CHAPTER 8
AGRICULTURE & MALAYSIAN ECONOMY
1) Policies
National Agricultural Policy 1nn
National Agricultural Policy 2nn
National Agricultural Policy 3nn
National Agrofood Policynn
2) Good Agriculture Practices
Methods of farming that follow the standards/regulations
which result to safe & quality food
and non-food
agricultural products.
3) Organic farming
conventional
a) apply chemical fertilizer to promote
plant growth
organic
a) apply natural fertilize such as manure
compost to need soil and plant
conventional
b) soray synthetic insenticides to reduce
pests snd desease
organic
b)spray posticides from natural source.use
benefiticial insectd and birdss.
mating disruption traps to reduce pests
and disease.
conventional
c) use synthetic horbicious to manage
weeds
organic
c) use environmantlly generated plant
killing cmpounds,rotate crops till hands wood or much to manage weeds.
Organic farming
4) New agricultural sectors:
Fisheries involving deep sea fishing
activitiesnn
have commenced, with new fishing harbours
in
Penang and Sarawak opened.
Aquaculture activities in inland water bodiesnn
have increased with cultivation of
commercial
species. Mariculture has also expanded in
islands such as Langkawi. Recreational
fisheries
and aquariums are new business ventures.
Agriculture is part of
the primary sector in the Malaysian economy which contributes to the gross
domestic product (GDP) over time.
The relative importance of the primary sector to the GDP has decreased
since 1965 from 31% to 9% of GDP.
Agriculture in Malaysia is characterized by a dualistic system where the
plantation sector exists side by side with the smallholder sector.
Plantation or estate agriculture is normally single crop cultivation in a land
area of more than 40 ha
.
Crops such as:
·
Rubber
·
Oil Palm
·
Coconuts
·
Cocoa
·
Pineapples
·
Tea
The plantation management is more systematic, using modern
technology and hired labour.
The smallholders cultivate small areas between 0.4 - 4 ha. Consequently,
production capacity is low due to the limited technology and disorganized farm
management practices.
There are two types of smallholders:
(1) The subsistence farmers who cultivate their land for own consumption and
sell the products in the marketplace or to the middleman.
- These farmers usually practise mixed cropping
systems where vegetables and fruit trees are the main crops being cutivated.
- Others have mixed cropping and livestock
farming systems whereby the farmers grow cash crops and fruit trees at the same
time raising chicken, goats or cows on their farm.
(2) Those that practice monocropping type of subsistence farming.
- These farmers cultivate their land with
commodity crops such as rubber, cocoa or oil palm similar to those planted by
the plantations.
Agriculture has expanded into secondary downstream for value added products.
Malaysia's agricultural development is guided by the National Agricultural
Policy (NAP). The development programmes are aimed at expanding food production
to improve the food trade balance, increasing export of primary commodities and
ensuring supply of raw materials for local downstream industries.
Agricultural Growth
·
In the 7th Malaysia Plan (1995-2000), the agricultural sector grew at 1.2%
per annum, lower than the targeted 1.9%.
·
The 8th Malaysia Plan (2001-2005) targets the sector to grow at 3.0%
annually.
·
However, the agriculture sector grew only at 1.5% per annum.
·
Among commodities, from 1995 to 2005, the value of rubber and forestry
products has decreased while that of palm oil, livestock and fisheries has
increased.
·
In 2005, industrial crop production accounted for 60% of the total value in
agriculture with the remaining 40% taken by the food sector, with livestock and
fisheries accounted for significant increases.
|
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
|
|
Fisherie
|
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
|
Other agriculture: Include coconut, vegetables, fruits, tobacco and pepper
Arshad et al. (2008)
Table 1 Agricultural value of major commmodities (USD million)
Food Commodities
·
The implementation of the third National Agricultural Policy (NAP3) to meet
the national food requirements as well as broaden the export capicity of the
agriculture sector have positive impacts on food production.
