national agriculture
TRANSCRIPT
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National Agriculture National Agriculture PolicyPolicy
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ContentContent Agriculture Sector BackgroundAgriculture Sector Background Current ScenarioCurrent Scenario Challenges and IssuesChallenges and Issues New AgriculturesNew Agricultures
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Roles of Agriculture Roles of Agriculture Sector in MalaysiaSector in Malaysia
National food supplierNational food supplier Contribution of socio economic Contribution of socio economic
development for rural sectorsdevelopment for rural sectors Foreign exchangeForeign exchange Supplier of raw material for agro-Supplier of raw material for agro-
based industriesbased industries
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Land Usage in Land Usage in Agriculture SectorAgriculture Sector
24% of land usage is for agriculture 24% of land usage is for agriculture (7.9 million hectare) (7.9 million hectare) – Rubber (1.8 million hectare)Rubber (1.8 million hectare)– Oil Palm (4.2 million hectare)Oil Palm (4.2 million hectare)– Coconut (0.2 million hectare)Coconut (0.2 million hectare)– Paddy (0.6 million hectare)Paddy (0.6 million hectare)– Fruit Orchard (0.2 million hectare)Fruit Orchard (0.2 million hectare)
22.87% is ‘arable land’ (1,8 million 22.87% is ‘arable land’ (1,8 million hectare)hectare)
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In 2005, Agriculture In 2005, Agriculture SectorSector
Contributed 8.3% to GDP (RM21.6 Contributed 8.3% to GDP (RM21.6 b)b)– 37.2% from food sectors (RM8.0 b) 37.2% from food sectors (RM8.0 b)
(horticulture, fisheries and livestock)(horticulture, fisheries and livestock)– 62.8% from non-food sectors 62.8% from non-food sectors
(RM13.6 b) (rubber, oil palm & (RM13.6 b) (rubber, oil palm & forestry)forestry)
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Employment/Labour Employment/Labour Force (2005)Force (2005)
816,813 labour force is 816,813 labour force is representative of 8% of the total representative of 8% of the total labour force in Malaysialabour force in Malaysia
Entrepreneur - 431,067 (52.8%)Entrepreneur - 431,067 (52.8%) Family Labour Force - 81,883 Family Labour Force - 81,883
(10.0%)(10.0%) Labour Force - 303,813 (37.2%)Labour Force - 303,813 (37.2%)
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National Agriculture National Agriculture Sector BackgroundSector Background
Since 1984, 3 consecutive National Since 1984, 3 consecutive National Agriculture Policy is adopted to develop and Agriculture Policy is adopted to develop and promote agriculture sectors.promote agriculture sectors.
Focus on NAP 1 (1984-1991): To develop Focus on NAP 1 (1984-1991): To develop agriculture based on export oriented, such as agriculture based on export oriented, such as rubber and oil palm.rubber and oil palm.
