AGRICULTURE
AGRICULTURE
• The head of HDO is in the process of receiving official appointment by MOA.
Establishment of HDO
• Schematics for Herbal Cultivation Park in Chegar Perah and Pasir Raja is completed. Begin construction by end of 2011.
Herbal Cultivation
Parks
• The head of R&D Clusters appointed with UPM and FRIM leading the Discovery Cluster, MARDI for Crop Agronomy, USM for Standardization & Product Development, IMR for Pre-clinical and Clinical Trials and CEPP UTM for Processing Technology.
R&D Clusters
• Nova, Biotropics and F.A Herbs appointed to be anchor company to champion the marketing of high-value herbal products.
Champion Anchor
Companies
Case for change: •Global demand for herbal products
is growing at 10.5% until 2020. •Ample opportunity to tap into
Malaysia’a rich biodiversity •Herbal products sold in the market
is of low-value, as most has not undergone pre-clinical or clinical trials.
Target: •3 herbal cultivation parks to
produce herbs on a commercial scale
•5 nutraceuticals with pre-clinical claim launched in 2012
•5 botanical drugs launched in 2015
EPP 1 – High Value Herbal Products
RM2.2 billion 2,000 RM841 million
GNI Jobs Investment
In progress
• 1GP guideline launched. The guideline will educate industry players in registering their bird house premises.
• A total of 900 bird house has been registered with Dept of Veterinary Service
Bird House
• Yan Ming Resources Sdn Bhd will invest RM5 million to establish a collection and processing centre
• The centre will be able to generate GNI RM88.7 million by 2020
Collection Centre and Processing
Centre
• A collaboration between Dept of Veterinary Services and University Putra Malaysia has been completed.
• The R&D will look into nutritional aspect of bird nest and development of other downstream products
R&D
Case for change: • Bulk of current products are sold
or exported as raw material without traceability system, but the value is in the downstream
• Lack of co-ordination in regulations enables current operators to sell illegally
Target: • 8,500 additional EBN premises
in East Malaysia, 4,500 in West MY.
• Increase revenue from USD 0.5B to USD 3.6 B in 2020 from cleaning locally and development of downstream product
EPP 2 – EBN Swiftlet
RM4.5 billion 20,800 RM1.8 billion
GNI Jobs Investment
In progress
In progress
In progress
• 3000 ha gazetted for seaweed in Semporna, Kudat, Kunak and Lahad Datu in Sabah
Establishment of Seaweed Industrial
Zone
• Yayasan UMS appointed as SPV to manage the implementation of the mini estate by the appointed participating companies
Establishment of SPV
• 1st batch of 6 participating companies selected to start cultivation of seaweed. Letter of offer to the companies was presented by YB Minister of Agriculture on the 28th April 2011.
Selection of participating companies
• UMS champions the R&D on improvement of farming technology, product development programme to determine the diversification of semi-finished and finished product.
Research, development and commercialization
Case for change: • Current production uses
traditional farming which requires intensive labour, not attractive to potential business entrants
Target: • Increase yield from
1.5MT/ha/year to 5.0MT/ha/year (251% increase) in 2020
• Increase production from 13,500 MT to 150,000 MT in 2020
EPP 3 – Mini Estate Concept for Seaweed Industry
RM1.4 billion 13,000 RM703 million
GNI Jobs Investment
In progress
Case for change: • Growth in aquaculture
production created a market for premium products from Malaysia
• However, our country still lags behind in production quantum as compact to Thailand, Vietnam, India, Indonesia.
