Malaysian poultry meat production is expected to increase 2% in 2014 to reach a production of 1.44 million tons. Although the industry has the capacity to expand further, factors such as the adoption of a minimum wage, a reduction of fuel subsidies, and the depreciation of the ringgit are all increasing production costs and hampering output. The average cost of production is forecast to reach $1.68 per kg in 2014, up from $1.45 in 2012 and $1.60 in 2013. The Malaysian poultry sector uses 4 million tons of feed annually and almost all the feed inputs are imported. Imported soybean meal and corn account for 65% of total production costs. The decrease in corn prices in 2013 has been mitigated to an extent by the depreciation of the ringgit. Almost 90% of the country’s poultry meat production occurs in Peninsular Malaysia with 3,200 broiler farms including independent, contract and large vertically integrated farms. Poultry meat is the main source of protein for the country’s population and per capita consumption is among the highest in the world at over 40 kg per person per year. Overall consumption is expected to increase from 1.4 million tons in 2013 to 1.43 million tons in 2014. All imports of poultry meat must be sourced from Government of Malaysia approved plants and meet halal handling requirements with the top suppliers being China, Thailand, Denmark, and The Netherlands.
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