16 NKEA Malaysian New Economic Model Agriculture
16 NKEA Malaysian New Economic Model Agriculture
Agenda Background of NKEA Agriculture EPPs Brief Overview of EPPs NKEA Agriculture Reflected in Minister KPI 2011 (MKPI 2011)
DEFINATION
GTP Government Transformation Programme (Program Transformasi Kerajaan) Economic Transformation Programme (Program Tranformasi Ekonomi) National Key Economic Area (Bidang Ekonomi Utama Negara) Entry Point Project (Projek Keutamaan Permulaan) Business Opportunity (Peluang Perniagaan)
ETP -
NKEA -
EPP -
BO -
1 2 3
6 NKRAs
12 NKEAs
29 MKRAs
Making us a rich
Quality of Life
Inclusiveness
Nachhaltigkeit
Financial Financial Services Services Greater Greater KL/Klang KL/Klang Valley Valley
Education Education
Tourism Tourism
Agriculture Agriculture Comms Comms Content & Content & Infra Infra
NKEA Agriculture focused on transforming the Agriculture industry into one with more focus on Agri-business
Expanding participation in the regional value chain Capitalising on Malaysias Competitive Edge Trapping Premium Markets Ensuring Food Security
16 EPPs
+
11 Business Opportunities
Executive Summary
Case for Change
Global demand for products that are unique to Malaysia is rapidly increasing, with
annual growth rates of between 8.5 % for aquaculture products and up to 10.5% for herbal products and edible birds nests
Existence of success models We already have domestic success models that can be replicated, e.g. integrated,
that can be replicated commercial scale and market centric models for horticulture (MAFC) and aquaculture (Blue Arch), and estate style seaweed farming (Uni Malaysia Sabah)
From USD7.5 billion in 2009 to USD16.6 billion by 2020 In predominantly rural areas and in East Malaysia where poverty levels are higher By 2-4X, and decrease income gap between urban and rural population Unlocking value from our biodiversity, where further packaging and downstream
application can increase revenue up to 10x versus raw goods
Expanding the production of premium grade fruits and vegetables, certified shrimp and
premium processed food to fetch up to 5x premium in overseas markets
Expanding participation in the Providing support services such as agriculture biotech to the region, acquiring foreign
regional value chain farming operations and undertaking contract farming overseas
Initiatives were identified to leverage Malaysias strengths and capitalise on global market trends
Theme Description Favourable for swiftlet ranching, seaweed farming, crop production etc due to climate conditions and geographical position Unlock value from biodiversity by accelerating commercialisation of botanical drugs Entry Point Projects
Swiftlet Nests
Mini Estate Seaweed Integrated Cage Farming High Value Herbal Products Integration of Cattle into Palm Oil
Capitalising on global demand and trends in specific agriculture and aquaculture products e.g.: High quality fruits and vegetables for export Premium processed food
Increasing capacity for production of food crops to meet food security objectives Extracting the most value from production through commercialisiation and reduce subsidy dependency
Undertaking contract farming activities overseas and providing regional services in niches such as molecular marker discovery Breeding and agriculture logistics Biotech as a regional service
EPP Title
High Value Herbal Products EBN Swiftlet Farming Seaweed Industry Integrated Cage Farming Further Integration in Oil Palm Replication of IZAQ Premium Market for Fruits and Vegetables Food Park Fragrant Rice Variety Strengthen Productivity of Paddy Farming in MADA Strengthen Productivity of Paddy Farming in Other Granaries Expansion of Feedlotting Dairy Cluster Seed Industry Development Participations of MNC Overseas JV/Acquisition
