DAIRY PRODUCTS

IN MALAYSIA:
A MARKET ANALYSIS

Access Asia 2003

Dairy Products in Malaysia: A Market Analysis

Access Asia
Publication date:

August 2003

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Dairy Products in Malaysia: A Market Analysis

Contents
ACCESS ASIA .............................................................................................................I
CONTENTS..................................................................................................................II
INTRODUCTION .........................................................................................................1
Report Coverage .....................................................................................................................................................1
Definitions of Dairy Products ..............................................................................................................................2
Butter of Cow...................................................................................................................................................2
Buttermilk.........................................................................................................................................................2
Cheese...............................................................................................................................................................2
Concentrated Milk...........................................................................................................................................2
Concentrated Whey (Whey Protein Concentrates)....................................................................................2
Dry Whey .........................................................................................................................................................3
Evaporated milk ..............................................................................................................................................3
Evaporated or Condensed Skimmed Milk..................................................................................................3
Ice cream...........................................................................................................................................................3
Lactose (Milk Sugar) ......................................................................................................................................3
Liquid Milk ......................................................................................................................................................3
Milk ...................................................................................................................................................................3
Milk powder (Dry Milk, Milk Powder, Dehydrated Milk) ......................................................................3
Skimmed Cow Milk........................................................................................................................................3
Sweetened Condensed Milk..........................................................................................................................4
UHT (Ultra High Temperature)....................................................................................................................4
Whey .................................................................................................................................................................4
Whole Cow Milk, Fresh.................................................................................................................................4
Yoghurt .............................................................................................................................................................4
Executive Summary ...............................................................................................................................................5
Other Access Asia Reports of Possible Interest..............................................................................................7

