Bird's nest: He's reaping the rewards after trial and error

2010/03/29
NST



FOR swiftlet farmer Abdul Rahman Yaacob, success did not come overnight.


It took him more than three years of extensive research and countless visits to swiftlet farms in and out of the country before he had enough courage to start his own farm in the Tepoh countryside in Terengganu almost two years ago.

The 50-year-old building contractor knew the capital outlay for the project would be sizeable and he also knew he could not expect swift returns from his investment.

The father of three says he has learnt that for every successful swiftlet farmer in the country, at least five have failed to cash in on the lucrative bird's nest industry.

"That is only a 20 per cent chance of success but I had a feeling that many had started the bird hotel business with little knowledge.

"I did not want to be like them," he says, before admitting that he also did not learn enough.


Pix: Swiftlet farmer Abdul Rahman Yaacob (right) has modified his swiftlet hotel in Tepoh, Terengganu, to suit the needs of the birds.

The first year was of constant trial and error as he often had to tinker with the design of his building to meet the needs of the birds.

"I now understand why most people call swiftlet farms bird hotels as just like in the hospitality business, the comfort of the guests is the most important thing.

"The birds prefer the temperature to be between 26oC and 28oC, regardless of day or night, rain or shine. Air-conditioning will not do as the air will not retain the right moisture level," he says.

In the beginning, he used to hide for hours to observe the birds' flying pattern when they entered the building, the length of their stay and the trouble they went through before deciding on a nesting spot.

He says finding the right bird calls was a lengthy process as different sounds would make the birds do different things.

"Once, I was delighted to stumble upon a bird sound on tape which brought about a lot of birds to my place but, for some reason, they just did not want to enter the building.

"After conducting research, I now know what sound to play when I want them to come or when I want them to stay and build their nests," says Rahman, adding that the sound of birds on loudspeakers should not be allowed in residential areas.

His farm is located on an isolated hill.



"Kuala Terengganu has turned into a swiftlet city as hundreds, if not thousands, of bird hotels can be found along Jalan Bandar, Jalan Tok Lam, Jalan Kampung Tiong, Jalan Pejabat and other main streets. Shophouses along those streets have been and are being converted into bird farms and that is not right as the noise alone can drive people crazy. And I am not talking about the bird droppings yet."

So far, he has invested more than RM300,000 in the business.

Bird's nest: Finding the swift way to earn megabucks

2010/03/29
NST



Swiftlet breeding is a thriving business worth RM1.5 billion annually. The speed at which the industry has grown in the last few years poses a major dilemma for operators and the public due to the health risks, smell and noise. The government is now looking at giving the industry a much-needed framework to operate in a sustainable manner. CHUAH BEE KIM, ZAINUDDIN MUHAMMAD, M. HAMZAH JAMALUDIN, PATRICK SENNYAH and ROY GOH report.

Pix: A swiftlet hotel in Kuala Terengganu luring swiftlets with recorded sounds of female birds. — NST picture by Imran Makhzan

FROM caves at the Niah National Park and Gunung Mulu National Park in Sarawak, swiftlet breeders have now taken their business into cities and towns nationwide.

Malaysia now has about 50,000 swiftlet premises producing more than 12 tonnes of bird's nest monthly. The current price of bird's nest is between RM3,000 and RM4,000 per kg, depending on the grade.

Operators are keeping their fingers crossed for government assistance to take the business to a higher level.

Those in Johor, for example, want the government's nod for export licences.

If this happens, they are geared up to put the country on the world map as the biggest exporter of bird's nest.

Those in Negri Sembilan want help in getting halal and Sirim certification as well as the internationally-recognised Hazard Analysis Critical Control Point certification for their products.

They are also hoping to get the government's assistance to set up a research and development facility to enhance the quality and variety of the products.

Datuk Saipolbahari Suib, adviser to Persatuan Pengusaha Industri Sarang Burung Kulai, is confident the industry can achieve the dream if they are given the opportunity to export their harvest.

