Malaysia will build feed mills to support and develop the livestock industry as part of efforts to increase beef supply for local consumption.
Marditech, a wholly-owned subsidiary of Mardi, and Sime Darby, will be asked to venture into the field to overcome shortage of meat in the country as well as to overcome the problem of high pricing.
The Malaysian Agriculture Research and Development Institute (MARDI) was established with the objective of developing and improving appropriate new technology and related industries in agriculture in Malaysia.
"The government will offer an area in Kluang (a town in southern Johor-state in Peninsular Malaysia), for a modern agriculture project for the mill.
“At the same time we will encourage farmers in the country to grow crops such as corn and tapioca using the contractual farming concept," Agriculture Minister Noh Omar told Malaysian journalists.
Noh, who headed a delegation of senior government officials and officials of government-linked companies, was visiting the Bekri feedlot cattle centre, P.T. Sentosa Agrindo, as well as the livestock feed producing centre at the Japfa Commfeed and Fodder Cultivation Area.
Noh said in efforts to further develop the livestock industry, especially cattle, he had asked the Veterinary Services Department to draft a new policy for cattle rearing in the country.
"Supply of beef locally is still insufficient and we have to import the meat from several countries and the amount has to be increased each festive season," he said.
The minister said the cattle rearing industry, especially using the feedlot concept, had high potential for growth and the feedlots would benefit farmers who grow crops for the industry using the contractual farming concept or satellite farming.
The P.T. Santosa Agrindo feedlot centre, or known by its short name Santori, which was visited by the Malaysian delegation is a modern facility using the bio-security method.
The 72 ha centre can accommodate 20,000 beef cattle and is the centre to introduce cattle from Australia for the Indonesian market.