Malaysia's Dairy Industry in 2023

Malaysia's dairy sector is 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. In addition, Malaysia 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.

The state of Sabah accounts for 24% of Malaysia’s palm oil production, and together with Sarawak, contributes nearly 60% of the national volume, establishing Borneo as the hub of Malaysia’s palm oil industry. Malaysian organization Wild Asia is transforming palm agriculture through regenerative practices.

Malaysia remains one of the world’s leading producers of palm oil, exporting to over 150 countries and actively developing sustainable production standards, including the national MSPO certification, aimed at reducing environmental impact and supporting local communities.

Tetra Pak identifies strong growth prospects in Malaysia, anticipating significant market evolution beyond the traditional milk category. Meanwhile, R. Ratha Krishnan has transitioned from a career in veterinary services to leading a successful dairy business in Malaysia, exemplifying the dynamic nature of the industry.

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.

Modified: 2025/08/14