Development of the Livestock Industry in Malaysia

S. Jalaludin¹ and R.A. Halim²

¹Department of Animal Science, 2Department of Agronomy,
Universiti Putra Malaysia, 43400 Serdang, Selangor, Malaysia.

Introduction

The livestock industry in Malaysia contributes less than 10% of value added in agriculture. Poultry and swine production dominate the local livestock scenario with excess production for export, but self-sufficiency in ruminant products has been declining with imports accounting for more than 80% of requirement for beef, mutton and milk (Table 1).

Table 1. Local consumption, production and self-sufficiency
of livestock products in Malaysia, 1994

Nearly 30 years ago, Malaysia embarked on a policy to achieve total self-sufficiency in beef and up to 20% self-sufficiency in milk within 20 years. The failure to achieve the target can be attributed to many factors, including lack of incentives, uneconomic production systems and inadequate marketing strategies. The most damaging factor to local beef production is the policy of free market access to beef exporters from India. The cheap beef imported from India enables Malaysian consumers to buy beef at almost half the price of locally produced beef, thus reducing demand for the latter. It is unlikely that, in the near future, Malaysia can be self-sufficient in ruminant products, but there is a great potential to reduce dependency on imports through greater exploitation of its feed and genetic resources.

Geographical Distribution

Livestock distribution in Malaysia is characterised by a dichotomy between the non-ruminants (poultry and swine) and the ruminants. Because of the highly commercialised and structured market of the poultry and swine industry, their production is mainly concentrated in the more developed and heavily populated states in the West Coast of Peninsular Malaysia. Both these industries are heavily dependent on imported feeds which are processed by feedmillers, and proximity to ports and highways are important logistic considerations. The poultry industry is highly integrated with downstream activities and most of the processing industry is located near major towns and cities. Swine production exclusively serves the ethnic Chinese community and areas of swine production are those that have a high concentration of ethnic Chinese.

In contrast to the swine and poultry industry, the ruminant population is scattered over the rural areas of the country, especially in Kedah and Kelantan. Both these states are the main rice producing areas of the country where buffaloes and cattle have been traditionally associated. Many of the cattle are reared under low-input, extensive systems, where the animals subsist on native vegetation of wasteland and roadsides with little, if any, supplementation. While cattle for beef production are mainly found in rural settings, dairy cattle production is mainly located close to urban centres. Dairy cattle have traditionally been reared in peri-urban areas to facilitate distribution of milk to consumers in cities and towns as well as to factories for processing. During the last 20 years, ruminants have been introduced in rubber and oil palm plantations, especially in the land development schemes. Although the concept of integrating ruminant production to the plantations is theoretically feasible and profitable, only a few plantations have adopted this practice.

Goats and sheep rearing are scattered throughout the country and the rearing of these animals has always been a subsidiary activity of farmers in rice growing areas and workers in rubber and oil palm plantations.

Production Systems

Animal production systems in Malaysia are very similar to that found in many parts of Southeast Asia. The majority comprises smallholdings but there are some large scale operators, particularly in the non-ruminant sector.

Non Ruminants

The non-ruminant sector, encompassing the poultry and swine industries, is run commercially by large-scale integrators and multi-national corporations. Only a small portion of the poultry production is involved in the rearing of village chicken on a low-input, extensive system. The constraint facing the non-ruminant sector is two-fold:

1.The heavy dependence on imported raw materials such as corn and soybean as ingredients for their feed rations. The currency crisis, which the country is facing, makes it very costly to maintain the levels of import to sustain the poultry and swine industries. It is imperative that alternative sources of local feed ingredients are found to reduce the dependence on imported ingredients.

2.The high concentration of animals within specific locations leads to environmental pollution unless waste management methods are implemented to avoid the raw discharge of effluents into the country's water resources. The problem of environmental pollution is more acute with the swine industry because of the religious aspects associated with the problem.

Ruminants

Extensive system

The traditional production units for cattle, sheep and goats comprise farmers in rice-growing areas keeping less than 10 heads of cattle and/or sheep and goats as a subsidiary activity to rice farming. These animals utilise areas of land not planted with rice and selectively graze on whatever grasses that exist, which are invariably of poor quality. Dairy cattle are usually found in estates and plantations where they are reared by the tappers to supplement their income and to meet the domestic needs of meat and milk.

