THE ASEAN LIVESTOCK INDUSTRY: AN OVERVIEW

INTRODUCTION

The Association of South East Asian Nations (ASEAN) comprises Singapore,

Malaysia,
Indonesia, Brunei Darussalam, Cambodia, Laos, Myanmar (Burma), the
Philippines,
Thailand and Vietnam.

The ASEAN region has a population of 590 million people, the third largest after
China and
India, with a combined Gross Domestic Product at around US$1.5 trillion (2009),
second only to China in Asia. ASEAN is also one of the world’s largest consumer
markets with agrifood imports valued at around US$40 billion in 2007.

POPULATION

ASEAN region has around 167.2 million livestock, not including 2.28 trillion of
chicken and ducks in 2007. Pig formed majority of the population followed by
cattle and goat. The proportion of livestock population is shown in Figure1.

Figure 1: ASEAN Livestock Population 2007

Source: ASEAN Statistical Yearbook 2008

In terms population trend, some country members experienced negative growth

rate in certain livestock species, despite the fact that in general all livestock
species grow positively in 2004-2007 as indicated by Figure 2. Brunei
Darussalam, for example has a reduction of more than 20% in the numbers of
cattle. Likewise Indonesia, Malaysia and Thailand has negative growth in
livestock population of buffalo, baffalo and pig, and chicken and duck
respectively.

Figure 2: Growth rate of livestock and poultry population 2004-2007

Source: ASEAN Statistical Yearbook 2008

PRODUCTION

ASEAN countries produced approximately 13.7 million MT of meat in 2007 as

shown in Table 1. The production was contributed by 6.45 million MT of pork
which formed 47% of total meat production and followed by 5.5 million MT of
poultry meat and 1.1 million MT of beef and veal. The production trend for 2004-
2007 period is shown in Figure 3, whereby the poultry and pig meat dominated
the production.

Table 1: Production of Livestock meat 2007

Produce '000 MT %
Beef and veal 1,149.1 8.4%
Buffalo meat 376.4 2.7%
Pig meat/ pork 6,456.0 47.0%
Mutton and lamb 62.4 0.5%
Goat meat 148.0 1.1%
Poultry meat 5,547.0 40.4%
Total 13,738.9 100.0%
Source: ASEAN Statistical Yearbook 2008

INDUSTRY TREND

Among the subsectors of livestock industry, poultry industry in these countries

which started as a backyard industry, have progressed to become a multibillion
dollar industry, in most countries like Malaysia, Thailand and Philippines,
catering cheap animal proteins as well as providing employment opportunities for
its people. Several countries such as Thailand and Malaysia, have also become
net exporters.
In addition to progressive automation in every field of poultry production, there is
also a tendency for small operations to close down, due to higher operation costs
and less competition with the bigger operations. With rapid liberalisation and free
trade policies to be followed under WTO guidelines, there will be a distinct
advantage to the poultry industry, not only as a source of animal protein at an
affordable price to the needy, but also as a source of employment.
However, other subsectors still has not progressed much to meet the growing
demands of meat and milk. The Indonesian Government, for instant, has
encouraged the development of a domestic feedlot industry to meet increased
demand for beef. Indonesia’s own dairy industry is sizeable with local milk
supplies satisfying around 40 per cent of the country’s requirements. The
production of milk in Indonesia is based around small scale farming with
problems of shortage of milk cattle and inefficient farming practices.

Among the ASEAN countries, phillipines and Thailand has become a major
exporters of milk and dairy products. Factors that contribute to positive growth
in the dairy industry in Thailand include rising health awareness among the Thai
consumers of different ages. Children are highly encouraged to drink milk and
other dairy products such as yoghurt by their parents.

With the expanding economy of ASEAN region demand for quality, price
competitive meat and meat products including dairy products is growing rapidly
in accordance to the increasing consumer purchasing power and awareness on
the benefits of halal products, which is fostering a growing restaurant and fast
food industry, and an expanding smallgoods manufacturing sector. The Muslim
population of ASEAN, which account for approximately 38% or 226 million, is also
a market that is growing in value. Hence the livestock sector in ASEAN region
represents an economy opportunity for investment and profitability.

Figure 3: Production Trend of livestock and poultry products

Source: ASEAN Statistical Yearbook 2008