1 THE MALAYSIAN DAIRY MARKET....................................................................8

1.1 Consumption .....................................................................................................................................................8
1.1.1 Market Size: Total Market Size ...............................................................................................................8
Table 1.2 MALAYSIAS TOTAL MILK CONSUMPTION & GROWTH/DECLINE
1995-2001 8
Table 1.2 MALAYSIAS TOTAL MILK CONSUMPTION, 1995-2001.........................8
1.1.2 Market Size: Consumption by Region ...................................................................................................9
Table 1.3 MALAYSIAS MILK CONSUMPTION BY MAJOR REGION, 1995-2001 ....9
1.2 Production....................................................................................................................................................... 10
1.2.1 Market Size: Total Industry Size ...........................................................................................................10
Table 1.4 MALAYSIAS MANUFACTURING OF DAIRY PRODUCTS, 2000.............10
1.2.2 Market Size: Production by Region......................................................................................................11
Table 1.5 MALAYSIAS MILK OUTPUT BY MAJOR REGION, 1995-2001.................11
1.2.3 Market Size: Domestic Production in Relation to Demand..............................................................12
Table 1.6 MALAYSIAS DOMESTIC MILK OUTPUT AS A % OF DEMAND, 19952001
12
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1.3 Malaysias Liquid Milk Sector .................................................................................................................. 13
1.3.1 Liquid Milk: Production.........................................................................................................................13
TABLE 1.7 MALAYSIAS PRODUCTION OF WHOLE, FRESH COW MILK, 19952002
13
1.3.2 Liquid Milk: Whole Fresh Milk Imports & Exports..........................................................................14
Table 1.8 MALAYSIAS IMPORTS & EXPORTS OF WHOLE, FRESH COW MILK,
1995-2001 14
1.3.3 Liquid Milk: UHT (& Enhanced Liquid Milk) Imports & Exports ................................................15
Table 1.9 MALAYSIAS IMPORTS & EXPORTS OF UHT, 1995-2001 ..........................15
1.3.4 Liquid Milk: Skimmed Milk Imports & Exports ...............................................................................15
Table 1.10 MALAYSIAS IMPORTS & EXPORTS OF SKIMMED MILK, 1995-2001 16
1.3.5 Liquid Milk: Evaporated and Condensed Milk Imports & Exports................................................16
Table 1.11 MALAYSIAS IMPORTS & EXPORTS OF EVAPORATED AND
CONDENSED MILK, 1995-2001...................................................................................................17
1.4 Milk Powder ................................................................................................................................................... 18
1.4.1 Milk Powder: Overview.........................................................................................................................18
1.4.2 Milk Powder: Imports & Exports of Milk Powder ............................................................................18
Table 1.12 MALAYSIAS IMPORTS & EXPORTS OF MILK POWDER, 1995-2001..19
1.4.3 Milk Powder: Imports & Exports of Dry Skimmed Milk Powder..................................................19
Table 1.13 MALAYSIAS IMPORTS & EXPORTS OF DRY SKIMMED MILK
POWDER, 1995-2001........................................................................................................................19
1.5 Cold-Storage Dairy....................................................................................................................................... 20
1.5.1 Cold-Storage Dairy: Overview..............................................................................................................20
1.5.2 Cold-Storage Dairy: Imports & Exports of Butter.............................................................................20
Table 1.14 MALAYSIAS IMPORTS & EXPORTS OF BUTTER, 1995-2001................21
1.5.3 Cold-Storage Dairy: Imports & Exports of Cheese...........................................................................21
Table 1.15 MALAYSIAS IMPORTS & EXPORTS OF CHEESE, 1995-2001 ................22
1.5.4 Cold-Storage Dairy: Imports & Exports of Yoghurt .........................................................................22
Table 1.16 MALAYSIAS IMPORTS & EXPORTS OF YOGHURT, 1995-2001 ...........23
1.5.5 Cold-Storage Dairy: Imports & Exports of Ice Cream......................................................................23
Table 1.17 MALAYSIAS IMPORTS & EXPORTS OF ICE CREAM, 1995-2001 .........24
1.6 Market Shares................................................................................................................................................ 25
1.6.1 Market Shares: Major Dairy Players ....................................................................................................25
Table 1.18 THE MAJOR DAIRY PLAYERS IN MALAYSIA, 2002.............................25
1.7 Prices ................................................................................................................................................................ 26
1.7.1 Prices: Fresh Milk....................................................................................................................................26
Table 1.19 FRESH MILK BRAND PRICES IN MALAYSIA, 2003 ..............................26
1.7.2 Prices: UHT Milk.....................................................................................................................................26
Table 1.20 UHT MILK BRAND PRICES IN MALAYSIA, 2003...................................27
1.7.3 Prices: Evaporated & Condensed Milk ................................................................................................27
Table 1.21 EVAPORATED AND CONDENSED MILK BRAND PRICES IN
MALAYSIA, 2003.........................................................................................................................28
1.7.4 Prices: General Milk Powder.................................................................................................................28
Table 1.22 MILK POWDER BRAND PRICES IN MALAYSIA, 2003 .........................29
1.7.5 Prices: Milk Powder for Infants & Children .......................................................................................29
Table 1.23 INFANTS & CHILDRENS MILK POWDER BRANDS IN MALAYSIA,
2003
30
1.7.6 Prices: Milk Powder for Pregnant Women and Nursing Mothers...................................................30
Table 1.24 PREGNANTS WOMEN & NURSING MOTHERS MILK POWDER
BRANDS IN MALAYSIA, 2003................................................................................................30
1.7.7 Prices: Butter............................................................................................................................................31
Table 1.25 BUTTER BRAND PRICES IN MALAYSIA, 2003 .......................................31
1.7.8 Prices: Cheese...........................................................................................................................................31
Table 1.26 CHEESE BRAND PRICES IN MALAYSIA, 2003 ........................................32
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1.7.9 Prices: Drinking Yoghurt .......................................................................................................................32
Table 1.27 DRINKING YOGHURT BRAND PRICES IN MALAYSIA, 2003............32
1.7.10 Prices: Yoghurt ......................................................................................................................................32
Table 1.28 YOGHURT BRAND PRICES IN MALAYSIA, 2003 ...................................33
1.7.11 Prices: Standard Ice cream...................................................................................................................33
Table 1.29 STANDARD ICE CREAM BRAND PRICES IN MALAYSIA, 2003 .......33
1.7.12 Prices: Premium Ice cream..................................................................................................................33
Table 1.30 PREMIUM ICE CREAM BRAND PRICES IN MALAYSIA, 2003...........34
1.8 Outlook ............................................................................................................................................................ 35
1.9 Current Issues................................................................................................................................................ 37
1.9.1 Current Issues: Industry standards........................................................................................................37
1.9.2 Current Issues: Labelling Regulations (January 1995) .....................................................................37
1.9.3 Current Issues: Import Regulations......................................................................................................38
Import License...............................................................................................................................................38
Veterinary Certification ...............................................................................................................................38
1.9.4 Current Issues: Transportation...............................................................................................................38
1.9.5 Current Issues: Tariffs.............................................................................................................................38
Table 1.31 IMPORT AND SALES DUTY FOR DAIRY PRODUCTS IN MALAYSIA,
2003
38

