NKEA : Agriculture
Palm Oil Rubber Agriculture
Agenda Background of NKEA Agriculture EPPs Brief Overview of EPPs NKEA Agriculture Reflected in Minister KPI 2011 (MKPI 2011)
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) Kerajaan)
•
ETP -
Economic Transformation Programme (Program Tranformasi Ekonomi)
•
NKEA -
National Key Economic Area (Bidang Ekonomi Utama Negara) Negara)
•
EPP -
Entry Point Project (Projek Keutamaan Permulaan) Permulaan)
•
BO -
Business Opportunity (Peluang Perniagaan) Perniagaan)
PM introduced nation status
4 strategic thrusts
People First
towards developed
Performance Now
1 3
2
• 12 NKEAs
• 6 NKRAs
• 131 EPPs • 60 Biz Opps
• 29 MKRAs
4
10th & 11th Malaysia Plan
rich country, for everyone & for a long time Making us a
High-Income
Enables all communities to benefit from the wealth of the country
Target USD 15,000 GNI per capita by 2020
Quality of Life
Inclusiveness
Sustainability
Meets present needs without compromising future generations
12 National Key Economic Areas (NKEAs) Oil, Oil, Gas Gas & & Energy Energy
Financial Financial Services Services Greater Greater KL/Klang KL/Klang Valley Valley
Education Education
Tourism Tourism
11 Economic Sectors Wholesale Wholesale & & Retail Retail
+
Business Business Services Services
Greater KL/ Klang Valley Electrical Electrical & Electronics & Electronics
Agriculture Agriculture Comms Comms Content Content & & Infra Infra
Healthcare Healthcare Palm Palm Oil Oil
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 Malaysia’s Competitive Edge Trapping Premium Markets Ensuring Food Security
16 EPPs
+ 11 Business Opportunities
Additional GNI: RM21.4 billion Jobs created: 74,000
Executive Summary Case for Change
• Increasing global demand
• 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
• Current system inefficient
• Industry currently dominated by inefficient, small scale farmers , often requiring government intervention (e.g. subsidies and price support) to support their income
• Lack of compliance to global food and safety standards, impeding market access • Existence of success models • We already have domestic success models that can be replicated, e.g. integrated, that can be replicated
• Double our national income Aspirations
Themes
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
from agriculture
• Create 74,000 new jobs
• In predominantly rural areas and in East Malaysia where poverty levels are higher
• Increase farmers income
• By 2-4X, and decrease income gap between urban and rural population
• Capitalising on Malaysia’s
• Unlocking value from our biodiversity, where further packaging and downstream
competitive advantage
• Tapping premium markets
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
• Ensuring food security are aligned with GNI objectives
• Increasing productivity of paddy farming and cattle raising, thereby increasing national self sufficiency and saving up to RM 1 billion in subsidies
• 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 Malaysia’s strengths and capitalise on global market trends Theme
Capitalise competitive advantage
Description
Entry Point Projects
• Favourable for swiftlet ranching, seaweed farming, crop production etc due to climate conditions and geographical position
• Swiftlet Nests
• Unlock value from biodiversity by accelerating commercialisation of botanical drugs
• • • •
Mini Estate Seaweed Integrated Cage Farming High Value Herbal Products Integration of Cattle into Palm Oil
• Premium Market for Fruits and Tapping premium markets
• Capitalising on global demand and trends in specific agriculture and aquaculture products e.g.: – High quality fruits and vegetables for export – Premium processed food
