Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 30 views

    Chapter 5

    Uploaded by

    Muhammad Fikri
    Malaysian agriculture has historically shifted from subsistence farming to large-scale commodity production. It initially contributed significantly to GDP but has declined as the economy industrialized. The government has implemented various policies and programs to modernize and transform agriculture into a high-income sector through commercialization, adoption of new technologies, and emphasis on industrial crops like palm oil and rubber. Emerging areas of growth include herbs, spices, and other high-value natural products.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Chapter 5

    Uploaded by

    Muhammad Fikri
    30 views36 pages
    Malaysian agriculture has historically shifted from subsistence farming to large-scale commodity production. It initially contributed significantly to GDP but has declined as the economy industrialized. The government has implemented various policies and programs to modernize and transform agriculture into a high-income sector through commercialization, adoption of new technologies, and emphasis on industrial crops like palm oil and rubber. Emerging areas of growth include herbs, spices, and other high-value natural products.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Malaysian agriculture has historically shifted from subsistence farming to large-scale commodity production. It initially contributed significantly to GDP but has declined as the economy industrialized. The government has implemented various policies and programs to modernize and transform agriculture into a high-income sector through commercialization, adoption of new technologies, and emphasis on industrial crops like palm oil and rubber. Emerging areas of growth include herbs, spices, and other high-value natural products.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views36 pages

    Chapter 5

    Uploaded by

    Muhammad Fikri
    Malaysian agriculture has historically shifted from subsistence farming to large-scale commodity production. It initially contributed significantly to GDP but has declined as the economy industrialized. The government has implemented various policies and programs to modernize and transform agriculture into a high-income sector through commercialization, adoption of new technologies, and emphasis on industrial crops like palm oil and rubber. Emerging areas of growth include herbs, spices, and other high-value natural products.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 36

    Chapter 5

    Agricultural practices in Malaysia


    Today’s lecture
    • Historical development of agriculture

    • Characteristics of Malaysian agriculture

    • Industrial crops

    • Livestock

    • New source of growth

    • Agricultural marketing
    Introduction
    • Agriculture contributions in economic growth:
    • 1957 : 46% GDP
    • 2016 : 8.1% GDP
    • Declined as Malaysia transformed from an agricultural into an
    industry country
    • Despite that, it is still important in earning foreign exchange through
    exports of palm oil, rubber and fruits, contributing to employment
    and ensuring food security
    Introduction
    • 9th Malaysia Plan (2006-2010)
    • Third engine of growth
    • Revitalize agriculture by adopting commercial and large
    scale agriculture through new technology

    • 10th Malaysia Plan (2011-2015)


    • Development for high income nation
    • Agriculture = one of the National Key Economic Areas

    • 11th Malaysia Plan (2016-2020)


    • Modernizing agriculture sector
    • Agro-food and industrial commodity sub-sectors will be
    transformed and modernized into a high-income and
    sustainable sector
    National Key Economic Area (NKEA)
    • An important driver of economic activities that potentially and
    directly contributes towards the Malaysian Economic Growth
    measurable by the National Gross Income (GNI) indicator
    • Creates job opportunities and attracts best of talents
    Historical development of Malaysian agriculture

    • Pre-independence (interest of British colonist):


    • Rubber plantations
    • Ex: Dunlop; Guthrie; Harrisons and Crossfield
    • Other plantations: Tea, cocoa, coffee (commercial agriculture)
    • Malays: rice, fruits and other crops (subsistence agriculture)

    Coffee plantation
    Tea plantation Rubber plantation Paddy
    Historical development of Malaysian agriculture

    Post-Independence (1957-1970)
    • Government set up : FELDA and FELCRA
     Huge land to be cultivated with plantation crops
     Smallholders : switch subsistence crops => cash crops

    • The Federal Land Development Authority (FELDA)


    • To handle resettlement of rural poor into newly
    developed areas and to organize smallholder
    farms growing cash crops

    • The Federal Land Consolidation and


    Rehabilitation Authority (FELCRA)
    • To develop rural sector by helping its community
    to participate in national economic activites
    New Economy Policy

    New Economic Policy (1970-1984):


    • Address income disparity between races :
    => emphasize smallholder agriculture development

    1) Intensifying and expanding FELDA & FELCRA program


    (emphasis on oil palm)
    2) Setup of own rice mills by Lembaga Padi & Beras Negara
    3) Rubber smallholding organized by RISDA

    • 1984 -Malaysia was top producers for natural rubber (39.8%) and
    palm oil (58.8%)
    National Agricultural Policy
    • 1st National Agricultural Policy (NAP) (1984- 1991)
    • Objective: Linkage of agricultural production with agro-based
    industries
    • 2nd National Agricultural Policy (NAP2) (1992-2010)
    • Issues: labour and capital competition with other sectors
    • Need to increase efficiency and productivity