Project Owner
Bhg. Industri Tanaman, Ternakan dan Perikanan Jab. Perkhidmatan Veterinar Jab. Perikanan Jab. Perikanan Jab. Perkhidmatan Veterinar Jab. Perikanan Jab. Pertanian Bhg. Industri Asas Tani MARDI MADA Bhg. Industri Padi dan Beras Jab. Perkhidmatan Veterinar Jab. Perkhidmatan Veterinar
Bhg. Khidmat Sokongan dan Pembangunan Industri Bhg. Khidmat Sokongan dan Pembangunan Industri
Total RM juta 3,152 0 2,666 1,943 0 1,830 1,773 1,422 839 720 576 525 3,251
GNI/ Investment 0.40 0.39 0.52 0.75 2.56 1.10 2.64 1.92 1.54 2.68 0.41
10
Target GNI of RM 21.44 billion will be achieved by implementing 16 Entry Point Projects (EPPs) and 11 Business Opportunities
The top 10 EPPs add up
2020 GNI contribution from top 10 EPPs (RM million) to 93% of the incremental GNI
RM 18 billion
A food security
perspective (e.g. beef and milk selfsufficiency)
EBN Swiflet Farming Premium Seaweed Integrated Replica- Paddy High Paddy Cage FFV Farming tion of Farming Value Farming in Sabah Aquaculture in other iZAQ in Herbal Sistem MADA Products Granaries Biotech MNCs Food Park Others *
An inclusiveness
perspective (e.g. new rice variety to improve yield and farmers incomes in nonirrigated areas)
* Seed Industry Development (RM 474 mil); Dairy Cluster (RM 326 mil); Cattle Feedlot (RM 183 mil); Cattle Integration with Oil Palm (RM 150 mil); Cattle overseas JV (RM 115 mil); Fragrant Rice (RM 99 mil)
RM 3.4 billion
Premium Snack
Ornamental Fish
Mushroom Project
SFI Facilities
Readyto-eat Jackfruit 11
New jobs will be created and income levels will be enhanced through higher productivity and adoption of better standards
Additional new employment by EPPs and BOs 000 People
Total -25 11 3 21 18 36 11
56
4.3 x
1,400
6,000
1 35 6 2 9 -25 1 21 2 12
99
Paddy
Horti culture
Herbs
Swiflets
Live stock
Aqua culture
Biotech
Total
1,000
2009
2020
3x
1,000
4,100
4%
Horticulture
Herbs
Swiftlets
Livestock
Aqua culture
Biotech
4,100 1,000
2009
2020 12
Lenggong
Rantau Tasik Temenggor Manis Selama Tasik Kenyir Lojing Pasir Cegar Raja Perah Trolak Cameron Highlands
Mercong
PMs level: Update PM once a quarter NKEA Steering Committee Meet once a month EPP owners to provide updates SC to make decisions and provides guidance / direction to the team SC to resolves conflicts SC to oversees all other matters related to NKEA
Prime Minister
Steering Committee Chair: Lead Minister (MoA)
Secretariat: PEMANDU/ Delivery Management Office (MoA)
Members: MoA KSU KP Jab. Pertanian KP Jab. Perkhid. Haiwan KP Jab. Perikanan KP MARDI KP FAMA Peng. Besar MADA S/Usaha Tetap Sabah and Sarawak Agriculture Ministry
EPP level: Meet fortnightly EPP owners to hold fortnightly status meeting Team 1: Paddy with the IPB PEMANDU Director & team Owner Deputy Sec Gen (R) will oversee all EPP 9: MARDI EPP 10: MADA EPPs
EPP 11: IADA
EPP 9: Sime Darby EPP 10: BERNAS EPP 11 : Felcra Bernas
Owner
EPP 1: MOA EPP 7: Jab. Pertanian
Owner
EPP 3, 4, 6: Jab. Perikanan
Owner
EPP 2, 5, 12,13, 16: Jab. Perkhidmatan Veterinar
Owner
EPP 8: Bhg. Indus. Asas Tani
Owner
EPP 14, 15: KSI
Implementer
Implementer
EPP 1 : ECERDC Biotropics IMR FRIM EPP 7 : MAFC
Implementer
EPP 3 : DOF Sabah UMS EPP 4 : DOF PS EPP 6 : DOF Blue Archipelago Private sector
Implementer
EPP 2 : DVS and Private sector EPP 12 : NFC Felda Global EPP 13 : NFC Felda Global EPP 16 : Private sector
Implementer
EPP 8 : FAMA MAFC
Implementer
EPP 14, 15 : BiotechCorp MARDI DOA DOF DVS
14
Agenda Background of NKEA Agriculture EPPs Brief Overview of EPPs NKEA Agriculture Reflected in Minister KPI 2011 (MKPI 2011)
15
EPP 1 :
GNI Impact RM
Jobs Created
2.2
billion
2,000