·
The self-sufficientcy levels (SSL) for food commodities except rice have
improved (Table 2).
|
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
|
|
Pooultry
|
113
|
121
|
121
|
122
|
|
Eggs
|
116
|
113
|
114
|
115
|
|
Pork
|
100
|
107
|
116
|
132
|
Table 2 Self-sufficiency level (%) of food commodities
·
The impressive growth in livestock production is mainly attributed to the
improvement in animal husbandry and the shifting from traditional to commercial
farming practices especially in the non-ruminant subsector.
·
Increase in feedlot and expansion of integated beef cattle farming in
rubber and oil palm plantations have contributed to the increase beef
production.
·
However, Malaysia is still not self-sufficient in the production of beef
amd mutton, with local production catering 28% and 10%, respectively.
·
Poultry production increase is due to the 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.
·
The per capita consumption of fruits and vegetables has increased from 40
in 1985 to 65 kg and 42 to 64 kg in 2005, respectively.
·
The production growth is due to governments effort in consolidating small
orchards into larger organized farms and instituting group farming projects.
8.2 INTERNATIONAL TRADE IN AGRICULTURE
v The agricultural sector contributes significantly to the country
in earning foreign exchange through export.
v Malaysian is still a food-deficit country. Food import have
continuously far exceeded export.
v Among the major import items included maize, sugar, wheat, rice,
soybean, and various food preparation.
v The major food items that have a large balance of trade deficit
are livestock feed, cereals (mainly rice), vegetable and dairy products.
v Raw rubber, palm oil and cocoa beans are imported, processed, and
then re-exported as final products.
v Balance of trade of agricultural products and commodities 2005 (RM
million)
- The total
agricultural sector in export 62,596, in import 36,250, and the balance is
26,346
- The total of food
items in export 10,669, in import 17,733 and in become negative in balance
which is -7,065.
8.3 AGRICULTURAL EMPLOYMENT
Ø Currently the agriculture sector accounts for about 12% of total
employment in the country from a high of 42% in the 1980, reflecting the
transformation from an agricultural to an industrialized economy.
Ø The number of people employed in the agriculture sector in 2010 is
1.51 million out of a total force of 11.3 million.
Ø About 80% of the labour in agriculture is employed in crop
production while only 9% are in livestock production and 6% are in fisheries.
Ø The biggest number of farmers in Malaysia is rice growers (239,000
in 2005).
Ø The total number of smallholders in 2005 was
414,000.BlogThis!Share to TwitterShare to FaShare to PinterestSustainable Agriculture. 6.3 Concept of Sustainable
Agriculture
Sustainable systems share a vision of farming with nature, an agro-ecology that
:
·
Promotes biodiversity
·
Recycles plant nutrients
·
Protect soil from erosion
·
Conserves and protects water
·
Uses minimum tillage
·
Integrates crop and livestock
However, no agriculture is sustainable if it is not also profitable, able to
provide a healthy family income and a good quality of life. Therefore,
sustainable practices lend themselves to smaller and family-scale farms.
These farms, in turn, tend to find their best niches in local markets, within
local food systems, often selling directly to consumers.
Sustainable agriculture (Farming Sustainably) : Means growing
crops and livestock in ways that
requires a whole-system approach whose overall
goals is the continuing health of the land and people.
Three objectives which a farm or rural community
practicing sustainability has to fulfill :
1) Economic Development
2) Environmental Conservation
3) Socio-political Benefits.
1) Economic Development
- Economic profit has to be made through proper production procedures,
processing and marketing which requires selecting profitable enterprises, sound
financial planning, proactive marketing, risk control and good overall
management.
- Mixed cropping could offer another economic advantage compared with single
cropping.
- Integrating plant and animal production can distribute overhead cost and risk
among several enterprises.
- Other enterprises which could be explored are contract farming of seeds of
vegetables, rice, or specialty crops which involves only small hectareage and
organic farming.
- There must be a comprehensive financial planning in an enterprise.
- Market research is essential for big enterprises to understand the market by
analysing competition, consumer trends and prices.
- Specialty and direct markets such as organic, GMO-free, and other
"green" markets may yield more income but require more marketing by
the producer.
Characteristics that involved in economic development are:
A) Net financial worth of the family increase consistently through savings.
B) Family debt decreases.
C) Less reliance on government subsidies.
D) Farm enterprise reaps profits year after year.
E) External purchase of feed and fertilizer decreases.
