MALAYSIA ANIMAL FEED MARKET

Malaysia Animal Feed Market is forecasted to grow at a steady CAGR of 3.1% during the forecast period owing to the rising consumption of meat in the country, the growing animal food import, and the increasing government initiatives.

The subsidies for Malaysia’s poultry sector were extended until December 2022, to maintain the stability of chicken prices (including organs, feet, and head) and eggs, where between February and December that year the government allocated USD 265.16 million for subsidies aimed at chicken and eggs which is forecasted to contribute to the expansion of Malaysia animal feed market.

Major Malaysia Animal Feed Market Drivers

In addition, to secure the long-term sustainability and expansion of this sector, there is a joint initiative between the government and industry to expand the supply chain of animal feed on a broader scale. For instance, projects involving the cultivation of corn and sorghum on designated arable areas in Malaysia as well as expanded application of waste from palm kernel like fermented cake, serving as both dietary fat sources and feed additives, is worth exploring to enhance the local supply chain. This approach will support sustainable supply chains and diminish the need for feed imports in the long term. Additionally, with the adoption of food-safe and innovative alternatives by commercial poultry farms, it would be beneficial for the government to provide incentives aimed at encouraging the utilization of domestic materials by facilitating investments.

 Malaysia currently has significant reliance on imported soybean, barley, and corn grains for ruminant and poultry feed which World Grain reported that in 2018 Malaysia’s imports of grain corn amounted to 4 million tones largely from Brazil and Argentina, whereas a variety of grains come from Russia, the United States, India, Australia, Ukraine, and Canada. Malaysian Feedmillers Association members also operate integrated farms across the country, which encourages the expansion of feed mills and the manufacture of feed additives to meet internal demands and retail market requirements. At the end of March 2023, Malaysian Investment Development Authority had authorized 139 projects in various sectors in the production of animal feed, representing a collective investment of RM 3.8 billion.

Furthermore, the rising meat consumption within Malaysia’s population is a significant driver for the expansion of the animal feed market in the country. The Organization for Economic Cooperation and Development data shows that poultry meat consumption in Malaysia grew from 1.119 kilograms per capita in 2022 to 1.141 kilograms in the next year. The increase in consumption will result in the higher need for animal feed to enhance meat production in Malaysia. With shifting eating habits, Malaysia’s population represents a significant market of active consumers, while economic growth and increased disposable income in the country alongside its substantial Muslim community offer a potential market for animal feed companies.

The other factor supporting the growth of Malaysia animal feed market size including the increasing number of pet owners in the country. The Department of Statistics Malaysia reported that around 69.7% of the country’s working-age population starting from age 15 to 64 were pet owners with a preference for dogs and cats. The purchasing patterns and changing perspectives of pet owners have greatly affected the animal food sector, as pet owners are becoming more conscientious about providing their pets with high-quality nutrition.

However, the Malaysia animal feed market forecast is currently grappling with important challenges, such as the rising operational expenditures in meat processing and agricultural farming industries which cause meat prices particularly chicken to increase. The expense for poultry feed comprises 70% of the total costs for the 2,300 poultry breeders throughout the nation, apart from utilities, logistics, labor, and medications, where in the past few years the market witnessed an increase in poultry feed prices from RM 500 to RM 2,500 per tonne. Additionally, sustainability challenges are a major concern for the livestock industry as the result of limited availability of land suitable for animal grazing and the production of forage. Moreover, imported raw materials continue to impact as global supply for soymeal and grains struggle to keep pace with rising demands.

Segments covered in the report:

The market has been segmented on the basis of type and product. Based on type, the market is segmented into poultry, swine, ruminant, aquaculture, and others. Based on product, the market is segmented into pellets, mash, and crumbles.

 Market Segmentation

Malaysia Animal Feed Market By Type 

• • Poultry
  • Swine
  • Ruminant
  • Aquaculture
  • Others

Malaysia Animal Feed Market By Product 

• • Pellets
  • Mash
  • Crumbles