Australia (8,802MT) New Zealand (8,393MT) Others (325MT)

Pork

Parameters 2000 2012 % Change

Production (mt) 159,818 233,183 45.91

Consumption (mt) 160,672 248,409 54.61

SSL (%) 99.24 93.87 -5.41

Per Capita (kg) 19.38 20.97 8.20

150,000

170,000

190,000

210,000

230,000

250,000

270,000

1998 2000 2002 2004 2006 2008 2010 2012 2014

Production

Consumption

99

.47

99

.24

98

.68

99

.32

99

.56

98

.85

98

.85

98

.73

98

.35

97.

2

95.

36

94

.57

93.

87

19.3

8

19.3

8

19.9

2

19.1

9

19.4

5

21.1

2

20.5

8

18.6

5

17.8

8

19

21.6

5

21.3

9

20.9

7

0

20

40

60

80

100

120

SSL (%) Per Cap (kg)

Pork

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Sarawak 409,687 427,695 461,289 534,249 544,033 386,705 423,858 496,881 476,619 346,146 381,581 333,117

Sabah 93,400 112,224 99,179 114,780 83,299 120,000 91,091 82,200 105,075 83,972 77,926 72,315

S.Malaysia 1,391,3 1,432,6 1,486,7 1,421,6 1,483,5 1,528,9 1,514,1 1,441,0 1,407,1 1,401,1 1,462,8 1,395,8

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Swine Population

Producers (N=644)

Close-house (n=2)

Open-house (n=642)

Importers of pork cuts (N=61) Distributors (n=53) Processors (n=8)

Source EU (8,615 MT) Canada (620 MT) China (260 MT) Thailand (507 MT)

Poultry meat Parameters 2000 2012 %

Change

Production (000 mt) 714.27 1,375.50 92.43

Consumption (000 mt) 635 .21 1,349.63 112.31

SSL (%) 112.45 101.92 -9.36

Per Capita (kg) 27.3 43.5 59.34

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1998 2000 2002 2004 2006 2008 2010 2012 2014

mt

Production

Consumption

0

20

40

60

80

100

120

140

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

SSL (%) Per Cap (kg)

POULTRY MEAT

639

.25

682

.00

781.

12

779

.28

839

.73

89

1.0

1

90

7.72

99

8.1

7

1,0

58.9

7

1,0

96

.25

1,18

0.2

9

1,2

14.3

7

1,23

7.0

5

75.0

2

84

.55

74.3

2

80

.31

87.7

6

89

.05

127.

68

101.

83

103.

60

105.

75

115.

31

120

.10

137.

45

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

S.Malaysia Sabah & Sarawak

Poultry integrated system

Integrator (n=10)

Contract farm (n=2,983)

Processed product/special cuts

Consumption (46,470 mt )

Local production (24, 737 mt )

Imports (41,266 mt )

Imports (RM329 million)

China (22,726MT)

Thailand (16,493MT)

Others (2,049 MT)

Exports (RM 404 million)

Singapore (43 million birds/yr)

1237.05, 90%

61.85, 4%

75.6, 6% mt) 2012

S.Malaysia

Sabah

Sarawak

Poultry Slaughtering & Processing

Central slaughter

20 plants with cold chain facilities

VHM accredited by DVS

30% market share

SME slaughtering

70% market share

Processing (commercial)

33 plants VHM accredited

RM 1.6 bil annual turnover

Processing (SME)

86 plants

RM 108 mil annual turnover

1,710 mt slaughtered chicken

1,438 mt marketed 272 mt further

processed

1.14 mil birds per day

Commersial Abatoir 342,000 birds (514 mt

per day)

SME Slaughter 798,000 birds (1,197 mt per day)

Commercial Processing

(154 mt /day

SME

(118 mt /day)

Eggs Parameters 2000 2012 %

Change

Production (million) 6,642 10,710 61.25

Consumption (million) 5,727 9,354 63.32

SSL (%) 115.95 114.49 -1.26

Per Capita (pcs) 246 308 25.2

Per Capita (kg) 14.78 18.50 25.2

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

1998 2000 2002 2004 2006 2008 2010 2012 2014

Production

Consumption

115.

95

112

.39

115.

29

113.

82

111.

7

108

.7

109

.06

114

.58

119

.38

117.

53

114

.63

115.