Focus:Focus:– Sufficient labour forceSufficient labour force– Sustainable economic developmentSustainable economic development– Sufficient land resource for agricultureSufficient land resource for agriculture– Primary commodities (rubber/ oil palm/ cocoa)Primary commodities (rubber/ oil palm/ cocoa)– Improve infrastructureImprove infrastructure
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National Agriculture National Agriculture Sector BackgroundSector Background
Focus on NAP 2 (1991 – 1997):Focus on NAP 2 (1991 – 1997):– To increase productivity: efficiency To increase productivity: efficiency
& competitiveness& competitiveness– To increase plantation acreage of oil To increase plantation acreage of oil
palm (estate plantation)palm (estate plantation)– Development of agro-based Development of agro-based
industriesindustries
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Structure Change (1992 – Structure Change (1992 – 1998)1998)
EconomyEconomy– Shortage of labour forcesShortage of labour forces– Increase of labour costIncrease of labour cost– Utilization of resources usage (land, water, capital Utilization of resources usage (land, water, capital
and labour)and labour)– Financial and economic crisisFinancial and economic crisis– InflationInflation
Globalization & LiberalizationGlobalization & Liberalization– Implementation of WTO, APEC, AFTA (rules and Implementation of WTO, APEC, AFTA (rules and
regulation)regulation)– High import billsHigh import bills
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National Agriculture National Agriculture Policy 3 (NAP3) 1996-Policy 3 (NAP3) 1996-
20102010Focus:Focus:
– To increase competitiveness of To increase competitiveness of agriculture sectors (in terms of cost agriculture sectors (in terms of cost & quality)& quality)
– Optimization usage of resources in Optimization usage of resources in agricultural sector (land, labour, agricultural sector (land, labour, capital and machine)capital and machine)
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Specific Objective of Specific Objective of NAP3NAP3
Food security programFood security program Increase of productivity & Increase of productivity &
competitiveness in agriculture sectorcompetitiveness in agriculture sector Establish synergy with the other Establish synergy with the other
sectors (services & industrial)sectors (services & industrial) New era of development in New era of development in
agriculture sectorsagriculture sectors Sustainable of environment Sustainable of environment
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Challenges andChallenges and Issues Issues
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1. Arable Land & Seed 1. Arable Land & Seed ResourceResourceUneconomic size of farmUneconomic size of farm 65% paddy farmers own less than 1 hectare farm65% paddy farmers own less than 1 hectare farmCompetitiveness of land usage with other sectorsCompetitiveness of land usage with other sectors 6.36m of land usage: 83% is under estate 6.36m of land usage: 83% is under estate
categoriescategoriesImported seed (2005)Imported seed (2005) Vegetables (RM 4.3 m)Vegetables (RM 4.3 m) Fruits (RM 3 m)Fruits (RM 3 m) Fries (RM 453,600)Fries (RM 453,600) Livestock (RM 21.4 m)Livestock (RM 21.4 m)
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2. Labour Force2. Labour Force
Aging FarmersAging Farmers– Above >55 years old (59.8% / 192,791 people)Above >55 years old (59.8% / 192,791 people)
Not full-time farmersNot full-time farmers– Paddy farmers: 27 days/seasonPaddy farmers: 27 days/season– Cash-crop: 15 days/monthCash-crop: 15 days/month
Shortage of labour forceShortage of labour force– 88,952 – Foreign workers88,952 – Foreign workers
Less involvement of young generation in Less involvement of young generation in agricultural sectorsagricultural sectors– Farmers <39 years old (16.1%/69,000 peopleFarmers <39 years old (16.1%/69,000 peopleUnskilled labourUnskilled labour
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3. Less involvement from private 3. Less involvement from private sectors.sectors.
Public perception on agricultural sector Public perception on agricultural sector is less profitable venture.is less profitable venture.
Low productivity of agricultural sectorsLow productivity of agricultural sectors High riskHigh risk Difficulty of getting loan facilityDifficulty of getting loan facility
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4. Globalization/ liberalization in 4. Globalization/ liberalization in trade (WTO, APEC & AFTA)trade (WTO, APEC & AFTA)
To increase productivity & To increase productivity & competitiveness in agricultural competitiveness in agricultural products.products.
Sustainability use of resources.Sustainability use of resources.
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5. Balance of Trade5. Balance of Trade High price for imported High price for imported
agricultural inputsagricultural inputs Increase deficit balance of trade Increase deficit balance of trade
(food item)(food item)
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6. Food Safety6. Food Safety Standardization of quality.Standardization of quality. Certification of qualityCertification of quality Certification of safetyCertification of safety Traceability Traceability GAP, GMP, GDP, HACCP,GFSIGAP, GMP, GDP, HACCP,GFSI National BrandingNational Branding
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7. Collaboration7. Collaboration
Local collaboration (players – farmers, Local collaboration (players – farmers, transporter, traders, manufacturer, transporter, traders, manufacturer, exporter, retailer, consumer, R&D exporter, retailer, consumer, R&D institutions, government and private institutions, government and private sector)sector)
International collaboration (EU Market, International collaboration (EU Market, middle East, Japan, China, Australia, middle East, Japan, China, Australia, US Authority and International Trade US Authority and International Trade Bodies.Bodies.
