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AGRICULTURE AND THE MALAYSIAN ECONOMY

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. Oil palm smallholders

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AGRICULTURE AND THE MALAYSIAN ECONOMY

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  1. AGRICULTURE AND THE MALAYSIAN ECONOMY

  2. AGRICULTURE SYSTEM IN MALAYSIA PLANTATION SECTOR SMALLHOLDERS Oil palm plantation in Sabah, Malaysia http://travel.mongabay.com/jeremy_hance/malaysia/sabah_119.html Oil palm smallholders http://www.eastasiaforum.org/2010/11/13/oil-palm-and-agricultural-policy-boom-or-ruin-for-indonesian-farmers/

  3. 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.

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

  5. 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

  6. Smallholders: 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 smallholders ‘ - 18/3/2012) Photo: http://www.thejakartaglobe.com/business/malaysia-plantation-giants-listing-faces-headwind/514774 Federal Land Development Authority (FELDA) - an agency that oversees smallholder farms and is the world's largest plantation producer. (thejakartaglobe.com – 29/4/2012) Plantation sector http://www.ifc.org/ifcext/agriconsultation.nsf/AttachmentsByTitle/FSG+Report/$FILE/FSG+report_formatted.pdf http://www.theborneopost.com/2011/10/04/chamber-to-help-smallholders-solve-long-queue-issue/

  7. 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.

  8. http://cms.boloji.com/articlephotos/A%20Study%20on%20the%20Origin.jpghttp://cms.boloji.com/articlephotos/A%20Study%20on%20the%20Origin.jpg http://etp.pemandu.gov.my/Agriculture-@-Agriculture_.aspx National food security: Rice as staple crop is under pressure across the developing world – 3rd NAP includes further development of agro-food sub-sector as well as agro-based industries. (www.moa.gov.my) http://www.guardian.co.uk/environment/2008/apr/16/food.biofuels

  9. 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-fruit-clones-in-malaysia.html http://www.freshplaza.com/index_sector.asp?sector=11 http://jutawanternak.blogspot.com/

  10. 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

  11. 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

  12. 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.

  13. Integrated Beef Cattle Farming in Oil Palm Plantations: Integrated Brahman cattle in Lundu, Sarawak. http://cattlegrow.blogspot.com/

  14. 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

  15. 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

  16. Table 4. Total agricultural imports and exports (USD million). Item 1999 2000 2001 2002 • Export • Palm oil 3738 2558 2534 3824 • Rubber 521 589 427 580 • Fatty acid 422 389 322 430 • P.kernel oil 433 285 212 277 • Food prep. 96 106 119 142 • Shortening 99 110 111 119 • Cigarette 142 141 139 117 • Sugar 50 64 76 99 • Pastry 87 103 96 96 • Cocoa butter 108 83 84 93 • TOTAL 7117 5821 5521 7375

  17. COMMODITY 2005 EXPORT1 IMPORT BALANCE TOTAL AGRICULTURAL SECTOR 62,596 36,250 26,346 TOTAL FOOD ITEMS 10,669 17,733 -7,065 Live animals 418 156 262 Meat and Processed Meats 85 1,049 -964 Dairy Products and Bird’s Eggs 622 1,726 -1,104 Fish, Crustacean, Mollusks 2,328 1.934 394 Cereals and cereal preparations 912 2,260 -1,347 Vegetables 508 1,689 -1,182 Fruits 469 707 -238 Sugar, sugar products and honey 470 1,339 -869 Coffee, cocoa, tea, spices 2,446 2,211 235 Livestock Feed 492 2,868 -2,376 Processed Food Products 1,918 1,793 124 Agricultural Inputs 1,543 3,496 -1,953

  18. Employment Estimates of Agriculture by Activity (‘000) Category 2000 2001 2002 2003 2004 2005 Rice farmers 306 300 297 287 252 239 Other Farmers 277 254 238 244 222 191 Livestock farmers 39 35 37 36 36 33 Fishermen 116 121 104 103 125 114 Aquaculture Farmers 8 7 3 4 6 5 Smallholders 358 286 305 378 400 414

  19. 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. • 2) vertical diversification • 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 inter-sector linkages thereby developing the relevant value chain in order to be competitive.

  20. Cocoa Paddy/Rice Coconut Tropical Fruits

  21. 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

  22. Reducing Labour Requirements http://blog.cifor.org/8165/diversified-forest-gardens-can-reduce-food-security-risks-in-latin-america/ http://www.aeret.eu/en/contents/news/ShowNews/kenaf-as-alternative-to-tobacco-govt-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

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