Vegetables
• Replication of i-ZAQs • Fragrant Rice Variety for Non-irrigated Areas
• Food Park / Incubator
• Strengthen productivity of paddy Alignment of food security objective with increasing GNI
Participation in regional agriculture value chain
• 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
farming in MADA
• Strengthen productivity of paddy farming in other irrigated areas
• Dairy Cluster • Cattle Feedlot
• Seed Industry Development • Overseas Cattle JV Acquisition • FDI in Agriculture Biotech
NKEA Agriculture Entry Point Projects EPP #
EPP Title
Project Owner
1
High Value Herbal Products
Bhg. Industri Tanaman, Ternakan dan Perikanan
2
EBN Swiftlet Farming
Jab. Perkhidmatan Veterinar
3
Seaweed Industry
Jab. Perikanan
4
Integrated Cage Farming
Jab. Perikanan
5
Further Integration in Oil Palm
Jab. Perkhidmatan Veterinar
6
Replication of IZAQ
Jab. Perikanan
7
Premium Market for Fruits and Vegetables
Jab. Pertanian
8
Food Park
Bhg. Industri Asas Tani
9
Fragrant Rice Variety
MARDI
10
Strengthen Productivity of Paddy Farming in MADA
MADA
11
Strengthen Productivity of Paddy Farming in Other Granaries
Bhg. Industri Padi dan Beras
12
Expansion of Feedlotting
Jab. Perkhidmatan Veterinar
13
Dairy Cluster
Jab. Perkhidmatan Veterinar
14
Seed Industry Development
Bhg. Khidmat Sokongan dan Pembangunan Industri
15
Participations of MNC
Bhg. Khidmat Sokongan dan Pembangunan Industri
16
Overseas JV/Acquisition
Jab Perkhidmatan Haiwan
A total of RM 18.7 billion is required to implement the EPPs Total RM juta
Investment requirement by EPP RM juta Replication of IZAQ
Premium market for fruits and vegetables
2,666
0.39
1,943
0.52
1,830
0.75
64
1,773
2.56
169
1,422
1.10
839
2.64
93
720
1.92
0
576
1.54
0
525
2.68
3,251
0.41
0 234
0
237
High Value Herbal Products Integrated Cage Aquaculture Farming Food Park / Incubator Seaweed Farming in Sabah Others (6 EPPs)
GNI/ Investment 0.40
Paddy farming in other granaries EBN Swiflet Farming
Private funding
3,152
Paddy farming in MADA
Participations of MNCs
Public funding
Target GNI of RM 21.44 billion will be achieved by implementing 16 Entry Point Projects (EPPs) and 11 Business Opportunities ▪
2020 GNI contribution from top 10 EPPs (RM million)
RM 18 billion
▪
The top 10 EPPs add up to 93% of the incremental GNI The remaining EPPs have smaller GNI impact, but are important from:
– A food security perspective (e.g. beef and milk selfsufficiency) EBN Swiflet Farming
High Premium Value FFV Herbal Products
Seaweed Integrated Paddy ReplicaCage Farming Farming tion of in Sabah Aquaculture in other iZAQ Sistem Granaries
Paddy Farming in MADA
Biotech MNCs
Food Park
– An inclusiveness
Others *
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)
2020 GNI contribution from top 10 Biz Ops (RM million)
RM 3.4 billion
Premium Snack
Ornamental
Herbal Product
Aqua Feed
Nutra from
FDI for Tropi-
Free Range
Mushroom
SFI Facilities
Aqua Export
Readyto-eat
▪
The GNIs generated from business opportunities are mostly below USD 0.26 billion, as there is a lot of element of uncertainties which calls for conservative assumptions to be used
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
Average monthly income RM per month
21
18
36
Avg. monthly income of paddy farmers in Muda area
11
5 1
4.3 x
6
1,400
35 6
99
12 21 2
2009: Individual owner operators on 2ha farms
2020: Operate 10ha farms on profit sharing basis
Avg. monthly income of papaya farmers
1 9
6,000
2
4x
-25
4,100
Paddy
Horti culture
Herbs
Swiflets
Live stock
Aqua culture
Biotech
Total
1,000
2009
2020
Avg. monthly income of herbal out growers
Average monthly income RM per month