"Currently, we are sending the bird's nests to Indonesia for processing as we do not have the plants here. If the government can set up processing plants in every district, we will be able to do everything locally and export the products."

Saipolbahari, who is also chairman of JB Bird Nest Resources Sdn Bhd, hopes the government will give a grant of RM400,000 for the setting up of processing centres in every district.

"I am optimistic that we can make it big in the global market as the quality of our nests is one of the best in the market."

In Johor alone, there are about 5,000 bird's nest traders.

Negri Sembilan Association of Bird's Nest Traders president Datuk Lee Yuen Fong says there are about 40,000 breeders nationwide, of which 95 per cent are operating without licences.

"The reason for this is that there is still plenty of red tape and we hope this problem will be ironed out soon."

He says because it is a multimillion-ringgit industry, there are many unscrupulous parties trying to cash in on it.

"Another issue plaguing the industry is smuggling."

Complaints against the swiftlet industry are numerous -- noise pollution is a common gripe of anyone living next to a "swiftlet hotel".

To lure the birds, which breed in colonies, recorded sounds of chirping females are played constantly on speakers.

Saipolbahari says responsible breeders follow the guidelines set by the
Veterinary Services Department, where only a sound level of 40 decibels is permitted.

"Errant traders who do not follow this guideline should have their licences revoked."

Another concern is bird flu. However, Saipolbahari says swiftlets are the cleanest birds around.

"Moreover, the Convention of International Trade in Endangered Species had carried out research on swiftlets in 2005 and the birds are not the species that cause bird flu."

Saipolbahari says swiftlet breeding is a godsend to many, especially during the economic downturn, as buildings which have been abandoned or cannot be rented out are revived when swiftlet breeders come in.

Bird nest industry catching up in the peninsula

Published: Monday March 29, 2010 MYT 10:55:00 AM
Updated: Monday March 29, 2010 MYT 10:58:20 AM
The Star


ALOR SETAR: The bird nest industry so far has been the domain of entrepreneurs in Sabah and Sarawak but the billion dollar industry is now slowly picking up in Peninsula.

Realising of the huge potential, a businessman in Alor Setar, Datuk Mohd Yusof Ismail without hesitation invested millions of ringgit in the swiftlet nest industry that is synonymous with the Chinese community.

Mohd Yusof noted that he became interested in the venture after a casual meeting with the chairman of the Federation of Bird Nest Traders Associations, Datuk Paduka Beh Heng Seong, in Sitiawan, Perak in 2008.

“It started as a casual conversation but after hearing Beh’s explanation on the lucrative returns from the bird nest industry, I was convinced that I should give a try.

“Several of my friends who were already in the industry also gave me encouragement saying that the risks on investment are low and also asked me to attend courses related to the field,” said Mohd Yusof, the managing director of Kumpulan Usima.

An initial investment of RM1mil to build two four-storey swiftlet farms in Kuala Rompin, Pahang early last year saw good returns within six months.

“This gave me the confidence to invest another RM2.5mil to build five more swiftlet farms in Jerlun, Kubang Rotan, Kuala Sanglang, Padang Sera and Tebengau respectively. The farms were completed recently.

“Though in Kuala Rompin alone there are more than 100 swiftlet farms, there is still room for competition and only that the startup cost is high,” noted Mohd Yusof in an interview with Bernama here.

The first harvest after six months recorded almost RM10,000 for each farm and one can expect the same returns for the first three years.

Normally, the harvesting is done once every two or three months. After three years, the returns may go up or down depending on the number of birds nesting there.

“Based on my experience, each farm can produce up to 3kg of bird nest and their market value is between RM3,600 and RM4,000 per kg for the unprocessed nest and the processed ones can fetch twice more.

“Currently the bird nests are sold raw as there is no expertise to process them,” said Mohd Yusof who has a list of regular buyers.

