1. Introduction
2. Establishing the NSPC
3. Purpose of NSPC
4. Functions and Roles of NSPC
5. Budget Estimates
6. The Need For Extra Slaughtering Capacity
7. Conclusion

1.  Introduction

The swine industry in Malaysia has not made adequate progress over the last three decades. Also, the industry has not been that mindful about the needs of maintain the environment clean. With the recent Nipah virus episode, it becomes glaring the swine farming cannot continue to operate as previously or now. 

Equally, the farmers realise that it is not only they themselves who are concerned about the industry. Besides the government authorities, the public at large and in particular the Chinese community are the other interested parties. Inputs from others, apart from the existing farmers are essential to help to reorganised, consolidate and tidy up this industry.

For this purpose, it is proposed a National Swine Producers Council (NSPC) be establised under a statutory  authority. With the NSPC (where the majority of the members are from within the industry, the industry is given the opportunity to self-organise and self-regulate. 

The Council in charge is responsibility to develop the industry to become more efficient and sustainable, and more compatible with healthy living and a clean environment. Pig farmers throughout the country shall reorganize to reflect proper representation at the NSPC.

2. Establishing the NSPC

The National Swine Producers Council (NSPC) is a statutory and independent body established and provided for under the legal authority of the Ministry of Agriculture, Malaysia.  There shall be eight(8) members of Council derived from the farming community, the relevant government authorities, the Chinese business fraternity and the Veterinary Association Malaysia.

Proposed representatives to the Council are:

• Two(2) members from the relevant government agencies
• Four(4) representatives from FLFAM
• One(1) from the Associated Chinese Chamber of Commerce and Industry Malaysia(ACCCIM) and
• One (1) from the Veterinary Association Malaysia(VAM)

Representatives from the farming community shall be balanced, and should reflect the “production quantum” weightage of the different groupings of the farms.

Candidates to the Council are nominated by the relevant organisations they represent, and appointed by the Ministry of Agriculture to become members of the Council. They serve a three-year term. Should an appointed member decease or relinquish his membership before the term expires, a new member is nominated and duly appointed to replace him.  An individual may only serve a maximum of two terms consecutively.

At the start of a three-year term, the Council members will elect a Chairman and a Vice Chairman to head the Council.  Except the Chairman, all other members of the Council present at that session have the voting rights.  In the absence of the Chairman, the Vice Chairman would convene the session of meeting or discussion.  In such session, this Vice Chairman would not vote.

When the Council convenes, decision making on the routine and day-to-day issues is determined by the simple majority voting by the Council members present.  When there is a tie in the votes count, the issue is decided by the “casting vote” of the Chairman(or the Vice Chairman) who convenes that session.

Matters or issues of substantive nature shall require two-third majority from the voting of the Council members present to carry a motion of approval.  Again, the Chairman (or Vice Chairman) who convenes that session may use his “casting vote”.  Such issues should include:-

1. Live pig production regulation
2. Changing the rate of levy (checkoff)
3. Budget allocation for the “functional groupings”
4. Commitment on any programme or project that requires heavy financial inputs, plus
5. Any issue or matter deemed to be of “substantive nature” by the Council members.

The Council is empowered to appoint a task force, a technical committee or a sub-committee to deliberate on an issue that is technical is nature, or that requires professional guidance, to advise the Council accordingly.

It cannot be over emphasised that NSPC must work in complete co-operation and synchrony with the farming community  and those involved with the industry.  While the farmers association looks primarily into the interest of the farmers, NSPC takes care of the common interest of the nation and benefits to the public, without sacrificing the interests of the swine industry.

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1. It is a national organisation that co-ordinates and executes the planning, organisation and consolidation of the swine industry, such that the industry is compatible, with healthy living and in line with the need to preserve a clean environment.
2. It serves to organise and facilitate the development of the industry into a dynamic, progressive and profitable one. The industry would become an economic asset to the nation, and would consistently supply wholesome, safe and quality pork and pork products to the consumers.
3. When the industry is threatened by exotic diseases (especially those that are zoonotic), NSPC could complement and supplement the efforts by the authorities to control or eradicate the infections.
4. As we have learned from the Nipah tragedy, the spread of the disease could be caused by the movement of infected animals. The illegal sale and movement of animals are in large part due to inadequate financial compensation to the farmers. NSPC’s levy and fund pool hopes to take over this responsibility from the government.
5. In future disease outbreaks, NSPC will determine the quantum for compensation and also provide the funding from levies collected.

