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Malaysia's Dairy Industry in 2023

As of 2023, Malaysia is experiencing significant growth in its dairy sector, underpinned by a robust foundation of approximately 383,000 dairy cattle. This livestock supports an impressive annual milk production volume of around 1.9 billion liters. Of this, about 1.5 billion liters are processed annually, underscoring the country's efficient dairy processing infrastructure.

Key Production Volumes

In addition to liquid milk, Malaysia produces approximately 12,000 metric tons of cheese and around 56,000 metric tons of milk powder and whey annually. These substantial production volumes not only meet domestic demand but also cater to regional market needs, reinforcing 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

In the international arena, Malaysia is an active participant, exporting dairy products valued at around USD 560 million annually. In contrast, its imports amount to approximately USD 430 million each year. This trade pattern underscores Malaysia's dynamic engagement in the global dairy market.

Recent Industry Events

The Malaysian dairy industry has been marked by several significant events. Notably, a visit by Fonterra's CEO, Miles Hurrell, highlighted strong trade connections and potential collaborations with New Zealand. Conversely, the cancellation of the joint venture between Qatar's Baladna and FGV Holdings Malaysia signals a strategic shift in the market. Additionally, consumer demand for dairy products has surged, evidenced 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 apparent with the introduction of MSPO 2.0, aimed at enhancing certification standards from January 3. Moreover, Malaysia's strategic influence in the palm oil sector is noteworthy. Indonesia's potential changes to the export levy on crude palm oil could impact Malaysia, where crude palm oil production is forecasted to increase by 4.2% to 19.3 million tonnes in 2024.

The MY-UAE CEPA agreement promises to bolster Malaysia's palm oil exports, while Malaysian palm oil futures have shown positive trends, supported by stronger prices in competing edible oils. Additionally, Malaysia's adherence to Halal guidelines enhances consumer trust and market compliance, particularly in key regions such as the GCC, Indonesia, and Malaysia. Palm oil prices are experiencing declines on the Bursa Malaysia derivatives exchange.

Modified: 2025/03/10