Semi-intensive system

Semi-intensive system of production is also practised, especially for dairy cattle. In this system, ruminants are allowed to graze for a short time and then stall-fed with cut grass and limited concentrates.

Intensive system

Intensive systems of ruminant production were introduced into the country about 30 years ago, but has not attracted investment by private sectors. The returns from such an operation do not justify the heavy cost of land clearing, pasture establishment and purchase of stock. Currently, these large farms developed by government agencies are used primarily as multiplication centres for breeding herds, which are distributed to small farmers.

Feedlotting

Beef feedlotting is another production system currently being practised by producers who either import or purchase animals raised in extensive systems. It is estimated that 200 feedlots of various sizes currently exist in Malaysia. The larger feedlots produce about 6 000 to 7 000 heads of cattle a year while the smaller ones hold about 10 to 20 heads at any one time. Many feedlots are located near to the feed supply and market place, which are often in the peri-urban areas to save costs of transportation of the feed and their produce. Feed accounts for 50 to 70 % of the operating costs and the majority of the feedlots in Malaysia utilise by-products of the oil palm industry, particularly palm kernel cake (PKC) as well as pineapple wastes from canneries and cocoa pods.

Cow-calf system

A consistent supply of healthy calves is an important factor for a sustainable commercial beef production enterprise. Calves produced under the subsistence conditions of smallholders are generally of variable age, size and health conditions. Although the supply of animals has met the demand for beef in the past, it is not able to meet the increasing demand for high-quality, uniform feeder cattle for the modern commercial feedlots. Cross breeding with exotic breeds from the sub-tropical and temperate countries has been used as a means to upgrade the indigenous Kedah-Kelantan cattle for better growth performance. To meet the current demand for feeder cattle of high genetic potential, many feedlot operators source and import them from countries such as Australia and Thailand. However, the recent depreciation of the Malaysian Ringgit has made cattle import and feedlot operations less attractive.

Integration

It is estimated that the vegetation under plantation crops in Malaysia can contribute up to 80% of the forage resource in the country. This can be exploited for ruminant production and is a better alternative than opening up forested areas for establishment of sown pastures. Other benefits of the integration of livestock with tree crops include optimised farm resource utilisation, increased economic output, increased fertility of land through the return of dung and urine, control of weed and reduction in the use of herbicides and farm labour. Besides the forage in plantations, feeds made from by-products of the oil palm industry such as palm kernel cake (PKC) are also available.

Availability of forage in plantations is dependent on the age of the tree crops. During the first three years of the tree crop, the undergrowth could provide a feed biomass of between 2 000 to 3 000 kg DM/ha/year. This declines to about 400-800 kg DM/ha by the 6-7^th year and remains at this level until approximately the 20^th year. The feeding value of the ground vegetation is comparable to improved pasture grasses.

Introduction of animals to new planting of oil palm plantations can only commence about 18-20 months after planting has taken place to avoid animals from injuring young shoots. The stocking rate used should consider forage availability and a flexible system should be used to allow surplus stock to be sold or transferred out in order to prevent overgrazing.

The National Agricultural Policy specifically mentions livestock integration with plantation crops as a way to overcome the country's deficit in ruminant products and the major plantation companies are being urged to introduce cattle and sheep in their estates. So far, this call has been taken up by those involved in the land development schemes of FELDA and the land rehabilitation agency, FELCRA. Commercial planters are reluctant to incorporate livestock in their operations because of perceived negative aspects of integration such as damage to seedlings, soil compaction and buildup of obnoxious weeds through selective grazing and animal droppings. These problems can be minimised by applying the correct stocking rate and judicious use of herbicides for weed management.

Systematic Research on Integration

Despite the large amount of reports that have been generated on studies of crop-livestock integration, there has been a lack of comprehensive scientific research based on an integrated approach. There is a need for research that fits a framework that takes into consideration all the variables that interact and impinge on the production system. The number of variables involved in production systems, especially those in agriculture, are numerous and this makes the process of decision making difficult. Modeling is a tool to overcome this difficulty, especially with the advent of the modern versions of personal computers and associated software. A modeling approach allows us to examine input-output responses, explained by known biological processes, within the context of environmental factors and constraints. Since farms vary from one another, even within a production system, modeling allows the flexibility to vary the parameters and use the most appropriate ones in the decision making process. Before one could embark on this approach, information on biological processes, environmental influences and their interactions needs to be gathered. This quantitative information will form the building blocks of the approach. A review search will show the amount of information available in the literature, which in the case of ruminants in this region is considerable, although fragmented and unevenly distributed across areas of study. Research areas need to be identified to fill the information gaps, some of which could be filled through simulation work.

