Malaysia's Dairy Industry in 2023

Malaysia's dairy sector is currently undergoing remarkable growth, evidenced by the presence of approximately 383,000 dairy cattle, which contribute to an annual milk production of around 1.9 billion liters. This output reflects Malaysia's dedication to fulfilling both domestic and regional market demands.

Production Volumes

The country processes approximately 1.5 billion liters of milk each year, supported by an efficient dairy processing infrastructure. Malaysia also produces around 12,000 metric tons of cheese and approximately 56,000 metric tons of milk powder and whey annually, underscoring its significant role in the Southeast Asian dairy industry.

Major Dairy Enterprises

• Fonterra Brands Malaysia
• Dutch Lady Milk Industries Berhad
• Nestlé (Malaysia) Berhad
• Dairymas (Malaysia) Sdn. Bhd.

Significant Dairy Farms

• Farm Fresh Dairy Farms
• Malaysian Milk Sdn. Bhd.
• Noraini Dairy Farm

International Trade Dynamics

Malaysia is a vibrant participant in international trade, exporting dairy products valued at approximately USD 560 million annually, while imports stand at around USD 430 million each year. This highlights Malaysia's active engagement in the global dairy market.

Recent Industry Events

In 2023, several key events have influenced the Malaysian dairy industry. Notably, Fonterra's CEO, Miles Hurrell, visited Malaysia to strengthen trade ties and explore potential collaborations with Malaysia and New Zealand. Conversely, the cancellation of the joint venture between Qatar's Baladna and FGV Holdings Malaysia signifies a strategic market shift.

There is a notable surge in consumer demand for dairy products, marked by a 34% year-over-year increase in non-fat dry milk/skim milk powder (NFDM/SMP) exports to Southeast Asia by September. Malaysia's commitment to sustainability is highlighted by the introduction of MSPO 2.0, aiming to enhance certification standards from January 3.

Furthermore, Malaysia has lifted its ban on the import of heat-treated milk and dairy products from Germany, aligning with precedents set by China earlier. These developments reflect Malaysia's adaptability and strategic presence in the global dairy market.

Additionally, Nestlé's Nescafé RTD cold coffee range has been launched in Malaysia, expanding product offerings in the market, following successful launches in the country where ready-to-drink coffee has a strong presence.

F&N has allocated RM1.8 billion to transform the dairy sector in Malaysia, indicating substantial investment and future growth potential. Moreover, Malaysia is challenging the EU's classification of its palm oil as 'standard risk', asserting that it overlooks Malaysia’s sustainability efforts.

Companies such as Betalac Dairy House Sdn Bhd contribute to the industry by producing a range of milk-based products, further highlighting the diversity and potential of Malaysia's dairy sector. Malaysia is capitalizing on regional partnerships within ASEAN to boost its agriculture and dairy sectors. The country's advantage as a resource-rich nation with strong ASEAN ties was highlighted in a Facebook post.

Conclusion

Malaysia's strong regional partnerships, particularly within ASEAN, create vast opportunities in agriculture and dairy industries. The country's strategic cooperation with regional partners paves the way for significant advancements in agriculture and dairy sectors, according to Prime Minister Datuk Seri Anwar Ibrahim.

Modified: 2025/09/04