Overview of Agriculture Sector in Malaysia 1230823436347415 1
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Transcript of Overview of Agriculture Sector in Malaysia 1230823436347415 1
Map of Malaysia
SABAH PENINSULAR
SARAWAK
Scenario of Malaysian AgricultureTotal land area - 33 million ha. Agricultural area - 6.6 million ha (20% of total area) Industrial crops - oil palm, rubber, cocoa, tobacco and pepper occupy about 77% of total agricultural land
Other crops
- paddy, fruits, vegetables & coconut cover 16% of total agricultural land
Agriculture sector in Malaysia is divided into :-
(i) Estate sub-sector holdings more than 100 acres (40.5 ha) highly commercialized and efficiently managed owned by private companies, public-listed corporate entities or public land development agencies totally involved in the production of industrial crops such as oil palm, rubber, cocoa and pineapples
Agriculture sector in Malaysia is divided into :-
(ii) Smallholders sub-sector average farm size is about 1.45 ha and owned by individual farmers collective acreage of land operated by 1,033,065 farmers amounting to 75% of the total area under agriculture less commercialized and less efficiently managed main contributors to food crop production as well as industrial crop production
Farmers ProfileTotal Number of Farmers : approximately 1 million *
PaddyHorticultural crop (Fruits, vegetables, floriculture) Industrial Crops (Rubber, oil palm) Other Crops
: + 400,000: + 200,000
: + 750,000 : + 50,000
* Some farmers are involved in more than 1 crop
LABOR FORCE IN AGRICULTURE (1998-2004)INDUSTRY PADI PLANTERS FARMERS LIVESTOCK FARMERS FISHERMEN AQUACULTURE SMALL HOLDINGS TOTAL 1998 302,852 311,979 43,222 115,901 8,966 387,982 1,170,902 2000 314,158 301,035 41,263 125,353 9,134 353,828 1,144,771 2001 320,587 284,637 36,790 136,610 8,528 290,146 1,077,298 2002 297,227 239,517 35,870 104,309 3,346 304,990 985,259 2003 268,542 245,976 34,005 102,933 4,067 337,792 993,315 2004 320,022 248,260 79,665 132,712 9,694 442,486 1,232,839
Farmers Profile< 45 years old : 30%25 % 45%
45-55 years old : > 55 years old :
SCENARIO OF THE NATIONAL AGRICULTURAL SECTORAfter Independent: Malaysian an agricultural nation Economic activity over dependant on agriculture & mining Contribution to GDP, 1957: agricultural sector = 46% Total work force, 1966: agricultural sector = 80.3% New Millennium Era Malaysian well known as producer of manufacturing products Contribution to GDP, 2003: agricultural sector = 8.45% Total work force, 2003: agricultural sector = 14.3%
CONTRIBUTION TO GDPPLANTATION SECTOR (%) FOOD SECTOR (%)
YEAR
1995
9.6
3.6
20032004
5.26.1
3.32.9
GDPNational= USD 133.8 million Agriculture= USD 11.6 million (8.7%)
TradeExportNational Agriculture million (7.5%) Agro-food milion (4.1%)
Import
USD 144.3 millon USD 117.3 million USD 16.3 million (11%) USD 8.8USD 2.7 million (1.9%) USD 4.8
Labor ForceNational = 10.5 million person Agriculture = 1.5 million (14.6%)
MINISTRY OF AGRICULTURE & AGROBASED INDUSTRY
MINISTRY OF PRIMARY INDUSTRY & COMMODITIES
Food Subsector Crop
Industrial Commodities Palm Oil Rubber Cocoa Wood & Timber Pepper
Livestock Fisheries
MINISTRY OF AGRICULTURE AND AGRO-BASED INDUSTRY
DEPARTMENT OF AGRICULTURE
MALAYSIA AGRICULTURE BANK (BPM)
MALAYSIAN AGRI. RESEARCH & DEVELOPMENT INSTITUTE (MARDI) FEDERAL AGRI. MARKETING AUTHORITY (FAMA)
DEPARTMENT OF VETERINARY SERVICES
FARMERS ORGANIZATION AUTHORITY (FOA)
DEPARTMENT OF FISHERIES
MALAYSIAN FISHERY DEVELOPMENT BOARD (LKIM)
MUDA AGRI. DEVELOPMENT AUTHORITY (MADA)
MALAYSIAN PINEAPPLE INDUSTRY DEVELOPMENT BOARD (MPIB)
KEMUBU AGRI. DEVELOPMENT AUTHORITY (KADA)
NATIONAL AGRICUL TURE POLICY
National Agricultural Policy (Background)Since 1984, three National Agricultural Policy (NAP) were formulated to develop the agricultural sector: Emphasis on NAP1 (1984-1991):- To develop the export oriented sector Current situation :
abundant labor force expansionary economic policy adequate land resources commodity/ plantation (palm oil/ cocoa) infrastructure
1st National Agriculture Policy (1984-1991)Focus on expansionary policy on export crop i.e. oil palm & cocoa Government invested heavily on infrastructure institutional building new land developments for oil palm & cocoa in-situ development to resolve uneconomic farm size & low productivity among small holders
Abundant land & adequate manpower
