Malaysia's Dairy Industry in 2023

Malaysia's dairy sector is witnessing remarkable growth, highlighted by the presence of approximately 383,000 dairy cattle contributing to an annual milk production of around 1.9 billion liters. This expansion underscores Malaysia's commitment to satisfying both domestic and regional market demands.

Production Volumes

Malaysia processes about 1.5 billion liters of milk annually, reflecting an efficient dairy processing infrastructure. In addition, the nation produces approximately 12,000 metric tons of cheese and around 56,000 metric tons of milk powder and whey each year. These substantial production volumes reinforce Malaysia's 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 an active participant in international trade, exporting dairy products valued at approximately USD 560 million annually, while imports are around USD 430 million each year. This illustrates Malaysia's dynamic engagement in the global dairy market.

Recent Industry Events

The Malaysian dairy industry has witnessed several significant events in 2023. Fonterra's CEO, Miles Hurrell, visited Malaysia to strengthen trade connections and explore potential collaborations with Malaysia and New Zealand. Conversely, the cancellation of the joint venture between Qatar's Baladna and FGV Holdings Malaysia indicates a strategic market shift.

There has been 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, which aims to enhance certification standards starting 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.

Nestlé's Nescafé RTD cold coffee range has also been launched in Malaysia, expanding product offerings in the market. The expansion follows successful launches in Malaysia, where ready-to-drink coffee is well established.

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

Modified: 2025/05/18