Modern 'Pawah' System Enables Livestock Farming Without Lands Or Barns

City dwellers interested in livestock farming are usually forced to shelve their ambitions due to the lack of land, unsuitable surroundings and high start-up costs.

However, one agro-livestock company based in Muar, Johor, is making it possible for urban residents to become “livestock owners” without spending heavily on acquiring land or building barns and pens. They do not even have to get their hands dirty managing the animals themselves.

Established in 2021, Bebiri World – a fully bumiputera-owned company – offers a business model inspired by the traditional Malay pawah system, where livestock owners entrust their animals to a shepherd for care and breeding, with offspring shared between both parties. Sheep farming is Bebiri World’s core business.

TRANSITION TO MODERN ‘PAWAH’ SYSTEM

According to Bebiri World chief executive officer Abdullah Muhammad Tajuddin, the traditional pawah system has weaknesses, particularly in terms of documentation, clarity of ownership rights and risk management.

After assessing the shortcomings, he introduced the modern pawah system or ‘smart breeder’ model, under which Bebiri World remains as owner of the original parent stock and is responsible for farm operations, including feeding, healthcare, treatment and overall management of the sheep. The smart breeders (or participants), meanwhile, act solely as owners of the offspring produced by the original parent stock.

During the participation period of the provided package, participants still have the opportunity to enjoy the results in stages through several withdrawal rounds, rather than just a one-time return.

“In other words, the participants are not involved in daily operations or technical farm management. They also do not bear the operational costs of maintaining the parent animals,” the 36-year-old entrepreneur told Bernama.

This system allows participants to enjoy continuous benefits – they can choose to sell part of their livestock to third parties or pass them on to the next generation. They can also eventually open their own farms and operate independently.

To participate in Bebiri World’s modern pawah system, individuals can select from a range of livestock packages offered by the company, each spanning eight to 10 years.

The primary focus of these packages is not on quick buying and selling of lambs, but on breeding as the foundation of long-term value creation.

Abdullah Muhammad added that the participation period of eight to 10 years takes into account the biological cycle of sheep, which requires time to mature and reproduce at their optimal rate. During this period, participants can enjoy returns in stages through multiple production cycles, rather than receiving a one-off payout.

“If a breeding animal dies, the participant’s livestock will be fully replaced by the company without the need to make any insurance claims,” he added.

LEVERAGING DIGITAL SYSTEM

In just four years, Bebiri World has grown from 27 sheep owned by Abdullah Muhammad’s family to more than 1,800 animals, with nearly 800 Smart Breeders participating.

“Most of the participants have never even set foot on my farm. Some are based overseas, such as Singapore, Australia and New Zealand,” he said, adding that the company currently manages four barns that it owns, as well as four transit barns in Parit Sulong, Batu Pahat and Bukit Naning in Muar.

For those who live in the city and have no experience in farming, the innovation of the modern pawah system has successfully changed the way they view Malaysian's agriculture and livestock sector.

He said Bebiri World’s growth has not been driven merely by an increase in livestock numbers but by a structured and transparent management system.

“The key to our success lies in our digital system, which allows every smart breeder to monitor their livestock in real time,” he explained.

An online portal allows all the participants to review comprehensive data on their animals, including birth dates, health status, veterinary treatments, breeding performance and mortality records, without needing to be physically present at the farm.

The company also integrates artificial intelligence technology with strict biosecurity standard operating procedures (SOPs) to monitor herd conditions, including predicting health status and breeding performance.

DISEASE CRISIS

Acknowledging that livestock farming is always exposed to unpredictable biological risks, Abdullah Muhammad said the company’s biggest challenge came between September and November 2025 when a brucellosis outbreak – a bacterial infectious disease – was detected at the farm.

The incident led to more than 300 sheep being culled after testing positive. All culled livestock were replaced by the company.

Operations were temporarily halted, and the farm underwent strict monitoring by the Department of Veterinary Services before being allowed to resume.

“Recovery efforts are still ongoing, with a downward trend in positive cases, indicating that the farm is close to achieving disease-free status again,” he said.

DIVERSIFYING INCOME STREAMS

Operating without financial facilities from banking institutions, Abdullah Muhammad said the company relies entirely on prudent cash flow management by its leadership team.

“Many agro businesses fail not because livestock yields decline, but because they expand too quickly without strong support systems,” he said, adding that the company now generates around RM5 million annually from sales of its pawah packages.

Bebiri World CEO, Abdullah Muhammad Tajuddin, is currently formulating its long-term direction to drive the development of the country's agro-ecosystem, including the development of agrotourism based on sheep farming in Kundasang, Sabah, within the next five to seven years.

On the challenges faced in the early stages of the company’s establishment, he said the most burdensome was the high cost of purchasing quality breeds – particularly imported stock – followed by infrastructure and barn development.

He relied heavily on personal capital and adopted a phased approach, focusing on selling the smart breeder concept and the company’s vision, as well as its packages to generate cash flow. The first returns were only realised after eight to 12 months, achieved through strict cash flow management and gradual development.

To cope with the pressures of the cash conversion cycle, he diversified revenue streams, including opening a slaughterhouse in Paya Mengkuang, Johor, while strategically planning breeding and sales schedules.

Looking ahead, Abdullah Muhammad is charting a long-term direction for Bebiri World to help drive the development of Malaysia’s agro ecosystem. Plans include establishing sheep-based agrotourism in Kundasang, Sabah, within the next five to seven years.

“With international tourist arrivals, especially from China and South Korea via direct flights to Kota Kinabalu, daily revenue potential is estimated at between RM7,000 and RM14,000,” he added.

INDUSTRY ECOSYSTEM

Within the broader industry context, the challenges faced by small ruminant farmers such as Bebiri World reflect the structural reality of this sector as a whole. Small ruminant farming requires significant initial investment, covering breeding stock, infrastructure development and animal healthcare.

Agrobank president Datuk Tengku Ahmad Badli Shah Raja Hussin said the livestock maturation period of six to 12 months means financial returns cannot be realised quickly.

Agrobank Group President Datuk Tengku Ahmad Badli Shah Raja Hussin said all parties must play an equally important role in supporting the country's food security agenda, particularly in reducing Malaysia's dependence on imported meat.

This increases cash flow risks, especially for small-scale farmers who rely entirely on livestock sales to service financing commitments.

Such factors, he said, also contribute to the sector’s difficulty in attracting broader public participation despite its strong potential in supporting the national food security agenda. Perceptions of high start-up capital, slow returns and limited technical knowledge continue to deter many, particularly youths and working professionals, from venturing seriously into livestock farming.

He believes local innovation and community-based models offer some of the best approaches to reducing agricultural and livestock sector risks.

“Models such as livestock clusters and cooperatives allow operational, market and financial risks to be shared collectively. This improves economies of scale, strengthens supply chains and reduces project failure rates,” he said.

Close collaboration among financial institutions offering flexible financing and non-financial support, such as training, technical guidance and project monitoring; agropreneurs driving innovation; and communities acting as partners by sharing resources and managing risks collectively would accelerate the sector’s development.

“All parties must play an equally important role in supporting the national food security agenda, particularly in reducing Malaysia’s dependence on imported meat.

“Through continuous investment in commercial-scale farms, downstream processing and cold-chain logistics, we can enhance domestic production capacity and ensure a consistent, high-quality supply,” he added.