3x < RM1k
RM 1-4k
>RM 4k
2% 4% 10% 50%
48%
28%
72%
44%
56%
46%
54% 96%
89%
4,100
1,000
2009: Individual out growers on <1ha farms
2020: Operate 3ha farms on contract farming basis
Avg. monthly income of aquaculture operators 2.4 x 4,100
Horticulture
Herbs
Swiftlets
Livestock
Aqua
Biotech
1,000
Inclusiveness: Initiatives are spread out geographically to promote balanced growth Sg Telaga Langkawi
Pitas Kota Belud
Tasik Pedu Kuala Sanglang
Lenggong
Rantau Tasik Temenggor Manis Selama Tasik Kenyir Lojing Pasir Cegar Raja Perah Trolak
Cameron Highlands
Sg Padas and Sg Kalias Merang Mercang Durian Mentangau
Sg Gum Gum
Ranau Tambisan Pengagau
Bakun Dam Tanjung Manis
Batang Ai Lingga/Banting and Bijat Stumbin
Ulu Lepar Tg Batu
Lanchang Muadzam Keratong Shah
Mukim Mercung
Pulau Tioman Rompin
Mercong
Paddy farming Papaya contract farming clusters MD2 Pineapple contract farming clusters Vegetable farming Herbal cultivation park Dairy farming clusters
Sungai Johor
Aquaculture Swiftlet
3
2
1
PM’s level: • Update PM once a quarter
Prime Minister Steering Committee Chair: Lead Minister (MoA)
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
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
Implementer
Secretariat: PEMANDU/ Delivery Management Office (MoA)
Members:
• KP MARDI
• MoA KSU
• KP FAMA
• KP Jab. Pertanian
• Peng. Besar MADA
• KP Jab. Perkhid. Haiwan
• S/Usaha Tetap Sabah and Sarawak Agriculture Ministry
• KP Jab. Perikanan
Head of DMO: KSU
Team 2: Horticulture & Herbs ITTP Tanaman
Team 3: Aquaculture: ITTP Perikanan
Team 4: Livestock & Swiftlets: ITTP Ternakan
Team 5: Food Park/Incubator: IAT
Owner
Owner
Owner
Owner
Perikanan
EPP 2, 5, 12,13, 16: Jab. Perkhidmatan Veterinar
EPP 8: Bhg. Indus. Asas Tani
Implementer
Implementer
EPP 1: MOA EPP 7: Jab. Pertanian
Implementer
EPP 3, 4, 6: Jab.
Implementer
Team 6: Support: KSI
Owner EPP 14, 15: KSI
Implementer
EPP 9:
EPP 1 :
EPP 3 :
EPP 2 :
EPP 8 :
EPP 14, 15 :
• Sime Darby
• ECERDC
• DOF Sabah
• FAMA
• BiotechCorp
EPP 10:
• Biotropics
• UMS
• DVS and Private sector
• MAFC
• MARDI
• BERNAS
• IMR
EPP 4 :
EPP 12 :
• DOA
EPP 11 :
• FRIM
• DOF
• NFC
• DOF
• Felcra
EPP 7 :
• PS
• Felda Global
• DVS
• Bernas
• MAFC
EPP 6 :
EPP 13 :
• DOF
• NFC Felda Global
Agenda Background of NKEA Agriculture EPPs Brief Overview of EPPs NKEA Agriculture Reflected in Minister KPI 2011 (MKPI 2011)
EPP 1 :
Project Details
High Value Herbal Products
GNI Impact RM
•
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
Jobs Created
2.2
2,000
billion
Scope of Public Funding Development Expenditure: i.R&D Grant ii.Building of admin & R&D complex, quarters and CPPC for Herbal Cultivation Parks in Durian Mentangau, Pasir Raja and Cegah Perah iii.Facilities upgrade for IMR Operational Expenditure:
2011 Allocation
2012 Allocation
RM 73.0 million
RM 82.4 million
RM 5 9 million
RM 6 0 million
This is due to concentrated efforts in the primary processing, cultivation and extraction, but not in other high-value add activities Level of activities in Malaysia
Value
Current Malaysia‘s scenario Ideal curve
+
Increase in value
Discovery & Devt of Pre & Identification of Post Clinical Herbal Targets Testing and IP
Primary Processing of Herbs
+
Increase in value Cultivation
Extract & Product Development
Special Formulation & GMP Manufacturing
Internationall Marketing & Distribution
4 clusters will be formed, each with a different research areas 1
3 Discovery
• Discover, identify and evaluate new bioactive compounds that are useful for the purpose of medicine, therapeutic and health welfare (wellness)
Toxicology / Pre- Clinical Studies • Develop new approach to increase the status of medicinal herb to therapeutic agent
