Wednesday, January 18, 2012

Sarawakians going into swiftlet farming in a big way

By JACK WONG
jackwong@thestar.com.my


KUCHING: Sarawakians are flocking to the lucrative swiftlet farming business as more and more bird houses are being set up in the state. Sarawak Bird's Nest Suppliers Association secretary Colin Wong Chung Onn said there was an estimated 5,000 swiftlet houses statewide with many more under construction. “The number of swiftlet houses has more than doubled compared with a year ago,” he told StarBiz. About 60% of these houses are found in the Mukah and Sarikei divisions in central Sarawak mostly along the coastal areas.
Unprocessed swiftlet nests have a market price of between RM3,000 and RM5,000 per kg compared with at least RM7,000 per kg for processed nests.
Unlike Peninsula Malaysia, Sarawak is a late starter in commercial swiftlet farming. It is learnt that the state authorities, in consultation with the industry players, are drafting comprehensive guidelines to regulate the development of the industry.

Acting on environmental and health concerns, the state authorities had investigated more than 400 illegal farms last year, said Sarawak Assistant Minister for Planning and Resource Management Naroden Majais. He said the construction of swiftlet farms was being closely monitored to prevent illegal operations. Naroden said two licences were needed for commercial swiftlet farming - one to construct the building for the swiftlets to nest and the second for the rearing of the birds.

Some 250 licences to construct buildings and a handful to rear the birds have been approved. Wong said big-time investors were constructing double or three-storey concrete shophouses to rear the swiftlets while the smaller ones, like farmers and fishermen, were building wooden houses. Unoccupied or under-utilised shophouses and residential houses have been converted into swiftlet farms.

He said it would cost about RM400,000 (excluding land), to build a three-storey shophouse (36ft x 76ft) for swiftlet farming. Sarawak's first swiftlet eco-park, a RM40mil joint-venture between state Economic Development Corporation (SEDC) and Borneo Resources Synergy Sdn Bhd is expected to be ready in Balingian, Mukah division within the Sarawak Corridor for Renewable Energy by next year.

The park will have 40 three-storey units and 15 three-storey bungalow units. The SEDC has been tasked by the Sarawak government to spearhead the development of swiftlet farming on a well-planned, sustainable and eco-friendly manner. Similar eco-parks have been planned for other parts of the state. Wong said some pioneer swiftlet houses in Paloh, Mukah division could each produce up to 3kg of swiftlet nests a month. “Unprocessed swiftlet nests fetch a market price of between RM3,000 and RM5,000 per kg compared with at least RM7,000 per kg for the processed nests.”

Some of the raw nests are being sold by middlemen to Indonesia, Singapore and Hong Kong. He said based on a conservative estimate of the 5,000 bird houses producing an average 0.5kg of nests a month, this would mean a yearly production of 3,000kg. At an average market price of RM3,500 per kg, it would generate RM10.5mil per annum for the Sarawak economy.

Sarawak's production of swiftlet nests, Naroden said was 2,854kg last year, up from 2,095kg in 2008. For the first 10 months of last year, 1,757kg valued at RM7mil were produced. Naroden said China was the biggest market for edible swiftlet nests, followed by Singapore and Peninsular Malaysia. Wong said the production of swiftlet nests from caves, like Niah Cave in Miri, had been on the decline over the years because of over-harvesting.

Although swiftlet farming is potentially lucrative, he said there were investors who had not been successful in their ventures due to several factors. “Choosing the right location to site the swiftlet houses is vital, otherwise it will take a longer time to attract the birds. “Other important factors are the design and conditions, like temperature and humidity, of the houses,” he added.

According to an investor, the returns from successful swiftlet farming was comparatively higher than most businesses. He said a two-storey swiftlet house (20ft x 60ft which costs between RM250,000 and RM300,000 to build) could produce between 36kg and 48kg of nests a year (worth between RM144,000 and RM192,000 based on RM4,000 per kg) from the fourth year of operation.

“Once in operation,it will take at least 18 months for the first collection of the nests. Production will gradually increase with more swiftlets nesting,” he added. For the most successful operator, it would take about five years to fully recover the costs to build the swiftlet houses and related facilities, adding that from then on, the profits would be high.

Bird's nest exporters need 3 quality certifications to enter China

KUALA LUMPUR: Starting this year, local companies exporting swiftlet nests to China are required to obtain three quality certifications before their products will be allowed to enter the republic, according to Agriculture and Agro-based Industry Minister Datuk Seri Noh Omar.
He said the quality certifications were the Veterinary Health Mark (VHM) certificate issued by the Veterinary Department, the Radio Frequency Identification (RFID) certificate issued by the Malaysian Communication and Multimedia Commission (MCMC) and the health certificate issued by the Health Ministry. The three certifications are aimed at ensuring the quality of the Malaysian swiftlet nests would meet the standards set by the Chinese government, he told reporters after opening Malaysia's first Authentic Bird's Nest Depository and Trade Centre in Puchong near here on Monday.
"These quality certifications must be adhered to in order to meet the strict requirements set by the Chinese government after they agreed to accept swiftlet nests from Malaysia last year. "However, the Chinese government has also required that only bird's nests with zero part per million (ppm) of nitrite are allowed to be exported to the republic," he said.
Noh said it was very difficult to obtain swiftlet nests with zero nitrite level, but the ministry was hoping that the Health Ministry could set a minimum and acceptable nitrite level for the issuance of the certification purposes.
The minister said the company which obtained the three quality certifications would be allowed to use the "1Malaysia Best" brand on their swiftlet nest products, but they also had to identify a strategic partner in China to ease the trade and monitoring process.
"Their partners in China will also be required to promote swiftlet nest products bearing the brand of '1Malaysia Best' as the ones having the best quality and safe for consumption," he said. Meanwhile, Health Ministry Food Safety and Quality Control Division senior director Dr Noraini Mohd Othman said the swiftlet nest products containing high level of nitrite could pose a threat to human health and could also cause cancer.
"We will announce the acceptable level of nitrite in swiftlet nests after the ongoing discussion between our experts and their counterparts in China is concluded," she said. - Bernama