According to Mohd Yusof, the revenue would be affected at times when the birds migrate but there are ways to entice them to continue staying in their farms.

The design of the nesting building especially the entrance helps in retaining the birds along with the right temperature and level of humidity within and the calls to lure in the swiftlets, he said.

"It is not difficult to take care of the birds and there is no need to feed them. The only problem is that the nests get stolen even before the owners can harvest them.

“There was one I found a rope used to climb into one of the swiftlet farm building in Kuala Rompin. It is definitely the work of those in the know,” he said.

Lizards, ants and other insects too pose a threat especially when the birds are brooding but these pests can be rid off with the right pesticide.

However, the swiftlets are sensitive to the presence of owls that often eat their young when the adult birds leave the nest at night to look for food.

“I’m planning to open a bird nest exhibition room within the next four or five years when my business expands,” he said.

Mohd Yusof noted that he is willing to share his expertise with those keen to venture into this field which still has room for more participants.

He advised those lacking in capital to consider establishing a consortium to venture into this lucrative industry.

Meanwhile, Beh noted that the bird nest industry in bMalaysia has a bright future looking at the demand and the price of the product.

“The bird nests from Malaysia is highly sought after in China, Hong Kong, Taiwan and Korea, surpassing the demand for nests from Thailand and Indonesia, two of the world’s biggest bird nest producers,” he told Bernama. -- Bernama

Bird's nest: Telling the real from the fake

2010/03/29
NST



NEGRI Sembilan Association of Bird's Nest Traders president Datuk Lee Yuen Fong says edible bird's nest is among the most expensive animal products in the world and has been used in traditional Chinese cooking for almost half a decade.

"The nests are composed of interwoven strands of salivary laminae cement and have high levels of calcium, iron, magnesium and potassium. The male swiftlet builds the nest, which is shaped like a shallow cup and is stuck to the walls of buildings and caves."

Lee says the nests are harvested thrice a year, with each harvest lasting up to three months.

He says swiftlets are monogamous birds and both partners take part in caring for the nestlings. The average lifespan of a swiftlet is between 15 and 18 years.

He says there is an increasing number of fake bird's nests making their way into the market. But anyone who is familiar with the product will be able to tell the difference.

"For one, swiftlets build their nests from their saliva, which is formed into strands. These strands can be detached into layers when soaked in plain water and, as a result, will be of different lengths and sizes. Fake ones will be perfect in size."

He also says the genuine bird's nest should be able to expand to double its size after being soaked and cooked.

Bird's nest: Sabah needs guidelines

NST
2010/03/29




SABAH may be one of the biggest natural producers of edible bird's nest but when it comes to farming the delicacy, it is in its infancy.

Fewer than 100 people are licensed to trade in the nests throughout the state.

State Wildlife Department director Laurentius Ambu believes the industry will grow as more research is carried out and expertise comes in.

"There are signs of swiftlet hotel operators improving their earnings and having better farming techniques to spur the industry to greater heights.

"(In Sabah), there are issues that need to be addressed," says Ambu, who has conducted research in bird's nest farming for nearly a decade.

At present, there are no regulations to guide and monitor bird's nest farming. On top of that, there are negative perceptions about the birds and the business, he adds.




In the state, there are three key natural cave systems where swiftlets thrive. They are the Gomantong, Baturong and Madai caves.

"Gomantong is a government-owned cave while Baturong and Madai are considered heritage caves where the bird's nest trade is operated by the community.

"The three caves produce up to 20 tonnes of bird's nests, about a third of which are the white nests while the rest are black nests," says Ambu.

There are no statistics on how much money it brings to the state but as far as Gomantong is concerned, the contract for harvesting bird's nest comes with a reserve price of about RM20 million.

Ambu explains that the contract is tendered out to licensed contractors twice a year and the highest bidder gets the harvesting rights.

"For Baturong and Madai caves, it is governed by native laws."