35

114

.49

246 251 248 251 243 260 267 263

283 283 302 314 308

0

50

100

150

200

250

300

350

2000200120022003200420052006 2007 200820092010 2011 2012

SSL (%) Per Cap (pcs)

Eggs

Farms (Chicken=338, Duck=205) Integrator (n=6)

Contract farms (n=270)

Export (~RM2 bil) Singapore (RM1.7 bil)

5,8

10

5,76

3

5,8

17

6,0

85

6,1

43

6,3

91

6,5

00

7,0

45

7,4

85

8,0

02

8,4

82

8,9

41

9,2

21

832

1,0

03

1,18

6

1,0

80

1,0

88

99

3

1,2

51

1,15

6

1,2

30

1,2

68

1,34

4

1,4

17

1,4

89

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

S. Malaysia Sabah & Sarawak

9221, 86%

632, 6%

857, 8% Production (million eggs) 2012

S.Malaysia

Sabah

Sarawak

Dairy Parameters 2000 2012 %

Change

Production (m lt) 29.49 75.00 154.28

Consumption (m lt) 1,050.16 807.99 -23.06

SSL (%) 2.82 9.28 229.08

Per Capita (kg) 45.14 27.75 -38.52

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1,600.00

1998 2000 2002 2004 2006 2008 2010 2012 2014

Production Consumption

Livestock Dairy cows 15,851 hd Dairy cattle & buffalo 34,698 hd

Farms (N=783) Commercial (n=30) Semi commercial (n=43) Traditional (n = 710)

Liquid milk importsd (7,867 MT) Australia (4,595 MT) New Zealand (2,581 MT) Indonesia (690 MT)

Value (RM million)

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

2001 2012

Beef 283.38 929.17

Mutton 18.60 69.66

Pork 1,269.69 2,053.60

Poultry 3,064.45 6,866.31

Eggs 1,224.52 3,143.39

Milk 40.88 150.00

Skin & Hides 5.28 12.63

Total ex-farm value of livestock products

RM 5.9 billion (2001) RM 13.2 billion (2012)

Estimated total economic value of livestock industry in 2012 was RM79.35 billion

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2001 2005 2010 2011 2012

RM

mill

ion

Total Ex-Farm Value (RM mil)

1,174.88

2,053.60

6,866.31

3,143.38

-

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

8,000.00

Ruminantproducts

Pork Poultry meat Eggs

RM

mill

ion

Ex-farm value of livectock products (2012)

Poultry continued to be the major sub-sector with ex-farm value of RM 10 billion in 2012, contributing 76% of total livestock value

The ruminants sub-sector although remained comparatively small has shown positive growth , contributing > RM 1 billion ex-farm value since 2010.

1,174.88 , 9%

10,009.69 , 76%

2,053.60 , 15%

2012

Ruminant Poultry Pork

Value (RM million)

Increase in ex-farm value from 2001 to 2012

Contributed by

increase in production (69% )

Increase in price (22%)

0.00% 50.00% 100.00% 150.00% 200.00% 250.00%

Beef

Mutton

Pork

Poultry

Eggs

Milk

Beef Mutton Pork Poultry Eggs Milk

Production 165.42% 236.47% 26.25% 79.31% 58.29% 148.67%

Price 23.54% 11.28% 28.11% 24.96% 62.17% 47.55%

Self Sufficiency Level (SSL %)

The SSL for poultry meat and eggs remained above 100% since early 1980s

The SSL for pork started to decline below 100% since the year 2000

The SLL for ruminant products (milk, beef and mutton/lamb) is steadily increasing

The production balance has not changed much from deficit 712,716 mt (1991) to deficit 784,951 mt (2012) . The deficit has increased on average 0.5% per year. 22.42

29.50

8.81 12.87

129.77

93.87

116.79

101.92

111.95 114.49

3.46 9.28

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

1991 2012

Beef Mutton Pork

Poultry Egg Milk

ANIMAL FEED REQUIREMENT

Feed constitute 60-70% of total cost of livestock production.

Annual requirement of animal feed approx. 7 million tonnes.

Major users of feed are intensive livestock industries (poultry & swine)

Ruminant industry, extensive and semi-intensive system depend mainly on pasture and locally available feedstuff.

Feed milling industry produces 5 mil. tonnes of compounded feeds annually

Imported ingredients : 70-80% : Mainly maize and soya bean meal

Local ingredients : 20-30% : Mainly PKC and agro-industrial products

FEED MILLING

Feed Millers

No. : 53

Production : approx. 5 mil. tons.

Product : commercial compounded feed.

Poultry, duck & swine (>90%)

Quail, fish, ruminants and others (

Poultry Feed 42 feedmills

90% imported ingredients

Major feed ingredients Corn (50 55%)

Soya bean (25 30%)

Cost of feeds increased 60% for past 10 years

11

2

6

2

7

4

1

3

6 1,333

1,539

1,848

1,733 1,745

1,286

1,492

1,801

1,686 1,698

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2006 2007 2008 2009 2010

RM

/mt

Broiler Starter (RM/ t.m.) Broiler Finisher (RM/t.m.)

