Sunday, December 25, 2011

THE BEEF INDUSTRY IN MALAYSIA VIS A VIS THE NATIONAL FEEDLOT CORPORATION

First, there was the Department of Veterinary Services (DVS) of the Ministry of Agriculture. Then, the DVS was responsible for all livestock industries in Malaysia, and catered for both the health and production activities of the livestock.

It was not totally successful as insufficient support was provided to DVS, and the scale of operations was too large to handle for the Department. In the course of the country’s overall agricultural development, the University of Malaya, University Putra (then College of Agriculture) and MARDI got into the act to provide Research and Development support for the livestock industry, which included work with Dairy and Beef cattle, Buffaloes, Goats & Sheep, Poultry and Pigs , mainly. This was a positive step by the Government.

Having established this back-up system for the improvement of livestock in Malaysia, through proper research and application, the Governmentrealized that a lot more needed to be done. This was based on the fact that livestock numbers, especially cattle and buffaloes, were dwindling on a regular basis. Essentially, the production and reproduction of stock was not keepingpace with the slaughter of the animals for local consumption. There was, and is, negative growth in these two sectors.

To counter this, the Government set up Majuternak, as a production organization, to multiply cattle numbers. And, to ensure its success, it opened up production farms around the country and bought thousands of pure and cross bread cattle to fast tract the cattle reproduction process. This was a very practical and sound approach to increasing livestock numbers in the country. Moreover it was controlled by the Government, rather than the earlier practiced “Pawah” scheme, which was a failure. This is because the livestock were distributed to “selected people” rather than farmers with proven track records.

However, over a period of years, Majuternak’s role was taken over by DVS-for reasons unknown. And, the future of Malaysian’s cattle industry came to a grinding halt! The new production farms were given to DVS who eventually privatized these farms to some private operators. Farms in Sisek, Behrang Ulu, Batu Arang and Jelai Gemas were reduced drastically in size and converted to other uses like oil palm, townships, and even for Proton’s expansion. Presently only parts of the original farms in Kluang, Jelai Gemas, Ulu Lepar,Tersat and Tanah Merah remain. All this obviously affected the overall contribution in increasing livestock numbers, specifically cattle.

The end result, Malaysia is back to square one! We are in negative growth as far as cattle, buffalo, goat and sheep production are concerned. However, in the euphoria of producing Halal products, and the demand for Halal meat in Malaysia and the Middle EasternMuslim nations, the Government, through the Ministry of Agriculture decided to set up the National Feedlot Corporation to increase the country’s beef production. In the process the Government provided RM80 Million to develop the infrastructure, and anadditional RM250 Million to produce the beef via Feedlot Operations.

Sounds great. So what?

Today, everyone talks about Feedlot Fattening. I wonder if any real thought has been given to this programme? Essentially, Feedlot Fattening of cattle is a manufacturing process, involving two basic raw materials: young steers (male calves) of superior genetic material, with the potential to grow quickly, and a feed mix that provides maximum nutrition to achieve maximum growth, in the shortest possible time to achieve an economic and profitable enterprise. Of course the two principle ingredients have to be put together and managed properly, to achieve profitable results.

Grand Idea-Great Vision-Fantastic Potential. And, Malaysia becomes a Halal meat Producer and Exporter! Wait a minute. Let’s look again at the proposal. First question- do we have the raw material? A resounding, NO! So what do we do? We IMPORT the raw material to produce the finished product. Simple and common sense manufacturing practices will tell us that we are at the mercy of the raw material producers who will dictate the terms and costs of our end product- Halal Beef.

At the beginning we might get good prices for both raw materials. The primary producers can entice us to get into Feedlot Fattening by providing competitive prices. But, once we are into it, they can and will control the prices, so that we, the Feedlot operators, will be at their mercy. This applies to both steers and feeds. When this happens, what do we do? How do we control the price of the beef that is produced? How do we sell Halal beef that is affordable to the consumer? The prices will be too high, and we will end up losing our investment.

For decades, in Malaysia, the poultry and pig industry has had to struggle with the cost of imported feeds, in their production. Fortunately, at least the livestock components were being produced here. And, the producers of eggs, broilers and pork, working diligently with a combination of various feeds could still produce their products in a commercially viable manner.

