THE BROILER CHICKEN INDUSTRY IN PENINSULAR MALAYSIA STATUS OF THE INDUSTRY IN 2012 AND PROSPECTS FOR 2013
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1 THE BROILER CHICKEN INDUSTRY IN PENINSULAR MALAYSIA STATUS OF THE INDUSTRY IN 2012 AND PROSPECTS FOR 2013 SUMMARY produced parent stock accounted for In 2012, a production of million day-old chicks was reported by the industry and the production of broilers was million birds. For 2013, a production of million day-old chicks and million broilers is projected. There are 23 broiler parent stock companies with annual 93.0% of the total parent stock population. The monthly ex-farm price of day-old chicks fluctuated between RM0.90 and RM1.95 per chick with an annual average of RM1.33 per chick. The monthly ex-farm prices for broilers fluctuated between RM3.20 and RM5.50 per kilogram live day-old chicks production capacities weight with an annual average of RM4.30 ranging from 1.38 to million birds per kilogram. Cost of production of broilers operating in The standing parent was between RM4.72 and RM5.09 per stock population in 2012 was about 5.66 million birds. Cobbs and Ross are the kilogram. Export of live broilers in 2012 was million birds showing a 7.16% principle breeds accounting for 96.6% of lower than the previous year. The the total parent stock. Other breeds are importation of chicken cuts in 2012 Arbor Acres and Indian River. Locally increased by 4.6% from SURVEY METHODOLOGY AND DATA COLLECTION The survey of broiler breeding farms and hatcheries were conducted during the months of June, July and August During the survey, data and information were collected to prepare this report. The data was analysed on a regional basis i.e Northern (Perlis, Kedah, Penang and Perak), Central (Selangor, Negeri Sembilan and Malacca), Southern (Johore) and East Coast (Pahang, Terengganu and Kelantan). BREEDER FARMS Number of Breeder Companies Twenty three (23) broiler parent stock companies of which ten (10) are integrators and 13 are nonintegrators with a total of 79 farms are in operation in the year 2012 (Table 1 and Table 2). 1
2 Table 1: Number of Broiler Parent Stock Companies Table 2: Distribution of Broiler Parent Stock Farms Region Number of Companies Northern (Perlis, Kedah, Penang and Perak) 8 Central (Selangor, N. Sembilan, and Malacca) 6 Southern (Johore) 6 Eastern (Pahang, Terengganu and Kelantan) 3 Production Capacity The annual production capacity of day-old chicks by the breeder companies varied. The smallest company produced about 4.07 million day-old chicks and the largest produced about million dayold chicks (Table 3). BROILER PARENT STOCK Standing Population The total standing parent stock population in June 2012 was 5.66 million birds and 6.35 million birds is projected for 2013 (Table 4). Total 23 Table 3: Annual Production Capacity of Broiler Parent Stock Companies Annual Production Capacity (million Chicks) State Number of Farms Perlis 0 Kedah 4 Penang 7 Perak 12 Selangor 3 Negeri Sembilan 11 Malacca 11 Johore 25 Pahang 2 Terengganu 1 Kelantan 3 Total 79 Number of Companies (2010 ) Number of Companies (2011 ) Number of Companies (2012 ) 1 to < to < to < to < to < to < > Total Table 4: Standing Parent Stock Population Companies (forecast) Integrators 3,537,614 3,891,308 4,071,804 4,485,968 Non-Integrators 1,320,293 1,448,322 1,589,088 1,861,861 Total 4,857,907 5,339,630 5,660,892 6,347,829 Breeds The breeds available and their market share in 2012 are as shown in Table 5. The principal breeds are Cobb and Ross, accounting for 96.6% percent of the total population. In 2012, most of the companies used the locally bred Cobbs and Ross (Table 6). 2
