Prospects and Challenges in the Development of Poultry

30 November 2013
dr.abramoza mtcp2008
1
MALAYSIA
The Past –
Those were the days
1970 - 80’s
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4
In the 90’s & early 00’s
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5
WHERE
ARE
WE
NOW?
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6
Broiler Production Chain
Raw
Material
Feed
Milling
All
integrator
s have
feedmills
Independent
mills
Breeding & Growing
Grand
Parent
Stock
4
integrated
players
control
100% of
productio
n
Parent
Stock
10
interators
produce
~70% of
DOCs for
sale
internally
and open
market
13 nonintegrator
s produce
~30% of
DOCs
Farming
Integrator
owned
farms
Dominate
d by
contract
farming
by
integrator
s (~70%)
Processing
Processing
Integrated
players
have
larger
plants
Nonintegrator
s typically
with
farms or
secondar
y
processor
s
2nd
processing
Distribution &
Retail
Distribution
Own
outlets
Integrated
players
have larger
plants
(e.g:
Ayamas,
Farm’s
Best,
Dinding,
Ayam A1)
Integrator
owned
distributors
Independ
ent broiler
farms
(~30%)
Independe
nt factories
Restaura
nt
Modern
retail
hyper &
supermar
ket
Independen
t
wholesaler
Traditiona
l
slaughter
Retail
Wet
markets
dominate
retail
7
INTRODUCTION

Evolved from small back-yard
operations
into relatively modern, large-scale
commercial operations.

Factors:
 High-quality poultry breeds
 Highly efficient integrated
production systems
 Competent veterinary services
 Regulation and enforcement
in placed
8
INTRODUCTION

Poultry sector is the biggest
component of livestock
industry in Malaysia

Supplying about 81 % of the
total meat and almost 111%
egg demand by the domestic
market

The industry supplies domestic
demand and also exports,
mainly to Singapore, Brunei DS,
Hong Kong and Japan
9
INTRODUCTION

Principle source of meat protein (cheap)
because no dietary prohibitions among
local culture and religious norms.

Per capita consumption poultry
products (among the highest in the
world):
 38kg. for chicken meat
 19kg. of eggs (330 pieces)
10
STATUS OF THE INDUSTRY
INDUSTRY STATUS (2012)
Types of
Operation
Grand
Parent
Broiler
Parent
Layer
Parent
Comm.
Broiler
Comm.
Layer
No. of
Companies
4
No. of
Farms
4
Population
(m)
0.90
23
79
11.35
5
14
0.31
Individual/
Contract
+/- 2600
118.52
Individual/
Contract
+/- 300
47.35
12
PRODUCTION PERFORMANCE (2012)
Parameters
Broiler
Layer
DOC (m)
Broiler/eggs (m)
Parent Stock Companies
Grand Parent Stocks
Companies
PS Standing population
Breeds
673.9 birds
637.0 birds
23
4
37.95(pullets)
9,103 b
5
0
5.66 m.
558,772
Cobb,
Ross
Hisex,
Lohmann Brown
DOC price (ex-farm)
Broiler/egg price (ex-farm)
COP (RM/kg)
Export live broiler/egg (m)
0.90-1.95
3.20-5.50
4.72-5.09
42.78
2.00-2.50
29.50 cents
30.00 cents
1,492
13
COMMERCIAL BROILER PRODUCTION
(MILLION BIRDS)
Millions
800
#
700
600
500
614.5
637
720.11
516.23 524.04
471.56 491.47
400
300
Broiler
Production
200
# projected
100
0
2007
2008
2009
2010
2011
2012
2013*
Value: RM6.03 billion (farm-gate)
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Source : DVS (Malaysia)
14
COMMERCIAL EGGS PRODUCTION
(BILLION EGSS)
Billions
14
#
12
10
7.77
8
7.52
7.66
8.29
8.92
12.27
9.1
Table Eggs
Production
6
4
# projected
2
0
2007
2008
2009
2010
2011
2012
2013*
Value: RM1.78 billion (farm-gate)
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Source : DVS (Malaysia)
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DAILY OUTPUT (2012)
•
1.75 million chickens
(6.72 % Exported)
- 70% of broilers go
through wet markets
•
24.94 million table eggs
(5.97 % Exported)
- >99% of table eggs reach
customers as fresh inshell eggs
*Singapore is a captive
market
(~94.2%)
16
PROJECTION OF BROILER PRODUCTION
(MILLION BIRDS)
2007 - 2015
Millions
1200
1100
1000
900
800
4.5
1
700
.0 4 6
4
600 52
500
400
300
200
100
0
10
20
11
20
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7
63
.0 0 6 0.3
0
7
8
4.5 63
1
1
0.1 6
2
7
.3 7
1
5
3.2 95
0
9
05
0
,
1
66
0
,
1
Broiler
Production
# projected
12
20
3*
1
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
Source : DVS (Malaysia)
17
PROJECTION OF COMMERCIAL EGGS PRODUCTION
(BILLION EGGS)
2007 - 2015
Billions
18
16
14
12
10
8
6
4
2
0
.27
7
5
4 1
7 16 .
6
.
.92 15
1
4
3 14 .2 1
5
.
88 13
.
7
2
.2 1
12
9
8.2
2
01
8.9 9.1
Table Eggs
Production
# projected
10 0 11 0 12 0 13* 0 14 0 15 0 16 0 17 0 18 0 19 0 20
0
2
2
2
2
2
2
2
2
2
2
2
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Source : DVS (Malaysia)
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Challenges