• Biochemical profiling
• Evaluate toxicity or therapeutic potential of the bioresources
• Ethno-botanical and ethno-pharmacological ethno-pharmacological documentaion
• Develop, optimize and diversify related bioassay protocols
• Identify methodology for the development of biological resources in a sustainable way
• Carry out efficacy and safety study of the standard extracts and formulated products
• Phytochemical analysis for the identification of bioactive markers
• Preliminary dose findings
• Documentation into monographs of Pharmacopediea Pharmacopediea 2
• Investigate pharmacokinetics and pharmacodynamics pharmacodynamics of the bioactives 4
Crop Production & Agronomy • Ex-situ conservation of medicinal and aromatic plants
Standardization & Product Development
• Domestication of wild herbs
• Develop standardization protocols and standard extract bank for local and indigenous plants
• Establish gene banks for crop production and breeding programs
• Develop quality, safe and efficacious eff icacious cosmaceutical, cosmaceutical, neutraceuticals and biopharmaceutical products
• Evaluation, screening and mass production of accession with high bioactive compound
• Biological separation screening and identification of active molecular structure; and purify drug component
• New varieties or elite planting materials
• Develop chemical fingerprints and standardized medicinal plant extracts
• Agronomic studies for cultivation and suitable pre-and post-harvest handling
• Increased added value through enrichment of the scientific contents
KPI 2011 for EPP #1 KPIs
Target 2011
1. Total investment by companies to conduct clinical trial for nutraceutical products
RM 640,000 5 products
2. Mobilization of CoE to conduct research for product development
13 research
3. Establishment of marketing plan for nutraceuticals and botanical drugs
5
4. Establishment of Herbal Cultivation Park at Pasir Raja Pasir Raja and Chegar Perah Chegar Perah
100%
EPP 2 :
Project Details
EBN Swiftlet Farming
GNI Impact RM
4.5
•
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
Jobs Created
20,800
billion Scope of Public Funding
2011 Allocation
2012 Allocation
Development Expenditure: i.R&D Activity for Downstream Processing ii. Acquisition of lab equipments for lab test on EBN iii.Enforcement and traceability system
RM 6.0 million
RM 7.4 million
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
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
Operators
Operators
Benefits of utilising Anchor Companies Bypass Bypass middle middle men men
Anchor Companies (PMC) Key Attributes of Anchor Companies
• • • • •
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
Increase Increase product product value value and margin and margin
Product Product development development
• 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
Increase Increase market market size size
• Retail products directly to restaurants and other retailers
Market Market Information Information
• Better able to track volume and production
KPI 2011 for EPP #2 KPIs
Target 2011
1. Total number of newly registered EBN premise
2000
2. Total newly certified processing plant (VHM) and EBN premises (SALT)
15 plants certified VHM/GMP 1000 GAHP
4. To establish new EBN website for traceability
100%
5. To establish R&D referral centre with UPM
100%
6. To establish new EBN Collection and raw-clean EBN processing Centre
8 centres
7. To establish new EBN international trading house
100%
8. Total sales value for EBN
RM100 mill
EPP 3 :
Project Details
Mini Estate for Seaweed
GNI Impact RM
1.4
•
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.
