Tuesday, March 30, 2010

Bird’s nest industry, popular in S’wak and Sabah, now catching up in peninsula




March 30, 2010, Tuesday
ALOR STAR: The bird nest industry so far has been the domain of entrepreneurs in Sabah and Sarawak but the billion dollar industry is now slowly picking up in Peninsula.Realising of the huge potential, a businessman in Alor Star, Datuk Mohd Yusof Ismail without hesitation invested millions of ringgit in the swiftlet nest industry that is synonymous with the Chinese community.



Mohd Yusof noted that he became interested in the venture after a casual meeting with the chairman of the Federation of Bird Nest Traders Associations, Datuk Paduka Beh Heng Seong, in Sitiawan, Perak in 2008. “It started as a casual conversation but after hearing Beh’s explanation on the lucrative returns from the bird nest industry, I was convinced that I should give a try.
“Several of my friends who were already in the industry also gave me encouragement saying that the risks on investment are low and also asked me to attend courses related to the field,” said Mohd Yusof, the managing director of Kumpulan Usima.



An initial investment of RM1 million to build two four-storey swiftlet farms in Kuala Rompin, Pahang early last year saw good returns within six months. “This gave me the confidence to invest another RM2.5 million to build five more swiftlet farms in Jerlun, Kubang Rotan, Kuala Sanglang, Padang Sera and Tebengau respectively.



The farms were completed recently. “Though in Kuala Rompin alone there are more than 100 swiftlet farms, there is still room for competition and only that the startup cost is high,” noted Mohd Yusof in an interview with Bernama here. The first harvest after six months recorded almost RM10,000 for each farm and one can expect the same returns for the first three years.
Normally, the harvesting is done once every two or three months. After three years, the returns may go up or down depending on the number of birds nesting there. “Based on my experience, each farm can produce up to 3 kilogrammes (kg) of bird nest and their market value is between RM3,600 and RM4,000 per kg for the unprocessed nest and the processed ones can fetch twice more. “Currently the bird nests are sold raw as there is no expertise to process them,” said Mohd Yusof who has a list of regular buyers.



According to Mohd Yusof, the revenue would be affected at times when the birds migrate but there are ways to entice them to continue staying in their farms. The design of the nesting building especially the entrance helps in retaining the birds along with the right temperature and level of humidity within and the calls to lure in the swiftlets, he said.



It is not difficult to take care of the birds and there is no need to feed them. The only problem is that the nests get stolen even before the owners can harvest them. “There was one I found a rope used to climb into one of the swiftlet farm building in Kuala Rompin. It is definitely the work of those in the know,” he said.



Lizards, ants and other insects too pose a threat especially when the birds are brooding but these pests can be rid off with the right pesticide. However, the swiftlets are sensitive to the presence of owls that often eat their young when the adult birds leave the nest at night to look for food. “I’m planning to open a bird nest exhibition room within the next four or five years when my business expands,” he said.



Mohd Yusof noted that he is willing to share his expertise with those keen to venture into this field which still has room for more participants. He advised those lacking in capital to consider establishing a consortium to venture into this lucrative industry.



Meanwhile, Beh noted that the bird nest industry in Malaysia has a bright future looking at the demand and the price of the product. “The bird nests from Malaysia is highly sought after in China, Hong Kong, Taiwan and Korea, surpassing the demand for nests from Thailand and Indonesia, two of the world’s biggest bird nest producers,” he told Bernama. — Bernama

Saturday, March 27, 2010

Cabinet to get swiflet plan

KUALA LUMPUR: The Swiftlet Industry Guidelines (1GP) are expected to be tabled at the cabinet meeting next week.


They will provide the industry with a much needed framework to operate in a sustainable manner. The guidelines, if accepted, will put Malaysia ahead of leading bird's nest producers like Indonesia and Thailand. "The 1GP will be the first swiftlet industry guidelines in the world," said Veterinary Services Department director-general Datuk Dr Abdul Aziz Jamaluddin.This will mean that the industry, sparked by the migration of birds from Indonesia in 2000 and now a thriving business worth RM1.5 billion annually, would have its own standard, he said. The 1GP would provide the framework to supervise the industry in a holistic way, including in terms of licensing, sampling, production and export of swiftlet bird's nests abroad, particularly to China.


Aziz said 1GP had the full support of the Health Ministry, Agriculture and Agro-Based Industry Ministry and the Housing and Local Government Ministry. Swiftlet bird's nests, ornamental fish and seaweed are non-food high-impact sectors which the ministry are focusing on to contribute to the nation's economy.The speed at which the industry has grown over the last few years has brought about a major dilemma in terms of licensing of swiftlet-rearing premises in shophouses in towns in Penang, Malacca and Sarawak due to problems like health risks, diseases, smell and noise.


