Report PRT

16
PRT 2008 AGRICULTURE AND MAN CHAPTER 5: AGRICULTURAL PRACTICES IN MALAYSIA LECTURER: PROF. DR. ZULKIFLI HJ SHAMSUDDIN NAME: MATRIC NO: AZEELIA SONIA BAYANG 175639 BADRELDIN ABD ELHAKIM AHMED 181214 IFFAH AMIRAH BINTI HUSSIN ALI 172719 MOHAMMAD MARWAN BIN NAZAMDIN 174881 MUHAMMAD AZRI BIN MOHAMAD ARIS 172705 KHOR KANG YEAN 173332 THANASHANTHINI A/P SEKAR 172383 YUSAIRINA BINTI MOHD YUSOF 171800

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PRT

Transcript of Report PRT

Page 1: Report PRT

PRT 2008 AGRICULTURE AND MAN

CHAPTER 5:

AGRICULTURAL PRACTICES IN

MALAYSIA

LECTURER: PROF. DR. ZULKIFLI HJ SHAMSUDDIN

NAME: MATRIC NO:

AZEELIA SONIA BAYANG 175639

BADRELDIN ABD ELHAKIM AHMED 181214

IFFAH AMIRAH BINTI HUSSIN ALI 172719

MOHAMMAD MARWAN BIN NAZAMDIN 174881

MUHAMMAD AZRI BIN MOHAMAD ARIS 172705

KHOR KANG YEAN 173332

THANASHANTHINI A/P SEKAR 172383

YUSAIRINA BINTI MOHD YUSOF 171800

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Introduction

Agricultural is an important sector in the Malaysian economy. During independence in

1957, the agricultural sector contributed about 46% of the gross domestic product (GDP) and

80.3% of the employment. The percentage contribution of the agricultural sector to the GDP

declined to 7.52% and total employment in the agricultural sector accounted for only 11.8%

of the total labour market. Despite the relative reduced role of agriculture in the country‟s

economy, this sector is given prominence in government policies. This is because of its

continued importance in earning foreign exchange through exports of palm oil, rubber and

fruits also its contribution to employment and its role in ensuring food security for the

country. The Ninth Malaysia plan emphasizes agriculture as the third engine of growth and

seeks to revitalize agriculture by adopting commercial and large scale agriculture and the use

of new technologies.

Historical Development of Malaysian Agriculture

The pre-independence development of Malaysian Agriculture was shaped by the interest of

the British colonialist. The introduction of rubber and the development of plantation

agriculture is one of the major developments during this period. British needed rubber for

their industrial expansion and the colonial administration encouraged the establishment of

rubber plantations such as Dunlop Plantation, Guthrie Plantation and Harrisons and

Crossfield. Malaysia became the large producer of rubber in the world. Besides rubber, tea

plantations such as Boh Tea were also established in the highland areas because of the high

market demand for tea. Cocoa and coffee were also grown. However, British agricultural

policy of this period neglected the provision of opportunities for the indigenous Malays to

participate in plantation agriculture. Besides, agriculture led by rubber and oil palm were the

dominant contributors to the Malaysian economy, providing the benefits of foreign exchange

income, capital creation and employment.

Characteristics of Malaysian Agriculture

The State and Smallholders Subsectors

The agriculture sector in Malaysia can be divided into two which are estate sub-sector and

smallholders subsector. The estate sub-sector is highly commercialized and efficiently

managed by the professionals. By definition, estates are land holdings that are larger than

40.5 ha. Usually they are owned by private companies, public listed corporate entities or even

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public land development agencies. These companies are involved in the production of

industrial crops such as cocoa, rubber and oil palm. Next, smallholders subsector is less

commercialized and the average farm size is 1.45 ha. It is estimated that smallholdings are

operated by 1,033,065 farmers and the crop grown include the industrial crops, rice, fruits

and vegetables.

Table 1: Land Use in Malaysia

Besides the historical factors that resulted in the prominence of oil palm and rubber, the

climatic conditions of Malaysia are also suited for the growth of perennial or permanent tree

crops. Malaysia‟s climate is categorized as equatorial, being hot and humid throughout the

year without any dry seasons.

Industrial Crops

PALM OIL

Oil palm occupies the largest area of crops grown in Malaysia and palm oil production is

vital for the economy of Malaysia, which is the world's second- largest producer of the

commodity. Malaysia currently accounts for 39% of world palm oil production and 44% of

world exports. If taken into account of other oils and fat produced in the country, Malaysia

accounts for 12% and 27% of the world‟s total production and exports of oils and fats. Being

one of the biggest producers and exporters of palm oil products, Malaysia has an important

role to play in fulfilling the growing of global needs for oils and fats sustainably.

