Empirical analysis on import diversification of major livestock commodities in Malaysia

Roslina Ali, . and Siti Nurathirah Abu Hassan, . and Fazleen Abdul Fatah, . and Muhammad Hakimi Harun, . (2023) Empirical analysis on import diversification of major livestock commodities in Malaysia. Malaysian Journal of Agricultural Economics (Malaysia), 30 (1). pp. 1-14. ISSN 2756-8288

The long-standing underperforming self-sufficiency status of major ruminant commodities in Malaysia signifies that the livestock sub-sector is confronting crucial import dependency status, particularly beef and mutton. Self-sufficiency has indicated stagnating and deteriorating trends stemming from a massive gap between domestic production and the demandfor meat products. Various efforts and strategies are implemented to expand local beef and mutton production, yet the performance remains insignificant. This crucial situation further urges the government to regulate import quotas for the two main meat commodities, aiming to provide ameat supply based on current needs at the industry or consumer level and further facilitate market equilibrium for meat products. Nevertheless, the import tendency has concentrated on a few dominant global markets. Previous studies suggested that trade diversification is crucial for creating a more sustainable economy and food security. Therefore, this study identifiesthe status of trade diversification of primary livestock commodities and measures the association between trade diversification and economic performance in Malaysia. Time series databases (2000–2020) were utilized and analyzed using quantitative methods to estimate the import diversification index (ID) using the Herfindahl-Hirschman Index (HHI), which is further used as an endogenous variable to develop the import diversification empirical model,while the exogenous variables include gross domestic product per capita, food security, and total factor productivity. The Import Diversification Index confirms that the beef import market demonstrates a low diversified or highly concentrated market, whereas mutton showed more diversified import markets. The results showed that national gross per capita income and food security status are the two variables that significantly influence the country's concentrated import markets for beef and mutton import diversification status. This study also found that per capita national income, self-sufficiency, and total factor productivity significantly affect the degree of trade diversification for beef and mutton imports in Malaysia. Despite being massively dependent on meat (beef and mutton) imports, none of the specific studies has attempted to measure the trade diversification circumstance in Malaysia. The findings of this study help strategize the diversification of import markets, particularly for primary ruminant livestock commodities, in line with Malaysia's national food security direction and policy agenda.

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Abstract

The long-standing underperforming self-sufficiency status of major ruminant commodities in Malaysia signifies that the livestock sub-sector is confronting crucial import dependency status, particularly beef and mutton. Self-sufficiency has indicated stagnating and deteriorating trends stemming from a massive gap between domestic production and the demandfor meat products. Various efforts and strategies are implemented to expand local beef and mutton production, yet the performance remains insignificant. This crucial situation further urges the government to regulate import quotas for the two main meat commodities, aiming to provide ameat supply based on current needs at the industry or consumer level and further facilitate market equilibrium for meat products. Nevertheless, the import tendency has concentrated on a few dominant global markets. Previous studies suggested that trade diversification is crucial for creating a more sustainable economy and food security. Therefore, this study identifiesthe status of trade diversification of primary livestock commodities and measures the association between trade diversification and economic performance in Malaysia. Time series databases (2000–2020) were utilized and analyzed using quantitative methods to estimate the import diversification index (ID) using the Herfindahl-Hirschman Index (HHI), which is further used as an endogenous variable to develop the import diversification empirical model,while the exogenous variables include gross domestic product per capita, food security, and total factor productivity. The Import Diversification Index confirms that the beef import market demonstrates a low diversified or highly concentrated market, whereas mutton showed more diversified import markets. The results showed that national gross per capita income and food security status are the two variables that significantly influence the country's concentrated import markets for beef and mutton import diversification status. This study also found that per capita national income, self-sufficiency, and total factor productivity significantly affect the degree of trade diversification for beef and mutton imports in Malaysia. Despite being massively dependent on meat (beef and mutton) imports, none of the specific studies has attempted to measure the trade diversification circumstance in Malaysia. The findings of this study help strategize the diversification of import markets, particularly for primary ruminant livestock commodities, in line with Malaysia's national food security direction and policy agenda.

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Item Type:	Article
AGROVOC Term:	livestock
AGROVOC Term:	beef
AGROVOC Term:	mutton
AGROVOC Term:	meat
AGROVOC Term:	imports
AGROVOC Term:	diversification
AGROVOC Term:	trade
AGROVOC Term:	analysis
AGROVOC Term:	food security
Geographical Term:	Malaysia
Depositing User:	Mr. Khoirul Asrimi Md Nor
Date Deposited:	23 Feb 2026 02:23
Last Modified:	23 Feb 2026 02:23
URI:	http://webagris.upm.edu.my/id/eprint/3735

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