Federation of Switflet Nest Merchants Association chairman Datuk Beh Heng Seong said 1GP would help resolve the problems as owners of premises would have to agree to the conditions if they wanted to remain in business. "It will become a standard for all local authorities," he said in reference to the Good Animal Husbandry Practice (GAHP) for Swiftlets, written by Dr Fadzilah A'ini Abdul Kadir, which had been used since 2005. The GAHP, which attained the MS2273(P) standard from the Standards Department of Malaysia early this month, is among components of the 1GP to overcome the problems associated with swiftlet rearing. For instance, to address the noise problem, the volume of loudspeakers used to attract the birds would be limited to a maximum of 40 decibels. To address the problem of smell and health risks, operators would be required to clean their premises regularly to provide a conducive environment for the birds. Most states are waiting eagerly for the guidelines.


Sarawak has laws preventing rearing of birds in urban areas. Malacca and George Town (Penang), which are recognised as world heritage sites by Unesco, are also home to many swiftlets. Malacca alone has 17 swiftlet premises in the heritage zone. Malaysia has about 50,000 swiftlet premises, producing over 12 tonnes of bird's nest monthly. One kilogramme of bird's nest can fetch RM4,000. -- Bernama

Still no guidelines on swiftlet farming


By Philip Hii
philiphii@thestar.com.my
SWIFTLET farming is mushrooming all over the state, especially in Sibu, and there are still no clear-cut guidelines from the authorities. Industry players conservatively estimate that at least three units of bird houses are constructed daily in Sarawak, making the state one of the fastest growing centres for swiftlet farming in Malaysia.


There are some 3,000 bird houses in the state. Many rural farmers and fishermen are now shifting to swiftlet farming in the central and coastal areas of Sarawak as traditional farming is becoming more difficult with prices of fertilisers and insecticides getting expensive. Marine resources are also getting scarce.


In the urban areas, especially Sibu, Mukah, Bintangor and Sarikei, many unoccupied and under-utilised shophouses and residential units have been converted into bird houses. In Bintangor, for instance, a block of two units of semi-detached houses costing more than RM500,000 was recently converted into a bird house to rear swiftlets.


Although swiftlet farming on a commercial scale is a relatively new industry, it has attracted many investors, among individuals and companies.New purpose: The two semi-detached houses in Bintangor which have been converted into a bird house. Many professionals like doctors and engineers are already investing in this business. What attracts people into this venture is that it is lucrative and ensures fast returns. On top of that, it is not labour-intensive.


A bird house may cost anywhere from a few thousand ringgit to more than a million ringgit, depending on the location and its size. If it is professionally managed by experienced people, the returns are fast and investors can reap the fruits of their money within three to five years. The price of unprocessed bird’s nest has been quite stable in recent years, with one kilogramme selling at between RM4,000 and RM6,000 while processed bird’s nest could fetch up to RM15,000 a kilogramme.


Malaysia is currently the world’s third largest producer and exporter of edible bird’s nest, after Indonesia and Thailand. The 2009 export value was in excess of RM1bil. Busy: An Aerodramus Fuciphagus is checking out a timber plank to prepare a nest for her young. The Federal Government is optimistic that by 2020, Malaysia’s bird’s nest export value will reach RM5bil annually with Sarawak alone contributing RM2bil.


However, under the 1998 Wildlife Protection Ordinance, swiftlet farming is not permitted in towns and residential areas. Swiftlet farmers are required to apply for licences to breed the birds in agricultural areas in the outskirts.In addition, the two of the swiftlet species — aerodramus fuciphagus and aerodramus maximus — which produce the edible bird’s nests are protected animals.


Last year, the Sarawak Forestry Corporation Sdn Bhd (SFC) which has been tasked with stopping the rapid growth of illegal bird houses, carried out raids on structures built in shophouses. Subsequently, swiftlet farmers and merchant associations held several dialogues with SFC. It now appears that the situation is back to square one, with the swiftlet farmers continuing to rear the birds in shophouses and residential areas.


A committee member of the Sarawak Birdnest’s Suppliers Association (SBSA) said the organisation was hopeful that the long-awaited national guidelines for swiftlet farming would be passed during the current Parliament sitting. “It will be good news for all Sarawak swiftlet farmers if the national guidelines come into force,” he said.

Friday, March 26, 2010

Need to ensure safety in swiftlet industry

Need to ensure safety in swiftlet industry
KOTA KINABALU: Swiftlet farming is a lucrative industry but steps must be taken to ensure it does not have a negative impact on the environment and the people. Sabah Deputy Chief Minister Datuk Peter Pang En Yin said there was a need to make sure the activity was carried out in specific areas.

