Malaysia Agribusiness Report

Providing expert analysis, independent forecasts and competitive intelligence on the agribusiness industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, Supply & Demand Forecasts, Commodity Price Analysis and Company Profiles.

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Malaysia Agribusiness Report
Product Price
$1,295.00

BMI View: Malaysia's agribusiness sector is experiencing challenging times, as its most emblematic sector, the palm oil industry, is undermined by low prices and growing structural challenges. The cocoa sector is in an even worse position, suffering a severe decline after the stellar performance of the 1990s . The cocoa processing sector is facing increasing competition from Indonesia and is losing market share at a fast pace. The medium term outlook is brighter, amidst strong growth prospects in the poultry sector and opportunities for value added palm based oleochemical exports. Malaysia will have to remain ahead of its biggest competitor, Indonesia, if it s agribusiness sector is to stay afloat. As such, the next challenge for the country resides in the economic integration of ASEAN. The ASEAN Economic Community will present so me opportunities, for example for poultry exports. However, it also poses risks to the future of the sugar refining sector.

Key Forecasts

  • Palm oil production growth to 2018/19: 8.1% to 21.8mn tonnes. Growth will be supported as companies replant mature estates and yields improve on the back of better technology.

  • Poultry production growth to 2018/19: 18.2% to 1.6mn tonnes. After a decade of strong growth, we forecast poultry meat production to grow at a moderate pace in the coming years, as rising production costs are undermining the development of the sector. Malaysia will maintain a fragile self-sufficiency in poultry.

  • Cocoa consumption growth to 2019: -16.4% to 217,000 tonnes. Cocoa processing in Malaysia is on the decline, due to the drop in domestic cocoa bean supply and increased grinding competition from Indonesia, which has emerged as a leading processed cocoa exporter at the expense of Malaysia.

  • 2016 BMI universe agribusiness market value: USD30.0bn, up 6.8% y-o-y, forecast to grow by 5.9% annually from 2015 to 2019.

  • 2016 real GDP growth: 4.5% (down from 4.7% expected in 2015, forecast to average 4.6% from 2015 to 2019).

  • 2016 consumer price inflation: 2.9% (down from 3.1% expected in 2015, forecast to average 2.4% from 2015 to 2019).

Palm Oil, King Commodity
Malaysia - BMI Agribusiness Market Value By Commodity (% of total)
e/f = BMI estimate/forecast. Source: FAO, BMI

Key Developments

After several years of strong production and earnings growth for palm oil producers, Malaysia's palm oil sector is going through challenging times. Although El Nino-related dry weather and the Indonesian 'haze crisis' have sent palm oil prices higher in H215, prices remain below historical averages. Apart from price and profitability issues, structural challenges are growing in the industry. These include growing hurdles to plantation expansion, stagnating tree and milling yields, steady increases in production costs and low availability of labour. In light of the downturn in the sector, palm oil companies are adjusting their strategies towards much-needed efficiency gains. Companies will also look at acquiring small and young plantations, leading to consolidation in the sector, as well moving into the oleochemical segment.

In November 2015, Barry Callebaut decided to cut cocoa processing capacity in Malaysia with immediate effect. This is the latest sign that Malaysia's cocoa sector is slowly losing its shine. We have revised down our cocoa consumption forecasts and expect grinding to remain on the decline as chocolate demand in Asia slows and Malaysia's cocoa processing sector continues to lose market share to Indonesia.

Malaysia's sugar sector is also undergoing changes, as the government is partially liberalising prices and has started easing restrictions on refined sugar imports. In light of limited growth prospects in the local market, refiners are adjusting their strategies and looking towards diversification, both in terms of geography and products. Malaysia's largest sugar refiner, MSM Malaysia, indicated it is planning to expand its upstream activities (sugar plantations) in South East Asia and said it is in 'advanced' negotiations to acquire two Indonesia-based firms operating in this segment.