Project Details Product development of nutraceuticals and botanical drugs based on 5 selected herbs Tongkat Ali, Kacip Fatimah, Misai Kucing, Hempedu Bumi, Dukung Anak. Upstream supporting initiative of Herbal Cultivation Park for commercial production of raw materials undertaken by ECERDC in Pasir Raja, Chegar Perah & Durian Mentangau. 5 R&D Clusters of Excellence formed to co-ordinate the R&D for each research institution (RI) and research universities (RU) in respective clusters: Discovery, Crop Production & Agronomy, Toxicology/Pre-clinical, Product Development & Processing Technology Establishment of Herbal Development Council
2011 Allocation
2012 Allocation
RM 73.0 million
RM 82.4 million
RM 5.9 million
RM 6.0 million
16
This is due to concentrated efforts in the primary processing, cultivation and extraction, but not in other high-value add activities
Value
Level of activities in Malaysia
Increase in value
Primary Processing of Herbs Cultivation
Increase in value
Extract & Product Development Special Formulation & GMP Manufacturing Internationall Marketing & Distribution
Discovery & Devt of Pre & Identification of Post Clinical Herbal Targets Testing and IP
17
* Development of Malaysia as the hub for clinical studies is currently under discussion by the healthcare sector
19
EPP 2 :
Project Details
Increase production of upstream by building of additional 2,000 new premises annually and 6 Collection Centres Improve monitoring and enforcement of Good Animal Husbandry Practice (GAHP), and Good Manufacturing Practice (GMP) for swiftlet premises and processing plants by incorporating traceability system Increase downstream product development and cleaning of more raw products locally by construction of R&D Centre for development and processing
4.5
billion
20,800
Scope of Public Funding 2011 Allocation
RM 6.0 million
2012 Allocation
RM 7.4 million
Development Expenditure: i.R&D Activity for Downstream Processing ii.Acquisition of lab equipments for lab test on EBN iii.Enforcement and traceability system Operational Expenditure: i.EBN Website ii.Procurement of vehicles iii.Human Resource iv.Rental for EBN Collection Centre
RM 2.4 million
RM 2.0 million
20
21
A local anchor company with access to the key consumers needs to be developed to allow for our downstream products to reach markets directly
Processors & Traders Benefits of utilising Anchor Companies Bypass middle Bypass middle men men
Operators
Operators
Currently all middle men based in HK Controlled by cartels Economies of scale in cleaning and processing to improve margins Serve as centralized hub for R&D and coordination efforts Retail products directly to restaurants and other retailers Better able to track volume and production
Increase Increase product value product value and margin and margin
Critical Mass Consistent quality and traceability Funding Availability Market Development work Value added products (Belong to operators, processors & traders)
Smaller operators and traders will leverage on anchor companies that provide direct links to market
21
4. To establish new EBN website for traceability 5. To establish R&D referral centre with UPM 6. To establish new EBN Collection and raw-clean EBN processing Centre 7. To establish new EBN international trading house 8. Total sales value for EBN
22
EPP 3 :
GNI Impact RM
Jobs Created
1.4
billion Scope of Public Funding
13,000
Project Details Increase the yield and total production of seaweed to 150,000 MT in 2020 by clustering of farms Adoption of improved production methods by introduction of mini estate concept with technology-intensive landbased farming Downstream R&D&C to strengthen capability to process dry seaweed into high-value products (e.g semi-refined carrageenan (SRC) and alkaline treated chips (ATC)) as well as development for other uses of seaweed. Establishment of SPV, Green Leaf Synergy Sdn Bhd, a spin-off company under UMS to act as anchor company to SMEs.
