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Chapter 8 Prt2009

The document discusses the agricultural system in Malaysia, highlighting the two main sectors: plantation and smallholders. It outlines the characteristics of each sector, the government's initiatives to support smallholders, and the challenges faced in crop diversification. Additionally, it addresses the growth factors in livestock production and the importance of enhancing agricultural practices for better competitiveness.

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4 views25 pages

Chapter 8 Prt2009

The document discusses the agricultural system in Malaysia, highlighting the two main sectors: plantation and smallholders. It outlines the characteristics of each sector, the government's initiatives to support smallholders, and the challenges faced in crop diversification. Additionally, it addresses the growth factors in livestock production and the importance of enhancing agricultural practices for better competitiveness.

Uploaded by

huzaifasipad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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AGRICULTURE AND LIFE

PRT2009
Adibah Mohd. Amin, Ph.D
Department of Land Management
Faculty of Agriculture
[email protected]
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
Federal Land 2011-2013 to assist smallholders to
Development Authority replant oil palm in the country
(FELDA) - an agency (theborneopost.com – ‘RM297 mln to help oil palm
smallholders ‘ - 18/3/2012)
that oversees Photo: http://www.thejakartaglobe.com/business/malaysia-plantation-giants-
listing-faces-headwind/514774
smallholder farms and
is the world's largest
plantation producer.
(thejakartaglobe.com – 29/4/2012)

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


http://www.ifc.org/ifcext/agriconsultation.nsf/AttachmentsByTitle/FSG+Report/$FILE/ smallholders-solve-long-queue-issue/
FSG+report_formatted.pdf
National Agricultural Policy
(NAP)
• the 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.
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
http://www.guardian.co.uk/environment/2008/apr/16/
industries.
food.biofuels (www.moa.gov.my)
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/
• 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
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
• 1) horizontalMALAYSIA
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
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
http://cdn5.wn.com/pd/25/48/88d991ece6a09be212bef0d0b955_grande.jpg
Sector

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