EPP 13: Dairy Clusters

  • GNI by 2020 (mil)
  • Projected jobs by 2020

EPP 13: Dairy Clusters

Led by the Department of Veterinary Services (DVS), this EPP aims to reduce Malaysia’s dependence on imported fresh milk by forming dairy clusters under anchor companies to produce milk on a large-scale basis.

Anchor companies will oversee all aspects of the dairy cluster operations, from production to marketing.

Individual farms will be engaged by anchor companies, with a deal to guarantee purchases at a pre-determined price. Steps will also be taken to upgrade existing cold-chain milk facilities to ensure that milk quality is maintained during shipment from farm to marketplace.

The DVS intends to find another anchor company to spearhead the development of dairy clusters in the northern and eastern regions. It aims to also ensure that the existing clusters achieve their respective targeted milk production of 15 million litres in 2013.

Meanwhile, the anchor companies will target to increase the average milk production per cow per location in their clusters to 15 litres per lactation per day from the current 10 to 11 litres.


  • The anchor companies under this EPP produced 18.12 million litres of milk in 2014.
  • There are now 281 farmers under this EPP, of whom 198 are considered smallholders (less than 30 cattle). As at October 2014, the average income of farmers was as follows:
    Average Monthly Income Number of Farmers
    < RM 1,000 50(18%)
    RM 1,000 - RM 2,999 39(14%)
    RM 3,000 - RM 4,000 18(6%)
    > RM 4,000 174(62%)
    *Income was derived with an assumption of price of milk per litre @ RM2.00

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