2011 Allocation
2012 Allocation
Development Expenditure: i.Construction of seaweed mini estate system and building of jetty ii.Establishment of R&D&C programme and pilot plant for product development Operational Expenditure: i.Rental and operations of SPV
RM 46.25 million
RM 16.0 million
RM 1.82 million
23
The clustering approach will be done in parcels of 200 hectares each; any replication must be done on the same size to ensure optimum and manageable scale
Factors determining the 200ha size Farm management and replication Each cluster will consists of blocks that will be managed by individuals/SMEs and will share common infrastructure Block 1 Block 6 Block 2 Water depth
45 90 cm
Water velocity
20 40 m/sec
Water salinity
30 40 ppt
Integrated Complex
Block 5 Block 4 Block 3
Water temperature
27 30oC
Any replication or expansion must be done based on a 200 ha module to optimise scale and volume
No source of
Farm site pollution Co A 200 ha Co A 200 ha x2 Co B 200 ha
Environmentally
Management
Anchor companies will manage each cluster and the farmers under it; the government will provide assistance in terms of farm manual and technology transfer
Overall management and planning of the estates Provide extension services to the farmers and estates Distribute farming inputs e.g. fertilisers, seed and usage of
mechanical harvesters Engage with and provide feedback to the Government on farm manuals and best practices
Anchor Company
Farmer 2 SME
guidelines and inputs by the anchor companies Undertake operational costs and where applicable capex requirement Agreement on profit sharing/ contract farming mechanism with the anchor companies
The Government Engage with the private sectors to develop basic farm manuals for the anchor companies. Anchor companies will still be able to make variations to the manual depending on conditions Work with universities and research institutes to further develop production methods and technologies Provide training to potential entrepreneurs who want to join the industry
25
Each cluster will have an integrated management complex where 80% of the activities will be conducted to enable higher productivity of the farms
Integrated management complex will have all the necessary facilities to plant, cultivate and dry the seaweed as well as provision of accommodation Common facilities e.g. kitchen, toilet and office Water tank Drying platform Landing platform Seed tying complex Casino table Generator and storage area Impact 1 Reduce time spent at sea which is less productive Time spent based on location Percent
Time at sea Time at land
100%
20% Without With complex complex Land based nursery and casino table reduce time at sea 2 Easier management of workers
Accommodation complex
27
EPP 4 :
GNI Impact RM
Jobs Created
1.4
billion Scope of Public Funding
10,100
Project Details Focus the aquaculture fish production for high-value species e.g seabass, grouper, tilapia to account for 28% of total production in 2020 Upstream supporting initiative: establishment of quality broodstock development centres to reduce dependency on imported fries Mechanism of anchor companies to ensure integrated approach for large scale production from hatchery to processing phase. ZIA locations (e.g Tasik Kenyir, Tasik Bakun, Tasik Temenggor) has been identified for implementation.
2011 Allocation
2012 Allocation
Development Expenditure: i.Basic infrastructure (e.g. jetties, access roads, main piping) ii.Broodstock centre (e.g. hatchery, quarantine facilities, multiplying centre) Operational Expenditure
RM 47.0 million
RM 32.3 million
28
Integrated cage farming approach has been identified as a primary method to boost production of the targeted species
Key advantages of cage farming Mechanisms to improve productivity and quality
1
Integrated approach
Hatchery Grow out Processing
Ensure SMEs
use good quality seeds sourced from anchor company Reliable supply of seeds
SMEs have to
adhere to SOPs to ensure better growth and survival Standardised technology
Processing sites
are located near the vicinity to lower cost Sufficient volume to export valueadded products
Good
aquaculture practice to ensure bio security & quality Regular monitoring by DoF
29
Ce buffer zone rti fic for each at io module n Certification requirement at every value chain
Qu ali ty
Higher productivity
Provision of
30
EPP 5 :
Project Details Integration of another 300,000 heads of cattles in large oil palm plantations, at 3-4 hectares per head. Formation of Cattle Integration Development Committee to oversee the implementation of this project. Emphasize on systematic rotational grazing, adherence to GAHP and breeding program for the cattles while synergizing with the estate owners.