Jobs Created
13,000
billion Scope of Public Funding
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
RM 46.25 million
RM 16.0 million
Operational Expenditure: i.Rental and operations of SPV
RM 1.82 million
-
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
Water depth
• 45 – 90 cm
Farm management and replication
Each cluster will consists of blocks that will be managed by individuals/SMEs and will share common infrastructure Block 1
Water velocity
Water salinity
• 20 – 40 m/sec
• 30 – 40 ppt
Block 6
Block 2
Integrated Complex Block 5
Block 3 Block 4
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
• Environmentally Management
Farm Size 200 ha
sustainable
• Able to implement GAP and mechanisation
Co A – 200 ha x2 Co B – 200 ha
Co A – 200 ha x 2 Co B – 200ha x 3 Co C – 200 ha
Co A – 200 ha x 2 Co B – 200 ha x 4 Co D – 200 ha
• Minimum expansion/replication size is to ensure more anchors can participate and enhance job opportunities whilst allowing for the companies to operate at scale
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
Anchor Company
mechanical harvesters
• Engage with and provide feedback to the Government on farm manuals and best practices
• Manage individual blocks of seaweed farms using SME 1
Farmer 1
SME 2
guidelines and inputs by the anchor companies
• Undertake operational costs and where applicable capex requirement
• Agreement on profit sharing/ contract farming mechanism Farmer 2
SME
with the anchor companies
The Government • Engage with the private sectors to develop basic farm manuals for t he 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
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
Impact 1 Reduce time spent at sea which is less productive
Generator and storage area
Time spent based on location Percent Time at sea
Water tank
m r o f t a l p g n i d n a L
Seed tying complex
‘Casino table’
Time at land
D r y i n g p l a t f o r m
Seed nursery table
30% L a n d i n g p l a t f o r m
100%
80% 70% 20% Without complex
With complex • Land based nursery and casino table reduce time at sea 2 Easier management of workers
• Better living standard for
Accommodation complex
Dry seaweed storage
workers through provision of accommodation etc
• Better safety standard 3 Faster drying time • Solar panel based drying in a larger space enable 24 hour drying
KPI 2011 for EPP #3 KPIs
Target 2011
1. Total land areas gazetted for seaweed farming
28,000 ha
2. Total mini estate established
15 mini estates
3. To establish database for identified areas
100%
4. Total tonnage of dry seaweed produced
16,580 MT
5. To begin construction of R&D centre
1 centre
EPP 4 :
Integrated Cage Farming
GNI Impact RM
• •
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.
Jobs Created
1.4
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
billion Scope of Public Funding Development Expenditure: i.Basic infrastructure (e.g. jetties, access roads, main piping) ii.Broodstock centre (e.g. hatchery, quarantine facilities, multiplying centre) Operational Expenditure
2011 Allocation
2012 Allocation
RM 47.0 million
RM 32.3 million
-
-
Integrated cage farming approach has been identified as a primary method to boost production of the targeted species Key advantages of cage farming Easier to get state authority’s approval to utilise sites
▪
Fast approval of sites
▪
Lower capital cost
▪
Higher productivity
▪
1
Lower capital cost for both the government (basic infra e.g. jetty, roads) and the private sector (cages cheaper than RAS and ponds)
▪
▪
Fish has no off flavor taste due to running water
Grow out
Ensure SMEs use good quality seeds sourced from anchor company
▪
Processing
SMEs have to adhere to SOPs to ensure better growth and survival
Reliable supply of Standardised seeds technology ▪
▪
▪
Processing sites are located near the vicinity to lower cost Sufficient volume to export valueadded products
2 Application of best practices ▪
Low energy cost because no pumping
is required Produce higher yield per area e.g. TRAPIA Malaysia Sdn. Bhd. produce 100 MT/yr of Tilapia using polar circle HDPE vs. max 4 MT/ha/yr of fish using earthen ponds
Integrated approach Hatchery
Vast potential areas available such as in lakes/reservoirs and estuaries (public water bodies)
▪
▪
Mechanisms to improve productivity and quality
▪
▪
HDPE polar circle and bigger GI cages are proven new culture systems Provision of buffer zone for each module Certification requirement at
Technology
C e r t i f i c a t i o n
▪
y t i l a u Q ▪
Good aquaculture practice to ensure bio security & quality Regular monitoring by DoF
KPI 2011 for EPP #4 KPIs
Target 2011
1. Total number of cages in operation
40
2. Total production of farmed fish
19,458 MT
EPP 5 :
Project Details
Further Integration in Oil Palm
GNI Impact RM
•
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.
