January 22, 2023

 

Malaysian halal poultry sector holds promises, but halal awareness, low manpower still issues

 

 

Malaysia's halal poultry industry stands as a significant economic driver, boasting resilience and growth in the face of global challenges.

 

QSR Brands (M) Holdings Bhd head of governance David Chiam Joy Yeow highlighted the industry's significance, emphasising the importance of compliance and governance for residents in Malaysia.

 

"Malaysia has one of the highest per capita consumptions per year of poultry at about 50kg and it is an increasing trend," he told The Malaysian Reserve (TMR). "That means that poultry consumption continues to be popular compared to other sources of protein."

 

According to the Statista Research Department, Malaysians ranked among the top global consumers, consuming 50kg of poultry meat per person in 2022.

 

Chiam mentioned that the enforcement efforts by agencies, namely, the Department of Islamic Development Malaysia (Jakim) and Halal Development Corp Bhd (HDC), not only provide assurance to consumers regarding the halal status but also add credibility to Malaysia's halal certification logo on products and premises.

 

Although the process is stringent, the constant engagement with applicants and the government allows for a faster turnaround time for certifications, documentation and approvals. This enables faster market entry for players seeking to compete in the halal market.

 

However, QSR Brands head of halal compliance Hayazi Darus said the poultry industry lacks awareness when it comes to halal requirements.

 

"We have more than 700 suppliers. So, if the authorities are introducing a new requirement, we need to ensure that all our suppliers, middlemen, as well as internal and external entities are aware about the updates, Hayazi said. "This is very challenging because if we do not meet any of the requirements, we will fail in the application on the grounds of non-conformity."

 

Another challenge that the industry faces is insufficient manpower.

 

Hayazi said companies are required to hire their own halal executives, which is an additional cost for them. Companies also need to train their staff according to halal standards which are recognised by Jakim. For this, the company needs to ensure they have halal experts or executives to conduct these training sessions.

 

"We need to bear the cost. This is something that we are still negotiating with the authorities," he explained, suggesting that universities should provide halal courses that can be used when students join the industry upon graduation.

 

Furthermore, Malaysia's poultry industry is still not as advanced as it can be. The country can, however, enhance its global position in poultry production by leveraging current technology, targeting trade markets and reinforcing these efforts with government support.

 

Food Security, Innovation and Development Research Centre (FInDER) director Prof Dr Risyawati Mohamed Ismail said poultry farming remains traditional in Malaysia and globally, but initiatives are being implemented to improve efficiency and waste management for sustainability.

 

"Waste from poultry farms undergoes manure recycling and is utilised as fertiliser for crops, promoting nutrient recycling and reducing the environmental effect of manure disposal," Dr. Risyawati said. "Farmers have also begun to implement composting systems at their farms in order to manage and recycle organic waste."

 

Malaysian farmers are implementing precision feeding techniques and locally sourced feed ingredients to reduce waste and improve efficiency. Automation and data-driven technology are minimal, but IT-based solutions like smart farming are expected to transform the poultry industry.

 

Risyawati remarked that the most crucial issue affecting the poultry industry is the continuously increasing feed price that raises costs for farmers, especially those with smaller farms who cannot bear the brunt as much.

- The Malaysian Reserve