Swiftlet Farming In Malaysia

Currnetly, the business of swiftlet farming essentially involves the conversion of people-centric buildings into buildings used to house and protect a certain species of swiftlets (i.e. the white edible birds' nests swiftlets or the Aerodramus Fuciphagus species of swiftlets) that can only be found in the South East Asian region as well as the design and construction of purpose-build buildings for the purposes of accommodating such swiftlet populations as well.

A continuous vocalization of swiftlet chirps and mating sounds are played throughout each and every day using speakers and audio systems installed within such buildings in order to lure the swiftlets that are flying overhead to fly into the said buildings to mate and make the buildings their new home.

Almost 99% of all swiftlet farms in Malaysia are geared towards the production of white edible birds' nests.

The swiftlet farming industry in Malaysia only started to gather momentum after the Asian Economic Crisis of 1997-1998. During that period, many businesses, especially small to medium sized businesses, experienced hard times and a great number of them closed down throughout the country.

The premises that these businesses were located in were left empty due to the fact that no other businesses had sprung up to take their place as a result of the depressed economic environment at that time. Rather than leave their properties idle, quite a number of the landlords for these properties then had decided to convert their untenanted properties into swiftlet farms. At that time, there was only one research and development company specializing in the establishment of swiftlet farms in Malaysia and had almost single-handedly aided and helped grow the industry into becoming what it is today.

Due to the industry's expansion, many swiftlet farming companies have now been establish to serve the many and every growing number of swiftlets farms throughout the country. The web-links of the above companies are included in the bottom part of this Summary Report for easy reference.

Over the last 20 years, the swiftlet farming industry in the country basically grew through mostly private funding and operational initiatives and without any help whatsover from the public sector.

The major swiftlet farming areas are located mostly in secondary and tertiary townships where food source is in abundance and pollution levels are at their relative minimum. These secondary and tertiary townships include Kampong Tebing, Kampong Tasoh, Kampong Banat Bawah, Jampong Bakan, Kuala Nerang, Pokok Sena, Kampong Tanjung Radin, Kuala Ketil, Lunas, Kulim, Sungai Petani, Jitra, Bukit Mertajam, Nibong Tebal, Kepala Batas, Cangkat Kledang, Legong, Jelai, Cangkat Jering, Bruas, Pantai Remis, Lumut, Teluk Intan, Setiawan, Bagan Serai, Parit Buntar, Selama, Tanjung Malim, Kuala Kubu Bahru, Rawang, Kepong, Cheras, Slim River, Kulai, Kanpong Bahru Paroi, Alor Gajah, Ayer Pasir, Durian Tunggal, Tangkok, Pagoh, Bukit Pasir, Kampong Machap, Ulu Tiram, Tai Hong Village, Senai, Pontian Kecil, Jemaluang, Kampong Seri Pantai, Mersing, Kampong Sawah Datuk, Kampong Air Papan, Kuala Besut, Tok Soboh, Kampong Pinang, Rompin, Pekan, Kuala Terengganu and Pasir Mas.

According to Kuan, H. & Lee, J, Malaysia is currently the third largest producer of edible birds' nests (7% of gross supply value) in the world, behind Indonesia (60%) and Thailand (20%).

A kilogram of unprocessed white edible birds' nests (around 90 to 120 nests) is able to fetch production level prices of RM$4500 to RM$6000 in 2006, with supply of white edible birds' nests being severely tight as compared to ever increasing levels of demand from consumer countries all over the world.

A kilogram of processed white edible birds' nests is able to fetch retail level prices of RM$15000 to RM$25000 in 2006 in Hong Kong and China.

Kuan, H. & Lee, J. have hypothesized in their above publication that due to the following enduring qualitative reasons that the:

1.consumption of edible birds' nests is considered as a status symbol;

2.the health giving properties of consuming edible birds' nests;

3.strong economic growth rates experienced by Hong Kong, China and Taiwan; and

4.potential of edible birds' nests as a base mineral to be used in the production of herbal and vitamin supplements;

the international market for edible birds' nests will continue to grow at double-digit rates for the next 2 decades or so.

The swiftlet farming industry in Malaysia was duly recognized as a valid contributor of important foreign exchange currency for the country by the Ministry of Housing and Local Government in 2004 with the gazzetting of the "Guidelines on Swiftlet Farming" for all local, district, municipal and city councils throughout the country.

The Guidelines require that only premises within commercially zoned areas as well being registered as commercial premises with the relevant council which have not been designated as a Class 1 Heritage Building can be converted into a swiftlet farm.

The Guidelines also require that certain standards and levels of premises upkeep must be adhered to in areas of noise, health, pollution, scope of renovation works, building façade rendition and lighting be adhered to before swiftlet farming licences can be issued by the relevant council.

A swiftlet farm, if constructed properly and using the right swiftlet farming equipment can yield returns that are competitive with other types of profitable industries.

It is relatively hard to provide an estimation of the possible returns that can be derived from a swiftlet farm as industry standard figures are not yet available at this moment.

However, from perceptive and cognitive observations, there are many swiftlet farms throughout the country that comfortably yield 1kg to 10kgs (i.e. RM4000 to RM40000) of collected white edible birds' nests per month. On average, from the field studies conducted by the Committee, an average yield of around 1kgs to 3kgs (i.e. RM4000 to RM12000) of collected white edible birds' nests per month can be obtained from a 2 storey swiftlet farm that had been properly converted from a conventional shop-lot or shop-house in Malaysia.

In spite of the above glowing returns derived from swiftlet farming, this Report estimates that approximately 70% of all swiftlet farms existing throughout throughout the country at at end of 2006 are either unhabited by edible nests swiftlets or can only sustain a nests collection yield of only less than 20 nests per month after 5 years of continuous operation. Such yield rates fall substantially below the commercially accepted yield rates for successful swiftlet farms in Malaysia.