Jobs Created
150
3,600
million Scope of Public Funding Development Expenditure: i.Purchase of breeder cattles to kickstart operations Operational Expenditure
2011 Allocation
2012 Allocation
RM 31.4 million
RM 67.0 million
-
-
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
Biological Mower. Eats Weeds in oil palm estates
Key benefits of integration in oil palm
1
2
Systematic rotational grazing system. Reduces labour, weeding, chemical and fertilizing costs for oil palm estates
3
Palm Oil sustainability certification standards (RSPO) will be easier to meet due to less chemical usage for weeding
4
Maximize use of plantation lands. Using palm oil plantation lands for grazing
Shortens the Nutrient Cycle
Reduces Chemical Inputs
• There is a reduction in weeding cost of up to 80%, and reduction in fertilizer use of up to 60% when cattle are integrated into plantations
Breeding intensive. Ability to produce feeder cattle for the feedlot business as well as introduce a new market segment, free grazing beef
KPI 2011 for EPP #5 KPIs
Target 2011
1. Total number of heads
120,00
2. Total land area available (hectares)
480,000
Project Details
EPP 6 :
Replication of IZAQ
•
Establishment of 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.
• Each IZAQ will be championed by an anchor company; SMEs and smallholders can participate through contract farming/profit sharing arrangement. GNI Impact RM
Jobs Created
• 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
1.3
12,000
species e.g lobster, seabass
• Identified anchor companies: JEFI Aquatech, QL
billion
Resources Scope of Public Funding Development Expenditure: i.R&D and diagnostic lab (integrated facility for breeding programme) ii.Skills Development Centre iii.Infra for seawater intake, basic infra e.g. road access Operational Expenditure
2011 Allocation
2012 Allocation
RM 253.0 million
RM 169.5 million
-
-
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…
…that is fully integrated and certified to create competitive advantage in the premium market segment Feed
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
Hatchery
Grow out
Processing
IZAQ Grow-out ponds (BAP / GlobalGAP)
Marketing
Certification, Accreditation & Verification system on site Processing (HACCP, GMP & ACC)
Ability to consistently ensure Quality, Safety & Ecology for all products.
More effective environmental controls for premium standards Replication of IZAQs and its locations ▪
▪
▪
Feedmill
Hatchery
Premium Markets
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
KPI 2011 for EPP #6 KPIs
Target 2011
1. Total areas earmarked for IZAQ
500 ha
2. To establish sites for IZAQ for construction
2 IZAQs – 50%
EPP 7 :
Project Details
Premium Market for Fresh Fruits & Vegetables GNI Impact RM
1.6
Jobs Created
9,100
billion
•
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.