“We have to bear in mind that local authorities do not allow swiftlet farming at shoplots or commercial lots in townships and urban areas as these properties are gazetted for residential, commercial, industrial and tourism purposes.

Lucrative business: A structure use for swiftlet farming in the outskirts of Kota Kinabalu.
“They are not zoned for swiftlet farming so I advise those in the industry to wait for the endorsement of the Swiftlet Industry Guidelines (SIG) by the Federal Cabinet,” said Pang, who is also the State Youth and Sports Minister.

With SIG, local authorities could determine the zones allowed for swiflet farming and those involved in the industry would have a set of regulations to adhere to, he added.
Sabah Swiftlet House and Bird’s Nest Industry Association president George Ng had said that the SIG, reported to have the full support of the health, agriculture and agro-based industries and the Housing and Local Government Ministry, was supposed to be tabled at the Federal Cabinet meeting at the end of last month but was delayed.

If accepted, it would give the industry the much-needed framework to operate in a sustainable manner and put Malaysia ahead of leading bird’s nest producers like Indonesia and Thailand, he said.

The guidelines would also provide a framework to supervise the industry in a holistic way in terms of licensing, sampling, production and export particularly to China, he added.
Pang, the Karamunting assemblyman, said he was aware of developments in the industry and stressed he had nothing against the industry.
He pointed out that allowing swiftlet farming in industrial or densely-populated areas could have a negative impact in the health, business and safety aspects.

“We know how valuable birds’ nest are and this could trigger an increase in criminal activities in towns or industrial areas where swiftlet farming is allowed,” he said, adding that people would be worried about the droppings and noise from the birds.

Pang who is also Kosan chairman, said the state agency experienced some setbacks as a result of a swiftlet farm in an industrial area in Sandakan.
Kosan had rented four ground-floor shop lots in an industrial zone in Sandakan to expand its production line and provide jobs for 80 youths in the district.

“The management abandoned its plans after realising that the upper floors were occupied by a swiftlet farmer. Kosan wanted to avoid any health risks to its employees,” he said.
In response to Ng’s claim that the industry could boost property prices in Sabah, Pang said he was not convinced as swiftlet farming could cause the opposite effect.

“Zoning an area for swiflet farming can have a negative effect with property owners disposing their properties and tenants moving away.

An area for human occupation would be taken over by birds and this could cause a whole township to be deserted, he lamented.

Pang said a clean and healthy environment was important for the state’s tourism industry and tourists might feel uneasy if the places they visited had health risks because of swiflet farming.
“We do not want to see swiftlet houses next to hotels, seafood restaurants and shopping malls,” he said, adding that swiftlet farmers should not fall prey to agents or advisers in the industry.
Wait for the guidelines to be drawn up and consult local authorities before setting up business, he said.

Tuesday, March 16, 2010

Potential RM2b yearly from S’wak swiftlets

by Churchill Edward March 16, 2010, Tuesday

LUNDU: Sarawak has the potential to contribute up to RM2 billion to the country’s total yearly production of bird’s nest by 2020.

Malaysia as a whole produced 250 tonnes of bird’s nest (from 50,000 birdhouses) worth RM1 billion in 2008 alone. Yesterday, Sarawak Economic Development Corporation (SEDC) chairman, Datuk Talib Zulpilip expressed optimism that the country would be able to produce an annual RM5 billion worth of bird’s nests with Sarawak contributing RM2 billion yearly by 2020. When closing a swiftlet farming and marketing strategy course at Sematan community hall here yesterday, Talib said, “Malaysia, in 2008, produced 250 tonnes of swiftlet bird’s nests worth about RM1 billion which also involved 50,000 birdhouses.”

“It is our (government) hope that by 2020, the country would be able to produce a yearly RM5 billion worth of bird’s nests weighing 500 tonnes involving 100,000 birdhouses. The source of this information came from Federal Minister of Agriculture and Agro-based Industry Datuk Noh Omar,” said Talib who is also State Assistant Minister of Tourism and Heritage. He said Bumiputera involvement in this industry is still low at less than 10 per cent, according to statistics in 2009.

“With such a scenario, Bumiputera involvement in this industry is still very low and lagging far behind compared with that of the non-Bumiputera sector which controlled about 90 per cent of the total industry. We hope local Bumiputera involvement will be greater after we (SEDC) provide training and courses to encourage their participation,” he stressed. He said, with yesterday’s one-day course, folks in Sematan could see the potential of this industry and tap the golden opportunities afforded by it. He stressed that the industry is a real income generator.