2 DISTRIBUTION AND MARKETING.................................................................. 39

2.1 Dairy Distribution......................................................................................................................................... 39
2.2 Marketing Strategies.................................................................................................................................... 39
2.3 Food Retail Sector ......................................................................................................................................... 40
2.3.1 Food Retail Sector: Key Dairy Retail Companies .............................................................................40
Table 2.1 MAJOR SUPERMARKETS & HYPERMARKETS IN MALAYSIA, 2003
40

3 LEADING COMPANY PROFILES..................................................................... 41

3.1 Nestl (Malaysia) Berhad............................................................................................................................ 41
3.1.1 Nestl: Company Details ........................................................................................................................41
3.1.2 Nestl: Company Background...............................................................................................................41
4.1.3 Nestl: Malaysia Activities ....................................................................................................................41
3.1.4 Nestl: Products .......................................................................................................................................41
3.1.5 Nestl: Financial Results ........................................................................................................................42
Table 3.1 NESTL (MALAYSIA) BERHAD: FINANCIAL RESULTS, 1998-2002 .42
3.1.6 Nestl: Future Strategy ...........................................................................................................................43
3.2 Malaysia Dairy Industries .......................................................................................................................... 44
3.2.1 Malaysia Dairy Industries: Company Details .....................................................................................44
3.2.2 Malaysia Dairy Industries: Company Background............................................................................44
3.2.3 Malaysia Dairy Industries: Products.....................................................................................................44
3.2.4 Malaysia Dairy Industries: Financial Results .....................................................................................45
Table 3.2 MALAYSIA MILK SDN BHD: FINANCIAL RESULTS, 1999-2001 .............45
3.2.5 Malaysia Dairy Industries: Future Strategy.........................................................................................45
3.3 New Zealand Milk......................................................................................................................................... 46
3.3.1 New Zealand Milk: Company Details ..................................................................................................46
3.3.2 New Zealand Milk: Company Background.........................................................................................46
3.3.3 New Zealand Milk: Products.................................................................................................................46
3.3.4 New Zealand Milk: Financial Results..................................................................................................46
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Table 3.3 NEW ZEALAND MILK (MALAYSIA) SDN BHD: FINANCIAL RESULTS,
2000-2002 47
3.3.5 New Zealand Milk: Future Strategy.....................................................................................................47
3.4 Dutch Lady Milk Industries Berhad........................................................................................................ 48
3.4.1 Dutch Lady Milk Industries: Company Details ..................................................................................48
3.4.2 Dutch Lady Milk Industries: Company Background.........................................................................48
3.4.3 Dutch Lady Milk Industries: Products .................................................................................................48
3.4.4 Dutch Lady Milk Industries: Financial Results ..................................................................................48
Table 3.4 DUTCH LADY MILK INDUSTRIES: FINANCIAL RESULTS, 1998-2002
49
3.4.5 Dutch Lady Milk Industries: Future Strategy .....................................................................................49
3.5 Fraser & Neave Holdings Berhad............................................................................................................. 50
3.5.1 Fraser & Neave: Company Details .......................................................................................................50
3.5.2 Fraser & Neave: Company Background..............................................................................................50
3.5.3 Fraser & Neave: Products.......................................................................................................................50
3.5.4 Fraser & Neave: Financial Results .......................................................................................................50
Table 3.5 FRASER & NEAVE: FINANCIAL RESULTS, 1998-2002 ...........................51
3.5.5 Fraser & Neave: Future Strategy...........................................................................................................51
3.6 East Asiatic Company.................................................................................................................................. 52
3.6.1 East Asiatic Company: Company Details ............................................................................................52
3.6.2 East Asiatic Company: Company Background ..................................................................................52
3.6.3 East Asiatic Company: Products...........................................................................................................52
3.6.4 East Asiatic Company: Financial Results............................................................................................52
Table 3.6 DUMEX (MALAYSIA) SDN. BHD.: FINANCIAL RESULTS, 2000-2001 ...53
3.6.5 East Asiatic Company: Future Strategy...............................................................................................53