Scope of Public Funding Development Expenditure: i.Cold room, 1 CPPC each for Papaya, Rock Melon, Carambola ii.Land clearing, road, water system, electricity, drainage for new TKPM iii.Land clearing & development, CPPC, settler houses, bridges & road, water supply, electricity, community hall, house of worship, clinic, MRL Lab in Lojing iv.Upgrade existing facilities, soil management and waste management
2011 Allocation
2012 Allocation
RM 80.0 million
RM 177.6 million
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
Individual Farmers
• 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
Anchor company’s role in the execution of EPP is to link production to market both at the local and export level
Production
Post-Harvest
Market Access
Papaya
Banana
CPPC Pineapple
CPPC
DC
CPPC
Domestic • Retails • Food Services • Food Manufacturers International
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)
• Market access matching demand with supply • Network with local and foreign retailers • Branding, promotion and advertising • Manage mode of transportation to export market
The implementation roadmap strive towards developing agripreneur into more anchor players USD19 USD19 million million
Phase 0 : 2010 Small and fragmented Agripreneur
Cluster A
Cluster B
• Small and fragmented agripeneurs
• Lack economies of scale • Lack post harvest facilities & management
USD343 USD343 million million
Phase 1 : 2011 – 2014 Anchor & Agripreneur Partnership
Cluster A
Cluster B
• Presence of Anchor company to manage the full supply chain – Guaranteed buy-back – Global market access • Post harvest management and facilities • Compliance to global standards • Economies of Scale
USD491 USD491 million million
Phase 2 : 2015 – 2020
Formation of cooperative Elevation of selected commercial entities to anchor
Cluster A
Cluster B
• Network among farmers lead to formation of cooperative
• Cooperative takes over upstream and some of the midstream activities
• Anchor dealing with cooperative • Commercial entities elevated to function as an anchor player
KPI 2011 for EPP #7 KPIs
Target 2011
1. Total investment by anchor companies
RM 268.8 million
2. Total export volume for fresh fruits and vegetables
14,000 MT
3. Total products from intercropping of oil palm with banana
3,000 MT
4. Total products from Intercropping oil palm with pineapple
7,750 MT
EPP 8 :
Project Details
•
Food Park / Incubator
GNI Impact RM
Development of integrated food park based on anchor company approach to co-ordinate SMEs and smallholders and produce in large-scale, fully accredited system.
Jobs Created
883.2
5,000
million
Scope of Public Funding Development Expenditure
Operational Expenditure
2011 Allocation
2012 Allocation
-
-
-
-
Project Details
EPP 9 :
Fragrant Rice Variety for Non-Granary Areas GNI Impact RM
133
Jobs Created
4,998
million
• 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.
Scope of Public Funding Development Expenditure i.Land preparations: Ploughing, rotovation, liming, harrowing, levelling, seedling process, transplanting process, field management process. ii.R&D for improvement of variety Operational Expenditure
2011 Allocation
2012 Allocation
RM 6.75 million
RM 1.0 million
-
-
KPI 2011 for EPP #9 KPIs
Target 2011
1. Total tonnage of fragrant rice produced
580 MT
2. Total area planted
180 ha
3. R&D for production of new Basmati-type and agronomic packages for both type by 2013
25%
Project Details
EPP 10 :
Paddy Farming in MADA
GNI Impact RM
1.0
Jobs Created
- 14,900
billion
• 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
Scope of Public Funding
2011 Allocation
2012 Allocation
Development Expenditure i.Incentives for farmers to exit land ii.Irrigation for 10 blocks in MADA
RM 90.0 million
RM 77.6 million
Operational Expenditure i.Roadshows for promotion of land amalgamation scheme ii.Establishment of SPV
RM 7.78 million
RM 10.0 million
Key messages – transformation of paddy farming 1
2
• Average size of land cultivated (in MADA) = 2.12 ha. Target to increase to 500ha
• How? Standardised contracts : either fixed rental / mgmt fee / profit sharing model Advance rental (5 – 10 seasons in advance
Individuals
Contract: Fixed rental / profit sharing / mgmt fees
Cooperatives / entrepreneur farmers
Reduce no of workers on the land by 3x, adopt larger scale mechanisation, better agriculture practices
3• Proposed model enables income of
Agrees to outsource land mgmt
4• Subsidies needs to be restructured
landowner and land operator to increase RM667* Current: Rental income
RM1000** Future: Profit sharing
• Gain through profit sharing of higher yield
• Abolish IPH
RM550 mil RM290 mil GSR + IPH
Future: direct assistance 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
Loans the capital required to pay advance rental
RM240 mil
Paddy price subsidy (MADA only)
RM191 mil 2020 subsidy Restructure with higher output subsidy
and direct GSR to the target groups
• Restructure paddy price subsidy / pay direct income support to needy groups
KPI 2011 for EPP #10 KPIs
Target 2011
1. Total land areas amalgamation (hectare)
5,000 ha
2. Table subsidy rationalisation roadmap for Cabinet’s approval
By April
3. Total land areas approved to be acquired for infrastructure
121 ha
Project Details
EPP 11 :
Paddy Farming in Other Granaries
• Similar model to MADA will be implemented in KADA.
