KUALA LUMPUR, Jan 30 — The local dairy industry has the potential to grow if existing industry players are developed, thus increasing domestic fresh milk production.
Strengthening existing entrepreneurs can reduce dependence on foreign products and reduce imports, thus helping the government achieve the target of 100 per cent self-sufficiency level (SSL) in the country’s fresh milk production in the next five years.
According to a source from the Veterinary Department, the SSL for fresh milk in 2018 was 61.3 per cent while SSL for dairy milk products was just 3.1 per cent for the same year.
Local dairy industry player Azmi Zainal, 54, when met recently told Bernama that steps to empower existing entrepreneurs could be made through government collaboration with the private sector, educational institutions such as Universiti Putra Malaysia (UPM) and non-governmental organisations (NGOs).
He said the initiative to develop existing entrepreneurs was easier to implement because the group had a wealth of experience and knowledge of the industry.
“The government needs to pay attention to these old entrepreneurs, enhance them because they already have the experience, no need to teach them the basics.
“Just need to inject the capital (for the business), find the bank (for financing), find the land (to operate the dairy farm), he can grow from small to medium. When financial institutions are already convinced with the business undertaken, he can grow to a new scale “, he said.
He believes the implementation of proposals for the development of entrepreneurs needs to be scrutinised because it requires the engagement of the Ministry of Agriculture and Agro-based Industry besides taking into account the assistance and encouragement that should be given.
He said the country’s dairy industry has great potential if given special attention, including the selection of high-quality livestock, suitable for the hot and humid weather in Malaysia.
Azmi, who is also the operations director of The Holstein Milk Co Sdn Bhd (Holstein Milk) also said the private sector should have a sense of responsibility to help develop local entrepreneurs as the industry is a high SSL contributor to the country’s fresh milk production.
Holstein Milk, the manufacturers of Farm Fresh milk now control 45 per cent of Malaysia’s fresh milk market with a total production of 19 million litres of raw milk per year.
The company owns more than 7,000 cattle in four farms, including in their farm at Muadzam Shah in Pahang, Mawai and Desaru in Johor, UPM in Selangor and Melbourne in Australia, and will be opening a fifth farm in Perak with an investment of about RM30 million. — Bernama