Target: • To increase aquaculture shrimp
and fin-fish production above existing projection by focusing only on a few species (Tilapia, Seabass, Grouper) to create scale and strengthen access to market
EPP 4 – Farming using Integrated Cage Aquaculture
RM1.4 billion 13,000 jobs RM717 million
GNI Jobs Investment
• Identified potential areas for cultivation: Tasik Bakun, Tasik Pedu, Tasik Kenering, Tasik Kenyir, Tasik Temenggor, Batang Ai, Sg johor, Pulau Tioman, Pulau Bidong, Pulau Rhu, Pulau Langkawi
Sites for cage farming
• Cage farming of Tilapia (Genomar Supreme Tilapia) with new entrepreneurs
• 2 modules (40 units of cages) for each 20 participants
• Expected to be producing (staggered) by September 2011
Synergy Farming
In progress
Grouper Sea bass Tilapia
Case for change: • Integration of cattle in oil palm
capitalizes on one of our competitive advantages while ensuring sustainable farming practices
• Integrated operations coupled with a direct to market downstream chain will enable Malaysian beef production to be more competitively priced
Target: • To add another 300,000 heads of
cattle within existing oil palm plantations
EPP 5 – Rearing Cattle in Oil Palm Estates
RM150million 3600 jobs RM343 million
GNI Jobs Investment • 25 oil palm plantations
companies
• Selection based on criteria e.g. minimum 1000ha of plantation, dedicated management team for cattle integration
Selection of anchor
companies
• Overseeing the implementation of the project
• To manage and solve probable issues pertaining to the oil palm plantations
Formation of Cattle Integration
Development Committee
• Emphasize on systematic rotational grazing, adherence to GAHP and breeding program for the cattles while synergizing with the estate owners
Implementation of Best Practices In
progress
Systematic
rotational grazing
In progress
Herdsman Breeding
programme
Coordination with
estate activities
Case for change: • Integrated Zone for Aquaculture
(IZAQ) will be a new approach towards industrial scale aquaculture farming to target premium export markets
Target: • An aquaculture park with large
area dedicated to the organized production of high quality, fully certified shrimp for the premium market.
EPP 6 – Replication of IZAQ
RM1.27billion 12k jobs RM3.15 billion
GNI Jobs Investment • 3 anchor companies (Blue
Archipelago Berhad, LKPP Corporation and Hannan Corporation Sdn Bhd) appointed by June 2011
Selection of anchor
companies
• Sea Horse Corp. Berhad (Sarawak)
• Ko-Nelayan Berhad (Sabah)
Companies in waiting
• LKPP Corp Berhad (282 ha)
• Hannan Corporation Berhad (142 ha)
• Asia Aquaculture Sdn. Bhd. (414 ha)
Companies under
construction In progress
In progress
IZAQ Grow-out
ponds (BAP /
GlobalGAP)
Premium Markets
Processing
(HACCP, GMP & ACC)
Certification,
Accreditation &
Verification
system
on site
Certification Standards: Entire Production Chain
Hatchery Feedmill
• MAFC appointed as anchor for fruits - papaya, rock melon and starfruits. FELDA appointed for intercropping of banana and pineapple with oil palm.
Selection of Anchor
Companies
• DOA identified several TKPM (eg Lanchang) for the expansion of anchor companies. In the process for tender to upgrade infrastructure and build cold room / CPPC.
Upgrading of TKPM
• Expansion of Lojing to become suitable for highland plantations. Currently DOA is in discussion with UPEN Kelantan
Expansion of Highland Vegetable
• Felda has planted 985 ha of banana in various FELDA plantation and 526 ha of pineapple of N36 and Moris variety.
Intercropping with Palm Oil
Case for change: •Malaysia has the advantage of
having the suitable climate, appropriate rainfall and unique location between East and West.
•Agrifood trade deficit has worsened by more than RM 100 million each year due to higher income and lifestyle change.
Target: •Production of 570,000 tonnes in
2020, with 94.7% dominated by tropical fruits and 84% of produce for export market
•Increase in yield between 0.4x to 2.5x
•22% of participating farmers will draw income of more than RM 5,500
EPP 7 – Premium Market for Fresh Fruits & Vegetables
RM1.6 billion 9,100 RM1.4 billion
GNI Jobs Investment
In progress
In progress
In progress
Case for change: • Increasing demand for packaged
foods (US: 27% CAGR, 1997-2006) posts potential opportunities for SMEs.
Target: • Development of an integrated
food park will address current fragmented and small scale processed food companies
EPP 8 – Food Park / Incubator
RM883 million 5k jobs RM574 million
GNI Jobs Investment • 1 company (Rukun Saksama Sdn Bhd) has been appointed as a Participating Company in June 2011.
