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Chickens and eggs, being the primary protein source for majority of Malaysian consumer. Malaysia is one of the highest poultry consumers in the world. In 2014, the consumption per capita of Poultry meat is 46.6 Kg and the consumption per capita of chicken/ duck egg is 19.1 Kg. (Department of Statistics Malaysia ,DOSM). The industry has experienced high self-sufficient level, achieving 98.4% for poultry meat and 113.8 % for chicken/duck egg in year 2014. Poultry has been deemed as a more environmentally source of protein due to its low feed conversion ratio (How much feeds is required to convert into the weight of meat).

The overall production of this industry has expanded steadily, in line with the growth of local demand and exports to some countries. Malaysia currently exports live birds and processed poultry to Singapore and some Middle East country. Singapore being the largest poultry export market where over 1.716 millions live birds were exported every day in 2014. Malaysia is taking advantage of its geographical proximity to penetrate Singapore’s market.

Development of the industry in Malaysia is supported by good production technology. Technologies used:

·         Closed house system that integrates cooling system (extreme hot weather will cause productivity to drop

·         Pest and pollution control (densely populated farming area causes

·         Waste management

Development of broiler industry is in-line with the national policy. National Agriculture Policy (1998-2010) and National Agro-food Policy (2011-2020).

·         National Agriculture Policy: Include broiler production as one of the strategy to ensure sufficient supply of eggs and poultry. Integration of the industry and efficiency enhancement among small farm were carried out.

·         National Agro-food Policy: To ensure the industry be sustained as a competitive industry. Modern technologies such as closed house system, automation and effective microorganism as natural control agents are encouraged.

Production has increase every year due to high productivity and capital expenditure. A few years back, most player in the industry faced a margin squeeze due to over-capacity. This problem has been reduced due to a growing Malaysia population and slower industry capacity growth rate.

Some facts on Malaysia poultry industry

Breed of chicken: Cobb, Ross

Production cycle: 5.33 times a year

Mortality rate: 4.32%

Harvesting: when bird reach minimum weight of 2.2 Kg (30-33 days)

Threat

Chicken feed (mainly soybean and corn) makes up of 70% of production cost and the feed raw ingredient are imported

Disease which are not known of and disease control

Increasing concerns about health and welfare of chicken

Trend

Merger and acquisition in the industry where small companies may be under spot light. Recent activities include Japan NH Food interest in Layhong and MOU between Salim Group of Indonesia and CAB Cakaran.