In 2021, the area of cultivated land amounted to just over 8 million hectares, of which 73.7% were oil palm plantations and 13.9% were rubber crops.
The main agricultural crop in Malaysia is the oil palm, the fruits of which have been harvested annually in the amount of 90-100 million tons since 2017.
Malaysia is also the second largest producer and exporter of palm oil in the world after Indonesia. By the end of 2021, the country produced 18.1 million tons of crude palm oil and 2.1 million tons of crude palm kernel oil, which is lower than the previous year by 5.8% and 4.5%, respectively. This is due to a decrease in yields in the agricultural year 2020/21, as well as the impact of the COVID-19 pandemic due to an acute shortage of labor due to border closures. Despite the fact that the Malaysian government approved the entry of 32 thousand. foreign workers, it will take time for the industry to make up for the drawdown of production.
Rice predominates among food crops (39% is produced in the state of Kedah), the volume of production of which has reached a five-year high of 2.8 million tons.
The production of fruits and nuts is generally stable and in 2019-2021 exceeded 2 million tons. Vegetable production has been steadily increasing since 2017 and has reached 1.3 million tons.
It should be noted that the production of cocoa beans has practically stopped in Malaysia: according to the Malaysia Cocoa Board, in 2021 the volume of production amounted to 0.4 thousand tons against 200-250 thousand tons in the peak period of the late 1980s and early 1990s.
The main livestock industry in Malaysia is poultry farming — about 1.7 million tons of poultry meat are produced annually in the country, which, according to preliminary estimates in 2021, amounted to 86.1% of all types of meat produced. Also, about 220-230 thousand tons of pork are produced annually in Malaysia. The production of cattle and small cattle meat in Malaysia is relatively small due to the lack of pasture land. In total, 1,989,1 thousand were produced in the country in 2021 . tons of meat, which is 1.2% more than the previous year — while the maximum value for the five-year period was reached in 2016, when meat production exceeded 2 million tons.
Malaysia's dairy industry is poorly developed — 43.8 thousand tons of milk were produced in 2021. Meanwhile, there is a positive trend, the average annual growth rate in 2017-2021 was 4.6%.
Malaysia is characterized by high rates of fish and seafood production, but during 2017-2021 there was a progressive downward trend. As a result, over five years, the volume of production decreased by 7.6%. Nevertheless, the fishing industry plays a significant role in the country's agriculture — the number of people employed in fishing and fish farming is about 140 thousand people, the fishing fleet has 43 thousand vessels, and fish farming is carried out on an area of 35.2 thousand hectares.
Malaysia is also one of the world leaders in the mass consumption of fish with an indicator of 57.6 kg/person per year, ahead of the Republic of Korea and Norway.
In 2021, the turnover of agricultural products in Malaysia increased to 49.9 billion US dollars, which is 28.6% higher than in 2020 (38.8 billion US dollars). According to the ITC Trade Map, the total volume of imports of agricultural products of Malaysia in 2021 Amounted to 20.6 billion US dollars, showing an increase of 22.7% compared to 2020 (16.8 billion US dollars).
The average annual growth rate of imports during 2017-2021 was 7.8%. Malaysia is one of the four largest importers of cocoa beans in the world, annually increasing purchases in foreign markets. In 2021, 480 thousand tons of this crop were imported into the country for a total value of 1.2 billion US dollars. Previously, the country was a major producer of cocoa beans, annually producing 200-250 thousand tons.
At the same time, despite significant volumes of their own palm oil production, Malaysian processors import crude palm oil to meet domestic demand and maintain stocks of this product.
In 2021, despite restrictions on the import of crude oil by the Malaysian government, some processors purchased the product from Indonesian suppliers, using long-term trade agreements. Meanwhile, on April 22, 2022, it became known that Indonesia, the main supplier of palm oil to the Malaysian market, would ban the export of these products and raw materials for its production.
On April 27, 2022, the Minister of Economy announced that, according to the decision, the ban will apply to the export of crude and refined oil, including. This measure was taken by the country's leadership in connection with the shortage of products in the domestic market. Amid restrictions on Indonesia's palm oil exports, the Malaysian Palm Oil Council (MPOB) said that countries around the world should slow down the use of edible oil as a biofuel to ensure sufficient reserves for its use in food products.
