AGRICULTURE AND THE MALAYSIAN ECONOMY

AGRICULTURE SYSTEM IN MALAYSIA

PLANTATION SECTOR

SMALLHOLDERS

Oil palm plantation in Sabah, Malaysia

http://travel.mongabay.com/jeremy_hance/malaysia/sabah_119.html

http://www.eastasiaforum.org/2010/11/13/oil-palm-and-agricultural-policy-boom-or-ruinfor-indonesian-farmers/

Oil palm smallholders

2 systems
i) Plantation sector single crop cultivation (economic value crop) Larger scale (more than 40 ha) rubber, oil palm, coconuts, cocoa, pineapples, sugar and tea etc plantation management is more systematic using modern technology and hired labour.

ii) Smallholder cultivate small areas production capacity is low limited technology disorganised farm management practices

SMALLHOLDERS

1) the subsistence farmers who cultivate their land for their own consumption

sell the produce in the marketplace or to the middleman. practice mixed cropping systems ( vegetables and fruit trees) others mixed cropping and livestock farming systems

2) those that practice monocropping type of subsistence farming.

farmers cultivate their land with commodity crops such as rubber, cocoa, or oil palm

Federal Land Development Authority (FELDA) - an agency that oversees smallholder farms and is the world's largest plantation producer.
(thejakartaglobe.com 29/4/2012)

government had allocated RM297 million under NKEA for 2011-2013 to assist smallholders to replant oil palm in the country (theborneopost.com RM297 mln to help oil palm
Photo: http://www.thejakartaglobe.com/business/malaysia-plantation-giants-listing-facesheadwind/514774

Smallholders:

smallholders - 18/3/2012)

http://www.ifc.org/ifcext/agriconsultation.nsf/AttachmentsByTitle/FSG+Report/$FILE/FSG+report _formatted.pdf

Plantation sector

http://www.theborneopost.com/2011/10/04/chamber-to-help-smallholders-solvelong-queue-issue/

National Agricultural Policy (NAP).

the latest Third NAP (NAP3)-(1998-2010) development programmes aim: i) to improve the food trade balance (export balance the import) ii) increasing export of primary commodities iii) ensuring supply of raw materials for local downstream industries.

http://cms.boloji.com/articlephotos/A%20Study%20on%20the%20Origin.jpg

http://etp.pemandu.gov.my/Agriculture-@-Agriculture_.aspx

staple crop is under pressure across the developing world 3rd NAP includes further development of agrofood sub-sector as well as agro-based industries.
(www.moa.gov.my)
http://www.guardian.co.uk/environment/2008/apr/16/food.biofuels

National food security: Rice as

Agricultural Growth

7th Malaysia Plan (1995-2000): grew at 1.2% per annum, lower than the targeted 1.9% 8th Malaysia Plan (2001-2005): midterm review, grew only at 1.5% per annum, targeted 3.0% annually.
http://animhosnan.blogspot.com/2010/10/popular-fruitclones-in-malaysia.html

http://www.freshplaza.com/index_sector.asp?sector=11

http://jutawanternak.blogspot.com/

Agricultural value of major commodities (USD million). Commodity 1990 1995 2000 2005 2010 Oil Palm 1,518 1,943 1,674 2,261 2,877 Forestry & Logging 661 536 873 862 789 Rubber 584 499 534 647 730 Cocoa 351 234 71 24 39 Fisheries 438 571 712 683 1,107 Livestock 173 239 434 597 709 Rice 171 190 169 181 282 Other Agriculture 340 475 865 914 1,329

Self-sufficiency level (%) of food commodities. Commodity 2000 2005 2007 2010 Rice 70 72 72 86 Fruits 94 117 105 106 Vegetables 95 74 89 91 Fisheries 86 91 97 103 Beef 15 23 25 28 Mutton 6 8 9 10 Poultry 113 121 121 122 Eggs 116 113 114 115 Pork 100 107 116 132 growth in livestock production is mainly attributed to the improvement in animal husbandry and the shifting from traditional to commercial farming practices

FACTORS TO GROWTH IN LIVESTOCK PRODUCTION

shifting from traditional to commercial farming practices Increase integrated beef cattle farming in rubber and oil palm plantations. Poultry production: integrated poultry farming system introduced by fast-food chains such as Kentucky Fried Chicken. Poultry is the most popular meat consumed due to pricing and religious acceptability. fruits and vegetables: government efforts in consolidating small orchards into larger organized farms and instituting group farming projects.

