Malaysia's Dairy Industry in 2023

Malaysia's dairy sector is currently undergoing remarkable growth, with approximately 383,000 dairy cattle contributing to an impressive annual milk production of around 1.9 billion liters. This level of output underscores Malaysia's commitment to fulfilling both domestic and regional market demands.

Production Volumes

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

Major Dairy Enterprises

Key players in Malaysia's dairy market include Fonterra Brands Malaysia, Dutch Lady Milk Industries Berhad, Nestlé (Malaysia) Berhad, and Dairymas (Malaysia) Sdn. Bhd. Significant dairy farms include Farm Fresh Dairy Farms, Malaysian Milk Sdn. Bhd., and Noraini Dairy Farm.

International Trade Dynamics

Malaysia actively participates 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 vibrant engagement in the global dairy market.

Recent Industry Events

Several key events have influenced the Malaysian dairy industry in 2023. Notably, Fonterra's CEO, Miles Hurrell, visited Malaysia to strengthen trade ties and explore potential collaborations with New Zealand. Conversely, the cancellation of the joint venture between Qatar's Baladna and FGV Holdings Malaysia signifies 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, aiming to enhance certification standards from January 3.

Furthermore, Malaysia 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. 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.

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.

Bel Group obtained halal certification from Malaysia’s JAKIM as part of its commitment to reaching Muslim communities in the Asia Pacific region, with Malaysia being one of the countries where halal certification was achieved.

Modified: 2025/10/08