RUBBER

Rubber was the first major plantation crop introduced into Malaysia in 1877 when seedlings

were brought in from the Amazon Basin of Brazil. Rubber was the dominant plantation crop

for eight decades up to 1989 until oil palm overtook. Some of the factors causing a switch

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from rubber to oil palm were the declining price of rubber brought about by competition from

synthetic rubber and the increasing cost and declining availability of labour.

COCONUT

Coconut is ranked the fourth most important crop in Malaysia after oil palm, rubber and

rice. Coconut is also one of the oldest agro-based industries. The decrease in the coconut

industry was caused by the rise of oil palm which is used as cooking oil. Despite the

decreasing acreage, coconut still plays an important role in the socio-economic position of the

Malaysian rural population that involves 90000 households. The domestic demand of coconut

products are for example fresh coconut, tender coconut, coconut oil and processed cream

powders. Due to the limited size of most smallholdings, the small number of trees, the limited

returns provided, most families cannot survive on the income from the coconut crop.

“Virgin coconut oil” is a new valued product that is in a very high demand worldwide.

Virgin Coconut Oil is processed using fresh coconut meat. This oil has a very high level of

antioxidants and is used in skin and hair care as well as for general good health because of its

antimicrobial properties.

COCOA

Malaysia is currently the fifth largest cocoa processor in the world and coca has been

commercially planted in Malaysia since the 1950s. However, over the years. The planting

sector has been slowing down. The continuous reduction has resulted in the lack of locally

produced cocoa beans to meet the increasing demand for local grinding. This has resulted to

the importation of coca beans leading to foreign exchange.

OTHER INDUSTRIAL CROPS IN MALAYSIA

Coffee or known as “Qahwa” is first prepared in Eastern Africa (known as Ethiopia today)

by a goat herder. Coffee was imported to Turkey through the Arabian Peninsula (Yemen) and

arrived in the European continent by following Venetian trade merchants. In no time, coffee

became an infamous beverage. Even the pope himself declared it a truly Christian beverage

despite that many people though that he should ban the drink. In Malaysia, coffee under

family Rubiaceae was planted since 1977, mostly at the West Peninsula Malaysia and East

Malaysia. The plantation of coffee was grown by smallholders either monocrops or as

intercrop with coconut. The Liberica types are popular in Johor and Selangor while the

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Robusta types are infamous in Northern Peninsular Malaysia and Sabah and Sarawak. The

reduction of coffee planting due lack of farmers interests and also affected by low income in

coffee industries compare to the palm oil industries.

Sugarcane is planted for processing into sugar. The early cultivation of sugarcane was

surprisingly small. The production of sugarcane is mainly in the Northwest Peninsular

Malaysia in states of Perlis and Kedah as those area has a distinct dry season. However, in

1980, the production of sugarcane increases from 40 tonnes per hectare to 68 tonnes per

hectare in 1996. This is because of increase in domestic consumption such as growth in food

processing industries that have more demand for sugar. Although the production of sugar

from local plantation seems high in number, it only reach about 10% of domestic

consumption demand which is literally not enough to provide all needs in our country, the

Malaysian Government are issued licenses to import raw sugar. The raw sugar is imported

from Australia, Thailand and Fiji.

Tea was first discovered in 2700 BC, by Chinese Emperor as he was resting on a one fine

day. Early 20th

century, the cultivation of tea became important. India, Sri Lanka and China

are the countries in lead of the tea production while Malaysia is now trying to stake its claim

on the global tea production stage. In 2011, the Food and Agriculture Organization of the

United Nation ranked Malaysia as the 18th

largest producer of tea in Asia. The main type of

tea produced in Peninsula Malaysia is black tea and the main area of tea production is at

Cameron Highland because of it favourable geological area – abundant rainfall, long hours of

sunshine and well drained acidic soils.