GNI Impact RM
Jobs Created
150
million
3,600
2011 Allocation
RM 31.4 million -
2012 Allocation
RM 67.0 million -
31
Integration of cattle in oil palm capitalizes on one of our competitive advantages while ensuring sustainable farming practices
Weeds under oil palm plantation provide
forages for cattle
Key benefits of integration in oil palm Breeding intensive. Ability to produce feeder cattle for the feedlot business as well as introduce a new market segment, free grazing beef Systematic rotational grazing system. Reduces labour, weeding, chemical and fertilizing costs for oil palm estates Palm Oil sustainability certification standards (RSPO) will be easier to meet due to less chemical usage for weeding
2
Shortens the Nutrient Cycle
Maximize use of plantation lands. Using palm oil plantation lands for grazing
32
33
EPP 6 :
Project Details
Replication of IZAQ
1.3
billion
GNI Impact RM
Jobs Created
12,000
size of 1,000 ha dedicated to the organized production of high quality, fully certified shrimp for the premium market. Each IZAQ will be championed by an anchor company; SMEs and smallholders can participate through contract farming/profit sharing arrangement. Current model of IZAQ is being integrated in Setiu. Target to have 10 additional IZAQ by 2020. This concept can be replicated for other types of fish species e.g lobster, seabass Identified anchor companies: JEFI Aquatech, QL Resources
2011 Allocation 2012 Allocation
RM 253.0 million
RM 169.5 million
34
Integrated Zone for Aquaculture (IZAQ) will be a new approach towards industrial scale aquaculture farming to target premium export markets
IZAQ is a large scale modern aquaculture farming concept in rural areas The IZAQ concept An aquaculture park with an average size of 1,000 ha dedicated to the organized production of high quality, fully certified shrimp for the premium market. This concept can be replicated for other types of fish species Each IZAQ will be championed by an anchor company; SMEs and smallholders can participate through contract farming/profit sharing arrangement Ability to consistently ensure Quality, Safety & Ecology for all products. More effective environmental controls for premium standards Replication of IZAQs and its locations IZAQ concept is currently being pioneered in Setiu, Terengganu 10 sites in rural areas of Johor, Kedah, Pahang, Sabah, Sarawak and Terengganu have been identified for potential replication Certification Standards: Entire Production Chain Key enablers: R&D facility, Diagnostic Lab, breeding programme and skills development centre
35
that is fully integrated and certified to create competitive advantage in the premium market segment Feed Hatchery Grow out Processing Marketing
IZAQ Grow-out ponds (BAP / GlobalGAP) Processing (HACCP, GMP & ACC)
Feedmill
Hatchery
Premium Markets
36
EPP 7 :
Project Details
1.6
billion
9,100
Production of 5 identified high-value non-seasonal tropical fruits: rock melon, starfruit, papaya, banana and pineapple; and intensify production of 3 high-value highland vegetables: lettuce, tomato and capsicum. Existing TKPM will be leveraged on for production of rock melon, starfruit and papaya. Identified TKPM includes Puncak Baring, Bukit Sapi, Sendayan, Lanchang, Inderapura, Kuala Lipis. Intercropping of oil palm and banana/pineapple will be adopted. Identified anchor: FELDA. Rehabilitation, intensification and consolidation of land to increase production of highland vegetable in Cameron Highland and Lojing I & II. 2011 Allocation 2012 Allocation
RM 80.0 million
RM 177.6 million
37
The transformational shift in Horticulture Industry Development points to a need for an anchor player to lead the integrated supply chain model
The Concept Anchor company will consolidate production from small and fragmented farmers, promote network and provide buy back and extension services scheme The services scheme will accelerate the growth of agripreneurs and stimulate the creation of productive and independent cooperatives
Anchor company Farmers Cooperative
Selection criteria for anchor company Specialist in a particular crop from farm to market access and branding Experienced in production of a particular crop Readily available master grower Ability to provide extension services Willing to develop new anchor players Must subscribe to modern farming methods Subscribe to post harvest management practices and usage of the right facilities Minimum paid up capital of RM100 million
Low Integration High Individual Farmers
Source:MAFC Berhad
38
Anchor companys role in the execution of EPP is to link production to market both at the local and export level
Production Post-Harvest Market Access
Banana
CPPC
Pineapple Melon Starfruit Tomato Anchor to spearhead each of the crops as well as involved in the production Anchor will provide the extension services to contract farmers Contract farmers will sell their produce to the anchor company Anchor to value add the produce (e.g. sorting, grading, packaging) Manage post harvest and midstream facilities Coordinate traceability and cold chain integrity Ensure compliance to standards (e.g. HACCP & GMP)
CPPC CPPC
DC
Market access matching demand with supply Network with local and foreign retailers Branding, promotion and advertising Manage mode of transportation to export market
39
The implementation roadmap strive towards developing agripreneur into more anchor players
Phase 0 : 2010 Small and fragmented Agripreneur
USD19 USD19 million million
Cluster A
Cluster B
Cluster A
Cluster B
Cluster A
Cluster B
Individual Farmers
Farmers Cooperative
40
41
EPP 8 :
Project Details
Development of integrated food park based on anchor company approach to co-ordinate SMEs and smallholders and produce in large-scale, fully accredited system.
