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Steady growth expected for Malaysia's poultry feed production

Published on 24 March, 2014, Last updated at 13:43 GMT
Steady growth expected for Malaysia's poultry feed production

A report by the USDA Foreign Agricultural Service on Malaysia's broiler meat sector shows that the industry is expected to continue its steady growth, with poultry feed consumption expected to continue to growth in a similar proportion.

Malaysia is largely self-sufficient in poultry meat production. Output is expanding slowly, in line with expectations for domestic demand growth. As the primary protein source for a majority of the population, per capita consumption is very high.

Almost all feed inputs and most of the genetic stock is imported. The U.S. sells corn gluten meal and breeding chicks to the sector. All imported poultry meat must be sourced from Government of Malaysia (GOM) approved plants and meet strict halal slaughter and handling requirements. No U.S. plants are certified to export poultry meat to Malaysia.

Poultry meat production, consisting almost entirely of broiler meat, is expected to grow at a moderate rate of 2 percent in 2014, with production forecast at 1.44 million tons. Although the industry has the capacity to grow further, rising costs of production are limiting growth.

A reduction in fuel subsidies, depreciation of Malaysian ringgit, and implementation of minimum wages in 2013 are all factors that have led to higher production costs in 2014. The new minimum wage increased a farm worker’s salary from $188 to $900 per month.

Imported soybean meal and corn account for 65 percent of the production cost. The decline in corn prices in 2014 relative to 2013 has been somewhat mitigated by the depreciation of the ringgit.

Average cost of production has increased $1.45 per kg in 2012 to $1.60 per kg in 2013, to a forecast $1.68 in 2014.

The poultry sector uses about 4 million tons of compound feed annually, with forecast increase in demand for feed in line with expectations for output growth (2-3 percent per year). The soymeal and corn comes primarily from Argentina. The poultry industry purchases corn gluten feed (66,000 tons in in 2013) and some soymeal from the United States.

In addition, the sector imports about 1 million U.S. breeder chicks annually, valued at over $2 million.


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