Scoping, identification and selection
• Negotiation is currently conducted with Jabi Rice Mill Sdn Bhd and Pertubuhan Peladang Negeri Johor to utilise TEMAN Ipoh as a food park
Scoping, identification and selection
• MAEPS through MARDI is in process to provide the necessary legal documentations on rentals etc concerning the usage of the ground floor, Hall D as a hypermarket by Rukun Saksama Sdn. Bhd
Investment Appraisal
In progress
In progress
Ground Floor - an alfresco-style food ground floor to be renovated as an air-conditioned hypermarket by Rukun Saksama Sdn. Bhd. Samples of agro-based products
Case for change: • 54% out of 4.6 million household
surveyed showed preference for fragrant rice, opportunity to cater to the local market
• Need to reduce import bill of RM 400 – 500 million annually for importation of fragrant rice
Target: • Production of 73,000 tonnes by
2020 to substitute up to 65% of annual importation and generating revenue up to RM 362 million
EPP 9 – Fragrant Rice Variety in Non-Irrigated Areas
RM 133 million 4,998 RM19.2 million
GNI Jobs Investment
• MARDI appointed Sime Darby to spearhead the commercialization of MRQ76 and Infoculture Sdn Bhd for MRQ74
Selection of Anchor
Companies
• 40 hectares of land in Sik and Semanggul has been planted with MRQ76.
• 31 hectares of land in Kg Ewa (Langkawi), Wang Tepus and Titi Tiinggi has been plated with MRQ74. Infoculture is identifying land in Pahang and Kelantan for expansion.
Planting of fragrant rice
• MARDI has conducted Multi Location Trial for new fragrant rice varieties in Sik and Semanggol
R&D for Improvement
of Variety
In progress
In progress
Case for change: • Current paddy farm operated on
a small-scale basis at average size of 2.0 ha per farmer, leads to poor farm management and co-ordination of water movement and mechanization
• 25% of farmers already passive • Kuala Muda is the ‘rice bowl’ of
Malaysia but has the least density of irrigation
Target: • 50,000 ha of land amalgamated
and managed through estate farming in 2020
EPP 10 – Strengthening Productivity of Paddy Farming in MADA
RM1.0 billion - RM2.7 billion
GNI Jobs Investment • BERNAS and MADA was announced
to establish the SPV to manage the paddy estate farming over 50,000 ha in MADA in May.
Establishment of SPV
• 3,118 ha was agreed and signed by 1,058 landowners in MADA for the implementation of estate farming managed by the SPV. Target for 2011 is to amalgamate 5,000 ha.
Land Amalgamation
for Paddy Estate
• Survey work, design and planning for the improvement of irrigation infrastructure in MADA is in the planning process based on land amalgamated
Improvement of Irrigation
Infrastructure
• MARDI was awarded the role to perform R&D for continuous development of high-yielding variety to be planted commercially in MADA
R&D for Improvement of
Variety
In progress
In progress
In progress
In progress
Case for change: • 17,500 ha adjacent to current 8
granaries can be integrated as part of granary to enable better water supply management
• Productivity in large areas such as Batang Lupar and Kota Belud is low due to lack of irrigation and mechanization, providing ample opportunity for improvement
Target: • Improve productivity by 50-80%
and increase in net paddy production of 433,936 tonnes by 2020
EPP 11 – Strengthening Productivity of Paddy Farming in Other Granaries
RM1.0 billion - RM2.7 billion
GNI Jobs Investment
• Paper for formation of IADA in Batang Lupar has been submitted to MOA for approval
Formation of IADA
• DOA Sarawak has conducted survey and received the agreement of 174 families to amalgamate 200 ha of land for planting season in September.
Land Amalgamation
for Paddy Estate
• Survey work, design and planning for the improvement of irrigation infrastructure in Lingga-Banting and Bijat-Stumbin is in the process of issuing tender.