• Develop 4,300 ha in Batang Lupar and 5000 ha in Kota Belud for double-cropping (focusing on areas with good soil – e.g. non peat areas) and include flood mitigation and water management system up to tertiary level.
• Establish entity owned by farmers’ cooperative and GNI Impact RM
1.4
Jobs Created
- 9,600
billion
Government that will manage the paddy farming activities from upstream to downstream
• Establish R&D programme to improve yield of Sarawak rice varieties, improving drought tolerance, pest and disease resistance etc.
Scope of Public Funding
2011 Allocation
2012 Allocation
Development Expenditure i.Incentives for farmers to exit land ii.Irrigation in Batang Lupar and KADA iii.R&D for seed development in Sarawak iv.Irrigation infrastructure for other granaries
RM 136.0 million
RM 173.9 million
-
-
Operational Expenditure
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)
• LPP, DID and DoA Different setup
• 35% of farmers’ income are from non-farming
• In some areas e.g. IADAs
/ non-paddy sources
eg Barat Laut, the 3 functions are co-located but in others e.g. KETARA, the functions are run separately
• KADA is set up similar to MADA, which is a statutory body with relative autonomy Similar agency • Functions of KADA/MADA cover those setup typically performed by 3 other agencies (LPP, DID and DoA ) i.e. supervision of PPKs, irrigation & water management, extension services
• KADA covers an area of 32,167 ha Large area
coordinate the functions required to support the granary
• Less than 30,000 ha with Smaller areas
some granaries i.e. Kemasin Semerak and KETARA approximately 5,000 ha
EPP 12 :
Project Details
Expansion of Feedlotting
•
Establishment of 300 satellite farms to support the
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 GNI Impact RM
Jobs Created
182.4
2,000
certification of abattoir, cold-chain delivery of chilled cuts, promoting market awareness of buffalo meat vs beef, and developing downstream (beef byproducts).
million
Scope of Public Funding Development Expenditure
Operational Expenditure
2011 Allocation
2012 Allocation
-
-
-
-
Through increased supply from integration, dairy operations and anchor companies with overseas stakes, feedlotting activity can be expanded Integrated Downstream Operations
Anchor X has own farm overseas
Cattle from oil palm
Cattle from dairy farms
• Needs to be upgraded and/or privatized
• Certified & Halal meat Abattoirs
processing and slaughter
• 0% Wastage (capitalize
Satellite Farmers
on all cattle parts)
DVS land
Anchor / NFC
Independent Small / medium feedlotters
Plantation companies produce fodder Feed mills
• Premium packaging with Premium packaging and cold chain
grading to educate consumers
• Cold chain delivery of chilled cuts
• Market awareness & Anchor X
NFC
25% ssl Market 40% ssl
Consolidated & Integrated Downstream
differentiation between frozen buffalo meat and fresh beef
• Development of products for beef byproducts (Pet foods, leather, gelatin, food processing)
KPI 2011 for EPP #12 KPIs
Target 2011
1. Total number of heads
19,800
2. Total kg of beef produced (mil MT)
2,800 MT
3. Ratio of domestic production vs total consumption
1:3.3 (51,161 MT : 170,475 MT)
Project Details
EPP 13 :
Dairy Cluster
GNI Impact RM
Jobs Created
326
• 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.
800
million
Scope of Public Funding Development Expenditure i.Purchase of female animals to kickstart operations ii.Upgrading of farms for contract farmers under anchor companies iii.Upgrading of milk processing facility Operational Expenditure
2011 Allocation
2012 Allocation
RM 32.0 million
RM 32.0 million
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