PRODUCTION OF RICE

Rice is a crucial part of everyday Malaysian diet and is considered a strategic crop. The total

area of land provided to grown rice is 450,000 ha, making padi the third largest agricultural

crop after palm oil and rubber. About 300,500 ha of rice are planted in Peninsular Malaysia

while 190,000 ha in Sabah and Sarawak. Currently, rice growing field are concentrated in

eight favourable granary areas in Peninsular Malaysia where various inputs such as irrigation,

drainage and rice mills are provided. The eight granary areas are:

Kuala Muda in Kedah/Perlis

Kemubu in Kelantan

Seberang Perai in Penang

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Kerian/Sg. Manik in Perak

South West of Selangor

Kemasin Semarak in Kelantan

Besut in Terengganu

Seberang Perak

These eight granary areas contributed about 70% of the national rice production. In 1998,

Malaysia produced 1.94 million metric tons of rice, and even with this huge amount,

Malaysia still only produces 80% of what it needs to support itself and have to import the

rest. The average of Malaysian citizen consumes around 82.3 kilograms of rice per year. The

increasing population is calling for more research and technological advancement to increase

the production of rice for consumption within the nation.

FRUITS

Fruit growing in this country has traditionally been undertaken as a secondary activity by

smallholder to supplement their household income. The development of commercial orchards

and a large scale fruit plantation has not taken off to any significant degree because of several

major constraints. As a result, the growth of the fruit industry has been sporadic and

unorganized. The lack of clear and proper development policy for fruit production has also

contributed to its sluggish growth.

It was over the last decade or so that commercial fruit production has become increasingly

important. Fruit crops occupy the largest cultivated area of food crop in the country with over

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375,000 ha. of land area planted with various tropical fruits. The fruit industry is a small

holder based industry involving 270,000 farmers. In 1995, the area under fruits was 257,600

hectares out of which 86,210 hectares were planted on a commercial basis. For the 1985-1995

period, the production of fresh fruits increased at the rate of 4.8 percent per annum from

638,100 tonnes to 1,019,900 tonnes. Export values of fresh and processed fruits increased

from RM182.4 million in 1985 to RM335.6 million in 1995, while import values of fresh and

processed fruits also increased from RM257.2 million in 1985 to RM444.3 million in 1995.

Overall, Malaysia is still a net importer of fruits and fruit products.

The Malaysian Government focused on eight types of fruits for the export, specifically

papaya, pineapple, melon, starfruit, orange, jackfruit and guava. In order to ensure the

acceptability of Malaysian fruits, the government has introduced regulations, good agriculture

practices, farm accreditation schemes and Malaysia Best labelling so to ensure a full

compliance of export fruits with the international trade regulations and standard.

The demand is expected to continue rise due to factor like increasing population, per capita

consumption, income and changing lifestyles, and health concern in the domestic and

international, markets. The per capita fruit consumption is expected to increase from 49.9 kg

in 1995 to 65.1 kg in 2010, representing an annual increase of 1.8 %.The area under orchards

is expected to increase from 257,000 ha. in 1995 to 373,200 ha. in 2010.

Fruit Hectarage Value („000 RM)

Durian 104655 1392077

Bananas 29790 476255

Rambutan 25460 171685

Dokong 16130 97260

Duku Langsat 12715 45420

Watermelon 11750 309465

Cempedak 11158 130251

Mango 9760 83545

Langsat 6925 69282

Duku 5775 65047

Jackfruit 3962 63155

Limau Manis 3915 49969

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Papaya 3403 68419

Dragon Fruit 2510 39160

Guava 1525 50598

Starfruit 1276 31618

Salak 1190 15824

Sapodilla 1115 18149

PINEAPPLE

The pineapple industry is the oldest agricultural export crop. Due to economic reasons,

pineapple farmers have changed to other crops particularly, oil palm, which brings more

income and is less labour intensive. Pineapple cultivation can be divided into two production

systems, namely the smallholding and the estate sectors. Pineapple estates accounted for an

average of 62% of total pineapple area in Malaysia. In 1980, an area of about 7000ha. was

planted with pineapple under the estate system. This was reduced to 4.8 thousand ha. in 1989

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but has now remained stable at 5000 ha. Smallholders pineapple area is declining and stands

at about 3000 ha.

VEGETABLES

With an average farm size of only one hectare, the vegetable industry can best be described

as small as fragmented. The potential to obtain a satisfactory farm income on such limited

resource is severely constrained. There were more than 13327 farms which specialized in the

production of vegetables in 2004. Vegetable production area is concentrated in the states of

Johor, Perak, Kelantan and Pahang where the four states account for 75% of total vegetable

production in Peninsular Malaysia. Johor is the largest supplier of the tropical vegetables

while Cameron Highlands has traditionally been the growing areas for temperate vegetables

such as cabbages, lettuce and tomatoes.

