Malaysia's Dairy Industry in 2023
Malaysia's dairy sector is witnessing remarkable growth, supported by approximately 383,000 dairy cattle contributing to an annual milk production of around 1.9 billion liters. This production level underscores Malaysia's commitment to meeting both domestic and regional market demands.
Production Volumes
Each year, Malaysia processes about 1.5 billion liters of milk, buoyed by a robust dairy processing infrastructure. The country also 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
Key players in Malaysia's dairy market include Fonterra Brands Malaysia, Dutch Lady Milk Industries Berhad, Nestlé (Malaysia) Berhad, and Dairymas (Malaysia) Sdn. Bhd. Notable dairy farms contributing to the industry are Farm Fresh Dairy Farms, Malaysian Milk Sdn. Bhd., and Noraini Dairy Farm.
International Trade Dynamics
Malaysia actively engages in international trade, with dairy product exports valued at approximately USD 560 million annually, and imports at around USD 430 million each year. This active trade participation highlights Malaysia's vibrant role in the global dairy market.
Recent Industry Events
Several key events have shaped the Malaysian dairy industry in 2023. Fonterra's CEO, Miles Hurrell, visited Malaysia to strengthen trade ties and explore potential collaborations with New Zealand. 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 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.
Malaysia lifted its ban on the import of heat-treated milk and dairy products from Germany, aligning with precedents set by China earlier. 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. Bel Group obtained halal certification from Malaysia’s JAKIM as part of its commitment to reaching Muslim communities in the Asia Pacific region.
Following trade deals with Malaysia, the US dairy sector is experiencing growth in Asian markets, enhancing the competitiveness of U.S. dairy producers. Farm Fresh Bhd., Malaysia’s largest dairy producer, reported a revenue increase of 21% to 981 million ringgit for the fiscal year ending in March, with a net profit rise of 67% to 106 million ringgit, primarily from the Malaysian market.
F&N has expanded its dairy operations in Malaysia by adding 2,500 new dairy cattle, bringing the total to over 7,000 cattle. This expansion supports its Magnolia milk production, which started in January. Malaysia begins bulk fresh milk exports to Singapore, highlighting F&N AgriValley's role in enhancing the nation's dairy production capabilities.
Enhancing Malaysia's local dairy industry, the project aims to develop probiotic buffalo milk whey as a health-oriented beverage. Yili's flavored dairy products are exported to Malaysia among other Southeast Asian countries.
A recent trade mission to Malaysia involved six UK dairy companies, including meetings with local buyers, retailer visits, and discussions centered around import requirements and market access. Jemaluang Dairy Valley in Johor, Malaysia, is leveraging Australian-bred cows to boost local fresh milk production and reduce dependency on imports.
Malaysia is one of the target markets for New Zealand's trade expansion in nutrition and health sectors. Fonterra's operations in Malaysia highlight its strategic role in Southeast Asia. Fonterra's Malaysian processing hub is a prime example of cooperative growth and value addition in the region. The location serves as a transit hub for re-processing, blending, and packaging of New Zealand milk exports for distribution across Southeast Asia.
Modified: 2026/07/25