The only law that covers bird's nest in Sabah is the Wildlife Conservation Enactment 1997, which provides that anyone in possession of bird's nest or selling it without a permit from the Wildlife Department can be fined. Also, in major towns here, bird's nest farming is not allowed because it is illegal to "run a farm in an urban area".

"The solution is for the government, the local authorities in particular, to determine certain zones where it can or cannot be done. With this and better technology, I am sure the industry can grow," Ambu adds.

Sabah Swiftlet House and Bird's Nest Industry Association president George Ng Aun Heng agrees.



"Certain areas, like housing estates, may not be suitable for swiftlet farming but what about abandoned buildings? It can also be done at oil palm plantations or other big areas.



"If the government can come up with guidelines, I am sure farmers are willing to comply because this is a lucrative trade which requires a substantial amount of capital.

"There are negative perceptions, probably spread by people who are envious of the success of others, and most of them are untrue."

Ng says there are ways to minimise the noise and the smell at farms.

"It's a matter of educating the public and those who want to venture into the trade but, at the same time, we need commitment from the government because at the end of the day, it's the state that will benefit."

For that, the association, formed six months ago and which now has about 40 members, is on a drive to teach people about proper bird's nest farming techniques, apart from lobbying the government to introduce proper guidelines.

Need to ensure safety in swiftlet industry

=Mar 25, 2010
The Star

KOTA KINABALU: Swiftlet farming is a lucrative industry but steps must be taken to ensure it does not have a negative impact on the environment and the people.

Sabah Deputy Chief Minister Datuk Peter Pang En Yin said there was a need to make sure the activity was carried out in specific areas.

“We have to bear in mind that local authorities do not allow swiftlet farming at shoplots or commercial lots in townships and urban areas as these properties are gazetted for residential, commercial, industrial and tourism purposes.

“They are not zoned for swiftlet farming so I advise those in the industry to wait for the endorsement of the Swiftlet Industry Guidelines (SIG) by the Federal Cabinet,” said Pang, who is also the State Youth and Sports Minister.

With SIG, local authorities could determine the zones allowed for swiflet farming and those involved in the industry would have a set of regulations to adhere to, he added.

Sabah Swiftlet House and Bird’s Nest Industry Association president George Ng had said that the SIG, reported to have the full support of the health, agriculture and agro-based industries and the Housing and Local Government Ministry, was supposed to be tabled at the Federal Cabinet meeting at the end of last month but was delayed.

If accepted, it would give the industry the much-needed framework to operate in a sustainable manner and put Malaysia ahead of leading bird’s nest producers like Indonesia and Thailand, he said.

The guidelines would also provide a framework to supervise the industry in a holistic way in terms of licensing, sampling, production and export particularly to China, he added.

Pang, the Karamunting assemblyman, said he was aware of developments in the industry and stressed he had nothing against the industry.

He pointed out that allowing swiftlet farming in industrial or densely-populated areas could have a negative impact in the health, business and safety aspects.

“We know how valuable birds’ nest are and this could trigger an increase in criminal activities in towns or industrial areas where swiftlet farming is allowed,” he said, adding that people would be worried about the droppings and noise from the birds.

Pang who is also Kosan chairman, said the state agency experienced some setbacks as a result of a swiftlet farm in an industrial area in Sandakan.

Kosan had rented four ground-floor shop lots in an industrial zone in Sandakan to expand its production line and provide jobs for 80 youths in the district.

“The management abandoned its plans after realising that the upper floors were occupied by a swiftlet farmer. Kosan wanted to avoid any health risks to its employees,” he said.

In response to Ng’s claim that the industry could boost property prices in Sabah, Pang said he was not convinced as swiftlet farming could cause the opposite effect.

“Zoning an area for swiflet farming can have a negative effect with property owners disposing their properties and tenants moving away.

An area for human occupation would be taken over by birds and this could cause a whole township to be deserted, he lamented.

Pang said a clean and healthy environment was important for the state’s tourism industry and tourists might feel uneasy if the places they visited had health risks because of swiflet farming.