National Agricultural Policy (Background) Emphasis of NAP 2 (1992-1997): Increasing productivity, efficiency & competitiveness Increasing land areas for palm oil (plantation crop) Development of agro-based industry
2nd National Agriculture Policy (1992-1998)Greater focus on issues of productivity, efficiency & competitiveness
Shifted from new area development to in-situ development
Addressing the linkages with other economy sector
STRUCTURAL CHANGES (1992 1998)ECONOMY Acute labor shortage Increasing costs Competition for land & water resources Economic & financial crisis Inflation
GLOBALISATION & LIBERALISATION Implementation of WTO, APEC, AFTA High import costs of food items
National Agricultural Policy (Background) Emphasis of NAP 3 (19982010): Increasing the competitiveness of the agricultural sector Maximizing income through : Optimum utilization of
resources Increasing agriculture contribution to national GDP Increasing income of producers
3rd National Agriculture Policy (1998-2010)Further development of agrofood sub-sector as well as agro-based industries
1997 Asian Financial Crisis : Need to find alternative to manufacturing sector Agro-food sub-sector to be engine of growth
SPECIFIC OBJECTIVE OF NAP 3 Enhancing food security Increasing productivity & competitiveness of the sector Deepen linkages with other sectors Create new sources of growth Adopting sustainable development, utilization and management of natural resources
To Increased Value Added
Increased Production
9th MP (20062010) TARGETSIncrease SelfSufficiency LevelTo Contain Import Bill
Improving the service delivery system
Increasing agricultural production including new sources of growth with greater private sector participationPOLICY THRUSTExpanding agro-based processing activities & product diversification
Enhancing incomes of smallholders, farmers and fishermen
Strengthening marketing and global networking
DEVELOPMENT OF NATIONAL AGRICULTURAL SECTOR (ISSUES & CHALLENGES)
ISSUESINDUSTRY RESOURCE Small & uneconomic land holdings* 65% paddy planters work on holding < 1 ha
FARMERS Ageing farmers : 39% age >55 years old Under employment* Paddy planters: 27 days/season Coconut smallholders: 16 days/ month Perception of youngsters generation engaging in agriculture sector is not attractive
Competition for land resources* 6.36 million land; 83 % for estate
Imported planting materials/ input* Vegetables: 95% seeds imported * Fruits: 40% seeds imported * Fish try: 25%imported
Inadequate labor force: 19,343 foreign workers brought in for period 2001-2003 OVERSEAS Trade liberalization: WTO, APEC & AFTA* Need to enhance competitiveness of agricultural products
PRIVATE SECTOR Agricultural is perceived as a poor mans sector & profile not comparable with other sectors Low productivity of the sector 60% lesser than productivity in the manufacturing sector Need to enhance productivity
Asian financial crisis 1997 & devaluation of values of Malaysian Ringgit (RM)* Increasing cost imported agricultural inputs * Increasing of food import bills
CHALLENGES Transforming small scale agro-industry into commercial ventures Ensuring adequate, quality, safe and nutritious food at a reasonable price
Reducing full dependency on labor force in theagricultural sector Ensuring sustainable development of the agricultural sector Increasing competitiveness of the national
CHALLENGES To make Agricultural sector as the 3rd engine of national economic growth (new source) New scope includes agro-based industry Development of the sector covers the total aspect of production and supply chain management
TRANSFORMING THE AGRI-FOOD SECTOR IN NEW ERA
Transformation of agriculture and agrobased industry as a sector which is : Modern, Dynamic, and Competitive
Scope of TransformationCurrent situationFarm size: - small - uneconomic
After transformationLarge scale, commercial & economic
Labor force: - limited - ageing
Mechanization, automation & technology Less labor intensive activities
Farm management: Professional, agriculture is business, - traditional - satisfactory - enough - manual
Application of ICT, Commercial management/ collective/economic of scale, Business Plan
Scope of TransformationCurrent situation After transformation
Less/ not competitive: - Low product quality - non-standard quality - product dumping - price factor
Standard, certification & export quality
Return on Investment - Low - time consuming