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1. NSPC shall play the lead role to plan and execute the re-organisation and consolidation of the swine industry.
2. NSPC shall liaise with both the Federal and State governments and their government agencies on matters of policy and development strategy of the industry, as well as on matters of regulation and enforcement by the authorities.
3. NSPC is responsible for the collection, the disbursement, and programme accountability for the levy(checkoff) used for the activities related to organisation,  regulation, marketing, consumers and farmers education, and research.
4. NSPC shall organise and regulate the supply management(i.e. production regulation) towards a marketing system that gives equitable profits to the farmers, processors and retailers, whilst assuring the consumers getting safe and quality products at reasonable cost.
5. NSPC shall assist farmers to have access to and adopt new technology to bring about rapid progress and increase production efficiency.
6. In time of needs, NSPC would supplement and complement the efforts of the authorities in the control of any exotic infections affecting the industry.

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1. The annual running cost for the routine functions is estimated to cost around RM2.0 million to start with.  This will increase to around RM3.0 to RM3.5 million later.  To enable  NSPC to start-up fast, a launching grant from the Federal government to the tune of RM10.0 million is needed.
2. The running of NSPC and the financing of the various re-organisation and consolidation efforts would be financed primarily from the proposed levy(checkoff) collection.  The bank loans repayment would also wholly depend on the levy collection.  It is proposed the levy be RM10 per pig slaughtered, and collected at the abattoirs.
• There are only 8 such abattoirs (7 owned by Dept. of Veterinary Services and one (1) by the Penang Municipal Council) where the collection could be practised.  Collection of such levy would not be feasible at the “slaughter sheds” licensed by the local councils nor can such collection be made from the illegal slaughtering.  Therefore, there is the urgent need to build up enough slaughtering capacity as well as an urgent need to stop the illegal slaughtering or slaughtering at the licensed ‘slaughter sheds”.
• If pork is imported, an equivalent rate of levy could be imposed through  “import tariff”.  The rate works out to around 20 sen per kg for whole carcass, or 25 sen per kg for meat cuts.  However, AFTA and WTO rulings may be working against this. Imposing levy on imported pork should only be considered as a measure of last resort.
3. Some of the items for expenditures from the collection of the levy are for the following functional groupings:-
1. Repayment of interest and principal of loan
2. Annual administrative cost of NSPC
3. Farmers education and adoption of technology
4. Consumers information and education
5. Market development and reforms
6. Research on improvement in farm production
7. Research on swine health and product safety
8. Human resource development and
9. Specific programme on pressing or emerging issues.

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Before the Nipah virus episode, local demand for pork was equivalent to 2.7 million head annually. There are only 8 abattoirs with veterinary inspections – seven of them under the Dept. of Veterinary services, and one in Penang under the municipality. The total slaughter of these 8 abattoir has been around 1.6 million head.

The remaining 1.1 million pigs were either slaughtered at illegal premises or in those “slaughter sheds” licensed by the local councils.  No veterinary meat inspection is carried out in these premises hence the meat derived from these 1.1 million pigs (nearly 40% of the pork consumed) is deemed not proven fit for human consumption.

Such illegal premises and local councils approved “slaughter sheds” pose a health hazard and public nuisance to nearby residents.  Besides, they pollute the environment extensively. This re-organisation of the swine industry must include a complete stop of such unchecked slaughtering. 

Therefore, there is the urgent need to establish extra abattoirs to cater for 100% slaughtering in abattoirs with meat inspection services.  This would be a priority project for the Integrated Swine Producers Bhd to pursue at the earliest. Since these new abattoirs are to cater for pigs from many nearby sources from non-PFAs, they should not be established within the PFAs’ vicinity.

To maintain meat quality when the carcasses are transported over long distances, chilling facilities for those carcasses intended for the further away markets shall be deemed essential in these abattoirs.  Indeed, the intention to build replacement abattoirs for those in Shah Alam and Kempas(Johor) is deemed timely, and ISFB could pursue the matter the earliest.

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