Issues Associated with High Animal Concentration

Producers save costs through economy of scale by concentrating animals in large numbers. The farms are also located in peri-urban areas to cut transport costs and to ensure quick delivery of fresh livestock products. However, high concentration of animals near urban centres gives rise to a number of problems, which include environmental pollution, high cost of managing wastes, diseases and foul odour. In Malaysia, the problem of high animal concentration has become evident with the swine and poultry industries, and less so for the ruminant sector.

The intensive nature of swine and poultry production creates a waste problem that can cause severe environmental pollution if not managed properly. The problem of pig wastes finding their way into river systems in Selangor has been highlighted and the religious sensitivity associated with the issue can make it a matter of serious social concern. In addition to waste pollution, improper nutrition of animals can also create high levels of minerals and residues of uncontrolled drugs being released into the environment. The environmental problem from beef production in Malaysia is associated mainly with the intensive feedlot system where large quantities of cattle wastes are produced. At present, there is no mandatory regulatory policy to control the discharge of cattle waste. Hence, feedlot operators do not invest in the treatment of their cattle wastes. Most of the feedlot operators conveniently discharge their cattle wastes directly into nearby waterways. Although effluents from some feedlots are recycled to fertilise cash crops, such as vegetables and fruit trees, they are done in an ad hoc manner and without proper planning. Research has shown that the conversion of feedlot cattle wastes to organic fertiliser is economically viable, but this practice should be further evaluated under commercial situations.

Steps Taken Teps Taken to Address Issues

Zoning

It is imperative that a zoning plan be instituted to address the issue of high concentration of animals, especially if they are close to population centres. Creation of buffer areas around the designated locations will help in reducing the problem of odour and spread of diseases through insect vectors. Strict guidelines regarding minimum distance of livestock production from waterways should be enforced to safeguard the natural water resources. Waste treatment from farm effluents must be made obligatory to minimise the detrimental effects of animal wastes. The state governments in Malaysia have expressed positive response to the call to set aside parcels of land (Food Parks) to be perpetually assigned exclusively for food production, including livestock.

Agrotechnology Park

In line with the concept of zoning of agricultural activities, the idea of creating Agrotechnology Parks has been proposed to further enhance the commercialisation of agriculture in the country. The creation of Agrotechnology Parks has the objective of providing an environment which is conducive to the implementation of innovations in production technology and marketing to boost the food production sector. Farmers within the Agrotechnology Park will benefit from their easy access to support infrastructure, including credit, storage, transport, marketing and consultation. For livestock producers, the problem of waste management can be tackled more effectively through cooperative efforts. Production units that are small are less likely than larger units to allocate the large financial investments needed to install waste disposal methods which could transform animal wastes into organic fertilisers. Ideally, where animal production can be integrated into holistic farming systems, wastes can be used directly without incurring further costs for storage and transportation.

Education and Training on Integrated Farming Systems

A holistic and integrated approach should be adopted in the development of a sustainable agriculture system. There is an urgent need to change the thinking of scientists so that they consider the farming system as an entity comprising animals and crops, and not as separate components. Animal science courses at colleges and universities should be interdisciplinary to include elements of integrated animal-crop production systems, so that graduates of animal science or veterinary medicine will be sufficiently knowledgeable to communicate with farmers as well as land and plantation owners. Students and researchers should be exposed to hands-on experience with crops, forages and animals. The Internet provides opportunities for immediate access to scientific expertise and information and it should be used to facilitate the development of teaching and reference materials. A research network should be established for scientists, educators, technicians and extension workers within the region and, perhaps, on a global scale to promote the new education process.

Acknowledgements

The authors wish to thank Dr. Liang Juan Boo, Prof. Ho Yin Wan, Prof. Abdul Rani Bahaman, Dr. Sivarajasingam Sittampalam, Dr. Zainal Aznam Mohd. Jelan and Dr. Norhani Abdullah for their contributions in the preparation of this paper.