    • 3rd National Agricultural Policy (NAP3) (1998-2010)


    • = revised NAP2
    • Introduce product-based approach and ensuring food security

    • End of 2004 (NAP2/NAP3)


    • Agriculture land use
    • 6.4 million ha for agriculture
    1) 61% for oil palm
    2) 20% for rubber
    National Agro-food Policy
    • National Agrofood Policy (2011-2020)
    1) Ensure adequate food security that is safe to eat
    2) To make agro-food industry as a competitive & sustainable
    industry
    3) To increase agro-based entrepreneur's level of income
    Characteristics of Malaysian agriculture
    1. Estate
    • Highly commercialized
    • Efficiently managed by professionals
    • Land larger than 40.5 ha
    • Owned by private companies or public land development
    agencies
    • Palm oil, rubber & cocoa

    Rubber estate in Tanjung Tualang, Perak Palm oil estate in Malaysia


    Characteristics of Malaysian agriculture

    2. Smallholder
    • Less commercialized
    • Average farm size 1.45 ha
    • Crops: rice, fruits and vegetables
    Industrial crops
    Oil Palm (Elaeis guineensis)
    • Largest planted crop in Malaysia
    • Biggest foreign exchange earner
    • 39% of the world’s palm oil
    production & 44% of world’s exports
    • Origin: Sierra Leone, Africa
    • Brought around 1870s as ornamental
    plants
    • First planted in Malaysia in 1917
    • Harvested at 25-30 months after
    planting
    • Economic life span: 20 years
    Industrial crops
    • Fruit’s pulp (palm oil) & kernel (palm kernel oil)
    • For every 100kg of fruit bunches, typically 22kg palm oil & 1.6kg
    palm kernel oil can be extracted
    • 60% grown by large plantation companies, 40% small holders
    (FELDA, FELCRA, RISDA)
    • Contribute 10% of Malaysia’s total export value
    Industrial crops
    Rubber (Hevea brasiliensis)
    • First major plantation crop
    • Introduced in 1877, from Amazon Basin of
    Brazil
    • Dominant plantation for 80 years
    • Second major crop in the country
    • Factors causing a switch to oil palm:
    • Declining price
    • Increasing production cost
    • Declining labour availability
    • 97% planted by smallholder
    Industrial crops
    Rice (Oryza sativa) – highly subsidized
    • 3rd largest planted crop in the country
    • Mainly in Peninsular Malaysia at 8 granary areas:
    I. Kuala Muda in Kedah/Perlis (MADA)
    II. Kemubu, Kelantan (KADA)
    III. Seberang Perai, Penang
    IV. Kerian/ Sg Manik, Perak
    V. Barat Laut, Selangor
    VI. Kemasin Semarak, Bachok / Kota Bahru
    VII. Besut, Terengganu (KETARA)
    VIII. Seberang Perak
    Industrial crops
    Coconut (Cocos nucifera) Value-added products
    • 4th largest crop in the country • To rejuvenate the coconut
    • 1981: 409,348 ha industry:
    • 1995: 248,380 ha  Virgin coconut oil(VCO)
    • 2007: 172,000 ha  Demand from local &
    • Factors for declining area overseas
    • Palm oil for cooking  High price = RM40-150/kg
    • Low income  Used for skin care, hair care
    • Small farm size  Antioxidant, antimicrobial
    • Limited labor requirement properties
    Industrial crops
    Cocoa (Theobroma cacao)
    • Most planting areas are situated in Sabah
    • But grinding and manufacturing are based in Peninsular Malaysia
    • Over the years, planting sector has been slowing down, but processing
    is increasing
    • Malaysian cocoa special characteristic: high melting point (beneficial for
    chocolate products in warm countries)
    • 5th largest cocoa processor in the world

    Workers pruning cocoa plants in Sabah Malaysia


    Other industrial crops
    Coffee
    • Smallholder in Johor and
    Selangor
    • Types: Liberica; Robusta;
    Arabica
    Sugarcane Coffee plantation in Johor
    • In Perlis and Kedah
    • Need distinct dry season
    • Only fulfilled 10% local
    consumption
    • Import from Australia, Fiji and
    Thailand
    Sugarcane farm in Chuping Perlis
    Other industrial crops
    Tea
    • In Cameron Highlands,
    Selangor and Perak
    • Type grown: Assam

    Tea plantation in Cameron Highlands Pahang


    Fruits
    • Small holders industry with 270,000 farmers
    • Area planted is increasing since 1985 until now
    • Types of fruits exported:
    • Watermelon; papaya; star fruit and banana
    • Factors for increases in area and production:
    • High demand for local and export
    • Value-added processing (down-streaming activities)

    Pineapple (Ananas comosus)


