Agro- Agricultural Practices in Malaysia [Chapter 5]

Other Industrial Crops

Other industrial crop in Malaysia is coffee, sugarcane, and tea, the fruits such as pineapple, vegetables, and floriculture. Coffee is agricultured in Johor and Selangor by smallholder. There are a few type of coffee that is Liberica, Robusta, and Arabica. Besides, tea is one of the most common crops in Cameron Highlands, Pahang, Selangor and Perak. This crop has Assam type of growth.

The next crop is sugarcane. Usually sugarcane is planted in Perlis and Kedah. Both areas have a distinct dry season that are needed for cost-efficient sugarcane production. This type of crops need a distinct dry season. However, the output of the sugarcane agriculture only fulfilled 10% of the local consumption. Due to the lack of agriculture product in sugarcane, our countries have to import it from Australia, Fiji, and Thailand.

Other crops is fruits. In Malaysia, the smallholder's industry consist of 270 000 farmers. The area planted is increasing since 1985 until now. Our country also exporting fruits to other country such as watermelon, papaya, star fruit and banana. The factors that leading in increasing planting in the area and the production are the high demand for local and export and the value-added processing (down-streaming activities).

Pineapple or their scientific name, Ananas comosus is the one of the fruit that are cultured. There are about 38% of smallholders  and 62% plantations of this crops.

Next, vegetables crop. Vegetables are planted by smallholders. Main area in vegetables plantation is Johor, Perak, Kelantan, and Pahang. The export value of cucumber, spinach, long beans, chilin, kailans, and sawi is RM160 million. Besides, RM 242 million is the import value for onion, shallot, potato, chilli, and cabbage.

The Floriculture  in Malaysia.

• Net value RM290 million in 2010.
• Such as cut flower, orchids, and non-orchids.
• Area planted is increasing
• Important area in floriculture is Johor, Cameron Highlands, and Selangor.
• Most planted commodity in 2010.
• An orchid has a value of RM104.1 million.
• Non-orchids have a value of RM129.5 million

LIVESTOCK

There are two types of livestock practices in Malaysia which is non-ruminant and ruminant.

Non-ruminant: Poultry and Swine

This type of livestock is highly commercialized by large corporations. There were using high technology such as closed housing, computerized ration formulations, and feeding method. The contribution of the country’s livestock production is 67% of Poultry and 25% of Swine.

Ruminant: Cow, dairy Goat etc.

Usually owned by smallholders with low technology. The contribution 8% in livestock production. It is self-sufficiency level not achieved. Government targeted 40% SSL (self-sufficiency level) by 2015. It is achieved by integrating cattle in farm and use feedlot system.

FISHERIES & AQUACULTURE

Aquaculture à Farming of aquatic organism including fish, mollusks, crustaceans and aquatic   plants.

IMPORTANT   à Supplier of animal protein.

                           à Commodity such as prawn & seaweed.

Steady growth since 2000.

The value in 2009: Freshwater fish: RM 2.32 billion. 

                               Captured fish      :  RM 6.29 billion       

Capture fisheries vs. Aquaculture?
Due to over capturing fisheries, by 2048, it is predicted that there is no longer seafood in the world.

New Source of Growth à Herbs & Spices, Pharmaceuticals, Natural Product.

~   Rapid growth at 10-15% per annum.

~   Targeted as growth sector after ICT.

~   Market value in 2010: RM7 billion.

~   Expected value in 2020: increase to RM29 billion.

~   Reason high value: Awareness on health care with natural products.

~   Currently, planted by small holders.

~   The Government target is large scale in herbal plantation.

Agricultural Marketing
Export Crop Sector.
Oil palm: 3 main type 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.

Food Sector:

• Small farms and minimal involvement by government or corporate sectors.
• Marketing usually through middlemen / wholesaler.
•  Except Rice because have a government intervention.

Agri-Food New Supply Chain

> Transformation due to external and domestic drivers.
> External: rapid development of large retail chains.
> In 2005:81 hypermarkets in Malaysia, 83% are foreign-owned.
> Domestic: changes in consumer income, consumption and lifestyles.

Federal Agricultural Marketing Authority (FAMA)

> 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.