Diversified returns: mixed farming, intercropping value-added
TRANSFORMATION
Transformation of Traditional Farmers- Land/farm size cluster - Application of technology - Mechanization - Productivity Agricultural - Supply-demand matching - Marketing - Farmer Cooperation - Diversity of economic activity - Modernization
Sectoral Transformation- Development based on zoning/ - Private sector investment - Investment incentives - Implementation of Good Practices Program (GAP)
Horizontal/Vertical Transformation- Food processing - Value added activities - supply chain activities - by products
Transformation of Traditional FarmersLand/farm size : Development of collective agricultural projects (ingroup) Amalgamation of farms towards creating commercial farm size (sizeable estates) Introducing systematic & modern farming practices Practicing standard manual(technology package, business plan & centralized management)
Transformation of Traditional FarmersApplication of technology : Research & Development based on current needs Commercialization & transfer of technology (TOT) Extension programs on technology & training On-site training
Transformation of Traditional FarmersReducing labor force in agriculture through : Reduction on labor intensive industries Promoting cultivation of new crops Promoting the production of environmentally controlled systems using mechanization and automation Accelerating R&D in creating new technology that reduces dependency on use of manpower/labor
Transformation of Traditional FarmersTransforming of Farmers Association Changing mindset of traditional farmers through capacity building and motivational programmers Creating model projects involving paddy, fruits, vegetables and livestock Contract farming & integrated farms Processing, marketing, value added, supply linkages activities Mixed cropping, inter-cropping and integration
Transformation of Traditional FarmersTransforming of National Fishermans Association Fund for Fishermen Program Use of fishing boats/ vessel and modern fishing equipments Skills enhancement through training and motivational program Branding & collection centre New market opportunities fish mart, fish kiosk, fish on wheel & in petrol kiosk Inviting giant companies to establish grand seafood restaurant with all modern facilities-as a model
Transformation of Traditional Farmers
QUALITY AND FOOD SAFETYAccreditation and certification program : Producing safe and high quality food Producing food conforms to international standards Promoting sustainable agricultural development
Farm Accreditation Scheme (Skim Amalan Ladang Baik Malaysia or SALM)
Aqua Farm Certification Scheme (Skim Pensijilan Ladang Akuakultur Malaysia SPLAM)
Farm Accreditation Scheme Malaysia (SALM) Concept of SALM : Inspection and verification of farm by independent auditors Audit for conformance to accepted and defined protocols,
national guidelines, standards, legislation and policies.Corrective and preventive actions by farm Benchmarking on specific farm based on EUREGAP, CODEX, others
Farm Accreditation Scheme Malaysia (SALM) Program to recognize farms that adopt : Good agricultural practices
Operates sustainable and environment friendly Safe and quality produce for consumption
LIVE ST OC
K
ACC REDIT AT RM IO FA
DEPARTMENT OF VETERINARY SERVICES, MALAYSIAFARM PRAC
T
IC
ES
EST. NO. : ....
N
ME HE SC
Livestock Accreditation Scheme (Skim Amalan Ladang Ternakan or SALT)
BE
ST
(Veterinary Health Mark or VHM) Processed productsLOGO VETERINARY HEALTH MARK (VHM)
Transformation of Traditional Farmers Marketing Packaging, labeling and branding Conformance to Food Act 1974
Conformance to food safety and sanitation Standard and quality
Quality Control System (MARDI QAS)
Seal of Quality
Promotion of Malaysian agricultural products through branding
Transformation of Traditional Farmers Diversification of economic activity Integration of cattle in palm oil plantation Intercropping Mixed farming
Processing activities
Transformation of Traditional FarmersMajor Programs for Farmers Group Farming Project Permanent Food Production Park Project Transformation of Farmers Association Transformation of coconut Smallholders 10 Tan Paddy Project Malaysian Farm Accreditation Scheme Contract Farming Farm Mechanization Program Major Livestock Programs Cattle Integration in Palm Oil Plantation Closed System for Chicken Rearing Cattle feedlot system Malaysian Livestock Accreditation Scheme Major Programs for Fishermen Contract Farming Fund for Fishermen Transformation of National Fishermans Association Malaysian Aqua Farm Certification Scheme Contract Farming