Saturday, January 7, 2012

Malaysian bird’s nests to re-enter China in April

Friday January 6, 2012

MALAYSIAN bird's nests are expected to re-enter the Chinese market in April, months after allegations surfaced that high levels of nitrate were found in the product, Nanyang Siang Pau and China Press reported.

Chinese ambassador to Malaysia Chai Xi was quoted as saying that the import of bird's nest to China was expected to resume following efforts by both Malaysian and Chinese governments to resolve the matter.
He said a quality inspection management team from China arrived on Dec 28 to establish a permissible nitrate level for the product.

Chai said both governments were committed to resolve the matter after Prime Minister Datuk Seri Najib Tun Razak met China Premier Wen Jiabao in Nanning in October. He stressed that China had not banned the product from Malaysia but only imposed stringent measures to ensure the quality of bird's nests is met.

Ban on imports badly affecting demand for white bird’s nest in China

Friday December 30, 2011

By JACK WONG
jackwong@thestar.com.my


KUCHING: Unprocessed white bird's nest prices have fallen further as demand for Malaysia's bird's nest products has been badly affected after China banned their imports about five months ago. “The average price has dropped to around RM3,000 per kilo as compared with RM4,500 before the ban,” said Sarawak Bird's Nest Suppliers Association secretary Colin Wong Chung Onn China imposed an import ban in July after nitrate was found in Malaysian bird's nests.
Wong said although there was demand, most swiftlet breeders were in no hurry to sell at the current depressed prices. “Unprocessed bird's nests can be stored without going bad for about a year with good control of humidity and temperature,” he told The Star yesterday. He said the prices were likely to recover if China lifted the ban soon as stocks of bird's nest products in the mainland were expected to drop to a low level with increased consumption of the delicacy during the Lunar New Year. Locally, bird's nests are packed in gift hampers to be given away during festive seasons.
Agriculture and Agro-based Minister Datuk Seri Noh Omar was reported to have said last month that a committee set up by Malaysia and China to determine the permissible level of nitrate in bird's nest products was expected to resolve the issue before the Chinese New Year.
The committee was formed following a meeting between Health Minister Datuk Seri Liow Tiong Lai and his Chinese counterpart Chen Zhu in Beijing. Its members include food specialists and experts. Liow had said that China would lift the ban after determining the allowed level of nitrate. China is Malaysia's biggest importer of bird's nest products, valued at about RM1bil annually. Wong said Chinese officials and experts were expected to visit Malaysia soon to see how bird's nests were processed.
Asked about the mushrooming of new swiftlet houses, mostly in the central region, Wong said the association did not have the latest figures as most of the new operators had not joined as its members. Sarawak's first swiftlet eco-park in Balingian, Mukah, which will have 40 units of three-storey buildings and 15 units of three-storey bungalows, is expected to be ready next year.   The RM40mil eco-park is a joint-venture between state Economic Development Corporation and peninsula-based Borneo Resources Synergy Sdn Bhd.

Wednesday, January 4, 2012

Bird’s nest industry a lucrative industry

Bird’s nest industry a lucrative industry

Posted on January 4, 2012, Wednesday

STANDARD BIRD HOUSE: Dr Adrian shows the standard structure of a bird house.
BINTULU: Bintulu has the potential to produce up to RM4 million worth of bird’s nest a month based on the average price of RM4,000 per kilogramme.
The figure could be bigger if the industry players could penetrate the China market.
“However, to do so, they must comply with strict regulations and have the necessary licence,” said assistant director of the State Agriculture Department (veterinary service) Dr Chia Pek Chin.
“Whether it goes to Singapore or Hong Kong the products would still end up in China, the biggest market,” he said of the bird’s nest, adding that the (bird’s nest) processors here had no licence issued by the state veterinary authority.
He said this at a talk on ‘Swiftlet farming’ here recently.
He said the licensing for swiftlet farming under the purview of the Forest Department was under the Sarawak Wildlife Protection Ordinance 1998, Wildlife Commercial Farming Rules 2003 by Natural Resources and Environment Board (NREB) and Land and Survey Department.
The State Planning Authority would also give its approval before the Forest Department could grant the licence.
The market price of unprocessed nest is between RM4,000 and RM5,000 per kg while the price of processed nest is RM10,000 per kg.
According to Chia, operators were only allowed to operate in areas 16km away from populated areas in bigger towns and cities, 10km in smaller districts like Bau and Serian, and 5km from even smaller towns like Oya and Simunjan.
Chia said only 400 out of the over 4,000 operators in the state were licensed while 21 bird nest processing licences had been issued in the state, mostly in Kuching, Samarahan and Mukah divisions.
Meanwhile, senior veterinary officer Dr Adrian Susin Ambud said the bird’s nest industry was a high impact industry which gave very good income to the operators.
He also said the operators could apply for loans from Agro Bank to finance their projects through two schemes namely micro ESP-1 from RM10,000-RM30,000 and macro from RM10,000 to RM5 million.