Food testing facility to ease bird's nest exports
KOTA KINABALU: A Sabah-based food testing facility will ease the export of bird's nests produced in Sabah into China and grow the estimated RM350 million per year industry of farmed nests.
Such a centre will also lead to the eventual benchmarking of Sabah bird's nests (cave and farmed varieties) ensuring premium prices, quality and potentially attract raw bird's nests from nearby territories to be brought into Sabah for processing.
“Given that China is the main bird's nest market, it will be a big step forward for us if a China-accredited testing facility can be set up in Sabah. We welcome it wholeheartedly,” said Datuk Karim Bujang, president of the Sabah Swiftlet House and bird's Nest Industry Association (Swifin).
He made the remark after witnessing the signing of a memorandum of understanding on Wednesday between stateowned POIC Sabah Sdn Bhd with CAIQ Test Centre, a facility based in Selangor that is linked to the Chinese Academy of Inspection and Quarantine (CAIQ).
Karim said Swifin has about 200 members operating swiftlet houses of varying sizes and numbers.
“They combined for a multimillion ringgit industry that is either the main source of income for many families and also a reliable source of passive income for others.
“A testing facility in Sabah is welcomed simply because we, together with Sarawak, are the major producers of both cave and farmed bird's nests. A testing centre here can enable us to export directly to customers in China without the inconvenience of having to go through Peninsular Malaysia.”
Aside from side-stepping the present cumbersome procedure, a testing and certification centre in Sabah can also address counterfeiting and adulteration which for a time had caused Malaysian bird's nests to be disallowed in China.
“With Sabah-based testing, we can ensure transparency in our supply chain such as ensuring the source of supply being legitimate, quality branding and fair pricing. Eventually we can think about perhaps having a brand of quality bird's nests named after Borneo,” Karim enthused.
Southeast Asia is the world's biggest producer of bird's nests with Indonesia in the lead with about 2,000 metric tons per year;
Malaysia is second with about 600 tons, Thailand (400) and the Philippines (about five tons). Globally the sector is estimated to be worth about US$5 billion per annum, with 90% of it consumed in China.
Malaysia had targeted to achieve RM4.5 billion revenue from bird's nests by 2020. It could not be ascertained if the figure had been achieved, but the Sabah state government has set its own target of producing up to 100 tons per year by 2023.
“Based on a conservative estimate of RM3,000 per kilo paid for unprocessed bird's nests, we are looking at a healthy injection of revenue to our state economy,” said Karim, who once served as assistant finance minister.
He said the State government supports the farmed bird's nest industry and there is a grant system through which eligible applicants receive help to build swiftlet houses.
“The industry has much room to grow as the nutritional and restorative qualities of bird's nests are increasingly being recognised, and being used in pharmaceutical and neutraceutical products.
Meanwhile, the POIC SabahCAIQ MOU was attributed to the Malaysia-China Business Council headed by Bintulu Member of Parliament Dato Seri Tiong King Sing.
Among the dignitaries who witnessed the signing via video conferencing were the ConsulGeneral of China in Sabah, Liang Caidee, business leaders and trade associations developing trade links with China.