GNI Impact RM
Jobs Created
883.2
million
5,000
2011 Allocation
-
2012 Allocation
-
42
EPP 9 :
Project Details
133
million
4,998
Planting of fragrant rice variety e.g Jasmine-type and Basmati-type on a commercial scale on rainfed areas to improve average national yield, substitute import of fragrant rice and tap premium organic rice market. Identified anchor company for Jasmine-type MRQ76, Sime Darby, will be up-scaling the production of the variety from their pilot plant in Gedung. Identified anchor company for Basmati-type MRQ74, Infoculture Sdn Bhd, will be expanding the production of the variety from their farm in Langkawi to Lanchang. MARDI will support in the R&D for continuous development and production of new varieties of fragrant rice.
2011 Allocation
2012 Allocation
RM 6.75 million
RM 1.0 million
43
44
EPP 10 :
Project Details
Improve farm management by introduction of the land amalgamation scheme to 500 ha per farm and providing incentives for traditional farmers to exit in Muda area. Accelerate technology use by introducing new varieties of seed and production/millin technologies as well as promoting larger scale mechanisation Intensification of infrastructure by improving the irrigation density in areas with high potential to increase yield Target of initiatives is to double the yield of paddy from the current 4.0 MT/ha to 8.0 MT/ha. MADA and BERNAS will co-establish an SPV to implement the initiatives in MADA
GNI Impact RM
Jobs Created
1.0
billion
- 14,900
2011 Allocation
RM 90.0 million
2012 Allocation
RM 77.6 million
RM 7.78 million
RM 10.0 million
45
Reduce no of workers on the land by 3x, adopt larger scale mechanisation, better agriculture practices
Contract: Fixed rental / profit sharing / mgmt fees Agrees to outsource land mgmt
Abolish IPH
RM290 mil
Future: direct assistance to needy groups
Gain
through profit sharing of higher yield
GSR + IPH
Restructure
paddy price subsidy / pay direct income support to needy groups
RM383 mil RM1400* Current: Individual operators RM6,000** Future: Operate 10 ha on profit sharing basis
Gain
through larger scale of operations
RM240 mil
RM191 mil
2020 subsidy Restructure with higher output subsidy
* Yield of 5mt/ha, paddy price with subsidy RM1248/mt ** Yield of 8mt/ha, paddy price RM1000/mt, no subsidy, 2 ha own land + 8 ha managed for third party
46 46
47
EPP 11 :
Project Details
Government that will manage the paddy farming activities from upstream to downstream
1.4
billion
- 9,600
2011 Allocation
2012 Allocation
RM 136.0 million
RM 173.9 million
48
The model adopted in MADA can similarly be expanded in KADA, however, in other granary areas, a different model will be applied
KADA Similar demographic profile Other granary areas
47% of farmers in KADA are > 60 years old Idle land is already being managed on an
outsourced basis (e.g., Ladang Merdeka)
49
EPP 12 :
Project Details
Expansion of Feedlotting
GNI Impact RM
Jobs Created
182.4
million
2,000
current anchor company, National Feedlot Corporation and other potential anchors for feedlotting operations. Anchor company will oversee the operations of the entire value chain while focusing on the integrated and consolidated downstream processing. Downstream operations will be improved by enforcing certification of abattoir, cold-chain delivery of chilled cuts, promoting market awareness of buffalo meat vs beef, and developing downstream (beef byproducts).
2011 Allocation
-
2012 Allocation
-
50
Through increased supply from integration, dairy operations and anchor companies with overseas stakes, feedlotting activity can be expanded
Anchor X has own farm overseas
Integrated Downstream Operations
Needs to be upgraded
and/or privatized
0% Wastage (capitalize
on all cattle parts)
Anchor / NFC
Development of products
for beef byproducts (Pet foods, leather, gelatin, food processing)
51
52
EPP 13 :
Project Details
Dairy Cluster
GNI Impact RM
Jobs Created
Establishment of dairy clusters led by anchor companies to produce milk on a large-scale basis and oversee the operations from production to marketing. Upgrading of the existing cold-chain milk facilities to ensure the quality of milk from farm to market is maintained Identified anchor players includes Dutch Lady Milk Industries, Evergreen Livestock, and Fonterra.