3 Table 5: Market Share of Individual Breeds of Broiler Parent Stock Breeds Cobb Ross Arbor Acres Indian River Hubbard 3,370,998 3,806,380 4,176,346 4,594,523 1,306,322 1,312,480 1,290,105 1,385, , , , , , Total 4,857,907 5,339,630 5,660,892 6,347,829 Emplacement of Day-Old Parent Stock Source of Day-Old Female Parent Stock Table 9 shows the number of companies using locally produced parent stock. In 2012, of the total day-old female parent stock emplaced, percent were supplied locally and 3.54 percent were imported (Table 10). Table 6: Use of Breeds by Broiler Parent Stock Companies Year Breed Cobb Ross Arbor Acres Indian River Hubbard Table 7: Annual Emplacement of Day-Old Female Parent Stock by Companies Companies Integrators 3,537,614 3,964,722 4,605,889 Number of Emplacement Day-old female parent stock emplacement were 6.33 million birds in the year 2012 as shown in Table 7. The emplacement of day-old parent stocks by integrators and the non-integrators were percent and percent respectively. The number of emplacement stock according to region and month are as shown in Table 8 and Table 11 respectively. Table 8: Annual Emplacement of Day-Old Female Parent Stock By Region Region Number of birds (million) Northern Central Southern Non Integrators 1,320,293 1,638,788 1,723,288 Total 4,857,907 5,603,510 6,329,177 East Coast Total
4 Table 9: Use of Locally Produced and Imported Female Parent Stock SUPPLY OF DAY OLD BROILER CHICKS FOR 2012 AND Breed Arbor Acres Number of Companies Local Imported Local Imported Cobb Hubbard Ross Source of Day-Old Broiler Chicks The number of day-old chicks produced by the integrators has increased by percent compared to the previous year whilst nonintegrators shows an increase by 5.16 percent compared to Table 10: Sources of Day-Old Female Parent Stock By Broiler Parent Stock Companies (%) Source Malaysia U.S.A/Canada E.U Countries Indonesia, Korea, Japan, New Zealand Table11: Monthly EmPlacements of Day-old Female Parent Stock Month Australia Number of Birds Day Old Chicks Production The total day-old broiler chick production reported by the industry was 673,868,330 chicks as shown in Table 12. The weekly production ranged from million to million chicks. The supply of day-old broiler chicks is projected to be about 770,224,690 chicks for 2013 (Table 16). In 2012, the integrators and non-integrators contributed 72.84% and 27.16% respectively of the total day-old broiler chicks production (Table 14). Table 14: Production of Day-old Broilers Chicks by Integrators And Non-Integrators January 307, , ,133 Year Integrators (%) Non-integrators (%) February 298, , ,893 March 324, , ,521 April 445, , ,390 May 504, , ,159 June 368, , ,238 July 511, , ,792 August 671, , ,538 September 283, , ,610 October 417, , ,772 November 669, , ,552 December 300, , , Prices of Day-Old Chicks The weekly price of day old chicks fluctuated from RM0.90 to RM1.95 per chick. The annual average price was RM1.33 per chick. Total 4,539,311 5,603,510 6,329,177 4
5 Supply of Day-old Broiler Chick in Peninsular Malaysia 2012 ( Survey Reported) Date end of week Weekly Output 7-Jan-12 12,608, Jan-12 12,692, Jan-12 12,761, Jan-12 12,851,341 4-Feb-12 12,761, Feb-12 13,059, Feb-12 13,347, Feb-12 13,839,783 3-Mar-12 13,813, Mar-12 12,952, Mar-12 13,049, Mar-12 13,214, Mar-12 13,257,906 7-Apr-12 13,114, Apr-12 13,192, Apr-12 13,096, Apr-12 13,143,921 5-May-12 13,181, May-12 13,161, May-12 13,254, May-12 13,151,261 2-Jun-12 12,943,277 9-Jun-12 12,651, Jun-12 12,431, Jun-12 12,649, Jun-12 12,681,603 7-Jul-12 13,012, Jul-12 13,156, Jul-12 13,427, Jul-12 13,614,609 4-Aug-12 13,276, Aug-12 13,201, Aug-12 13,248, Aug-12 13,421,923 1-Sep-12 13,488,593 8-Sep-12 13,320, Sep-12 13,373, Sep-12 13,360, Sep-12 13,044,257 6-Oct-12 12,714, Oct-12 12,487, Oct-12 12,435, Oct-12 12,490,406 3-Nov-12 12,568, Nov-12 12,262, Nov-12 12,443, Nov-12 12,322,895 1-Dec-12 