“We do not want to see swiftlet houses next to hotels, seafood restaurants and shopping malls,” he said, adding that swiftlet farmers should not fall prey to agents or advisers in the industry.

Wait for the guidelines to be drawn up and consult local authorities before setting up business, he said.

Potential RM2b yearly from S’wak swiftlets

Potential RM2b yearly from S’wak swiftlets


Borneo Post
by Churchill Edward
March 16, 2010, Tuesday



LUNDU: Sarawak has the potential to contribute up to RM2 billion to the country’s total yearly production of bird’s nest by 2020.

Malaysia as a whole produced 250 tonnes of bird’s nest (from 50,000 birdhouses) worth RM1 billion in 2008 alone.

Yesterday, Sarawak Economic Development Corporation (SEDC) chairman, Datuk Talib Zulpilip expressed optimism that the country would be able to produce an annual RM5 billion worth of bird’s nests with Sarawak contributing RM2 billion yearly by 2020.

When closing a swiftlet farming and marketing strategy course at Sematan community hall here yesterday, Talib said, “Malaysia, in 2008, produced 250 tonnes of swiftlet bird’s nests worth about RM1 billion which also involved 50,000 birdhouses.”

“It is our (government) hope that by 2020, the country would be able to produce a yearly RM5 billion worth of bird’s nests weighing 500 tonnes involving 100,000 birdhouses. The source of this information came from Federal Minister of Agriculture and Agro-based Industry Datuk Noh Omar,” said Talib who is also State Assistant Minister of Tourism and Heritage.

He said Bumiputera involvement in this industry is still low at less than 10 per cent, according to statistics in 2009.

“With such a scenario, Bumiputera involvement in this industry is still very low and lagging far behind compared with that of the non-Bumiputera sector which controlled about 90 per cent of the total industry. We hope local Bumiputera involvement will be greater after we (SEDC) provide training and courses to encourage their participation,” he stressed.

He said, with yesterday’s one-day course, folks in Sematan could see the potential of this industry and tap the golden opportunities afforded by it. He stressed that the industry is a real income generator.

A kilogramme of bird’s nests depending on its grade, could fetch RM4,500 to RM6,500 in the local market while the price could increase to between RM6,000 and RM12,000 (world market).

The highest the price per kilogramme has gone up is from RM12,000 to RM24,000, Talib said when pointing out that entrepreneurs have nothing to fear when it comes to business returns and turnover.

He said one can browse www.gemsb.voc.com to find out the details on farming and marketing of swiftlet bird’s nests.

However, he said, this industry would require a big capital outlay if one wants to start big and get handsome returns. Talib stressed that he was confident the capital issue could be overcome by engaging the assistance of government agencies.

As far as Bumiputera entrepreneurs are concerned, Talib said he hoped they would expand their businesses in the global arena instead of just being contented with local businesses.

Talib pointed out that rodents are potential pests of bird’s nests and that firecrackers are not only scary but could disturb the mating season of swiftlets.

Recently the Sarawak government had entrusted SEDC to set up a Swiftlet Birds Eco Park, according to a press statement delivered to the media during the closing ceremony.

The Eco Park will be the first of its kind in Sarawak and it is to be located at come from overhauling the university’s teaching activities to make graduates more commercially viable.

“Undergrad curricula will be revamped, in which information technology and sciences will include a component of business, so that from the beginning students think about how to turn technology into money. They will learn how to manage innovation, technology and services.

“It’s not like them doing an MBA per se, but having knowledge on bringing technology to market.”

On this note, UKM had also set up its vehicle Technology Transfer to turn R&D into products and businesses, as well as a Centre for Collaborative Innovation (CCI) together with the US-based Stevens Institute of Technology, both aimed at enhancing human capital development and creating innovations for wealth generation.

Similarly, Universiti Malaya (UM) had been forging direct ties between business and education, according to its vice-chancellor Ghauth Jasmon. He added that there was the need to develop an entrep­reneurial culture in Malay-sia towards capitalising its local skills to the fullest.