Quantity of animal feedstuffs imported (2010) : Semenanjung Malaysia

4.06 million metric tons of feeds & ingredients imported in 2010 (Semenanjung Malaysia)

Maize (72%) Sayabean meal (16%)

72%

16%

Maize Soyabean meal

Bran & Residue of wheat Rapeseed meal

Copra cake Rice bran

Meat meal Fish meal

Starch meal Other feed preparations

Other animal feed

IMPORTS (mt) 2000 2010 %change Maize 2,267,214 2,934,728 29.4% Soyabean meal 540,244 634,646 17.5% Bran & Residue of wheat

33,128 165,975 401.0%

Rapeseed meal 16,262 16,288 0.2% Copra cake 103 707 586.4% Rice bran 3,936 0 -100.0% Meat meal 54,939 38,002 -30.8% Fish meal 7,063 25,304 258.3% Starch meal 25,644 9,001 -64.9% Other feed preparations

131,655 180,382 37.0%

Other animal feed 55,863 58,732 5.1%

Value of animal feedstuffs imported (2010) : Semenanjung Malaysia

IMPORTS (RM mil) 2000 2010 %change Maize 988.90 2,372.03 12.7% Soyabean meal 416.97 1,021.20 13.2% Bran & Residue of wheat

15.47 177.97 95.5%

Rapeseed meal 8.25 14.51 6.9% Copra cake 0.04 0.42 87.1% Rice bran 1.09 1.01 -0.7% Meat meal 54.27 79.09 4.2% Fish meal 13.55 74.52 40.9% Starch meal 31.12 16.38 -4.3% Other feed preparations

343.30 648.16 8.1%

Other animal feed 55.43 147.25 15.1%

52%

23%

Maize Soyabean meal

Bran & Residue of wheat Rapeseed meal

Copra cake Rice bran

Meat meal Fish meal

Starch meal Other feed preparations

Other animal feed

RM 4.55 billion value of feedstuffs imported in 2010 (Semenanjung Malaysia)

Maize (52%) Sayabean meal (23%)

IMPORT & EXPORT Imports increased faster than exports

Animal feeds constitute 57% of total imports, followed by dairy products (21%) and beef (10%)

Major exports were animal feed (38%), dairy products (23%), live poultry (18%) and eggs (11%)

8,751.40

12,025.29

2,719.43 3,444.26

-

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

2007 2011

IMPORT EXPORT

627.5, 18%

1498.21, 44%

1318.55, 38%

EXPORT (RM million & %) - 2011

live animals livestock products animal feeds

224.75 , 2%

4,964.50 , 41% 6,836.04 ,

57%

IMPORT (RM million & %) - 2011

live animals livestock products animal feeds

Balance of Trade

The Balance of Trade deficit increased from (RM 6.0 billion) in 2007 to (RM 8.6 billion) in 2011.

Importation of animal feed ingredients was the major cause.

Increased in imported price of goods was the major reason to the rising deficit.

306.79 370.61 322.63 302.68 402.75

(2,830.78) (2,731.96)

(2,263.09)

(3,120.64) (3,466.29) (3,507.98)

(3,701.30)

(4,548.83)

(5,168.71) (5,517.49)

(6,000.00)

(5,000.00)

(4,000.00)

(3,000.00)

(2,000.00)

(1,000.00)

-

1,000.00

2007 2008 2009 2010 2011

Balance of Trade

live animals livestock products animal feeds

4,509.44

4,916.79

5,254.97

6,142.95

6,836.04

1,001.46

1,215.49

706.14

974.24

1,318.55

(3,507.98)

(3,701.30)

(4,548.83)

(5,168.71)

(5,517.49)

2007

2008

2009

2010

2011

Trade balance animal feeds (Export) animal feeds (Import)

Challenges in Livestock Production

Land

Labour

Capital

Resources

Feed

Breed

Services

Providers

Information

Production resources

and functional factors, eg

Environmental factors

Political

Economy

Social

Technology

Ecology

Legal/policy

Sustainability of livestock farming

Protection of environment Biodiversity Waste Greenhouse gas

Economic efficiency Quality of product Efficiency of animals Herd size Farm economy

Social acceptability Rural development Insuring minimum income Food security

Protection of the

environment

Economic efficiency

Social acceptability

Science & Technology as the drivers of change

Rate of genetic change

Predominance of few highly specialised breed

More application of molecular genetic

Policy framework required that encourage sustainable use of local genetic resources

Breeding and genetics

Quality & availability of novel feed resources

Improve efficiency and productivity of livestock production

Public health issues with regard to residues

Animal nutrition

New emerging and reemerging diseases and zoonoses

Effect of climate change

Animal Health and Diseases

CONCLUSION

The livestock industry will continue to contribute towards food security and income generation.

Demand will continue to increase due to human population growth , higher income and urbanisation.

Challenges have to be addressed effectively especially to ensure sustainability of the industry. Feed being one of the most important input that influence the cost of production need close attention of all stake holders

Science and technology will continue to be the driver of change a sustainable future of the livestock industry

Thank You