TOPIC 5 :- AGRICULTURAL PRACTICES OF MALAYSIA

Introduction
Historical Development of Agriculture
Characteristic of Malaysian Agriculture
Industrial Crops
Livestock
New sources of Growth
Agricultural Marketing

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Introduction
1957-46% Gross Domestic Product
2010-7.52% Gross Domestic Product

Ctical Thinking . Why the rate of Gross Domestic Product become lower ?? How it happen ?
Answer:  During 1957 , 80.3% employment working in Agri Sector, but in 2010, only 7.52
                                        employment involve in agri sector

History Development of Malaysian Agriculture
Pre-independence (The plantations was bring my british)

• Rubber plantations 
• Tea , cocoa , coffee

Malaysia :- Rice , fruits and other crops

University Putra Malaysia is the first University develop agriculture of Malaysia

(http://www.upm.edu.my/about_us/TheStoryBehindUPM?LANG=en)

Post-independence 

Felcra and Felda

1.Huge land to be culticated with plantation crops 

2.Smallholders : switch subsistence crops > cash crops

New Economic Policy (1970-1984)

Goal-Adress income disparity between races

How? 

1. Intensifying and expanding FELDA & FELCRA program
2. Setup of own rice mills by Lembaga Padi&Beras Negara
3. Rubber Smallholding organized by Risda

Example

Fact- Malaysia was top producers for NATURAL RUBBER and PALM OIL

National Agricultural Policy

Objective

1st-Linkage of agricultural production with agro-based industries(1984-1991)

2nd-Labour and capital , increase efficiency (1992-2010)

3rd-Introduced product - Food security , Revised NAP 2 (1998-2010)

Last-Objectice 60% oilm palm, 20% rubber.NAP2&NAP3 (2004)

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Characteristic of Malaysia Agriculture

1.Estate

• High commercialized
• Efficiently
• Land larged than 40.5 ha
• Owned by public
• Palm oil,rubber and cocoa

         

2.Small holder

• Less commercialized
• Farm size 1.45 ha
• Rice,fruits and vegetables

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Industrial Crops

1.Oil palm

• Largest planted crop in Malaysia
• Biggest foreign exchange earner
• 39% for palm oil production & 44% for exports
• Origin; Sierra Leone ,Africa
• Planted in Malaysia (1971)
• 25-30 month
• Life span (20 years)

2.Rubber 

• First major plantation crop
• Brazil (1877)
• 80 years for dominate
• why Malaysia switched oil palm - decline price,cost,decline labour
• Planted by smallholder (97%)

3.Coconut

• 4th largest crop
• Factor of decline - low income ,small farm,labour 

Valued added - rejuvenate coconut industry, good for skin,demand from local

4.Cocoa

• Most planting areas in sabah
• Processing in Malaysia 
• Characteristic : high melting point 



cocoa

• 5th largest plant cocoa process in the world

5.Rice 

• high subsidized
• 3rd largest planted crop in country
• kuala muda,barat laut,seberang
• contributed 70% national rice production

6.Fruits

• smallholder 
• watermalon,papaya ,star fruit and banana



sugar cane perlis

• factors increase - high demand and value added

Other Industrial Crops

Coffee : Smallholder in Johon and Selangor. [Type'Liberica,Robusta and Arabica]

Sugarcane: Perlis and Kedah , Need district dry season , Import from Australia

Tea : Cameron highland,Perak,Selangor [Type 'Assam]  

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Livestock

Non-ruminant :poulty and swine

• high commercialized
• high technology
• production for country, [67% poultry] [25% swine]

Ruminant: cow,dairy and goat

• smallholder and low techonology
• contribute 8% for country livestock
• self sufficiency level not achieved
• always import from others country [cow]

Fisheries & Aquaculture 

• aquaculture[farming of aquatic organisms including fishing
• important supplier of animal protein
• important commodity [prawn & seaweed]
• steady growth since 2000

Q&A : which one is better ?? Fisheries or Aquaculture

Answer ; Of course Aquaculture - save livestock of earth

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New Sources of Growth

Herbs&Spices,Pharmaceuticals,Natural producst

• Rapid growth at 10-15% per annum
• 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
• Currently,planted by small holders
• Government target large scale herbal plantation

East cost Economic Regional herbal Plantation Project

• Plantation area 406 ha - Dungun Terengganu
• Plantation area 327 ha-Lipis Pahang 
• Eg 1[Dukung anak] treat kidney,malaria,athma
• Eg 2[Mas Cotek] reduce cholestorol,bloog sugar level
• Eg 3[Tongkat Ali]Antimalarial,antimicrobial
• Eg 4[Hempedu Bumi]Treatment for gastro
• Eg 5[Kacip Fatimah]For childbirth,Rheumatism

Hempedu Bumi

Mas Cotek

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Agricultural Marketing

Export Crop Sector
Palm oil

• Independent small holders:Low productivity and sell through middleman
• Producers in land development scheme:Production and marketting follow the parents
• Private estates:Very organized , processed own produces

Food sector

• small farms and minimal involvement by government or corporate sectors
• Marketting usually through middleman /wholesellers
• Except rice : Have Government intervention

Agri-food New Supply Chain 

• Transformation due to external and domestic drivers 
• External: rapid development or large retail chains
• IN 2005 : 81 hypermarket in Malaysia , 83% are foreign-owned
• Domestic : Charge in consumer income , consumption and lifestyle

       Different between Conventiol Agri-Food Marketting and New food supply Chanin

Federal Agricultural Marketting Authority  (FAMA)

• Responsibility :Supervision , coordination , regulation of improvement of the marketting of agricultural products for domestic , export and import market 
• Marketting Strategies
• Farmer,s Market
• Bussiness on wheels