A kilogramme of bird’s nests depending on its grade, could fetch RM4,500 to RM6,500 in the local market while the price could increase to between RM6,000 and RM12,000 (world market).
The highest the price per kilogramme has gone up is from RM12,000 to RM24,000, Talib said when pointing out that entrepreneurs have nothing to fear when it comes to business returns and turnover.

He said one can browse www.gemsb.voc.com to find out the details on farming and marketing of swiftlet bird’s nests. However, he said, this industry would require a big capital outlay if one wants to start big and get handsome returns. Talib stressed that he was confident the capital issue could be overcome by engaging the assistance of government agencies.

As far as Bumiputera entrepreneurs are concerned, Talib said he hoped they would expand their businesses in the global arena instead of just being contented with local businesses. Talib pointed out that rodents are potential pests of bird’s nests and that firecrackers are not only scary but could disturb the mating season of swiftlets.

Recently the Sarawak government had entrusted SEDC to set up a Swiftlet Birds Eco Park, according to a press statement delivered to the media during the closing ceremony. The Eco Park will be the first of its kind in Sarawak and it is to be located at come from overhauling the university’s teaching activities to make graduates more commercially viable.

Sunday, March 14, 2010

Be fair in crackdown on illegal swiftlet farmers: SAPP leader

March 10, 2010, Wednesday
KOTA KINABALU: City Hall must be fair when taking action against those who operate illegal swiftlet farming activities in the state capital.“How is it possible that action was taken against a swiftlet farmer in Inanam this month, but three similar activities are allowed to flourish in the city itself?” SAPP Api Api Central Liaison Committee (CLC) chairman.Datuk David Chong asked.
According to Chong, on March 2 this year, City Hall together with the State Wildlife Department took action against a swiftlet farmer who operated in farm in a three storey shoplot in Inanam.

There were similar activities in the city itself, but City Hall has turned a blind eye to what they are doing, he said, claiming that the illegal swiflet farming activities being carried out in Jalan Pantai, Australia street and Gaya street. “By allowing them to continue operating showed that City Hall condoned such activities in the city area, but not in the outskirts. “The question here is why is the swiftlet farmer in Inanam victimised? If City Hall is taking action against those in Inanam, then it must do the same for those in the city…. it must be fair,” he said.

Chong also said according to City Hall’s licensing unit, those who want to convert their shop lots for swiflet breeding must apply with it to have the licence changed.

The activity was deemed illegal if the person did not receive any approval, he said, adding that the Wildlife Department also confirmed that an approval from the department to carry out the activity must be obtained failing which the offender could be fined RM50,000.

Friday, March 5, 2010

Money on wings

By Wilson Luke February 28, 2010, Sunday


On average, unprocessed bird’s nests can fetch RM4,000 per kg, meaning the industry can generate RM48 million a month.


ENVIRONMENT-FRIENDLY: A bird house being constructed away from residential and populated areas. A lucrative business to venture into at the moment maybe just flying around the corner.

Trading in bird’s nests has found a niche in the market after it began more than a century ago with the first recorded harvesting being carried out at the Niah Caves in 1878. Indonesia was the first nation to commercialise the commodity due to its high value globally.

However, in the late 1990s when the haze blanketted the Southeast Asian region, most of the birds from Indonesia migrated across the border to Sarawak and the peninsula. That was when Loh Siaw Kuei, a third generation supplier of local bird’s nests, started to take interest in swiflets ranching.

He recalled previously, they had to rely on suppliers from Niah in Miri before they could process and export the commodity mainly to China. According to him, the old processing method left behind a lot of impurities, and supplies from the harvesters were also inconsistent.

In 2000, he decided to venture into swiftlets ranching and he put up a building just outside the city for the purpose. “I started with an investment of RM30,000,” said Loh, arguably a local pioneer in modern swiftlets ranching.

He forked out another RM10,000 to buy the equipment needed to attract the swiftlets.
Being new to the venture, he sought help from friends and business partners in the peninsula who had started much earlier. “It was truly by trial and error,” Loh said, adding that he started almost from scratch and persevered for more than five years before seeing the fruit of his labour. Now, Loh has five ‘bird houses’ in Kuching and Samarahan. “If the bird house turns out to be good, you can expect about 100 to 300 nests in the first year,” he said.

According to him, to be a successful swiftlets farmer, the three most important criteria are (1) getting started; (2) waiting (patiently) for the swiftlets to build their nests and (3) be innovative and constantly upgrading the farm with knowledge and technology. It is estimated there are 1,000 bird houses in Sarawak and presently, about 10,000 buildings are used as swiftlet ranches nationwide, producing roughly 12 tonnes of bird’s nests monthly to which Sarawak contributes some five tones.

