Monday, 22 May 2017

CHAPTER 8 & 9: APPROACHES TO AGRICULTURE DEVELOPMENT IN MALAYSIA


ERA OF AGRICULTURE DEVELOPMENT IN MALAYSIA

Agriculture development in Malaysia is classified into 3 separate eras.

1. The early years (1960's-70's)
·         Smallholdings not more than 5 hectares (rubber, oil palm, fruits, paddy).
·         Own by inherited.
·         Colonials are the owners of larger rubber and oil palm plantations.

2. The awakening decades (1970's-80's)
·         Some Bumiputra who migrated into a new agricultural land by government.
·         Indians remain as estate worker while Chinese remain as middleman.

3. The small dragon era (1980's and beyond)
  • Agro-based changing to economy.
  • Formation of IOI (former Dunlop), Guthries, Sime Darby and Harrison and Crossfield. (now     Golden Hope).
  • Nation industrialization have been catalyzed by revenue earned from new found black gold       petroleum 



NATIONAL AGRICULTURE POLICY (NAP)

The Malaysian National Agricultural Policy (NAP) is advanced through 3 key stages, with the formulation of 3 different policies, namely, NAP 1, NAP 2 and NAP 3.

NAP 1
Open on exports crop, in particular oil palm and cocoa in order to increase foreign exchange. this era is the rapid expansion of manufacturing sector.

NAP 2
A greater emphasis on sustainable agriculture, expanding food product, agro-based industrial development and greater role of private sector, biodiversity and conservation. WTO was established.

NAP 3
Formulation of new policies and strategies which is agroforestry approach in which agriculture are viewed as integrated entity and the product-based approach.


NEW AGRICULTURE SECTORS

1) Fisheries involving coastal riverine and deep sea fishing activities have commenced, with new new fishing harbours in Penang and Sarawak opened.

2) Aquaculture activities in inland water bodies have increased with cultivation of commercial species. Mariculture has also expanded in islands such as Langkawi. Recreational fisheries and ornamental fisheries are new business ventures.



 3) Tourism industry has been given a new lease of life in the form of agrotourism involving tours to forests, nature reserves, farms and homestays.



HOW TO ENHANCE FOOD SECURITY??

Enhancing Food Security and Combating Inflation

The financial crisis has highlighted the urgent need to enhance food security through expansion in domestic food production and lesser dependence on imports. This import substitution measure focuses on establishment of integrated cluster of production, processing, marketing and supporting services industry.

a) Domestic food production will be enhanced through:

i. Focusing production on major food products that are cost competitive such as fishery products, selected fruits, vegetables and livestock.
ii. Zoning for food production areas.
iii. Provision of infrastructure.
iv. Promoting R & D and good agricultural practices (GAP).
v. To increase yield and efficiency.
vi. Establishing stronger linkages between the producers and the market.

b) Strategic sourcing of essential food products will be undertaken through:

i. Facilitating joint venture with low-cost countries, for example in the ASEAN Growth Areas and Mekong River Basin.
ii. Government to government arrangement on supply of food to the country.

c) Improving marketing efficiency through reduction of marketing margins and removal of imperfections by:

i. Reducing market intermediaries with direct marketing and contract farming.
ii. Improving marketing infrastructure such as collection centres and wholesale markets in production areas.
iii. Improving market intelligence.  

d) Increasing Productivity

Productivity gains in agriculture have not matched up with increases in wages; for example in the early and mid-90s productivity increased by 4.5% per annum while farm wages increased by 49%.


Reducing labor in agriculture
a) Cultivation of new crops that require less labor.
b) Promotion of controlled environment, automated and mechanized system.
c) Intensification of research and development in labor saving technologies in harvesting and tapping.

Maximizing land resource use by:
a) Promoting agro-forestry enterprises.
b) Integrating livestock with plantation crop.
c) Promoting large-scale, technology-intensive, mixed-farming ventures.

Increasing farm income
a) Value added activities at farm level through large scale commercial farming.
b) Maximizing utilization of agricultural wastes and by-products.

Promoting private sector participation
a) Establishment of agro-technology parks.
b) Establishment of incubation centers.
c) Providing private sector investment in agriculture.

Enhancing agricultural export
a) International halal food hub.
b) Malaysia as a major regional distribution center.
c) Malaysian own brand products.

Human resource development      
a) Efforts to focus on producing more skilled workers in various fields.

















EDUCATION, RESEARCH AND DEVELOPMENT


  • Education 
  • Research and development institutions

a) Public sector
b) Private sector
c) Non-government organization
d) Extension services

LEGISLATION, POLICIES AND STANDARDS

1.     Legislation and policies.
2.     Standards.


 ECONOMIC TRANSFORMATION PROGRAM (ETP)
·   
  •       To turn Malaysia to high income economy by 2020.
  • ·         12 National Key Economic Areas (NKEA) have been identified to boost Malaysian economy, two of which include agriculture and oil palm



ENTRY POINT PROJECT (EPP) UNDER NKEA AGRICULTURE
  • High value herbal products.
  • Edible bird's nest swiflet farming.
  •  Seaweed farming in Sabah
  • Integrated cage aquaculture system.
  • Rearing cattle in oil palm estates.
  • Premium fruits and vegetables.
  • Developing market community.
  • Replicating zone for aquaculture model to tap market for premium shrimp.
  • Food Park.
  • Introducing fragrant rice varieties for non-irrigated areas.
  • Strengthening productivity of paddy farming in MADA.
  • Scaling up and strengthening of paddy farming in other irrigated areas.
  • Expansion of cattle in feedlots.
  •  Dairy clusters.
  • Seed industry development.
  • Overseas acquisition/joint venture of cattle farms.
  • Market community (PAKAR).





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