Lecture 8 - 2021

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PRT2009

Agriculture and Life


Pertanian dan Kehidupan
By
Ts. Dr. Ahmad Suhaizi Mat Su
[email protected]

1
AGRICULTURE AND
THE MALAYSIAN
ECONOMY
(Source: Department of Statistics, Malaysia)
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/
 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
Smallholders: government had allocated
RM297 million under NKEA for 2011-2013 to
Federal Land Development assist smallholders to replant oil palm in the
Authority (FELDA) - an country (theborneopost.com – ‘RM297 mln to help oil palm
agency that oversees smallholders ‘ - 18/3/2012)
Photo: http://www.thejakartaglobe.com/business/malaysia-plantation-giants-listing-faces-
smallholder farms and is headwind/514774

the world's largest


plantation producer.
(thejakartaglobe.com – 29/4/2012)

Plantation sector http://www.theborneopost.com/2011/10/04/chamber-to-help-smallholders-solve-


http://www.ifc.org/ifcext/agriconsultation.nsf/AttachmentsByTitle/FSG+Report/$FILE/FSG+report long-queue-issue/
_formatted.pdf
National Agricultural Policy (NAP).
 The latest third NAP (NAP3)-(1998-2010)
 Development programs
 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

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
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/
SSL

https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=164&bul_id=Tm5OaVh6RFpFM2VG
OTIrZzltbWg3QT09&menu_id=Z0VTZGU1UHBUT1VJMFlpaXRRR0xpdz09
https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=164&bul_id=cHgwanhNdU4vWXRvc3pnZU9xSjZTUT0
9&menu_id=Z0VTZGU1UHBUT1VJMFlpaXRRR0xpdz09
 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.
Integrated Beef Cattle
Farming in Oil Palm
Plantations: Integrated
Brahman cattle in Lundu,
Sarawak.
http://cattlegrow.blogspot.com/
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
COMMODITY
Employment Estimates of Agriculture by
Activity (‘000)
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.
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-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
Granary
Area of
Peninsular
Malaysia
Statistics Rice Production
 Link

From Paddy to
rice >> Losses
about 65% from
the original weight
Per Capita Consumption
THANK YOU

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