    • Smallholders (38%) and plantations (62%)
    • Areas are declining

    A worker collecting pineapples from Ayer


    Hitam Pineapple plantation in Johor
    Vegetables
    • Smallholders, average farm size < 1 ha.
    • Main areas: Johor, Perak, Kelantan, Pahang.
    • Export value: RM160 million (cucumber, spinach, long beans,
    chili, kailan, sawi)
    • Import value: RM242 million (onion, shallot, pototo, chilli,
    cabbage)

    A worker works in a small scale vegetable


    farm in Kampung Air Panas Malaysia
    Floriculture
    • Net value RM290 million in 2010
    • Cut flowers; orchids; non-orchids
    • Area planted is increasing
    • Important areas: Johor, Cameron Highlands, Selangor
    • Most planted commodity in 2010:
    • Orchids (RM104.1million), non orchid (RM129.5 Million)
    Livestock
    Non-ruminant: Poultry and swine
    • Highly commercialized = large corporations
    • High technology = Closed housing, computerized ration
    formulations, feeding method
    • Contribute to country’s livestock production
    • More than sufficient to meet domestic demand
    Livestock
    Ruminant: Cow, dairy, goat etc.
    • Smallholders and low technology
    • Contribution: 8% in livestock production
    • Self-sufficiency level is not achieved – 28% for beef, 10%for
    mutton, 5% for milk
    • Government target - 40% SSL by 2015
    • How? Integrating cattle in farm and use feedlot system
    Fisheries and Aquaculture
    • Aquaculture: farming of aquatic organisms including fish,
    mollusks, crustaceans and aquatic plants
    • Important supplier of animal protein
    • Important commodity: Prawn & seaweed
    • Steady growth since 2000
    New source of growth for Malaysian agriculture

    Herbs & Spices, Pharmaceuticals, Natural Products


    • Currently experiencing rapid growth
    • It is expected to grow at 10-15% per annum
    • Government has targeted as growth sector after ICT
    • Market value in 2010: RM7 billion
    • Expected value in 2020: RM29 billion
    • Reason high value: Awareness on health care with natural
    products
    • Currently, been planted by small holders
    • Government target: large scale herbal plantation
    • East Cost Economic Regional Herbal Plantation Project
    • Expected to generate a gross national income (GNI) of RM
    3.25 billion by 2020
    ECER Herbal Plantation Project
    Dukung anak:
    Treat kidney stone; malaria; asthma;
    increase appetite; treat diabetes;
    hypertension; itchiness

    Mas Cotek:
    Help womb contraction; aphrodisiac
    (reproduction system) for women and men;
    reduce cholesterol and blood sugar level
    ECER Herbal Plantation Project
    Tongkat Ali Hempedu Bumi
    Antimalarial; aphrodisiac; Treatment for gastro-intestinal tract
    anti-diabetic; antimicrobial Fever, herpes, sore throat
    ECER Herbal Plantation Project
    Kacip Fatimah:
    Facilitate childbirth; post-partum medication; rheumatism (pain at joints)

    Misai Kucing: Pegaga:


    Analgesic; diuretic; Heal wounds; improve mental
    bronchitis; small pox; clarity; treat skin; high blood
    diarrhea pressure; rheumatism; fever
    Agricultural marketing
    1) Export Crop Sector
    • Oil palm: 3 main types oil palm producers:
    • Independent small holders: Low productivity and sell
    through middleman
    • Producers in land development scheme: production and
    marketing follow the parent institution e.g., FELDA, FELCRA,
    RISDA
    • Private estates: Very organized. Processed own produces
    Agricultural marketing
    2) Food Sector:
    • Characterized by small farm size with minimal involvement of the
    private or corporate sectors
    • Marketing usually through middlemen / wholesaler
    • Except rice – a lot of government interventions as it is the staple
    food of the country
    • Interventions include input subsidies, cheaper water irrigation
    rates, price subsidies, government-owned milling activities, price
    control, monopoly of rice imports
    Conventional Agri-food marketing
    Input
    Import Local Producer

    Input supplier

    Assembler/Transporter/
    Commission Agent

    Wholesalers Import

    Small scale Large scale


    retailers Retailers

    Consumers
    Agri-food new supply chain
    • Transformation due to external and domestic drivers
    • External driver - rapid development of large retail chains
    • In 2005: 81 hypermarkets in Malaysia, 83% are foreign-owned
    • Domestic driver - changes in consumer income, consumption and
    lifestyles
    New food supply chain
    Producers

    Contract Packing
    farming house Wholesalers Import

    Large scale retailers

    Consumers
    Federal Agricultural Marketing Authority (FAMA)
    • Agency under MOA
    • Responsibility: supervision; coordination; regulation and
    improvement of the marketing of agricultural products for
    domestic, export and import markets
    • Marketing strategies
    • Farmer’s market
    • Business on wheels

    You might also like