Total annual production for all types of vegetables is only 330000 tonnes while the

requirement is estimated at about 400 000 tonnes. Besides domestic consumption, Malaysia

exports vegetables worth RM 160 million in 1995 which include cucumber, spinach, long

beans, chilli, Chinese mustard (sawi) and kailan with the main export market being

Singapore. However, Malaysia imports about RM242 million worth of vegetables annually

and the main vegetables imported are onion, shallot, garlic, potato, chilli, cabbage and

processed vegetables. The industry faces several constraints, including lack of good varieties,

problems of pest and diseases, and problems of seed supply. The annual per capita

consumption is expected to increase at a rate of 1.8 % per annum to reach 63.6 kg in 2010. To

meet this demand, the area under vegetables production is expected to increase from 42,240

ha. in 1995 to 86,200ha. in 2010 resulting in a projected output of 1.6 million tonnes of

vegetables in 2010.

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PARTICULAR VEGETABLES FRUIT

Supply (SS) (tonnes)

-Local 642796 1873092

-Import 265808 47973

-Total Supply 908604 1921065

Demand (DD) (tonnes)

-Local 1007979 1524770

-Export 76094 209583

-Total Demand 1084073 1734353

Shortage/Surplus (SS-DD) -175469 186712

No of farmers for selected

commodity

31911 107827

Total no. of farmers 40920 162463

AQUACULTURE

In the modern technology world, aquaculture which is also known as aquafarming, stands

for farming of aquatic organisms such as fish, crustaceans, molluscs and aquatic plants.

Generally, aquaculture includes the cultivating freshwater and saltwater populations under

controlled conditions, and transform to commercial fishing which is generating an income for

those contributor.

In term of medicine field, protein is a basic component of every cell in our body. For

example, hair and nails produced are mostly made of protein. Protein is an important element

to build and repair the body tissues and use within many biological processes. For instance,

protein is used to make enzymes, antibodies to help us fight infection. Fish and other aquatic

organisms are definitely the best model for healthy sources of protein. There are a lot of

health benefits from frequently eating fish. One of the essential nutrients which are Omega-3

fatty acids can typically found in most fish and these fatty acids will help in reducing many

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forms of cancer and promote healthy brain tissue. Eating fish regularly also can minimize the

risk of heart disease through reducing the probability of clot formation, lowering blood

pressure and increasing the good cholesterol levels in the blood stream. However, as the

demand is increase due to the growing of human population, the commercial fishing will

eventually result in overfishing and the loss of species entirely. Therefore, the aquaculture is

introduced to reduce the over dependence on the commercial fishing to ensure a consistent

supply of aquatic species.

Aquaculture mainly can be divided into four categories for the subsets of aquaculture. First

category is fish farming, in which including the raising of fresh water fisher, brackish water

fishes, lobsters and prawn. Fresh water fish have the river carp, catfish and so on, while the

brackish water fishes included sea bass, tiger prawn and crabs. Second category is the

algaculture, which mainly focus on production of algae and seaweed. Next category of

aquaculture is growing of cultured pearls, people can actually sell the cultured pearls on the

market today .One of the first factors that influences the growth of a cultured pearl is how

quickly the mollusc recovers from the implantation procedure itself. Before the growth stage

of a pearl, the operated mollusc will need care and attention from the pearl farmer. The last

category of aquaculture is mariculture, it is defined as aquaculture in ocean which includes

raising of mollusk.

Item 2003 2004 2005 2006 2007 2008 2009

Number of

fishermen

and

aquaculture

lists

110,54 7 110,960 111,344 118,047 120,905 126,950 149,618

Marine fish

„000 tonnes

1,283.2 6 1,331.65 1,209.60 1,379.77 1,381.27 1,450.44 1,393.22

Aquaculture

„000 tonnes

196.87 202.22 207.22 212.03 268.51 281.94 472.31

Marine fish

value (RM

million)

4013,6 1 4,241.45 4,017.52 4,939.32 5,053.51 5,308.91 6,322.57

Aquaculture

value (RM

million)

1,172.3 1 1158.46 1,196.01 1,291.75 1,341.33 1,408.39 2,321.97

Seaweeds

tonnes*

- 30,956.9

0

31,426.2

0

43,200.0

0

90,298.5

0

111,298.2

0

138,855.9

0

Seaweeds

value (RM

- - 15.71 6.91 18.05 22.26 27.77

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million)*

Seaweeds

acreage

(ha)*

- - - 5,949.37 6.684.19 7,730.57 7,538.46

Number of

fishermen

and

aquaculture

lists

110,54 7 110,960 111,344 118,047 120,905 126,950 149,618

Figure 1. Production of marine fish, aquaculture and seaweeds from year 2003 till 2009

From the survey table, the growing numbers of fisherman and aquaculture production are

the desired results from advanced aquaculture technology. If compared to five years ago,

there is a tremendous change for the positive impact of aquaculture field.

