KOTA KINABALU: The Sabah Economic Development and Investment Authority (Sedia) is handing over the Keningau Integrated Livestock Centre (KILC) to Desa Cattle Sdn Bhd effective 1 July.

Desa Cattle will also be the anchor investor for phase two of KILC expansion in spearheading the development of dairy and beef cattle industries in Sabah.

Chef Minister Datuk Seri Panglima Hajiji Haji Noor witnessed the handing over in a simple ceremony at his office at the State Administrative Centre here today.

The KILC is a long-term strategic development programme designed to produce high-quality breed dairy cattle based on a three-tier system, namely the Nucleus, Multiplier and Commercial farms aimed at supporting Sabah’s dairy and beef industry development sustainably.

As the first-of-its-kind Nucleus farm in Malaysia, the KILC is designed to resolve the supply shortage of high-quality breeds of local dairy and beef cattle that had been hindering the development of the industry in Sabah, and Malaysia as a whole.

This approach ensured that the Nucleus farm will continuously upgrade and improve breed performance through genetic upgrades via advanced reproductive technology.

In turn, these improved quality breeds will be multiplied at the Multiplier farms and be distributed to local farmers at the Commercial farms level, ensuring high milk production so as to increase revenue and income of dairy farmers.

At the same time, KILC also acts as a catalyst to attract private investments in setting up dairy cattle multiplier and breeder farms to increase the breeder population as well as the associated value-added downstream industries.

Under Sedia, the KILC has undergone an enhancement programme while a Supplementary Master Plan study has been carried out to improve its long-term sustainability and to fully address gaps and challenges currently faced by the dairy cattle industry in Sabah.

The enhancement programme would also ensure a more positive collaboration and outcome with future investors, in the development of a ruminant industry in Sabah.

KILC has the capacity to house 2,000 heads of adult dairy cattle with an ultimate yearly milk production target of 10 million litres and 810 heads of feeder cattle, which is equivalent to 1,500 metric tonnes of beef per year.

The total capital investment required for the development is estimated at RM118 million and divided into two phases.

The Federal government has provided RM57.3 million funding for the Phase One development to build the infrastructure with 500 heads capacity, which was completed on Aug 19, 2013, via Sedia.

For Phase Two that is the development and expansion of the infrastructure to hold 2,000 heads, it would require RM60.7 million that will be fully funded through private sector investment.

Since the commencement of operations in 2013, KILC has quintupled its yearly milk production, from 0.5 million litres in 2014 to 2.5 million litres in 2020.

The average yield per cow has also been increased from 6.5 litres/day in 2014 to 17.3 litres/day in 2019, while the national average yield in Sabah is still around 12 litres/day.

On top of the completion of basic infrastructure, all technical and administrative requirements necessary for the farm’s operations have been established to stabilise KILC operations.

Some 40 local staffers have been employed while three international experts have also been engaged for the training and supervision, knowledge transfer and skill training of local staff as well as to reach international standards and world-class Animal Husbandry practices.

Collaboration with UMS has also been established and so far, 10 UMS graduates have completed an eight-month industry training.

Three of the UMS graduates are currently under full-time employment at KILC. The long-term target for KILC is to produce high-quality breeder dairy cattle with productivity beyond 7,000 litres per annum or more than 23 litres/day and achieving its mission to be a premier breeder centre in the country.-pr/BNN

Chief Minister Datuk Seri Panglima Hajiji Haji Noor (centre) witnessing the exchange of documents between Desa Cattle CEO Emiliana Chin (left) and Sedia President/CEO Datuk Hashim Paijan.