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Malaysia's Dairy Industry Overview

The dairy industry in Malaysia is currently undergoing substantial growth, supported by a robust number of dairy cattle and major investments from globally recognized dairy enterprises.

Key Data

  • Number of Dairy Cattle: Approximately 383,000 heads (2023)
  • Milk Production Volume: Approximately 1.9 billion liters annually
  • Milk Processing Volume: Approximately 1.5 billion liters annually
  • Cheese Production Volume: Around 12,000 metric tons annually
  • Volume of Milk Powder and Whey Production: Around 56,000 metric tons annually

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

  • Export of Dairy Products: Approximately USD 560 million annually
  • Import of Dairy Products: Approximately USD 430 million annually

Recent Industry Events

The Malaysian dairy market has seen notable events reflecting its dynamic nature. A significant highlight was the visit of Fonterra's CEO, Miles Hurrell, as part of a senior business delegation led by the New Zealand Prime Minister, reinforcing strong bilateral trade ties and potential collaborations in the dairy sector. However, the planned joint venture between Qatar's Baladna and Malaysia's FGV Holdings was terminated, indicating a strategic pivot for the involved entities.

Additionally, there is a growing trend of increased dairy consumption in Malaysia, boosting demand for products from leading companies like Fonterra. This trend is further supported by a notable rebound in the export of non-fat dry milk/skim milk powder (NFDM/SMP) to Southeast Asia, with a 34% rise year-over-year in September. The Malaysian Sustainable Palm Oil Standard (MSPO) has introduced MSPO 2.0, marking a significant upgrade to its certification process effective January 3, further aligning the industry with sustainability standards.

Malaysia’s palm oil industry could see increased demand if Indonesia proceeds with its plan to raise the export levy on crude palm oil (CPO). Malaysia’s crude palm oil production grew by 4.2% to 19.3 million tonnes in 2024, up from 18.55 million tonnes in 2023.

MY-UAE CEPA will boost Malaysian palm oil exports with enhanced market access.

Modified: 2025/02/05

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