There are several contribution factors to the steady growth of aquaculture production.

Firstly, depletion of fish supplies from marine captured fishing lead to insufficient supply in

the market. This is mainly due to the overexploitation of fisheries and physical destruction of

marine coastal habitats. Besides that, overfishing of smaller fish can become a threat to

marine biodiversity and affect the whole system simultaneously. The second factor is the

ocean pollution which affects the living environment for those marine species and endangers

the marine life. As we all know, pollution is the introduction of harmful contaminants into the

ocean such as pesticides, herbicides, chemical fertilizers, detergents, oil that can negatively

impact nature's water cycle. These contaminants might consumed by small marine organisms

and affect the global food chain. Other than that, ocean pollution might lead to reductions in

oxygen levels and the decay of plant life. Next, it can provide more job opportunities and

steady income to the local communities. Since it is cultivate under a controlled conditions,

the fisherman can monitor the growth of aquaculture closely if compared to those coastal

fisherman. Thus, they can gain a steady income without the fear of ocean pollution that

happened at most of the places.

New Sources of Growth for Malaysian Agriculture

The agricultural sector has contributed to the growth and major contributors to national

income and export earnings. It‟s become basis of economic growth and main contributor in

national economy prior to the 1970s. The agricultural sector initially derived from the

increase in the production of livestock, fisheries, and other miscellaneous crops. The

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agricultural industry more valuable cash crops owing to the increase in earnings from major

commodities such as palm oil, rubber and food commodities. It has enabled the sector to

retain its workforce and shore up the economic downturn of the 1997 financial crisis. There

are a few new sources of growth for Malaysian agriculture namely are herbs and spices,

pharmaceutical and also natural products.

A new sub-sector in Malaysian agriculture that is currently experiencing rapid growth is the

herbal industry. The government has targeted the herbal industry to be another growth sector

after information and communication technology. The shift in health care awareness towards

natural products with therapeutic value provides vast opportunities to Malaysia to become a

significant global player. A plantation area for these three new sector has been planted in

Dungun, Terengganu and Lipis, Pahang as the initial herbal plantation projects. Herbs and

spices are used in cooking and some even used as traditional medicine.

Some of the common species of herbs that are grown in Malaysia are tongkat ali, hempedu

bumi, kacip fatimah, misai kucing, dukung anak, pegaga and also mas cotek. Tongkat ali is

used for antimalarial, antidiabetic, aphrodisiac, antimicrobial and antipyretic. As for hempedu

bumi the uses are for treatment of gastro-intestinal tract and upper respiratory infections. It

can also be used for herpes, fever, sore throat and other chronic and infectious diseases.

Kacip Fatimah is famous among the ladies. This is because it is used to facilitate birth and

post-partum medication. It can also be used for treatment for dysentery, rheumatism and

gonorrhoea. Misai kucing is used as analgesic, diuretic, antiemetic and astringent. Misai

kucing can also be used to treat conditions like bronchitis, small pox and diarrhoea. Dukung

anak is famous for its use to treat kidney stone, malaria, asthma and liver related diseases. It

is also used as diuretic and to increase appetite. In Malaysia, it is used to treat diarrhoea,

diabetes, hypertension and jaundice. Meanwhile, the pegaga herbs is used to heal wounds,

improve mental clarity, and treat skin. It can also boost mental activity and treat high blood

pressure, rheumatism, fever and nervous disorders. Lastly, the mas cotek are used to help

womb contraction and as aphrodisiac for men and women. Mas cotek also can reduce

cholesterol and blood sugar level.

Marketing Agriculture

Agricultural marketing covers the services involved in moving an agricultural product from

the farm to the consumer. Numerous interconnected activities are involved in doing this, such

as planning production, growing and harvesting, grading, packing, transport, storage, agro-

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and food processing, distribution, advertising and sale. Some definitions would even include

“the acts of buying supplies, renting equipment, (and) paying labour", arguing that marketing

is everything a business does. Such activities cannot take place without the exchange of

information and are often heavily dependent on the availability of suitable finance.