The situation with regards to beef is totally different. We have no stock of our own to fatten, and we have insufficient feeds of our own to feed. However, Malaysia does produce a fair amount of palm kernel cake (PKC) which is an extremely good feed for fattening animals. However, literally 90% or more of this is exported because of better prices overseas. The Government should look at subsidizing the cost of PKC for use by local farmers or set an export tax to encourage local sales. Also, Oil Palm Fronds (OPF) should be promoted to be used as feed for these animals. Again, what is processed and produced locally is mostly exported. Even then, we are far short of the feeds required to produce Beef for export, let alone for our own consumption!

We need to be realistic and honest with ourselves. Stop this grandiose programme that will fail in the long term without proper planning and development of our own primary raw materials-stock and feed.

The Government needs to revert to a Majuternak like development programme. The private sector cannot and will not do this. The basic drawback is the availability of land, and the associated cost of development. Without the Government providing this essential commodity at a reasonable economic price, the private sector cannot embark on profitable and successful large-scale cattle farming.

The Honorable Minister of Agriculture has previously stated that we need up to 900,000 ha of land for ruminant production, and he encouraged plantation companies to utilize their land for cattle / goat and sheep production. This is a very positive approach to long-term ruminant development plans for Malaysia. But, it seems that it has fallen on deaf ears!

Pardon the cliché, but the Government must now take the “Bull by its horns” and tackle the issue of land alienation, for livestock production, at practical costs, and embark on a multiplication programme, on its own or in partnership with the private sector.

As far as technical and research and information for the multiplication of livestock and feeds is concerned, University Malaya, University Putra, MARDI, UKM and USM have all got more than sufficient applicable results available. And, there are sufficient experienced hands-on professionals to manage these production centers.

This is only an introduction to the present situation with regards to ruminant -cattle, buffalo, sheep, goats- production and problems in Malaysia.

The Honorable Minister and his Ministry must seriously review the proposals for improving livestock production, and not be hasty about overnight success. And even though as one Khazanah National Berhad official said, the gestation period for livestock production is too long, let us not forget that rubber, and, now, the Oil Palm industry took decades to be where it is. We can do same for the livestock production.

Malaysia can become a nett exporter of beef, especially, if the programme is set firmly and followed through on a long- term basis, without changes, every time a new man helms the relevant agency.


CRUSADE AGAINST CORRUPTION

15 comments:

Mika Angel-0 said...

Salam Hormat

Do you have a plan, Soldier Boy?

Here is some food for thought:

http://www.bharian.com.my/bharian/articles/KoboiMelayu/Article/index

Koboi Melayu
Oleh Hanisah Selamat
2010/06/27

Ladang Global Livestock Corporation di Australia bukti kemampuan penternak tempatan di pasaran antarabangsa

SEBUT saja koboi, ramai membayangkan susuk tubuh lelaki tegap, lasak, lengkap bertopi dan gagah berkuda mengawal ladang seperti yang dipaparkan drama dan filem.

Sudah pasti, watak utama kerjaya ini adalah kelompok ‘Mat Salih’ atau lelaki berkulit putih yang lebih diketahui bertumpu di Amerika Syarikat atau pun di bumi Australia yang juga antara pengeksport utama hasil tenusu dan dagingnya, termasuk ke Malaysia.
Tidak ramai yang tahu, hubungan Australia dan Malaysia sebagai rakan dagang itu turut ‘dilengkapi’ kelompok koboi Melayu di sebuah ladang ternakan lembu di Darwin.
Namun, mereka bukan sebarang koboi kerana anak Melayu ini turut menjadi pemilik ladang Rum Jungle seluas 800 hektar itu menerusi syarikat Global Livestock Corporation Sdn Bhd (GLC), yang diterajui Isa Al-Zubaidi, 53, selaku Ketua Pegawai Eksekutifnya.

Ladang yang menyajikan pemandangan menghijau dengan hamparan padang ragut terbentang luas, dikendalikan GLC sejak 2005 dan mempunyai kemampuan purata pengeluaran mencecah 10,000 ekor lembu untuk satu musim ternakan itu yang memakan masa dua hingga tiga bulan. Kemudahan di sini termasuk termasuk rumah penyembelihan, laman eksport, gudang simpanan sejuk beku dan pusat kuarantin...


can you think or too much gunpowder in your grey matter, Soldier Boy?

Do you have a plan?

Salam Hormat

Mika Angel-0 said...

