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The Official Website of
DEPARTMENT OF VETERINARY
SERVICES SARAWAK


EPPEPP

EPP

PARTICIPATION CRITERIA FOR EPP OF LIVESTOCK SUBSECTOR IN THE ECONOMIC TRANSFORMATION PROGRAMME

INTRODUCTION

1. The Department of Veterinary Services was appointed to be the owner of five (5) Entry Point Projects (EPPs) in livestock sub-sector. Implementation of EPP is led and financed by the private sector. The Government plays a role of facilitator that will allocates some public funding which acts as a catalyst in creating a market-driven industry, economy of scale and integrated agriculture.

2. EPP implementation is based on economic considerations with a view to increase the Gross National Income (GNI) and to create jobs. By 2020, the 5 EPPs livestock sub-sector, targeted GNI for RM5.275 billion and a total of 27,200 jobs created. GNI’s target and the number of jobs created for each EPP are shown in Table 1.

No.

EPP

GNI
(RM Million)

No.

of Jobs

1

EPP 2 – Increase the production of "Edible Birds Nest' (Swiftlet nest)

4,500

20,800

2

EPP 5 - EPP 5 – Cattle Livestock under the palm oil trees

150

3,600

3

EPP 12 - EPP 12 – Strengthening of Feedlot cattle farming

183

2,000

4

EPP 13 - EPP 13 – Create dairy cattle cluster

326

800

5

EPP 16 - EPP 16 – Overseas livestock sector investment

117

0


Total

5,276

27,200

 

3. EPP is set up to support the New Economic Model which comprises of three principles namely High-Income Nation, Inclusiveness and Sustainable. Therefore, EPP’s vision is toward agriculture is a business based on market driven, economy of scale and integrated value chain.

4. The Government’s role is to expedite the implementation of EPP. Among other roles that the Government undertakes are:

(a)

To provide facilities and support whenever possible.

(b)

To expedite regulatory changes, reduce obstacles and facilitate EPP projects implementations.

(c)

To offer government contracts based on merit kingdom, market-friendly, transparent and timely.

(d)

To act immediately upon receiving feedbacks from the private sector.

(e)

To produce annual achievements project reports.



5. The private sector has a role to ensure the project implemented is success and able to generate the national gross income apart from creating jobs. Among other main tasks the private sector undertakes are: -

(a)

To lead & implement EPP projects

(b)

To fund EPP projects

(c)

To inform and request for government supports

 

6. Private Sectors are required to fulfil the criteria set by the Department of Veterinary Services to participate in the EPP for livestock sector. The criteria are set by the relevant EPP.


EPP 2

7. EPP 2 – To increase the production of "Edible Bird Nest" (Swiftlet Nest) – EPP2 is a project that involves all the activities in the EBN industry value chain which encompasses Swiftlet nest production, gathering, processing and marketing. The required criteria are: -

i.

Individual or company should be registered in Malaysia

ii.

Should have sufficient capital

iii.

Should have basic knowledge of Swiftlet nest farming and processing

iv.

Should have suitable project area / location

v.

Meet the stipulated conditions


8. The criteria to participate in the ‘Trading House’ operations are: -

i.

A company should be registered in Malaysia (at least a Private Limited Company)

ii.

Authorized Capital of at least RM1.0 million

iii.

Paid-up Capital of at least RM0.5 million

iv.

Should have experience in local & foreign EBN trading

v.

Employ at least 30% local professional in the management team of the company

vi.

At least 51% equity owned by local citizens

vii.

Should have strong business relationship or partnership with overseas companies especially from China

viii.

Meet the conditions stipulated

 

Note: Letter of invitation to be the operator of a trading house was advertised in the Department's website.

 

EPP 5

9. EPP 5 – Cattle breeding under oil palm – There are 3 subdivisions under EPP 5 which are integrated farming, breeding and ruminant feed production.

a.

Integrated farming is rearing cattle in oil palm estates belong to the company which are either self-operated or outsources.

 

The criteria to participate in rearing of cows under oil palm are as follows:

 

i.

Company should be registered in Malaysia. (A Private Limited Company, Enterprise or Partnership)

 

ii.

Authorized Capital of at least RM500,000

 

iii.

Paid-up Capital of at least RM250,000

 

iv.

Should have at least five years of experience in integrated farming

 

v.

Employs at least 30% local professional in the company management team.

 

vi.

At least 51% Equity owned by local citizens

 

vii.

Should have at least 1000 acres of an oil palm plantation

 

viii.

Farm field gradient <15o

 

ix.

Oil palm trees should more than 5 years old

 

x.

Rainfall distribution more then 1500mm per year

 

xi.

Comply to the conditions stipulated

 

b.

Feed production – the production of ruminant feed by companies with reasonable costs for own use and other farmers as well.

 

Criteria to participant of EPP feed production are:

 

i.

Should have at least 3 years of experience / involvement in the animal feed industry

 

ii.

Should have at least 3 years of experience / involvement in animal feed manufacturing

 

iii.

Should have quality, sufficient and continuous raw materials supply

 

iv.

Should have stable and strong feed market

 

v.

Owned premises to manufacture of animal feed

 

vi.

Should have own Nutritionist

 

vii.

Should own livestock

 

viii.

Comply to the conditions stipulated

 

 

 

c.

Breeding – Provide artificial insemination for cattle to improve breeding performance.

 

Criteria to participate in the EPP breeding are:

 

i.

Should have Technical Team

 

ii.

Should have qualified Veterinarian

 

iii.

Practiced a good recording system

 

iv.

Submit a good business and marketing plan

 

v.

Should have a business plan for expansion

 

vi.