12,391,318 8-Dec-12 12,549, Dec-12 12,138, Dec-12 12,426, Dec-12 12,826,806 Total 673,868,330 Table 12 Supply of Broiler Chicken in Peninsular Malaysia 2012 ( Survey Reported) Date end of week Weekly Output 7-Jan-12 11,107, Jan-12 11,280, Jan-12 11,381, Jan-12 11,134,681 4-Feb-12 11,134, Feb-12 11,977, Feb-12 12,057, Feb-12 12,123,121 3-Mar-12 12,208, Mar-12 12,123, Mar-12 12,406, Mar-12 12,679, Mar-12 13,147,794 7-Apr-12 13,122, Apr-12 12,305, Apr-12 12,397, Apr-12 12,553,878 5-May-12 12,595, May-12 12,458, May-12 12,532, May-12 12,441,518 2-Jun-12 12,486,725 9-Jun-12 12,522, Jun-12 12,503, Jun-12 12,591, Jun-12 12,493,698 7-Jul-12 12,296, Jul-12 12,018, Jul-12 11,810, Jul-12 12,016,990 4-Aug-12 12,047, Aug-12 12,362, Aug-12 12,498, Aug-12 12,756,267 1-Sep-12 12,933,879 8-Sep-12 12,612, Sep-12 12,541, Sep-12 12,586, Sep-12 12,750,827 6-Oct-12 12,814, Oct-12 12,654, Oct-12 12,705, Oct-12 12,692,743 3-Nov-12 12,392, Nov-12 12,078, Nov-12 11,863, Nov-12 11,813,429 1-Dec-12 11,865,886 8-Dec-12 11,940, Dec-12 11,649, Dec-12 11,821, Dec-12 11,706,750 Total 636,997,602 Table 13 5
6 Supply of Day-old Broiler Chick in Peninsular Malaysia 2013 ( Forecast Survey Reported) Date end of week Weekly Output 7-Jan-13 12,111, Jan-13 11,972, Jan-13 11,528, Jan-13 11,693,136 4-Feb-13 11,812, Feb-13 12,057, Feb-13 12,167, Feb-13 12,284,843 4-Mar-13 12,135, Mar-13 12,186, Mar-13 12,394, Mar-13 12,722,575 1-Apr-13 13,121,679 8-Apr-13 13,546, Apr-13 13,890, Apr-13 14,149, Apr-13 14,293,914 6-May-13 14,425, May-13 14,763, May-13 14,767, May-13 15,059,545 3-Jun-13 15,367, Jun-13 15,652, Jun-13 15,926, Jun-13 16,306,841 1-Jul-13 16,466,382 8-Jul-13 16,857, Jul-13 16,763, Jul-13 16,751, Jul-13 16,877,651 5-Aug-13 16,846, Aug-13 16,727, Aug-13 16,709, Aug-13 16,674,815 2-Sep-13 16,788,066 9-Sep-13 16,633, Sep-13 16,649, Sep-13 16,486, Sep-13 16,254,455 7-Oct-13 16,069, Oct-13 15,943, Oct-13 15,777, Oct-13 16,099,664 4-Nov-13 15,784, Nov-13 15,545, Nov-13 15,401, Nov-13 15,229,258 2-Dec-13 15,117,820 9-Dec-13 14,877, Dec-13 14,797, Dec-13 14,986, Dec-13 14,766,202 Total 770,224,690 Table 17 Supply of Broiler Chicken in Peninsular Malaysia 2013 ( Forecast Survey Reported) Date end of week Weekly Output 7-Jan-13 11,771, Jan-13 11,922, Jan-13 11,531, Jan-13 11,804,928 4-Feb-13 12,185, Feb-13 11,505, Feb-13 11,373, Feb-13 10,951,846 4-Mar-13 11,108, Mar-13 11,221, Mar-13 11,454, Mar-13 11,559,509 1-Apr-13 11,670,601 8-Apr-13 11,529, Apr-13 11,577, Apr-13 11,775, Apr-13 12,086,446 6-May-13 12,465, May-13 12,869, May-13 13,196, May-13 13,442,466 3-Jun-13 13,579, Jun-13 13,704, Jun-13 14,024, Jun-13 14,029,597 1-Jul-13 14,306,568 8-Jul-13 14,599, Jul-13 14,870, Jul-13 15,129, Jul-13 15,491,499 5-Aug-13 15,643, Aug-13 16,014, Aug-13 15,925, Aug-13 15,913,876 2-Sep-13 16,033,768 9-Sep-13 16,004, Sep-13 15,890, Sep-13 15,874, Sep-13 15,841,074 7-Oct-13 15,948, Oct-13 15,802, Oct-13 15,816, Oct-13 15,662,233 4-Nov-13 15,441, Nov-13 15,266, Nov-13 15,146, Nov-13 14,989,024 2-Dec-13 15,294,681 9-Dec-13 14,995, Dec-13 14,768, Dec-13 14,630, Dec-13 14,467,795 Total 720,111,194 Table 18 6
7 SUPPLY OF BROILERS IN 2012 AND FORECAST FOR 2013 Production of Broilers In 2012, the total production of broilers was million birds with a weekly production ranging from million birds to million Price of Broilers The weekly ex-farm price of live broilers fluctuated in the range of RM3.20 to RM5.50 per kg live weight. The annual average ex-farm price for the year was RM 4.30 per kg. birds (Table 13). The average daily output was 1.75 million birds with an increase of 4.17 percent compared to The production of broilers for 2013 is projected to be about million birds with an average daily production of 1.97 million birds (Table 18). Export Of Broilers and Chicken Meat A total of million