In export crops sector, there are three main types of oil palm producers: independent

smallholders, producers in land development schemes, and private estates. In the land

development schemes such as Federal Land Development Activity (FELDA), the agency is

also involved in the marketing of produce. Similarly, other land development agencies such

as Federal Land Consolidation and Rehabilitation Authority (FELCRA) and Rubber Industry

Smallholders' Development Authority (RISDA) are also involved in marketing of the produce

of the settlers. In the production sector, each group of producers exhibit different production

and marketing characteristics.

The independent smallholders are characterized by low productivity and dependence on

private middlemen for the sale of their produce. Marketing of smallholders produce in the

land development schemes is done through the marketing unit or mills owned by the parent

institution. FELDA buys and sells fresh fruit bunches at the farm level, processes them into

processed palm oil, and sells this to either local or foreign manufacturers. The private estates

have a highly organized marketing system. A plantation firm not only has its production

farms, but also milling and processing plants. Raw materials are easily absorbed into their

mills and refineries, before the processed products are sold to domestic industrial users or

foreign manufacturers. A similar marketing framework also exists for rubber growers and

producers.

The Food Sector:

The food production of Malaysia is described by little ranch size with negligible association

of the private or corporate divisions. In the case of rice, normal homestead size for most

ranchers is 1.06 ha. Other than these there are likewise a couple rice bequests keep running

by FELCRA(around 4000 ha) in Seberang Perak silo territory.

Rice is of vital significance to the economy as it is the staple sustenance of most of the

populace. As being what is indicated there are a great deal of government intercessions to

guarantee "an adequate level of rice to the nation while guaranteeing high cost to the makers

and stable cost and superb rice to the customers". The instruments of mediation incorporate

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inputs endowments, less expensive water watering system rates, value sponsorships,

government-possessed processing exercises, value control (from homestead to retail) and

restraining infrastructure of rice imports.

The ranchers ordinarily offer their produce to the neighborhood constructing agents or

wholesalers‟ operators on a relegation premise. The agriculturists are paid after the produce

has been sold which may take more than a week. Produce are by and large not reviewed and

post-harvest taking care of is still the weakest connection in the framework. Costs are not

straightforward at the ranch level, truth be told they are found through the "whispering

framework" between the purchaser and the dealer. Makers are typically in a weaker haggling

position in respect to the purchasers or wholesalers who are furnished with business sector

data and systems administration. Under such a showcasing scene, there are insignificant

impetuses for the business to review what's more, institutionalize or even to enhance to make

quality included. Items are sold in mass and undifferentiated and business costs don't mirror

the quality and particulars.

The New Supply Chain for Agri-food:

The conventional agri-food marketing system as discussed previously is undergoing a

transformation toward the “new supply chain” pushed by external and domestic “drivers”.

The external driver is the rapid development of large retail chains from developed economies

which made possible by globalization and free flow of capital across borders. These large

retail chains integrate the wholesale functions into their own company to become self-

distributing chains. Operating on a large scale these retail chains were able to introduce cost-

saving innovations such as centralization of procurement, use of preferred supplier registries,

formal contract with suppliers and promulgation of private quality standards.

The domestic drivers are consumer‟s income and changing consumption pattern and

lifestyles. Malaysia is classified as an upper-middle income country, and considered as one of

the most developed of the developing countries. A little less than two-thirds of Malaysia‟s

population live in the urban areas. The industrial-urban expansion has created new consumers

who have relatively more purchasing power and health consciousness, who began to dictate

their strong influences on the agro-food system. These consumers demand high quality

produce which are based on international standards. In 2005, there were 81 hypermarkets in

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Malaysia where 83% of them are foreign-owned. Among them are Giant (Hong Kong), Jusco

(Aeon Group, Japan), Carrefour (France) and Tesco (UK). Local retail chains include

Parkson, Ocean, The Store and Mydin.

Federal Agricultural Marketing Authority (FAMA):

The Federal Agricultural Marketing Authority (FAMA) is an agency under the Ministry of

Agriculture and Agro-based Industry. Set up as a statutory body in 1965, FAMA is

responsible in the supervision, coordination, regulation and improvement of the marketing of

agricultural products, which include fruits and vegetables, for domestic, export and import

markets.

As the Government‟s marketing arm for agricultural products, FAMA organizes marketing

activities, set targets and product standards, monitor performance, develop marketing

strategies and tools as well as initiate innovative programs to promote Malaysian agricultural

products.