KUALA LUMPUR: The National Feedlot Corporation (NFC) will be revived with a different business model and renamed as the government still aims to have its own national feedlot centre.
Veterinary Services Department director-general Datuk Dr Quaza Nizamuddin Hassan Nizam said with the correct business model, the venture could be profitable and support the country’s livestock needs.
He said it would remain a private sector initiative but would see government support.
“It is vital that the public understands the difference between NFC and the government’s initiative to set up the country’s own national feedlot centre.
“The project was undertaken by NFC, which has ceased operations, and failed to deliver what it promised. We will revisit the business model.”
He said the department had set up 61 standalone satellite farms to support NFC. These farms were let out to farmers and entrepreneurs to rear the cattle that NFC was to bring in.
“The cattle was to be distributed to these farms where the animals would be fed and reared until they reached a suitable weight and sold back to NFC for slaughter.
“However, the NFC centre in Gemas, Negri Sembilan, did not take off and had to cease operations.
“It would be a waste if the project was not revived. The satellite farms are already there.
“The plan is to improve them and revive NFC. We can improve these not only in terms of technology but also in numbers.”
Agriculture and Agro-based Industry Minister Salahuddin Ayub said the project would be revived as he saw the benefits to the country having its own feedlot centre.
Quaza said Salahuddin wanted the revival plan to be ready as soon as possible.
He said the revived project would be private-sector driven, with a “more business than government approach”.
As Malaysia lacks large tracts of land for grazing, it has to resort to satellite farms where one farm can accommodate about 200 head of cattle.
This, however, can be cost-intensive.
“One cow from Australia costs between RM2,000 and RM3,000 to be purchased and fattened up before slaughter.
“With 200 head of cattle, it is going to cost between RM400,000 and RM600,000.
“They will be kept between two and four months until they reach an ideal weight of 100kg each before they are sold.”
He said there must be private-sector participation as the government could not do this alone.
“We have to convince the private sector that it is a good business.”
Through the revived project, the country’s beef self-sufficiency level (SSL), at 23 per cent, can be raised to 30 to 40 per cent.
He said the department was looking at proposing to increase the participation of government-linked companies (GLCs), which had plantation as their core business, in what was called the GLC rearing programmes.
The ministry is looking at Felcra Bhd, Tabung Haji, IOI Group and Sime Darby Bhd to take part in the GLC rearing programmes. A calf can be sold when it reaches two years.
“The programme is ongoing, but it needs to be developed.
“Some GLCs have resisted because it is not their core business and that the returns are not as attractive, but we hope this can change.
“They should consider this as national service in helping the government increase its food production and self-sustainability.
“We want to speak to the owners of these plantations. We can put in and rear more animals in the system.”
Besides the satellite farms and GLC rearing programmes, the department has a programme with farmers in Kelantan and Terengganu, who have smaller farms rearing 20 to 30 animals each.
These farmers are breeding the hybrid Sado, a cross between a local cow and the Limousine cattle and Belgium Blue. These animals can weigh up to one tonne. The farmers have 10 to 15 of these hybrids each.
“Everything has to move in tandem if we are to improve on the current SSL.
“And, if everything works according to plan, we can achieve the increased SSL within four years.”