Free World Trade and Global Sourcing
(Unknown impact of Tarrification / AFTA)
 Opens up the country to the dangers of importing
products of below standards

Fierce Market Competition
 Any slack in demand or over supply will lead to
producers selling below cost.
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Challenges

Consumer Power and Choice
 Consumers are more educated and their
expectations are higher; Halal products
 Food poisoning and product shelf-life become
challenges to producers and retailers.
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Challenges

Fast Food/Catering Expansion
 The present work culture coupled with the growth
of suburban, establishment of shopping
complexes and food courts - the role of fast food
restaurants is greatly enhanced
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Challenges

Growth of Hyper/Super-marketing
 Fast growing chains because of their
comfortable environment,
comprehensiveness and convenience.

New Technology
 Application of advanced technology in
detecting very low levels of chemical and
drug residues in poultry products
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Challenges

Traceability
 Due to consumer awareness, product
identification and traceability are therefore
important in QA programs

Food Scares
 Disease outbreaks, sensational statements by
politicians or media – cause consumers to stay
away from the food products for a damaging
period of time.
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Challenges

Imports and Smuggling affect supply/demand
balance

Why?
a. Difficulty to get source locally in
quantity and at reasonable price
b.Deterring market for local
producers
c. Difficulty to stop smuggling
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Challenges
Suitable and strategic production
areas are becoming limited

Development encroaching the existing production
areas.

Permanent Poultry Production Area?

Justify/future land use, check with the local
authorities
Regular conflict with Land and Local government
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Challenges

The Disease
- A Global Challenge to Agriculture and Public
Health
- The Impact of the Disease and of its Control
- Much is not Known of the Disease and its
Origins e.g. HPAI
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Challenges

Environmental Pollution and Public
Nuisance
a. Flies
b. Bad odor
c. Dust
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Challenges

Production Cost
- increase due to Feed Cost

70% of the production cost is on poultry feed.

Competition for feed resources with global
energy demands (bio-fuel production)

Most of the feed raw ingredients are imported
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Challenges

Poultry Welfare
- increasing concerned about the health and
welfare of chickens kept for meat & eggs
production.
- GAHP – improved health & welfare
- prevent diseases and mitigate
any negative environmental
impacts
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Future
Trends
Advance Technology Utilization
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TRANSFORMATION OF POULTRY INDUSTRY
Shed near housing
area
Unorganized farm
Market
information
Tech. Advisory
GAHP
Zoning &
Environment friendly
Integrated
farming
Value-added
products
Closed-house
Cost effectiveness
Opened-house
Improved productivity
Pollution
Ease in disease
outbreak
Heat stress
FUTURE
Disease free
status
Increased production
Land & utility
investment
Processing
plant
Farm
Infrastructure
Expert
advice
Quality & safe
products
Automations
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WHERE
DO
WE
WANT
TO
BE?
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THIS IS WHAT WE NEED TO ACHIEVE… so
that:

Poultry farming and processing are in
harmony with the environment

Production efficiency is at par with the world
standards
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THIS IS WHAT WE NEED TO ACHIEVE… so
that:

Consumers are fully confident with local
products which are free from residues and
contaminants

Our poultry products achieve the standards
accepted by importing countries
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Goals for the Poultry Industry

To establish production and processing
facilities
 Ensure poultry products are safe and
wholesome, and competitive
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Goals for the Poultry Industry
To establish Quality Assurance
programs
Dynamic, continuous improvement
to meet the changing demands of
the consumer and industry
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Goals for the Poultry Industry

To expand the practice of product
specification, identification and
traceability

To conduct more risk management
 To assess the validity of current QA
 To provide a basis for future improvements
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Goals for the Poultry Industry

To create more trading partnerships and
alliances for better coordination and
effective action plans.
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Important quality measures in the
poultry industry

Adequate attention and commitment to:
 Environmental sanitation and waste management
 Bio-security programs
 Pest control programs
 Statistical evaluation and risk assessment –
identify the hazards
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Important quality measures in the
poultry industry
 Animal welfare – in farming and transportation
 GAHP – to ensure the birds are healthy and
achieve the desired productivity
 GMP – with SOP must be comprehensive and
practical; help to reduce rejects and wastage;
thus increase yield
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Important quality measures in the
poultry industry
 HACCP – to keep hazards away therefore
products are safe and wholesome
 Products identification and traceability
 Continuous improvement !!!!– to prevent
complacency
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Important quality measures in the
poultry industry
 Training and manpower development – essential
for the development of the quality culture,
business development and sustainable growth
 Accreditation and certification by regulatory
authorities (SALT & VHM)
 Management leadership
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Conclusion
Diligent and commitment
from all the parties concerned are
essential to further help the
poultry industry move towards achieving the
target envision
of a country
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