Revive NFC Export Quality Abattoir, Malaysia’s food security under seige

This NFCorp feedlot and abattoir is the closest in specification to the requirements of Australia's new export laws. However, its capacity is limited to 30 heads of cattle per shift per day. As such, the EQA remains imperative for the NFC project to be a complete success. 

Fabiani Azmi

Bernama reports that a new Aussie ruling has affected cattle supply for Aidiladha. A stricter export policy under Australia's Exporter Supply Chain Assurance System (ESCAS) has come into effect.

Azizan Omar, 48, owner of a livestock farm PB Ramunia in Batu Pahat, Johor, said that only abattoirs that had been audited and approved by the Meat & Livestock Australia (MLA) were allowed to slaughter such imported animals. He said the ruling had affected mosques, associations and individuals as they could not obtain the certificate or approval to carry out the slaughter. Blog journo Fabiani Azmi says the deferred NFC Export Quality Abattoir by the government is long overdue by several years. The NFC beef project suspension needs to be lifted. Malaysia must move forward in food security and not allow the opposition and their rhetorics to set it back by 10 years.

The debate continues. Defence lawyers for National Feedlot Corporation Sdn Bhd (NFCorp) recently issued a media statement welcoming the Attorney General’s remarks, “The investigation did not reveal criminal breaches as far as the Agriculture and Agro-based Industry Ministry (MOA) is concerned.”

The lawyers pointed that the controversy was merely a commercial breach on the part of the ministry when it failed to perform its obligation to build an Export Quality Abattoir (EQA) in accordance with the Implementation Agreement.

The EQA formed an integral and critical path for the successful implementation of the NFC beef project. It was pivotal for many of the project’s stages including an Entrepreneur Development Programme (EDP) to nurture 310 contract farmers and 186,000 heads of cattle by 2014.

The media statement from the legal firm Shafee & Co underscored, “The EQA, vis-a-vis the project, is the fulcrum and the very lifeline to the entire scheme of the project in all its phases.”

Why the need for an Export Quality Abattoir?

Quality beef comes from a wholesome food chain from ‘farm-to-fork’. The best breeds are reared with the best fodder in the best of grasslands, nurtured until they are ready for slaughter at Export Quality Abattoirs. Unlike slaughter houses which are very basic in nature, an EQA encompasses the complete chain of events from slaughter to beef production in world-class hygienic systems before it is delivered to the customer and consumer.

This is a mandatory standard by the international hypermarkets and supermarkets operating in Malaysia before the beef can be retailed to local consumers. It is also the preferred standard for quality meats by hotels, restaurants and cafes. Notwithstanding, discerning housewives too demand the cleanest cuts for their dinner tables.

In an update, Bernama reported that only abattoirs that had been audited and approved by the Meat & Livestock Australia (MLA) were allowed to slaughter such imported animals. A stricter export policy under Australia's Exporter Supply Chain Assurance System (ESCAS) had come into force.

It quoted livestock farmer Azizan Omar having said, "I have been informed by livestock sellers that a new export policy of Australia prohibits export to buyers without proper abattoir facilities.  Even though I could import the animals from neighbouring countries such as Thailand and Indonesia, they too have their own problems and they give priority to their local buyers.”

Gombak Agro Farm operator Noor Azzuddin Abdul Aziz said the prices of livestock had also soared by between 40 and 45 per cent due to the short supply.  He said a cow previously sold at RM2,500 could cost RM5,000 while the prices of goats ranged from RM600 to RM5,000 according to the size of the animals.

Ishak Hassan, manager of the Ishak Hassan Farm in Seremban, said he decided to skip doing the business this year due to the problems in the market.

Signs are there in the horizon that our food security is under siege.

NFC Export Quality Abattoir needs to be revived

Now that we have a clearer picture of things, will the government revive the EQA?

To meet the targeted beef production schedule, the MOA in accordance with an Implementation Agreement, was obligated to build an EQA with a capacity of 350 heads of cattle per shift per day for the NFC beef project. A fully equipped EQA is estimated to cost RM60 million to build and furnish, and two years to complete. There is no EQA of this magnitude, capacity and class in Malaysia today. So it was important that the EQA be built by the MOA to fulfill the colossal production targets set by the government itself for the NFC project – 246,000 heads of cattle by 2015.