326
million
800
2011 Allocation
2012 Allocation
RM 32.0 million
RM 32.0 million
53
In addition, most milk collection centers across the country are running at a loss, lacking volume from producers to be profitable
Profit / Loss of Selected MCCs 100% = 13 MCCs across Malaysia Profitable Key Issues with Malaysias Dairy Farming Industry Management Lack of expertise (Artificial Insemination, Feed formulation, cold chain logistics, fodder production) Commercial management experience Small scale
Running at loss
Cost of milk handling ranges from 0.22 cents per litre RM9.50
per litre Only 1 MCC (Pahang Jerantut) profitable due to proximity to large scale commercial dairy farms Milk sold to factories at RM2.40 per litre, but still unable to cover costs Quality of milk collected Grade AA Grade A Grade A minus
Nutrition Poor quality forage High cost of feed High dependence on concentrate feed
Land Limited land available Land insufficient for fodder production Ideally prefer land above 1,000 metres
54
55
EPP 14 :
Project Details
Introduction of Marker-Assisted Selection technology to produce progeny with desired traits e.g high-yielding, disease-resistant Establishment of National Seed Council (National Seed Steering Committee as interim structure) to oversee the development of seed industry in Malaysia to reduce dependency on imported seeds/breeding material
GNI Impact RM
Jobs Created
467
million
5,400
2011 Allocation
RM 5.0 million -
2012 Allocation
RM 1.1 million -
56
Proposed for a National Seed Council to oversee the linkages between CMDV and seed and planting material producers
Seed/Breeding Material Industry Proposed Structure for Development of Seed/Breeding Material Industry
Breeders
Nucleus to breed the high-quality genetic material developed by CMDV Provide local access of high-quality genetic material to F1 Seed Producers
Seed/Animal Producers
Multiplier of high-quality genetic material procured from breeders. Provide farmers easy access to high-value genetic material at no extra cost. Multiplier Effect
* All breeding material for agriculture (seeds, planting materials, breeding animals, broodstock)
57
Projected increase in production volume of rice based on breeding of one selected trait (salinity-tolerant) USD billion
5.4
Eliminate environmental variation
2 Consistency from evaluation trials and also allow screening for resistance to pathogens without further risk
5.5
5.1 4.9
4.6 4.6
5.2
MAS
4.6
4.6
4.6
CB
12
13
14
15 16 Year of release
Source:Smart Breeding (Greenpeace.org), Economic Impact Analysis of Marker-Assisted Breeding in Rice, Alpuerto, Vida-Lina Esperanza Battad
58
59
EPP 15 :
Project Details Attracting FDI in Agricultural Biotechnology into Malaysia contributes into multiple area that benefits the industry and develops highly skilled human capital Leveraging on Biotechcorp as the implementing agency. Biotechcorp will formulate the package necessary to secure FDI into the country.
GNI Impact RM
Jobs Created
820
million
1,200
2011 Allocation
RM 15.0 million -
2012 Allocation
-
60
Growing commodity prices, increase carbon credit trading activity and tighter regulatory framework spur the need for Agriculture Biotech
Key growing trends Commodity 1 prices Resulting in Bioyield enhancers becomes more valuable Farmers motivated to find technologies that enhances fertilizer efficiency Companies in biofertilizer business selling their carbon credits to developed countries Farmers will be rewarded by farming with CO2 efficiency
3 Regulatory framework
Regulatory pressure on
Making biological solutions increasingly attractive Increases usage on biocontrol Bio-based flavours & fragrances
61
3 key focus areas for Agriculture Biotechnology Industry Bio-fertilisers, biopesticides and flavour & fragrances
Biofertilisers Apply living microorganisms to seed, plant surfaces or soil to colonise the rhizosphere and promote growth thus adding nutrients through natural processes (e.g. microorganisms to increase soil pH) Bio-yield enhancers Microbial-based products that stimulate various biochemical pathways related to enhancing the growth and yield of crops (e.g. microbial nitrogen fertility solution for nonlegume crops) Potential market by 2020: USD46.7 billion
oBi
pe s ti es cid
FDI
63
EPP 16 :
Project Details
Overseas JV/Acquisition
Secure a consistent and affordable source of live animals for breeding, feedlotting, and dairy operations over the next 10 years
Scope has been expanded to include other potential areas in agriculture e.g poultry with purpose of bringing in profit into the country Identified companies includes SEDC Sarawak, Intan Farm, Felda Global Venture Holding, NFC.