BMI Industry View
7
SWOT
10
Agribusiness
10
Operational Risk
12
Industry Forecast
14
Palm Oil Outlook
14
Table: Palm Oil Production & Consumption (Malaysia 2014-2019)
15
Table: Palm Oil Production & Consumption (Malaysia 2009-2014)
23
Sugar Outlook
25
Table: Sugar Production & Consumption (Malaysia 2014-2019)
25
Table: Sugar Production & Consumption (Malaysia 2009-2014)
30
Cocoa Outlook
32
Table: Cocoa Production & Consumption (Malaysia 2013-2019)
33
Table: Cocoa Production & Consumption (Malaysia 2009-2014)
38
Livestock Outlook
39
Table: Beef Production & Consumption (Malaysia 2014-2019)
40
Table: Pork Production & Consumption (Malaysia 2014-2019)
40
Table: Poultry Production & Consumption (Malaysia 2014-2019)
40
Table: Beef Production & Consumption (Malaysia 2009-2014)
43
Table: Pork Production & Consumption (Malaysia 2009-2014)
44
Table: Poultry Production & Consumption (Malaysia 2009-2014)
44
Commodity Price Analysis
46
Monthly Grains Update
46
Commodity Strategy
50
Upstream Analysis
56
Asia GM Outlook
56
Table: Selected Countries - GM Crops Use
58
Asia Machinery Outlook
59
Table: Select Countries - Average Size Of Farms, Hectares
63
Asia Fertiliser Outlook
67
Downstream Analysis
72
Food
72
Table: Food Consumption Indicators - Historical Data & Forecasts (Malaysia 2012-2019)
74
Confectionery
74
Table: Confectionery Value/Volume Sales, Production & Trade - Historical Data & Forecasts (Malaysia 2012-2019)
75
Fish
75
Oils And Fats
76
Dairy
77
Table: Dairy Volume Sales, Production & Trade - Historical Data & Forecasts (Malaysia 2014-2019)
77
Drink
78
Hot Drinks
78
Table: Hot Drink Value/Volume Sales, Production & Trade - Historical Data & Forecasts (Malaysia 2014-2019)
79
Alcoholic Drinks
80
Table: Alcoholic Drinks Value/Volume Sales, Production & Trade - Historical Data & Forecasts (Malaysia 2014-2019)
81
Soft Drinks
82
Table: Soft Drinks Sales, Production & Trade (Malaysia 2014-2019)
83
Mass Grocery Retail
85
Table: Mass Grocery Retail Sales By Format - Historical Data & Forecasts (Malaysia 2014-2019)
87
Table: Grocery Retail Sales By Type, Historical Data & Forecast (%)
87
Regional Overview
88
Table: Impact Of El Ni-o On Crops
92
Competitive Landscape
94
Table: Main Agribusiness Players
94
Demographic Forecast
96
Table: Population Headline Indicators (Malaysia 1990-2025)
97
Table: Key Population Ratios (Malaysia 1990-2025)
97
Table: Urban/Rural Population & Life Expectancy (Malaysia 1990-2025)
98
Table: Population By Age Group (Malaysia 1990-2025)
98
Table: Population By Age Group % (Malaysia 1990-2025)
99
Methodology
101
Industry Forecast Methodology
101
Sector-Specific Methodology
102

The Malaysia Agribusiness Report features BMI Research's market assessment and independent forecasts for production, consumption and trade across core agricultural commodities.

BMI's Malaysia Agribusiness Report includes independent commodity price forecasting and analysis for key agricultural outputs, an overview of the agribusiness competitive landscape and a discussion of the downstream context of agricultural production in relation to country food consumption forecasts and composite food and beverage trade forecasts.

Key Benefits

  • Use BMI's independent industry forecasts to test other views - a key input for successful planning in dynamic agribusiness markets.
  • Apply BMI's medium-term commodity price analysis to assist with budgetary planning and the identification of investment opportunities and potential risks.
  • Assess the activities and market position of your competitors, partners and clients.

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, highlighting recent changes and key risks to the industry outlook.

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the wider agricultural industry.

BMI Supply & Demand Forecasts

Divided into sections based on various diverse sectors in the agriculture market, the chapter provides insight into each market’s agricultural industry, centred on sector forecasts to end-2019 for the consumption, production and trade of key commodities.

  • Consumption Forecasts: Accompanied by a discussion of the main drivers of consumption growth: macroeconomic factors, food processing trends, price movements and increasingly, demand from the non-food sector.
  • Production Forecasts: Examine the trends influencing BMI’s production outlook: global demand, price increases, public and private sector investment and agricultural efficiency improvements.
  • Trade Forecasts: Accompanied by a discussion of the factors influencing a country’s trade in agricultural goods, including domestic demand, global prices and government trade policies.
  • BMI’s Forecasts: Accompanied by a risks-to-outlook assessment, which examines potential factors that could affect our existing forecast picture and the likelihood of their occurrence.

BMI’s Commodity Price Analysis

Fundamental and technical analysis of the short- and medium-term price outlook for eight agricultural commodities based on globally recognised benchmarks.

Downstream Analysis

Analysis of headline food and drink forecasts, including total food consumption, per capita food consumption and total sector trade, which provide important downstream intelligence for primary agricultural producers.

Featured Analysis

Includes relevant articles from BMI’s daily analysis service. These can include: long-term projections on agricultural imports and exports; our perceptions of the impacts of economic slowdown on key companies and subsectors within the Agribusiness industry in a given country; our analysis of fertilizer production; as well as other relevant analysis of recent news and events.

Competitive Landscape

The reports contain information on prominent companies operating in each market.

Key Commodities Covered By The Agribusiness Market

Reports Include: Grains, Dairy, Livestock, Rice, Sugar, Palm Oil, Edible Oils, Coffee, Cocoa, Cotton, Soybean

Please note – not all reports cover all commodities.

Sources

The Agribusiness reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.