Salam Hormat

Soldier Boy, your thots on
http://aku-tak-peduli.blogspot.com/2011/12/masa-depan-kepentingan-peneroka-felda.html#more

Kebimbangan yang paling mendesak ialah adakah kepentingan peneroka dalam FH akan terjamin, sebaik sahaja kepentingan tersebut di urus oleh FGV? Ini yang kita kena tanya. Jangan mudah terpedaya dan ternganga dengan presentation graphicals, warna warni dan powerpoint effects. Cuba soal-apa yang FGV akan lakukan yang bebeza daripada yang sedang mereka lakukan? Jika mereka ada ‘senjata ajaib’ baru, kenapa mereka tidak amalkan untuk menguntungkan FGV dalam perniagaan mereka sendiri? Kenapa rugi?

Kepakaran baru? Bakat pimpinan baru? Ilmu baru? Ada cara luar biasa dan ajaib?

Jika mereka boleh menjanjikan kaedah luar biasa lagi ajaib, kenapa perkara tersebut tidak di lakukan keatas perniagaan nya sekarang? Bukankah dengan melakukan apa yang di janjikan untuk IPO, FGV boleh menghasilkan keuntungan keatas perniagaan mereka sekarang? Kenapa tidak di lakukan? Adakah itu punca FGV kerugian 500 juta?

Ini yang puzzling. FGV says it will bring the listed vehicle to new heights and make profits. So how come, it hasn’t applied those profit enhancing strategies on its current business? Surely, kita expect, if they have done that, the track record of FGV would have been very assuring.

Cerita kelentong sana sini- bagaimana produktiviti boleh meningkat dan karut marut- semua cerita tersebut boleh di reka reka. Kita kena match dengan realities...
Dalam kes ini siapa yang hendakkan modal? Jawab nya FGV. Kenapa FGV mahu modal dari pasaran saham? Kos nya berapa? Adakah kos itu( dalam bentuk jaminan kadar pulangan) lebih baik atau buruk, jika FGV pinjam sahaja duit dari pasaran bank? Atau pinjam sahaja dari Felda yang di katakan banyak duit. Atau pinjam dari EPF kerana EPF pun selalu beri pinjam dan wang nya di pinjamkan pada kadar yang baik. Jika FGV dapat pinjam pada kadar 2% tidak kah ini pada kadar yang terbaik?

Apa FGV mahu buat? FGV akan labur dalam portfolio yang macam macam. Gerenti untung kata mereka.
Apa rekod untung FGV? Takde. Sebab dalam pelaburan yang mereka urus dan lakukan sendiri- mereka rugi. Tapi pelaburan yang mereka lakukan dalam Felda Holdings untung.
Tapi itu is a different matter. Itu cerita Felda Holdings bukan cerita FGV. Sebab FH di bawah pengurusan nya sendiri mencatat keuntungan. Jadi FGV nak leverage atas keuntungan yang orang lain buat untuk mereka sebagai asas buat IPO. Binawe punya orang. Kita ingat dia mahu tunjukkan intrinsic record dia sendiri- rupa rupa nya, menumpang atas rekod orang lain- FH.

Jadi apa isiu nya? Isiu nya ialah dalam FGVH nanti, siapa yang mengurus portfolio bisnes? FGV yang ada rekod rugi kah yang akan urus? Jika ya, maka masa depan kepentingan peneroka dalam FH akan muram. Perlu kita ingat, sekarang FH diserapkan dalam perniagaan FGV. Dan ingat- FGV punya rekod- buruk.
Ini yang mendatangkan keresahan. Bukan kita suka suka tentang. Ada asas untuk rasa gelisah dan waswas. FGV leverage atas kekuatan orang lain . jadi mana mungkin ia mendatangkan keyakinan kepada kita dan peneroka bahawa perniagaan yang mereka akan urus akan untung? Rekod mereka tak bagus.
Jadi jangan kita sentimental dalam kes penyenaraian Felda. Ada keluarga yang datang dari kalangan peneroka. Kita identify dengan harapan dan kesusahan peneroka. Itu sikap politically correct. Takkan kita hendak menyebelahi kapitalis. Tentu kita sokong rakyat marhaen- para pak tani. Tendensi kita ialah menyerang sesiapa yang kita rasa mengacau kepentingan peneroka felda.