GNI Impact RM
Jobs Created
115.2
million
Nil
2011 Allocation
-
2012 Allocation
-
64
65
Agenda Background of NKEA Agriculture EPPs Brief Overview of EPPs NKEA Agriculture Reflected in Minister KPI 2011 (MKPI 2011)
66
Y.B. Datuk Seri Noh Omar HHH Minister of Agriculture and Agro-based Industry
NKEA: EPPs 1. Expanding the production of swiftlet nest (EPP#2, Agriculture) 1. 2. 1.1 Total sales value for edible bird nest RM19.2 mil RM100 mil 3. 4. Traceability, enforcement & certification R&D of downstream processing and sustainable ranching Implementation of Swiftlet Industry Guideline (1GP) To set up EBN International Trading House 40%
2. Venturing into commercial scale seaweed farming in Sabah (EPP#3, Agriculture) 1. 2.1 Tonnage of dried seaweed produced 13,890 MT 16,580 MT 2. 3. 4. 3. Farming using integrated cage aquaculture (EPP#4, Agriculture) 3.1 Total production of farmed fish 4. Replication IZAQ to tap market for premium shrimp (EPP#6, Agriculture) 4.1 Total export from IZAQ Still under construction 1. 2. 3. 4. 1. 2. 3. 4. Feasibility study Identification & selection of site (2 sites) EIA submission & approval Construction Land preparation, nursery and infrastructure Field planting Extension & advisory services Crop maintenance 15,458 MT 19,458 MT 1. 2. 3. 4. Site selection Feasibility study Gazetting of area Selection of anchor company Establishment of Seaweed Industrial Zone Establishment of farming system Downstream processing program (product development) Establishing quality and standard
5. Upgrading capabilities to produce fruit and vegetables for premium markets (EPP#7, Agriculture) 5.1 Total export volume of premium fruits and vegetables 5.2 Intercrop Development (Banana) 5.3 Intercrop Development (Pineapple) NA Fruits & Vegetables 14,000 MT Banana: 3,000 MT Pineapple: 7,750 MT
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6. Scaling up and strengthening productivity of paddy farming in the Muda Area (EPP#10, Agriculture) 1. Conduct feasibility study for SPV 2. Develop implementation approach 3. Seek consensus & gather response from farmers & related parties on the proposed land acquisition & financial offer 4. Finalised land acquisition process and compensation involved 1. Operationalised satellite farms 2. Construction of abattoir under NFC 3. Selection & appointment of other anchor companies 4. Completion of identified satellite farms (20 units) Implementation CDC Plan Development of farm infrastructure Development of pasture land Development of ruminant feed milling industry
0 ha
5,000 ha
7. Strengthening anchor companies in cattle feedlots (EPP#12, Agriculture) 1:3.3 51,161: 170,475
1:3.4 46,510:162,357
8. Partnering with a large foreign dairy to establish dairy clusters in Malaysia (EPP#13, Agriculture) 8.1 Total production of fresh milk 1. 2. 75.77 mil Liter 3. 4.
9. Establishing a leadership position in regional breeding services (EPP#14, Agriculture) 1. Concept paper & approval for National Seed Council (NSC) 2. Formulation of Seed Act (crops, livestock & fisheries) 3. Setting up of Center for Marker Discovery & Validation (CMDV) 4. Establishment of National Livestock Breeding Center (NLBC) 1. Background study of strength & weakness of country in biofertilizer, biopesticides, flavor & fragrances area 2. Engagement with key stakeholders to bring in MNC 3. Identification & selection of a list of MNCs 4. Initial engagement with MNC
NA NA
600 MT 10
NA
RM256 mil
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THANK YOU
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