April 20, 2006

 

Malaysia to develop "Beef Valley"

 

 

The Malaysian government has identified an area in the state of Negeri Sembilan as the "Beef Valley" to encourage local investors into cattle farming. The area is expected to account for a third of the nation's demand for beef by 2010, according to a report in local papers on Apr 6.

 

The annual local beef output will increase to 34 percent compared to 20 percent currently when the Beef Valley becomes fully operational by year-end, according to Agriculture and Agro-based Industry Minister Tan Sri Muhyiddin Yassin, adding that the 2,000 hectare beef valley would emerge as the national feedlot and would be the biggest beef producer in Malaysia.

 

The efforts are in line with the government's aspiration in the Ninth Malaysia Plan (9MP) to increase the local beef output from 19-20 percent to 28 percent by the end of 9MP, and 40 percent by 2015, the minister told reporters after a Beef Valley Development Steering Committee meeting.
 
The centre can accomodate more than 150,000 cattle and provide more than 15,000 tonnes of beef annually.

The meeting also decided the centre would be developed as a joint venture company or run by a consortium appointed by the state government and the ministry. The centre will also act as the breeding stock development centre and cattle for meat.

 

Muhyiddin said the meeting also agreed to appoint a consultant to determine an implementation plan for the project and attract foreign investors as partners.

 

The project is part of the government's Ninth Malaysia Plan (9MP) announced this month to develop the agricultural sector and enable the country to reach self-sufficiency status in the food sector.

 

The 9MP plan also intends to transform the agricultural sector into the country's third engine of economic growth after the services and manufacturing sectors. A development fund of RM15 billion (US4.1 billion) has been allocated to the 9MP.

 

The plan strongly encourages local beef production and development through loans to local entrepreneurs interested in cattle farming.

 

The development of a self-sufficient food supply for the country is also in line with the Government's objective to turn Malaysia into a net food exporter by 2010, under the Third National Agriculture Policy (TNAP).

 

TNAP focuses on increasing meat and rice production through the adoption of new technologies and farm management systems.

 

Beef consumption in Malaysia reached 140,000 tonnes in 2005 only 20 percent of which came from domestic supplies, according to the Ministry of Agriculture. The majority of beef imported into Malaysia is Indian buffalo while Australian beef accounts for 4-10 percent of the country's beef imports.