Tapi kepentingan peneroka is best served dengan strateji pelaburan yang betul. Kepentingan mereka selama ini, elok di bawah FH. Mulai sekarang, ia di letakkan di bawah pengurusan FGV yang kerugian. Beritahu kepada kita, adakah kepentingan peneroka di perlakukan dengan tanggung jawab?

Lalok said...

Dato',

One way to expedite the process of transforming malaysia into a nett beef/lamb/mutton producer is to let our farmers (the real farmers that is)gain expertise and knowledge in managing and handling big farms or ranches by sending them to learn from the experts and world known beef producers such as Australia. Then we need to help these farmers to establish their farms/ranches here by all means to ensure their success to become among major meat producers in the world.

Dont give 250 million to somebody who dont have any expertise in farming before in their whole life. That is a recipe of destruction from the very begining. Something is very wrong with our leaders mentality and attitude. Putting wrong people at the wrong place is akin to disobeying the prophet's teaching in the first place. If they want to succeed, they really need to change, and change a lot. Lots and lots of people will have to go find something else that suit them most as a living.

Mika Angel-0 said...

Solja Boy

How good are you in War Games?

What's the scenario for UMNO loss?
Probability?
Outcome on the streets?

How hard to have an addict with a high with C4 loss in the street or a car bomb, Solja Boy?

Yeah, hate me if you must, old man; but make sure it is for the right reason.

Biar Mati Syahid is a better cry than Siapa Cepat Dia Dapat and Taat Setia, don't you think, Solja Boy?

mrs.akmar said...

Salam hormat,

Saya merupakan pelajar Master in Accountancy. Cuma inginkan pandangan..Apakah yang sepatutnya dilakukan untuk mengelakkan perilaku yang negatif seperti yang telah dilaporkan dalam kes NFC?

Tq Sir.

kampong lad said...

ada 2 jenis risiko dlm semua business adventure.a. within our control and b. beyond our control. sekiranya (b) lebih berat (peratusannya lebih tinggi) dari (a) dan diteruskan juga, inilah hasilnya. raw material, steers and feeds (input components) termasok dlm kategori ini. in short, these people are only good at "beli mahal dan jual murah". jadi, yg untung selalu depa dan rakat yg selalu rugi. wassalam

mycuntree said...

Dato',

The way I see it, this NFC project is a stillborn project from day one. And I have no doubt that all who are involved in its approval are fully concious of this when putting in their support. The scenario of its birth gives rise to the more pertinent question : Is it really to raise the local beef production as claimed? Everything surrounding its approval goes against that stated objective.

The end result is inevitable. Only the brouhaha created so far has been unexpected.

bruno said...

Dato,on your previous article sent by e-mail by a reader that the AG report of NFC is 41% success and actually should be 59% failure.

Well,actually NFC was set up at first,intially to be 40% and later to be 100% self sufficiency.Self sufficiency in a sense to produce cattle by breeding,then feeding or fattening and later when big or heavy enough then for slaughtering.

So in the AG's report of 41% success or the readers assesment of 59% failure is a bit off the mark.Since the 41% of calfs or baby cows was imported and fatten for slaughter the AG's report or the readers assesment should be 100% failure.Because not even one of the cows slaughtered was born in Malaysia.

If the main aim of giving the project to NFC was to import calfs to be fattened for slaughter,then why not import full grown cattle for slaughter and save the 80 million allocated for start-up,5000hectacres of land and the soft loan of 250 million.

bruno said...

Dato,first of all this cow's project was given to Shahrizat's family as a reward for getting rid of Mrs AP Rafidah Aziz.If this was her reward for kicking butts,then the GOM should have find something that she or her family knows how to do.

To give them a project that they know nothing about is bound to fail in the first place.It is like giving chicken and asking the fox to look after them.So as expected the fox ate up all the chicken.But in Shahrizat's family's case the chicken is 250 million ringgit.

Since they didn't know much about cows,at least they know how to siphoned the money to their personal businesses and went on a shopping spree.They did not buy birkin handbags,which to them are below their standard.They prefered upscale condos,highend cars,prime land,giving millions of discount to their family businesses,and paying themselves 6 and 7 figure salaries.

So Shahrizat's family is guilty of squandering the 250 million ringgit from the soft loan.The people who gave the project to them are also responsible and guilty as well for being partners in crime.After all it takes two to tango.And the two are Shahrizat's family and the GOM.

kampong lad said...

to bruno......correct correct correct 100% if not 101%. now mami jelutong has detonated the 'bomb'. she will not sink alone, or else she will be lonely down there. does najib al-hajex have the guts to do it?

sang kancil said...

