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Malaysia's Dairy Industry in 2023

As of 2023, Malaysia's dairy sector is experiencing significant growth, with approximately 383,000 dairy cattle supporting a robust annual milk production of around 1.9 billion liters. This production capacity demonstrates the country's commitment to meeting both domestic and regional market demands.

Production Volumes

Malaysia processes approximately 1.5 billion liters of milk annually, highlighting an efficient dairy processing infrastructure. The country also produces roughly 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

In terms of international trade, Malaysia is an active exporter of dairy products, with exports valued at around USD 560 million annually. Meanwhile, imports are approximately USD 430 million each year, illustrating Malaysia's dynamic engagement in the global dairy market.

Recent Industry Events

The Malaysian dairy industry has been marked by several significant events. Fonterra's CEO, Miles Hurrell, recently visited Malaysia to reinforce strong 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 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 further accentuated by the introduction of MSPO 2.0, aimed at enhancing certification standards from January 3.

Moreover, Malaysia has lifted its ban on the import of heat-treated milk and dairy products from Germany, aligning with precedents set by China earlier this month. These developments reflect Malaysia's adaptability and strategic presence in the global dairy market.

Modified: 2025/03/22