4 CONTACT DETAILS ........................................................................................... 54

4.1 Trade Associations ........................................................................................................................................ 54
4.1.1 Federation of Malaysian Manufacturers ..............................................................................................54
4.1.2 Nutrition Society Malaysia (NSM).......................................................................................................54
4.2 Government Departments .......................................................................................................................... 55
4.2.1 Department of Veterinary Services.......................................................................................................55
4.2.2 Food Quality Control Division..............................................................................................................55
4.2.4 Royal Customs and Excise Headquarters Malaysia...........................................................................55

APPENDIX MALAYSIA MARKET BACKGROUND...................................... 56

A.1 Fast Facts........................................................................................................................................................ 56
A.2 Exchange Rates............................................................................................................................................. 57
A.2.1 Exchange Rates: Malaysia.....................................................................................................................57
Table A.1 AVERAGE ANNUAL EXCHANGE RATES BETWEEN RM AND US$,
1997-2002 57
A.3 Regions of Malaysia..................................................................................................................................... 57
Map A.1 MALAYSIA: PROVINCES AND MUNICIPALITIES ....................................57
A.4 Demographics................................................................................................................................................ 59
A.4.1 Demographics: Total Population..........................................................................................................59
Table 2. MALAYSIAS TOTAL POPULATION, 1997-2002...............................................59
A.4.2 Demographics: Population by Location..............................................................................................59
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Table A.4

MALAYSIAS POPULATION BY URBAN-RURAL DIVIDE, 1997-2001

60
A.4.3 Demographics: Population by Province..............................................................................................60
Table 2. MALAYSIAS POPULATION BY PROVINCE, 2000..........................................60
A.4.4 Demographics: Population Density by Province...............................................................................61
Table 2. MALAYSIAS POPULATION BY PROVINCE, 2000..........................................61
A.4.5 Demographics: Population by Sex.......................................................................................................61
Table A.7 TOTAL POPULATION BREAKDOWN BY SEX IN MALAYSIA, 19972001
62
A.4.6 Demographics: Population by Age......................................................................................................62
Table A.8 POPULATION BY AGE GROUP IN MALAYSIA, 1998-2002 ..................62
A.5 Household....................................................................................................................................................... 63
A.5.1 Household Income ..................................................................................................................................63
Table A.9 MEAN MONTHLY GROSS HOUSEHOLD INCOME BY ETHNIC
GROUP & STRATUM IN MALAYSIA, 1995, 1997 & 1999..............................................63
A.5.2 Household Expenditure..........................................................................................................................64
Table A.10 AVERAGE MONTHLY EXPENDITURE PER HOUSEHOLD BY
STRATUM, MALAYSIA, 1993/94 & 1998/99 .......................................................................64
A.6 Consumer Wealth ........................................................................................................................................ 66
A.6.1 Consumer Wealth: GDP and Cost of Living......................................................................................66
Table 2. GDP AND COST OF LIVING INDEX IN MALAYSIA, 1998-2002 .............66

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