Presently at the NFC in Gemas, there is only one interim mini abattoir built by NFCorp to meet NFCorp’s needs. It is certified with a "Veterinary Health Mark" logo, a symbol of quality awarded to the livestock product processing plant under the Veterinary Inspection and Accreditation Programme, Department of Veterinary Services, Ministry of Agriculture Malaysia. The abattoir is also certified Halal by JAKIM.

This NFCorp feedlot and abattoir is the closest in specification to the requirements of Australia's new export laws. However, its capacity is limited to 30 heads of cattle per shift per day. As such, the EQA remains imperative for the NFC project to be a complete success.

Most of the quality beef that we consume are imports and come at a price that only diners fork out at fine hotels, restaurants and cafes. The best cuts from butchers at high-end supermarkets are also several notches pricier. Quality beef does come with a price to match. It is no wonder that the beef import business in Malaysia is estimated at a mega RM2 billion annually and controlled by cartels determined to see their businesses undisturbed.

National Meat Policy (Ruminant Sector) 2006

As a result, the Government introduced the National Meat Policy (Ruminant Sector) 2006 to liberate the industry and to ensure Malaysians from all walks of life, can enjoy not only quality meat from the best livestock breeds but at affordable prices. By 2015, it is hoped that Malaysia can see self-sufficiency levels rise to 40 per cent, a 100 per cent increase from current levels.

Therefore in 2006, the government mooted the National Feedlot Centre (NFC) as a high impact project. To kick start, 1,500 acres in Gemas, Negeri Sembilan, was leased as a local prairie and production centre to NFCorp for 30 years to grow the beef project business.

The EQA completes the ‘farm-to-fork’ food chain.

Benefits from an export quality abattoir

An EQA allows for the preparation, processing and delivery of the best cuts with food safety in accordance with world class standards. The location, design, layout and construction of EQAs and the choice of fixtures, fittings, equipment, and storage facilities are a science in itself.

Once the EQA is in place, contract farmers under the Entrepreneur Development Programme (EDP) would also have world-class facilities for their cattle to be prepared in accordance to top-notch standards. Under the EDP, entrepreneurs would comprise individual contract farmers nurturing the best of breeds. Imported at an average 300 kg in weight, the cattle are bred until they are twice their weight at 600 kg before slaughter.

In the immediate term, NFCorp was looking at grooming 130 entrepreneurs and by 2015, it was hoped to groom 310 entrepreneurs to participate in this high-impact industry. Some 3,000 farm hands would also be gainfully employed in this scheme.

78,000 Metric Tonnes of Beef Products

By 2015, EDP contract farmers are expected to breed and slaughter 186,000 heads of cattle while NFCorp has a target of 60,000 heads of cattle. Cumulatively, this is 246,000 heads of cattle or an equivalent of 78,000 metric tonnes of quality beef products for Malaysians. More importantly, this raises our food security by a further 20 per cent.

The EQA is therefore a pivotal structure to ensure the success of the aspirations of the National Meat Policy (Ruminant Sector) 2006. To be leased to NFCorp, the government-built EQA would ensure that beef production numbers could be achieved according to targets set in the Implementation Agreement signed between NFCorp and the Government. It would also see the roll-out of the EDP that prepares 310 contract farmers to go large scale.

However, the EQA remains deferred and the NFC project suspended. This would mean that Malaysia’s food security is put in a vulnerable position. In the event of natural calamities or war or trade sanctions or stricter export rulings, imports could be disrupted and Malaysians would have no beef at the dinner table.

Food security will indeed come under siege. Will Malaysians end up being vegetarians?

It is high time that the NFC beef project is revived, the EQA is built, and a high impact industry is re ignited. Hungry stomachs will not vote.

About the Writer

Fabiani Azmi is an avid reader of Malaysia Today, intelligent mainstream newspapers and Internet news portals. When not reading, he also enjoys the company of sapiosexuals. It’s a highly stimulating discovery for him.

Follow Fabiani @fabaz88.