Should have technical cooperation or support from relevant agencies (recommended)

 

vii.

should have at least 2 years of experience in the ruminant industry

 

EPP 12

10. EPP 12 – Strengthening of feedlot cattle farming – Private companies are needed to be the leading companies for government-owned feedlot farms. These farms are known as satellite farms. The satellite farms will be operated by individual farmers. The leading companies will be the suppliers of feedlot cattle and repurchase cattle for slaughter. Private companies are invited to become the leading companies to the feedlot project. The criteria are as follows:

i.

Company registered in Malaysia and at least must be Private Limited, Limited, Enterprise or Partnership

ii.

Have a minimum Authorized Capital of RM 500,000

iii.

Have a minimum Paid-Up Capital of RM250,000

iv.

Has experience in the field of cattle farming for at least 3 years

v.

Employing professional workforce (minimum of 30% local citizens) in the management of company

vi.

For Joint Ventures the minimum ownership of local citizens must be 51%

vii.

Has a strong cattle market

viii.

Compliance with other stipulated requirements

 

EPP 13

11. EPP 13 – Create clusters for dairy cattle. Leading companies are needed for dairy clusters which consist of a group of selected farmers and cooperatives to join in the cluster. Leaders seek funding from the government to purchase cattle and equipment to improve production and milk quality under the farmer’s care. Additionally, the Leading Company purchases the milk produced by farmers to be processed. They also carry out advisory service activities on farming. The criteria for leading companies and farmers interested to participate in EPP 13 are as follows:

a.

Leading Company


i.

Company registered in Malaysia, at least a Private Limited Company,


ii.

Have a minimum Authorised Capital of RM 5,000,000


iii.

Have a minimum Paid-Up Capital of RM2,500,000


iv.

Has experience in the field of farming or manufacturing for at least 3 years


v.

Owns a milk processing plant with a minimum capacity of 20,000 litres per week


vi.

Employing professional workforce (minimum of 30% local citizens) in the management of company


vii.

For Joint Ventures (JVs) the minimum ownership of local citizens must be 51%


viii.

Members of dairy farmers cooperatives


ix.

Ready to provide technical services to cluster participants


x.

 Ready to buy back farm production yield


xi.

Ready to make contracts with cluster participants


xii.

 Compliance with other stipulated requirements


 

b.

Cluster participants/ farmers


i.

Dairy Farmers are citizens


ii.

18 years old of age and above


iii.

Willing to provide capital towards improving the levels of dairy farm management


iv.

Registered with any Dairy Industry Service Centre (PPIT)/ Milk Collection Centre (PPS), Department of Veterinary Services


v.

Undergo health checks and get typhoid and tetanus vaccination


vi.

Farmers are willing to provide full cooperation to the officers from Department of Veterinary Services and leading companies


vii.

The farms must;


 

a)

Produce an average milk production of at least 100 litres per day


 

b)

Certified free from Brucellosis and Tuberculosis (TB)


 

c)

Livestock are given the Foot and Mouth Disease (FMD) immunization on a periodic basis as determined by the Department of Veterinary Services and recorded by the Department


 

d)

Practice GAHP and geared towards the SALT farm certification


 

e)

At least 75% of milk production achieves grade A and AA based on the 4-time grading tests within a month by PPIT/PPS


 

f)

Practice the livestock records system agreed upon by the Department of Veterinary Services


viii.

These eligibility conditions are subject to changes from time to time

 


EPP 16

12. EPP 16 – Investment in cattle farm overseas – Companies from Malaysia invest on new or existing cattle farms in Australia or other countries. The government also encourages products to be marketed in other countries besides Malaysia. Interested companies are asked to comply with the stipulated criteria.

i.

Company registered in Malaysia and at least must be Private Limited, Limited, Enterprise or Partnership

ii.

Have a minimum Authorized Capital of RM 500,000

iii.

Have a minimum Paid-Up Capital of RM250,000

iv.

Has experience in the field of cattle farming for at least 3 years

v.

Employing professional labor (minimum of 30% local citizens) in the management of company

vi.

For Joint Ventures the minimum ownership of local citizens must be 51%

vii.

Has a strong tie or business partnership with overseas companies experienced in cattle farming

viii.

Willing to provide sales information with the Department


13. Other conditions imposed on companies for participation of all EPP

i.

Submit a formal application to:

Ketua Pengarah
Jabatan Perkhidmatan Veterinar
WISMA TANI, BLOK PODIUM
LOT 4G1, PRESINT 4
PUSAT PENTADBIRAN KERAJAAN PERSEKUTUAN
62630 PUTRAJAYA

ii.

Prepare business plans

iii.

Deliver presentations to the evaluation team

iv.

Submit the Gross National Income (GNI) information using the Template provided

v.

Make livestock records

vi.

Signing of the agreement and integrity Pack

vii.

Carry out projects in the best possible way

viii.

Comply with other requirements imposed from time to time

 

 

14. The Business Plans prepared must at least contain the basics as follows:

i.

Introduction of project

ii.

Company Background

 

Local/foreign partners

 

Ownership

 

Contact officer

iii.

Organization plan

 

Management team

 

Organization structure

iv.

Operational plan

 

Monthly & annual production target

v.

Marketing Plan

vi.

Financial & investment plan

 

Short & long-term financial analysis

 

Investments made

 

Expansion program

vii.

Project Timeline and Gantt charts


15. Presentation Content

i.

Using the format provided by PEMANDU

ii.

Enter the important information requested which is the Gross National Income and number of jobs created


16. Conclusion

It is time the private sector seizes the opportunity in developing the livestock industry with the private and government partnership approach. This is because the EPP is driven by the private sector while the government will only provide some incentives if necessary. However, the government will assist or facilitate projects undertaken to ensure the desired success.