It looks like the good intention is always there but the GREED propagated by the culture of the ruling class to lord over the non-malays are destroying the whole fabric to Malaysia. I wonder how these socalled Malaysian malay muslim can reconciled with the facts that they always want to portray how pious they are but when you scratch the surface almost all of them in the ruling class are so un ISLAMIC. I stand by my VIEW that a very huge majority of these socalled malaysian malay muslim are the ENEMY of ISLAM. I am non-malay but I am a MALAYSIAN born and bred.

Ketuanan Melayu is apartheid, like the BOERS in South Africa and the NAZIS in prewar GERMANY and totalling disgusting.

eli said...

BOTTOM LINE,
The GOM is UMNO cash cow.

Mika Angel-0 said...

SO-A-LA-IH,
Peace!

i. Pre-emptive Strike: alpha
http://sakmongkol.blogspot.com/2011/11/chairman-isa-and-listing-of-felda_08.html

ii. Stealth: beta
http://24sevenpost.com/world-news/chinese-unmanned-combat-fighter-jet-dark-sword-finally-exposed/

iii. Psy-Ops: charlie
http://www.dangerousminds.net/comments/lemony_snickets_13_observations_about_occupy_wall_street/

iv. Taps: zulu
www.youtube.com/watch?v=Wn_iz8z2AGw

Ach'i' Hozho

Frankie said...

Dato',

Sharizat's family knows nothing about "fattening" cattle. They only know how to "fatten" their own wallets and bank accounts. Ask Sharizat as she and her UMNO Wanita sycophants are fat and obese from being well fed on the free beef steaks in Meatworks, courtesy of Malaysian tax payers money amounting to RM250 million.

saladin said...

Kita di Malaysia tiada tanah rumput sedia ada yang luas seperti di Australia atau di Argentina. Tidak feasible menukar tanah yg sesuai untuk sawit atau getah kepada padang ragut.
Pembangunan ternakan ruminan terutama lembu pedaging harus di buat secara integrasi dengan ladang sawit yang begitu luas dan tersedia bahan makanan haiwan seperti rumput dan daun sawit.Kita perlu buat program jangka panjang dengan menternak lembu baka pedaging yang akan menjadi stok pembiakan mengeluarkan anak anak lembu pedaging komersial untuk di gemukkan.Peringkat ini hendaklah di buat dibawah Mardi atau GLC terpilih sebab syarikat lain tiada kemampuan kewangan dan juga teknologi.Jika di buat penternak biasa akibatnyanya lembu baka yang boleh hasilkan anak akan ke rumah sembelih lebih awal untuk dapat tunai, sebab penternak kecil tak boleh tahan lama dalam kerja breeding kerana hasil dan aliran tunai lambat.
Baka yg di import mestilah terpilih dan di pilih terus oleh mereka yg pakar bukan pakai tender nanti dapat setok lembu jalanan yang tidak produktif.
Lepas ladang nuklius mesti ada ladang pengganda juga di bawah GLC yang ada estet sawit jika boleh. Peringkat ketiga barulah di jual / edar ke ladang komersial untuk di gemukkan.
Kaedah di atas memakan masa dan belanja akan tetapi pasti akan meningkat kan stok lembu baka dan pedaging tempatan dengan multiplier sekurang nya dua kali ganda tiap tahun.Jadi nya lembu makin lama makin banyak dan harga juga boleh jadi lebih mampu di beli. Produknya ialah lembu baka tulin dan kacukan dgn lembu tempatan,dengan harga premium.Harga ini masih tak boleh rendah dari lembu (kerbau sebenarnya ) import dari India.
Prinsip yang harus di ikuti berilah tanggungjawab dan modal kepada mereka yang ahli dan mampu serta bertanggungjawab juga amanah. Buat semakan berapa ramai lulusan PhD dalam bidang berkaitan penternakan yang telah bersara dari khidmat kerajaan.Gunakan mereka ini untuk menjadi pakar rujuk atau pengurus dan boleh juga penternak baka atau komersial.
InsyAllah kita mempunyai risiko kegagalan yang kurang berbanding memberi modal dan kepercayaan kepada mereka yang tidak ahli dan berilmu.
Renungkanlah