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Food TradeFood TradeBalance of Trade (RM billion)Balance of Trade (RM billion)
YearYear ExportExport ImportImport BalanceBalance20002000 6.46.4 11.411.4 -5.0-5.020012001 6.56.5 12.212.2 -5.7-5.720022002 7.47.4 12.412.4 -5.0-5.020032003 8.38.3 12.712.7 -4.4-4.420042004 9.99.9 16.616.6 -6.7-6.720052005 10.610.6 17.817.8 -7.2-7.22006(Jun2006(Jun))
5.45.4 9.59.5 -4.1-4.1
20102010 14.914.9 27.427.4 -12.4-12.4
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Import Export of Food Item 2005Import Export of Food Item 2005Commodity GroupCommodity Group Export Export
(RM (RM million)million)
Import Import (RM (RM million)million)
Balance Balance (RM (RM million)million)
LivestockLivestock 416.4416.4 156.6156.6 259.8259.8MeatMeat 86.586.5 1,048.31,048.3 961.8961.8Dairy and eggsDairy and eggs 622.5622.5 1,729.51,729.5 1,107.01,107.0Fish, crustacean, Fish, crustacean, molluskmollusk
2,248.92,248.9 1,902.21,902.2 346.7346.7
CerealCereal 912.6912.6 2,255.92,255.9 1,343.31,343.3VegetableVegetable 504.5504.5 1,654.61,654.6 1,150.11,150.1FruitsFruits 467.3467.3 708.8708.8 241.5241.5Sugar and honeySugar and honey 467.0467.0 1,339.61,339.6 872.6872.6Cocoa, coffee, tea, Cocoa, coffee, tea, spicesspices
2,449.32,449.3 2,307.82,307.8 141.5141.5
FeedFeed 543.0543.0 2,887.12,887.1 2,344.12,344.1OthersOthers 1,926.31,926.3 1,802.51,802.5 123.8123.8TotalTotal 10.6 b10.6 b 17.8 b17.8 b 7.2 b7.2 b
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National Agriculture National Agriculture AgendaAgenda
Agriculture sector as a third Agriculture sector as a third engine of growth in 9engine of growth in 9thth plan. plan.
(the 1(the 1stst and 2 and 2ndnd engines are engines are services and manufacturing)services and manufacturing)
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MOA Inc. ApproachesMOA Inc. Approaches Coordinated approachesCoordinated approaches from all from all
departments and agencies under departments and agencies under Ministry of Agriculture.Ministry of Agriculture.
Pro-businessPro-business ProfessionalProfessional Customer drivenCustomer driven
Effective and efficiency of delivering Effective and efficiency of delivering system.system.
Coordination in expertise, effort and Coordination in expertise, effort and resources for improvement in delivering resources for improvement in delivering system.system.
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The New AgricultureThe New Agriculture
The 9The 9thth Malaysian Plan Malaysian Plan( RMK9 )( RMK9 )
( 2006-2010 )( 2006-2010 )
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National MissionNational Mission
First ThrustFirst Thrust To move up the economy of value chain.To move up the economy of value chain. To strengthen Agriculture and Agro To strengthen Agriculture and Agro
based industry. based industry.
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Agriculture and Agro based Agriculture and Agro based IndustryIndustry
Increase Agriculture Production (New Increase Agriculture Production (New Development areas/commodities) and Development areas/commodities) and increase in involvement of private sectors.increase in involvement of private sectors.
Expand Agro based industry activitiesExpand Agro based industry activities Strengthen Marketing and Global Networking.Strengthen Marketing and Global Networking. Increase income of farmers and fisherman.Increase income of farmers and fisherman. Improvement of Services Delivery System.Improvement of Services Delivery System.