“The main challenge is Malaysian academics themselves. The culture is not there, as they are pure academics, and are content with research and teaching. They must be encouraged to be enterprising,” OBG cited Jasmon.

“While the culture may still be lagging somewhat, UM is moving forward by working with a Singaporean company to market and commercialise patents from some of the university’s research. In addition, the university has set up a Centre of Innovation and Commercialisation that facilitates its inventors and academicians to actualise their ideas, concepts and research products for viable commercialisation.”

Moreover, OBG underlined that under the leadership of Prime Minister Datuk Seri Najib Tun Razak, the government had made building this culture a top priority. In this respect, the government was initialising a series of reforms aimed at developing a higher-value and higher-skill economy that was on par with other high-income countries across a range of sectors.

The recent launching of this year’s Innovative Malaysia campaign highlighted this initiative, according to OBG.

In reference to the Prime Minister, OBG mentioned that the country needed intellectual input and the latest technology towards its goal to achieve a new economic model based on knowledge and innovation.

“The government initiative is timely,” said Universiti Putra Malaysia’s (UPM) Innovation and Commercialisation Centre director Mohamed Shariff Mohamed Din, as cited by OBG.

He further stressed on the importance of producing more inventors, especially among the younger generation, to help the nation’s Vision 2020.

“If we do not change now, our country will be left behind in various aspects. Look at developed nations like Japan, Korea, the US and the European countries. They progressed because of innovation. If we are not innovative, we will be left behind.”

Meanwhile, OBG mentioned that as the government would continue its commitment on higher education, rising demands for funds could mean a smaller slice of the budgetary pie for private universities, as acknowledged by Universiti Tenaga Nasional’s (Uniten) vice-chancellor Mashkuri Yaacob.

“Research and development has to play a bigger role as government funds will not continue forever, this needs to become a separate revenue generator.”

As such, Mashkuri revealed that the university was focusing on renewable energy by establishing Unitem R&D, a company to commercialise its research work, notably in areas such as wind, solar and biodiesel.

“The purpose is to be a solutions provider to the industry, so we established the new Energy Policy and Research Institute to focus on renewable energy.

“Malaysia wants to reduce by 40 per cent its carbon emissions and needs a lot of efforts to meet industry needs. This is changing the role of educational institutions.”

Be fair in crackdown on illegal swiftlet farmers: SAPP leader

Borneo Post
March 10, 2010, Wednesday




KOTA KINABALU: City Hall must be fair when taking action against those who operate illegal swiftlet farming activities in the state capital.“How is it possible that action was taken against a swiftlet farmer in Inanam this month, but three similar activities are allowed to flourish in the city itself?” SAPP Api Api Central Liaison Committee (CLC) chairman.Datuk David Chong asked.

According to Chong, on March 2 this year, City Hall together with the State Wildlife Department took action against a swiftlet farmer who operated in farm in a three storey shoplot in Inanam.

There were similar activities in the city itself, but City Hall has turned a blind eye to what they are doing, he said, claiming that the illegal swiflet farming activities being carried out in Jalan Pantai, Australia street and Gaya street.

“By allowing them to continue operating showed that City Hall condoned such activities in the city area, but not in the outskirts.

“The question here is why is the swiftlet farmer in Inanam victimised? If City Hall is taking action against those in Inanam, then it must do the same for those in the city…. it must be fair,” he said.

Chong also said according to City Hall’s licensing unit, those who want to convert their shop lots for swiflet breeding must apply with it to have the licence changed.

The activity was deemed illegal if the person did not receive any approval, he said, adding that the Wildlife Department also confirmed that an approval from the department to carry out the activity must be obtained failing which the offender could be fined RM50,000.
He also hoped that the relevant authorities would not approve licences for swiftlet farming in densely populated areas like the cities because it would not only disrupt business, but also posed a health risk to the public.