By the end of 2021, the value structure of imports of agricultural products in Malaysia was dominated by cocoa beans (5.9%), palm oil (5.6%), corn (5.4%), other food products (4.9%) and sugar beet and cane (4.5%).
The main exporting countries of agricultural products to Malaysia in 2021 Indonesia (14.7%), China (10.3%) and Thailand (8.6%) became the leaders. The share of the top 10 countries accounted for 71.6% of imports of agricultural products in Malaysia.
In 2020, Malaysia imported grain totaling $2,146.6 million. In relation to the level of 2020, the total volume of grain purchases increased by 20.7%. The growth of imports of these products was observed during 2018-2021.
The largest volume of imports in value terms (52.4%) accounted for corn, which in 2020 was imported for a total of 1,124.7 million US dollars.
Corn imports for 2017-2021 increased by 51.7%. Next in the supply structure was rice – 26.8%, wheat – 19.9%. Minor supplies of oats and buckwheat were also carried out.
The main grain suppliers to the Malaysian market were Argentina (which mainly supplies corn), whose share of supplies amounted to 39.0% of the total grain imports of Malaysia. 13.8% came from Australia (mainly wheat) and 13.5% from India (mainly rice). The share of the top 10 countries accounted for 97.4% of Malaysia's grain imports in value terms.
In 2021, the import of products of the oil and fat industry of Malaysia increased in value terms by 22.2% and reached 1.2 billion US dollars. Positive dynamics was observed in 2017, 2020-2021 with a slight decrease in imports in 2018-2019.
In the structure of imports of fat and oil products in value terms, the largest share in 2021 was occupied by soybean cake and meal, which accounted for 52.9% of total imports. A significant share in the structure of Malaysian imports in 2021 also accounted for products for the preparation of sauces and ready-made sauces (12.5%), sunflower oil (12.4%), soybean oil (9.1%) and rapeseed oil (8.3%). It is worth noting that the largest increase in imports for 2017-2021 was for sunflower oil (more than 2 times) and rapeseed oil (+85.1%).
The main exporters of fat and oil products to Malaysia in 2021 were countries such as Argentina, Ukraine, China, Thailand and the UAE. They accounted for 80.7% of the total value of imports of fat and oil products in Malaysia. At the same time, deliveries in 2021 increased for all key importers. The share of the top 10 countries in 2021 Accounted for 91.1% of all deliveries of fat and oil products to the Malaysian market in value terms.
Meat and meat products are an important part of the daily diet of the Malaysian population, as many local dishes include meat ingredients. Poultry, beef and lamb are popular sources of animal proteins. In 2021, the import of meat of all types of Malaysia exceeded $ 1 billion, which was a record figure for 2017-2021. Import growth was observed for the entire analyzed period with the exception of 2019. (the decrease was 8.0%).
In the structure of meat imports of Malaysia, in value terms, more than half of the volumes (57.7%) accounted for beef, whose supplies for 2017-2021. Increased by 5.5%. Malaysia also buys significant volumes of poultry and lamb meat, imports of which increased by 28.2% and 1.0%, respectively.
The main suppliers of meat to the Malaysian market in 2021 were India and Australia, which accounted for 43.9% and 23.5% of imports, respectively.
At the same time, India is a key supplier of beef, while poultry meat is imported mainly from Thailand. In general, the top 10 exporting countries accounted for 97.2% of imports of products from this sector in 2021.
Imports of milk and dairy products grew throughout 2017-2021 and in 2021 amounted to 1.2 billion US dollars, which is 14.2% higher than in 2020 and 31.6% higher than in 2017.
The structure of imports of dairy products in value terms was dominated by the supply of milk powder, which accounted for 46.5% of total imports in 2021. This was followed by cheeses and whey with a share of 14.8% and 11.0%, respectively. Butter and other dairy fats, drinking milk, ice cream, fermented milk products and concentrated milk accounted for relatively smaller volumes of deliveries.
The main exporters of dairy products to Malaysia were New Zealand, the USA, Australia, Ireland and Germany. These countries accounted for 71.2% of Malaysia's total dairy imports in 2021. In 2021, shipments from New Zealand amounted to 424.3 million US dollars, an increase of 7.0% compared to 2020. Import growth was observed from all key supplier countries: USA (+1.2%), Australia (+12.1%), Ireland (+45.1%), Germany (+28.2%). The share of the top 10 countries in 2021 accounted for 86.5% of all dairy products supplied to the Malaysian market in value terms.
