STRONG MALAYSIA LIVESTOCK SECTOR COULD AID US FEEDGRAIN EXPORTS

STRONG MALAYSIA LIVESTOCK SECTOR COULD AID US FEEDGRAIN EXPORTS

A rapidly developing livestock industry could turn Malaysia into a strong market for U.S. feedgrains, especially if a proposed new grain quality standard is adopted, U.S. Feed Grains Council officials said.

By the year 2000, Malaysian poultry production is expected to jump to 416,000 metric tons from 275,000 tons last year.Malaysian poultry consumption is expected to double over the next five years, council officials said.

Pork production is also expected to double by the end of the decade, although environmental concerns, as well as Malaysia's 50 percent Muslim population, are expected to limit growth potential.

The United States is currently a residual supplier to Malaysia's livestock industry, which is based entirely on imported grain.

However, the United States could be more competitive if Malaysia adopts a proposed 50-parts-per-billion limit on aflatoxin levels in imported grain.

Alfatoxin is a cancer-causing fungus that can develop on corn during droughts.

The new standard would effectively block grain shipments from most Southeast Asian exporters, giving the United States an advantage, Feed Grains officials said.

However, Malaysia port facilities favor smaller shipments of grain, which could continue to keep the United States out of the market.