Sectoral TransformationDevelopment based on zoning/cluster : Increasing productivity Enhancing efficiency Promoting down stream activities Promoting integrated development AQUACULTURE INDUSTRIAL ZONE CROP ZONING PRODUCTION ZONES FOR LIVESTOCK TARGET AREA CONCENTRATION
ZON MZ 1 (Mango Zone 1) Sub Zon MZ 1 (a) Mangga Tembikai Sub Zon MZ 1 (b) Mangga, Nanas, Jambu Batu Muar
ZON MZ 2 (Mango Zone 2) Sub Zon MZ 2 (a) Mangga Tembikai Limau Nangka Perlis, Langkawi, Kbg Pasu, Padang Terap, Pokok Sena, Kota Setar, Pendang Sub Zon MZ 2 (b) Mangga, Nanas, Jambu Batu K. Muda, Sik, Baling, Kulim, Bandar Baru, SPU,SPTS PS, T/Laut, B/Daya
CROP ZONINGLimau
ZON MFZ 3 (Mixed Fruit Zone 3) Sub Zon MFZ 3 (a) Sub Zon MFZ 3 (b) Tembikai Roselle Nanas Marang, Kuala Terengga nu, Setiu, Besut, Pasir Putih, Bachok, Kota Banru, Tumpat Sub Zon MFZ 3 (c) Limau Tembikai
Alor Gajah, Jasin, Melaka Tengah, Rembau
Kemaman Dungun, Hulu Terengganu
Pasir Mas, Tanah Merah, Macang, Jeli, Kuala Kerai, Gua Musang
ZON MFZ 2 (Mixed Fruit Zone 2) Sub Zon MFZ 2 (a) Betik Limau Mangga Sub Zon MFZ 2 (b) Betik, Jambu Batu, Roselle Mangga Batang Padang, Kinta, Perak Tengah, Manjung, Hilir Perak Sub Zon MFZ 2 (c) Belimbing, Nanas, Jambu Batu
ZON MFZ 1 (Mixed Fruit Zone 1) Sub Zon MFZ 1 (a) Belimbing Limau Roselle Tembikai Kota Tinggi, Johor Bahru, Kluang, Mersing, Rompin Sub Zon MFZ 1 (b) Belimbing Mangga Nangka Limau Segamat Tampin Jempol Bera Sub Zon MFZ 1 (c) Nangka, Mangga, Jambu Batu Temerloh Maran K. Lipis Bentong Raub Jerantut
ZON PZ 1 (Pineapple Zone 1) Sub Zon PZ 1 (a) Nanas Pontian Sub Zon PZ 1 (b) Nanas, Pisang Batu Pahat
Kuala Kangsar, Larut Matang, Hulu Perak
Hulu Selangor, Gombak, H. Langat, Petaling, Klang, WP, Seremban
ZON PZ 2 (Pineapple Zone 2) Sub Zon PZ 2 (a) - Peat Nanas Kuantan, Pekan Sub Zon PZ 2 (b) - BRIS Nanas, Roselle Kuantan, Pekan
Potential Fruit Crops PAPAYA JACKFRUITBANANA CITRUS MANGO
STAR FRUIT PINEAPPLE MELON GUAVA
MALAYSIAS SUCCESS IN FRUIT TRADE
No. 1 in EU No. 1 in Hong Kong No. 2 in the world No. 1 in Hong Kong & No. 12 in the world
No. 17 in the world No. 18 in the world
Sectoral TransformationZoning/Cluster based development supported with activities, such as : Good Agricultural Practice Certification, Accreditation Schemes & Malaysias Best standardisation, commercialisation & transfer of technology Skilled training Supply demand matching Sustainable agricultural development Pest/disease control
Sectoral TransformationAgro-based industry clusters: Meat based industry Fish based industry Fruit based industry Vegetables based industry Rice based industry Herbs based industry Coconut based industry
Sectoral TransformationPromoting private sector investment : Modern Farm Project Incubation centre Offering more attractive fiscal and non-fiscal incentive facilities Providing information as guidance to private sector investment Promoting large scale involvement of GLCs Offering more attractive financial schemes Centralized information centre by AGRI FOOD Business Development Centre (BDC)
Horizontal/Vertical TransformationFood Processing/value-added activities : Winning Products Program 4 optional categories Sauce Snack Chilled Snack Drink & Beverages Package includes: Branding Quality Upgrading Design and Packaging Scheduled Production Aggressive promotion and advertisement
Brand names to promote SMI Products
Branding Based On Quality And Food Safety
Horizontal/Vertical TransformationSupply chain activities: Infrastructure and marketing facilities Farm Collection Centre
ICT facilities and post harvest handling equipments (grading, curing, storage, transportation, packaging and labeling) Information on market and extension Improvement to delivery process
INTEGRATED SUPPLY CHAINPPLS u p p l y C ha i n Management (SCM) Farmers Dist/collection centreFresh produce
Distributors
Supermarket/ Hypermarket/ Retailers
Consumers
DC(DC) Chui Chak Selayang Processors Puchong Tangkak Bkt. Mertajam Processed products Melaka Johor Bahru TESCO Giant Lifestyle Carrefour Billion PizzaHut Makro
BDC
FAMAX/AgricX
Receiving orders FAMA
Scheduled planting
Input procurement
Farm management
Collection & post harvest
Delivery
www.agribazaar.com.my
Thank you