live broilers and 13,816 metric tons of raw and marinated chicken meat were exported in 2012 (Table 15 and Table 16). Year Live Broilers (million birds) Chicken Meat ( 000 m tones) Table 15: Export of live Broiler and Chicken Meat Month Cost of Production Cost of production of broilers ranged from RM4.72 to RM5.09 per kilogram live weight. The annual average cost of production was about RM4.83 per kilogram. Throughout the year, the cost of production was higher than the ex-farm price. The cost increment was attributed to the high cost of feed and raw feed materials. Import Of Chicken Meat Importation of various chicken meat cuts in 2012 was 41,268 metric tons. The imports increased by 4.6% compared to 2011 (Table 19). January 3,814,694 4,655,695 4,197,864 February 3,499,822 2,900,869 3,667,556 March 3,724,672 3,794,058 3,973,309 April 3,700,789 3,810,970 3,709,280 May 3,595,353 3,746,678 3,767,867 June 3,473,487 3,668,925 3,693,616 July 3,696,241 3,924,527 3,680,950 August 3,963,299 4,213,649 4,085,780 September 3,840,877 3,806,879 3,521,954 October 3,721,202 3,928,208 4,156,064 November 3,761,635 3,651,395 4,014,669 December 4,133,127 3,971, ,152 Total 44,925,198 46,073,504 42,778,091 Table 16: Export of Live Broiler Chicken by Month 7
8 Table 19: Importation of meat according to cuts Cuts Year 2011 Year 2012 Bone in chicken 56, Chicken 9 pc cut 4,460, ,928, Chicken boneless breast / frozen 10,688, ,914, Chicken boneless breast with skin 571, , Chicken boneless leg / frozen 2,555, , Chicken boneless breast skin on 343, , Chicken boneless skinless breast 10,169, ,475, Chicken boneless skinless thigh 694, , Chicken boneless meat 54, Chicken Breast Trimming Skinless Boneless, Frozen 497, ,604, Chicken Breast Frozen 108, Chicken boneless thigh 1,921, ,675, Chicken Drummet 416, , Chicken fillet inner 100, , Chicken fillet , Chicken Leg Quarter HQ , Chicken leg trimming skinless boneless 886, ,561, Chicken Leg (boneless) 86, , Chicken Leg Whole with Bone, Frozen 395, , Chicken Leg 24, Chicken leg skinless boneless 150, , Chicken 105/115g skinless boneless Chicken leg 190/210g skinless, boneless 35, , Chicken leg 30/40g skinless boneless 388, , Chicken leg 75/90g skinless boneless 1,585, ,282, Chicken leg 50/60g skinless boneless Frozen , Chicken leg 100/110g skinless boneless Frozen 200, Chicken meat 200, , Chicken meat, steamed cooked deboned at 80c for 2mins 173, , MDM 666, ,145, Chicken Mid Joint Wing Chicken Mid Wing Chicken skin 1,051, ,773, Chicken wing 3-joint 33, , Chicken wing stick , Chicken wing frozen cooked PH New Orleans Chicken without head, neck, leg & internal organ 887, , Halal Frozen Whole bird(whole chicken) with neck , Chicken Frozen Whole Bird 265, Chicken Leg Quarter 423, , Chicken tail 52, Chicken without head & feet 42, Frozen Whole Carcase Chicken 169, Frozen Boneless Leg with Knuckle gm 50, Frozen Skinless Boneless Leg gm 58, Frozen Whole Chicken AA 144, Frozen Chicken Breast Meat 100, Frozen Chicken Saddle 72, Quarter Cuts Chicken 118, Total(kg) 39,449, ,268, Note : Figures are based on import permits issued by DVS Table 20: Source of Imported Broiler Chicken Meat (%) Source China Thailand Denmark USA Holland France Sabah Sarawak Note:Figures are based on import permits issued by DVS Most of the chicken meat were imported from China which amounted to 22,726 metric tons, followed by Thailand and Holland (Table 20). In 2012, chicken breast was the most imported and this contributed to percent of total imports as shown in Table 19. FEED PRICES The price of broiler feeds were lower compared to 2011 with an average decrease of 2.5%. Table 20 & 21 shows the price of broiler feeds in 2011 and Price of Feed In general, the prices of feed were still high in Table 21: Broiler Feed Prices 2011/2012 Price Month ( RM / Mt ) January February March April May June July August September October November December Average 1,818 1,773 8