Brahman cattle in Lundu, Sarawak.

http://cattlegrow.blogspot.com/

Integrated Beef Cattle Farming in Oil Palm Plantations: Integrated

Integrated Poultry Farming System :

the operation consists of breeder farms and hatchery, feedmills, poultry farms, contract broiler farming and processing and further processing plants.

http://www.kfcholdings.com.my/English/Flashsite/BusinessUnits/BizU_Poultry_Integration.asp

INTERNATIONAL TRADE IN AGRICULTURE

Table 4. Total agricultural imports and exports (USD million). Item 1999 2000 2001 2002 Import Maize 259 255 218 262 Sugar 255 253 286 257 Wheat 215 187 206 201 Rice, milled 181 175 134 124 Nat. rubber 119 214 180 185 Soybean 145 132 150 167 Food prep. 141 148 157 150 Tobacco 89 96 133 199 Cocoa bean 63 77 93 141 Oil palm 92 15 46 137 TOTAL 3733 3792 4028 4300

Table 4. Total agricultural imports and exports (USD million). Item 1999 Export Palm oil 3738 Rubber 521 Fatty acid 422 P.kernel oil 433 Food prep. 96 Shortening 99 Cigarette 142 Sugar 50 Pastry 87 Cocoa butter 108 TOTAL 7117 2000 2001 2002

2558 589 389 285 106 110 141 64 103 83 5821

2534 427 322 212 119 111 139 76 96 84 5521

3824 580 430 277 142 119 117 99 96 93 7375

COMMODITY
EXPORT1

2005
IMPORT BALANCE

TOTAL AGRICULTURAL SECTOR 62,596 TOTAL FOOD ITEMS 10,669 Live animals 418 Meat and Processed Meats 85 Dairy Products and Birds Eggs 622 Fish, Crustacean, Mollusks 2,328 Cereals and cereal preparations 912 Vegetables 508 Fruits 469 Sugar, sugar products and honey 470 Coffee, cocoa, tea, spices 2,446 Livestock Feed 492 Processed Food Products 1,918 Agricultural Inputs 1,543

36,250 17,733 156 1,049 1,726 1.934 2,260 1,689 707 1,339 2,211 2,868 1,793 3,496

26,346 -7,065 262 -964 -1,104 394 -1,347 -1,182 -238 -869 235 -2,376 124 -1,953

Employment Estimates of Agriculture by Activity (000)

Category Rice farmers Other Farmers Livestock farmers Fishermen 2000 306 277 39 116 2001 300 254 35 121 7 286 2002 297 238 37 104 3 305 2003 287 244 36 103 4 378 2004 252 222 36 125 6 400 2005 239 191 33 114 5 414

Aquaculture Farmers 8 Smallholders 358

CROP DIVERSIFICATION IN MALAYSIA

1) horizontal diversification

Oil palm, rubber, cocoa and rice have been and continue to be the major crops grown by the private and public sectors. However, other crops such as coconut, tropical fruits, vegetables, flowers, annual crops etc., are being grown by the smallholders and the private sector.
refers to the upstream and downstream activities of a particular crop/crops primary production (farm products) primary and secondary processing finished products. The vertical variant gives increasing emphasis to intra and intersector linkages thereby developing the relevant value chain in order to be competitive.

2) vertical diversification

Cocoa

Paddy/Rice Coconut Tropical Fruits

CHALLENGES of CROP DIVERSIFICATION

need to reduce labour requirements in agriculture need to maximize land utilization strengthen the competitiveness of Malaysian agriculture need to enhance private sector investment in food production smallholders need to be transformed into a more commercial sector more innovative and efficient agricultural practices

Reducing Labour Requirements

http://blog.cifor.org/8165/diversified-forest-gardens-can-reduce-food-security-risks-inlatin-america/

http://www.aeret.eu/en/contents/news/ShowNews/kenaf-as-alternative-to-tobaccogovt-237

http://cempaka-nature.blogspot.com/2011/05/malaysia-and-indonesia-bolster-defence.html

Transforming Smallholders into a More Commercial Sector

http://cdn5.wn.com/pd/25/48/88d991ece6a09be212bef0d0b955_grande.jpg