According to the ITC Trade Map, the total volume of exports of agricultural products of Malaysia in 2021 reached 29.3 billion US dollars, which is 33.1% higher than the value of 2020. The average annual export growth rate for 2017-2021 was 7.6%.
The basis of Malaysian exports of agricultural products is palm oil, which in 2021 accounted for about 48.4% of the country's exports in value terms.
Malaysian palm oil producers have recently preferred to export raw palm oil because it is in great demand abroad, and foreign partners offer a better price than local processors.
In addition, Malaysia exports other types of oils, including animal and vegetable oils and fats (7.7%), palm kernel oil and babassu oil (3.8%), animal and vegetable oils and other non-edible fats (2.5%).
In addition to the mentioned products, significant volumes in the structure of exports of agricultural products in 2021 also reached products with high added value – other food products (2.8%), flour confectionery (2.5%).
In 2021, the main importing countries of agricultural products from Malaysia were India (13.2% of the country's total exports in value terms), China (11.3%), Singapore (9.3%) and the Netherlands (6.3%). In total, the top 10 importing countries accounted for 59.2% of Malaysia's agricultural exports in 2021.
Consumers in Malaysia are sensitive to prices after the increase in wheat prices, which provoked an increase in wheat flour prices, many consumers began to switch to alternative types of flour, such as pea flour, cassava flour and lentil.
In recent years, the demand for alternative protein products has increased in Malaysia, dairy products based on soy and other legumes are becoming popular, and there is also a demand for vegetable meat.
Maize production in Malaysia is insignificant, even despite the support of the state. Most of the corn goes to feed for farm animals.
Rice is a staple food in Malaysia and the Government is making efforts to ensure that the country is fully self-sufficient in this crop by providing benefits to producers, as well as attracting foreign investment.
The main vegetable oil in Malaysia is palm oil, it is used both for home consumption and for production, for example, in the confectionery industry. Soy oil is considered the second most popular vegetable oil in Malaysia, but there is practically no production of this type of oil in Malaysia.
Against the background of a decline in Malaysia's palm oil exports, an increase in domestic production and competition from Indonesia, stocks of this oil in Malaysia rose to a nine-month high at the end of June. According to the Malaysian Palm Oil Council (MPOB), the level of palm oil reserves in the country reached 1.69 million tons at the end of June 2020.
The most popular type of meat in Malaysia is chicken, because it is an integral part of the national cuisine, as well as an important component of national religious holidays. According to forecasts, the poultry sector in Malaysia will continue to develop, which is facilitated by investments in this industry from both the state and foreign investors.
The development of the hotel and restaurant sector is a driver of demand for beef and chicken: new steakhouses are opening in the country, which offer consumers premium cuts of beef, as well as increasing their presence of fast food establishments like KFC, where chicken is the main ingredient in dishes.
Products with the signs "eco" and "organic" are becoming popular, this applies to both farm meat and chicken, as well as finished meat products.
Drinking milk is the most consumed dairy product in Malaysia, followed by ice cream, yoghurts and cheeses. Increasing knowledge about healthy foods and promoting a healthy lifestyle motivate consumers to buy milk, yogurt and various cheeses. The demand of Malaysian consumers for cheeses is met mainly by imported products. Given the minimal domestic cheese production in the country, it is expected that imports of this category will increase in the medium term.
Currently, there are not many brands of fermented milk products in Malaysia, consumers tend to prefer drinking yoghurts or flavored milk drinks rather than fermented milk products.
In addition, the growing availability of new types of drinking yogurt and flavored milk drinks, which are actively advertised in the media, also limits the demand for fermented dairy products.
Various milkshakes based on natural fruits with a reduced sugar content and enriched with vitamins are becoming popular. Milk drinks with the taste of local fruits are especially popular. Ice cream is consumed by representatives of all segments of the population. It is presented in a wide range both in large chain supermarkets and in small private shops within walking distance. Most of all, consumers like ice cream with the taste of chocolate, strawberry and vanilla. It is sold in packages of different formats — containers, paper cups, on a stick.
Fish and seafood are in high demand in Malaysia due to their geographical location, since together with rice they form the basis of the diet of most of the country's population. Crabs, squid, sea cucumbers, oysters, lobsters and shrimps are the most popular among seafood. Of the fish, the most popular species in the Malay consumption structure are mackerel, yellow-tailed horse mackerel, tuna and sardines.