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Transformation Agriculture Transformation Agriculture SectorSector
Modern, dynamic and Modern, dynamic and competitiveness.competitiveness.
Agriculture is Business.Agriculture is Business.
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99thth Malaysian Plan Malaysian PlanThe New AgricultureThe New Agriculture
FocusFocus Commercialization drivenCommercialization driven Merging of the small estateMerging of the small estate New land developmentNew land development Integrated land developmentIntegrated land development Zone industry of aquacultureZone industry of aquaculture Agriculture zoneAgriculture zone National Feedlot CentreNational Feedlot Centre
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99thth Malaysian Plan Malaysian PlanNew AgricultureNew Agriculture
FocusFocus More Advance TechnologyMore Advance Technology Mechanization and automation of Mechanization and automation of
estate.estate. Water resourceWater resource Good agriculture practicesGood agriculture practices Automation and mechanization for Automation and mechanization for
fisheries industriesfisheries industries
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99thth Malaysian Plan Malaysian PlanNew New AgricultureAgriculture
FocusFocus High quality and value added along High quality and value added along
the supply chain management,the supply chain management, Herbal industryHerbal industry Tuna industryTuna industry Halal productsHalal products Landscape and nurseriesLandscape and nurseries Processed products, branding, packaging, Processed products, branding, packaging,
labeling, advertising and promotion. labeling, advertising and promotion.
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99thth Malaysian Plan Malaysian PlanNew New AgricultureAgriculture
FocusFocus BiotechnologyBiotechnology Good seed, fry and livestock.Good seed, fry and livestock. Good agriculture practicesGood agriculture practices Fustigation Fustigation
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99thth Malaysian Plan Malaysian PlanNew AgricultureNew Agriculture
FocusFocus Skilled LabourSkilled Labour Capacity building in agricultureCapacity building in agriculture
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99thth Malaysian Plan Malaysian PlanNew AgricultureNew Agriculture
FocusFocus Usage of ICT and market Usage of ICT and market
intelligenceintelligence Improve accessibility of market Improve accessibility of market
information for the target groupinformation for the target group Market information systemMarket information system
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99thth Malaysian Plan Malaysian PlanNew AgricultureNew Agriculture
FocusFocus Involvement of EntrepreneursInvolvement of Entrepreneurs Increase in agriculture entrepreneursIncrease in agriculture entrepreneurs Extension on agro based industriesExtension on agro based industries Credit facilities and technical Credit facilities and technical
assistanceassistance
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Paddy industriesPaddy industries
Water drainage developmentWater drainage development Development of paddy estate (10 ton)Development of paddy estate (10 ton) Paddy Agro based industriesPaddy Agro based industries High quality paddy seedsHigh quality paddy seeds Good farm infrastructure (paddy area)Good farm infrastructure (paddy area)
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Fisheries IndustriesFisheries Industries
Improvement of fish landing portImprovement of fish landing port Research on fisheries developmentResearch on fisheries development Improvement on the marketing of fish Improvement on the marketing of fish
agro based productsagro based products
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Crop IndustriesCrop Industries
Development of TKPM (Tanaman Kekal Development of TKPM (Tanaman Kekal Pertanian Makanan)Pertanian Makanan)