Presently, Loh obtains a lot of supplies from the Sarawak Bird’s Nests Merchant Association (SBNMA) of which he is president. On average, unprocessed bird’s nests can fetch RM4,000 per kg, depending on the graded quality. This means the industry is capable of generating RM48 million a month.

Although Mukah is the main centre for swiftlets ranching, other areas with their own potential are Kuching, Bintulu, Sarikei and Sibu. Basically, there are two types of products — cave bird’s nests and house bird’s nests. According to Loh, not many bird’s nests are obtained from caves after the introduction of bird houses. “The nests from bird houses are much cleaner and more hygienic compared to those produced in caves.”

The two swiflets species producing the edible bird’s nests are collocolia fuciphaga/aerodramus fuciphagus (AF) and collocolia maxima/aerodramus maximus (AM) found mostly in Malaysia at present. The bird house has to be insulated and properly ventilated with the temperature kept below 30 degrees Celcius for the swiftlets to stay and breed.
Under normal circumstances, a pair produces two eggs per season — and three times in a year. If the bird house is conducive, by the 10th year, the total number of swiftlets could exceed 700,000 pairs with an estimated population of 1.5 million. Although on paper, this may look impressive but in reality, it might not be accurate. However, even achieving only half the population figure would be regarded as a success.

A female swiftlet remains productive for 10 to 15 years and can live up to 25 years. Bird’s nests are used in medicine, cosmetics and the food-based industry, worth RM1.5 billion annually in Malaysia through the export of raw bird’s nests, especially to China. Recently, there was proposal to launch a multi-million ringgit swiftlets eco park in Sarawak to accommodate the thriving local bird’s nests industry.

So far, seven sites have been identified around Kuching, Sarikei, Bintulu and Mukah. The project involves the construction of terrace houses or shoplots for swiftlets farming and processing in a systematic and ecologically friendly manner.

For those interested in swiftlets ranching, the bird’s nests industry is under the purview of the Wildlife Protection Ordinance 1998, Wildlife Protection (Edible Bird Nests) Rule 1998 and Wildlife Protection Rules 1998.

What this means is that the birds may live and be harvested with licence in their natural habitat such as cave dwellings but prohibited in urban or residential areas.

Wednesday, March 3, 2010

Rural areas could be bird’s nests goldmine

February 24, 2010, Wednesday Tagged with:

LIMBANG: Rural areas could be a bird’s nests goldmine through the state government’s efforts to promote swiftlet rearing outside urban centres. Assistant Minister of Tourism and Heritage Datuk Talib Zulpilip said the industry has a bright future due to the lucrative returns and larger areas in villages to set up swiftlet nesting homes.

“The swiftlet industry has shifted out of town now and there is growing potential to expand this promising industry in villages and rural areas,” he said when officiating at the Sarawak Economic Development Corporation (SEDC) course on swiftlet rearing yesterday.

Among those present were Deputy Limbang Resident (Social Development) Stephen Kalong and Limbang District Council chairman Sufian Mohat. Talib, who is also SEDC chairman, said Sarawak’s bird’s nests quality has long been renowned throughout the country and internationally, including in China, as experts recognize its special characteristics.

This presents many opportunities for those interested to diversify their economic activities, he said. The huge demand for bird’s nests and vast agricultural land in the state, particularly outside urban centres, is a golden opportunity for Bumiputeras, he added. Talib explained that although the start-up capital expenditure may vary between RM40,000 and RM50,000, the handsome returns made the investment worthwhile.

“A kilogramme, depending on the grade, can fetch between RM4,500 and RM6,500 locally, while the highest price is between RM12,000 and RM24,000,” he said. He said more studies need to be carried out to further develop the industry. Meanwhile, Bukit Kota assemblyman Dr Abdul Rahman Ismail, in his speech, called for greater local involvement in higher value economic programmes to enable locals to raise their household incomes.

This should be the trend of communities in Limbang district as the government through SEDC, he said, could assist through a host of economic development programmes. “When the people’s income and economic standards rise, it will have a knock-on effect on the country’s economic growth,” he pointed out.

He said this is the rationale behind the government’s optimism in encouraging the people to be positive-minded and determined to succeed in various fields. “The society generally is highly determined to take on various fields that promise good returns, including the lucrative swiftlets rearing industry,” he added.

Swiftlet rearing is taking off in stages in Lawas District. Two hundred participants from Limbang, Lawas and Ba Kelalan attended the one-day course.