9 The annual average price of the broiler starter and broiler finisher feed in 2012 is as shown in Table 22. Month Table 22: Price of Broiler Starter and Finisher Feed DISCUSSION In 2012, there are many issues facing the poultry industry, such as increment in importation of chicken cuts and products, strengthening market access towards export excellence, continuous increase of chicken prices etc. The figure reported has shown that the importation of chicken cuts and products increased by about 4.6 percent compared to year Such imports are likely to jeopardize the viability and sustainability of the local industry which is already suffering from prolonged high cost of production. Starter Price ( RM / 50kg ) Finisher January February March April May June July August September October November December Average Since the local sources are more than adequate to supply the local requirements (about 128% of self sufficiency level for chicken/duck meat), the poultry industry has to innovate and explore export markets especially among ASEAN members in the true spirit of ASEAN Free Trade Agreement (AFTA). The implementation of Poultry Enactment to license the farms is well accepted by the industry. Through this enactment the Veterinary Authority is able to combat issues related to environmental pollution by poultry waste, public nuisance by flies and foul odour causing numerous complaints and also issues regarding poultry welfare. CONCLUSION In Malaysia, the livestock industry is dominated by the poultry industry which supplies more than 80 percent of the total meat requirements of the country. This industry is regarded as the most successful segment of the livestock sector and perhaps has the highest output value per worker in the agriculture sector. Malaysia has one of the highest per capita consumption of chicken in the world. Per capita consumption of chicken/duck meat is about 38kg (2012). Chicken meat is the most popular and cheapest source of meat protein among Malaysians, largely because there are no dietary prohibitions or religious restrictions against chicken consumption. Over the years, quick service restaurants (QSR) such as Kentucky Fried Chicken (KFC), McDonald s, A & W, Kenny Rogers, Nando s Chickenland (a South-African based chain) have propelled the growth of chicken consumption in Malaysia. 9
10 Malaysian consumers today demands safe and high quality food at a reasonable price from the industry. They are very sensitive towards issues arising out of food safety and halal matters. It is important to note that the majority of the Muslim consumers will not accept poultry products that are not certified halal by the Malaysian religious authority. The Malaysian consumers are also price-sensitive and look for valve-for-money products. The poultry industry is increasingly challenged to produce new innovative products at lower costs without compromising on the quality. ACKNOWLEDGEMENT The authors wish to thank Y. Bhg. Datuk Dr. Abd. Aziz bin Jamaluddin, Director General of the Department of Veterinary Services, Malaysia for his permission to publish this report. Sincere gratitude and appreciation is extended to Dr. Hj. Idris bin Kadir, Director of Livestock Commodity Development Division and Dr Hjh Roslaini Binti Hj Rusli, Dr. Wan Mohd Kamil bin Dato Wan Nik and Dr. Lim Yoke Sin for their invaluable advice and guidance. The kind co-operation and assistance from the officers of the Headquarters and the State Department of Veterinary Services as well as the Management of all Poultry Breeding Companies involved in this survey are gratefully acknowledged. 10
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