Development of Contract Farming and Development of Contract Farming and Contract MarketingContract Marketing
Improve distribution of market information to Improve distribution of market information to the target group (SDVI)the target group (SDVI)
High quality seedHigh quality seed Market driven approachMarket driven approach Crop protectionCrop protection Enhance agro based industriesEnhance agro based industries
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Livestock IndustriesLivestock Industries
National Feedlot Centre (NFC)National Feedlot Centre (NFC) Modern and commercial drivenModern and commercial driven Explore local and overseas marketExplore local and overseas market Import substitution (dairy, meat)Import substitution (dairy, meat) Enhance the upstream and downstream Enhance the upstream and downstream
activitiesactivities Improve R&D in productionImprove R&D in production Disease controlDisease control
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Agro based IndustriesAgro based Industries
Creating 10,000 new entrepreneursCreating 10,000 new entrepreneurs Market drivenMarket driven GAP, GMP, GDP, HACCP, GFSI (Quality GAP, GMP, GDP, HACCP, GFSI (Quality
standard requirement)standard requirement) Enhance packaging and brandingEnhance packaging and branding Enhance Advertising and PromotionEnhance Advertising and Promotion Improve entrepreneurship and financial Improve entrepreneurship and financial
managementmanagement Global playersGlobal players
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1. Production1. Production SectorSector Value(‘000 ton)Value(‘000 ton) Annual Growth(%)Annual Growth(%)
20052005 20102010 RMK8RMK8 RMK9RMK9Agro FoodAgro Food 9,2589,258 12,80712,807 4.94.9 6.86.8PaddyPaddy 2,4002,400 3,2023,202 2.32.3 5.95.9FisheriesFisheries 1,5751,575 2,0712,071 1.61.6 5.65.6LivestockLivestockMeatMeat 28.528.5 45.045.0 10.210.2 9.69.6MuttonMutton 1.51.5 2.32.3 10.810.8 8.98.9PorkPork 209.0209.0 241.0241.0 5.55.5 2.92.9BirdBird 980.1980.1 1,2951,295 6.56.5 5.75.7EggsEggs 443443 600600 2.12.1 6.36.3DairyDairy 41.141.1 68.468.4 6.96.9 10.710.7FlowerFlower 126.4126.4 147.3147.3 1.01.0 3.13.1FruitFruit 1586.91586.9 2555.72555.7 9.89.8 10.010.0VegetableVegetable 771.3771.3 1133.31133.3 13.813.8 8.08.0
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2. Self Sufficiency2. Self SufficiencyCommoditiesCommodities 20002000 20052005 20102010
PaddyPaddy 7070 7272 9090FruitFruit 9494 117117 138138VegetableVegetable 9595 7474 108108FishFish 8686 9191 104104MeatMeat 1515 2323 2828MuttonMutton 66 88 1010BirdBird 113113 121121 122122PorkPork 100100 107107 132132EggsEggs 116116 113113 115115DairyDairy 33 55 55
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3. Import & Export3. Import & ExportSectorSector 2005 (RM Million)2005 (RM Million) 2010 (RM Million)2010 (RM Million)
ImportImport ExportExport BOTBOT ImportImport ExportExport BOTBOT
Livestock & Livestock & MeatMeat
1,204.91,204.9 502.9502.9 (702.0)(702.0) 1,389.01,389.0 3,362.03,362.0 1,973.1,973.00
DairyDairy 1,729.51,729.5 622.5622.5 (1,107.0(1,107.0))
1,533.01,533.0 520.0520.0 (1,013)(1,013)
VegetableVegetable 1,654.61,654.6 504.5504.5 (1,150.1(1,150.1))
670.0670.0 614.0614.0 (56.0)(56.0)
FruitFruit 708.8708.8 467.3467.3 (241.5)(241.5) 812.0812.0 2,153.22,153.2 1,341.1,341.11
Cereal & Cereal & SugarSugar
3,595.53,595.5 1,379.61,379.6 (2,215.9(2,215.9))
2,680.82,680.8 1,051.11,051.1 (1,629)(1,629)
FishFish 1,902.21,902.2 2,246.92,246.9 346.7346.7 841.0841.0 4,624.74,624.7 3,783.3,783.77
FeedFeed 2,887.12,887.1 543.0543.0 (2,344.1(2,344.1))
4303.04303.0 531.0531.0 (3,772)(3,772)
OthersOthers 4,110.34,110.3 4,375.64,375.6 285.3285.3 2,048.02,048.0 2,645.02,645.0 597.0597.0TotalTotal 17,792.117,792.1 10,644.10,644.
33(7,148.6(7,148.6))
14,276.14,276.99
15,501.15,501.00
1,224.1,224.11
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TerimaTerima KasihKasih