Improvement of Irrigation
Infrastructure
• DOA Sarawak is in the progress of collaborating with MARDI for the R&D process to document and set up a seed bank for the local varieties in Sarawak
R&D for Improvement of
Variety
In progress
In progress
Case for change: • There is an increasing demand
for fresh beef and projected production levels from domestic cattle cannot support this growth
• Beef operators from the private sector are currently involved in upstream sector and very few are integrated throughout the value chain
Target: • To support the increasing
demand for fresh beef and projected production levels from domestic cattle by attracting more feedlot entrepreneurs into the market
EPP 12 – Expansion of Feedlotting
RM182 million 2k jobs RM634 million
GNI Jobs Investment • 51 satellite farms completed,
ready to be transferred and managed by anchor companies
• FELDA Gedung Makanan Negara (Negeri Sembilan) appointed as one of the Participating Company in May 2011
Potential feedlot farms
• EP Marketing (Kelantan)– Ready to bring 500 heads cattle 1st stage in July 2011
• Duta Sierra - Preparing agreement and terms for operators in Johor – plan to bring in cattle in August 2011
Anchor Companies
• 28 operators for Negeri Sembilan just endorsed by State Government
Operators In progress
In progress
Case for change: • The market for liquid milk in
Malaysia is only a small portion of the overall dairy industry, but is poised for strong growth
• Current domestic dairy farmers are mostly small scale farmers, and most of the milk produced is sold directly to consumers
Target: • Conversion of existing cattle
farms to become commercial dairy clusters, which involves in downstream activities
EPP 13 – Dairy Cluster
RM326 million 760 jobs RM709 million
GNI Jobs Investment
• Semenanjung (Melaka,Johor,Perak & Negeri Sembilan)
• Whole of Sabah
Selection of Dairy Cluster
• 1 anchor company (Evergreen Livestock & Persatuan Penternak Tenusu Sabah) selected in May 2011
Identification of Anchor
• Selection of dairy farmers in clusters
• Purchase of 18000 liter milk truck through JKR
• Strengthen Alor Gajah, Melaka milk laboratory through BPSP
• Purchase of lab equipment by DVS
Implementation
In progress
• Procurement of equipment for the Center for Marker Discovery and Validation (CMDV) in MARDI was completed. CMDV will pioneer in the usage of marker-assisted selection in breeding for crops, aquaculture and livestock. Target to open for services in July 2011
Establishment of CMDV
• Cabinet paper for the formation of the National Seed Council is in the process of approval.
National Seed Council
• MOA and Biotechcorp is attracting the participation of companies involved in the breeding of crops/livestock/aqua to develop their genetic material using MAS technology
Development of Markers
Case for change: •76% of seeds used are imported
with minimal effort to produce new local variety
•Breeding activities are mainly using conventional methods, low focus on research and technology for improvement
Target: •High-quality seeds/breeding
material developed by Marker-Assisted Selection (MAS) technology to be available in the local market by 2015
EPP 14 – Seed Industry Development
RM467 million 5,400 RM273 million
GNI Jobs Investment
In progress
In progress
• Biotechcorp has identified several companies in agbiotech e.g CJ-Arkema, Sabah Softwood Hybrid Fertilizer.
Selection of MNCs in
Agbiotech
• Biotechcorp is engaging with identified companies to secure investment into the country. MOA will engage state biotech companies who have identified potential investors.
Engagement with
Companies
• Sabah Softwood Hybrid Fertilizer is constructing their plant in POIC Lahad Datu.
Setting up Company
Base
Case for change: •Regulatory pressure on various
pesticide active ingredients (MRL) makes biological solutions increasingly attractive
•Boom in biotechnology industry in global scenario increases the need for local scenario to explore new area of agbiotech and to share knowledge/transfer technology into Malaysia
Target: •3 major foreign direct investment
to be secured for setting up base in Malaysia by 2020.
EPP 15 – Participations of MNCs in Agriculture Biotechnology
RM820 million 1,200 RM1.9 billion
GNI Jobs Investment
In progress
In progress
In progress
Case for change: • Regardless of local production
capacity, a significant percentage of our dairy and beef production will be imported due to geographical constraints; mainly land, climate and expertise
• Beef consumption globally is expected to surge due to increased demand from developing economies, particularly China and the Middle East
Target: • To secure a consistent and
affordable source of live animals for breeding, feedlotting, and dairy operations over the next 10 years
EPP 16 – Overseas JV / Acquisition
RM115 million Nil RM1.28 billion
GNI Jobs Investment • 4 companies (SEDC Sarawak,
National Feedlot Corporation, Ternakan Kamran Sdn Bhd and Bumi Yadanar Sdn Bhd) appointed as Participating Companies
Selection of Participating companies
• Several other interested companies (other than the ruminant industry) will be invited to participate in this EPP
Inviting Other Interested Companies
• Appointed Participating Companies will be matched into other EPPs related to livestock and other potential players
Business Matching
In progress
In progress