MAY-JUNE . 2024 | @ AGROBiz
Local News 05
Rethinking land cultivation for agri-food sector
THERE is a necessity to reevaluate land cultivation methods to maximise land use efficiency , attributing this need to limited resources for advancing the agri-food sector , according to Bank Mualamat Bhd ( Bank Mualamat ) Chief Economist Dr Mohd Afzanizam Abdul Rashid .
He advocated vertical farming to reduce land consumption and promote sustainable crop growth .
“ Perhaps vertical farming is suitable in urban areas , especially with plenty of commercial buildings . As for the rural folks , optimising abandoned and heritage lands would be the low-hanging fruits ,” Dr Afzanizam said .
Highlighting the agricultural sector ’ s need for modernisation , Afzanizam stressed the importance of narratives incorporating new technologies and higher incomes to attract young talent .
As indicated by consistently low self-sufficiency ratios and high import dependency ratios for food items like onions , round cabbage , and chilli , Malaysia › s heavy reliance on foreign sources for food cultivation has made the country vulnerable to international price fluctuations .
As of 2022 , Bank Muamalat recorded the import dependency ratios for onions , round cabbage , and chilli as 100 per cent ,
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55.5 per cent , and 74 per cent , respectively . The corresponding ratios for mutton , beef , and calamari were 91.5 per cent , 85.6 per cent , and 70.6 per cent .
Afzanizam stated : “( This situation has ) resulted in the country being vulnerable to changes in international prices , and hostility from food-exporting countries that could potentially cause a supply shock which could exacerbate an increase in food prices .”
“ If we can do it well , it can catalyse a balanced growth strategy among the states and become a prime mover to alleviate the poverty among Malaysians .”
In its Malaysia Economic Monitor published in October 2023 , the World Bank reports that absolute poverty in Malaysia has increased to 6.2 per cent from 5.6 per cent before the pandemic in 2019 .
This indicates that nearly 490,000 Malaysian households continued to reside below the national average poverty limit of RM2,589 per month as of 2022 .
Afzanizam highlighted the potential for addressing food security as a strategy for poverty alleviation , a sentiment echoed by Malaysia University of Science and Technology Economist and Provost for Research and Innovation , Professor Geoffrey Williams , who advocated for direct cash transfers to targeted households as an effective means of eradicating
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Dr Mohd Afzanizam Abdul Rashid
Professor Dr Geoffrey Williams
absolute poverty .
Williams mentioned : “ Malaysia has been doing this , and it has been successful . The eradication of hardcore poverty is based on direct cash transfers and other direct assignments to targeted households . This is the correct approach .”
“ It will be cheaper than the current subsidies . An RM500 monthly transfer to B40 households would cost RM17.5 billion per year . This would incorporate the existing “ bantuan ” ( help ) schemes .”
Williams proposed utilising the Pangkalan Data Utama ( PADU ) system to implement a Universal Basic Income ( UBI ) scheme , aligning the UBI threshold with established living wage estimates .
He added : “ This is by far the best way of eradicating absolute , relative and other forms of poverty . It is the basis of the new PADU system and can replace all other ad-hoc welfare handouts .”
Regarding whether urbanisation
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could alleviate poverty , Williams stated that it is a natural process that does not always resolve issues .
“ It can be much better to reform economic opportunities outside of major cities by reforming Felda ( The Federal Land Development Authority ), for example , as suggested recently by ( Deputy Prime Minister ) Datuk Seri Dr Ahmad Zahid Hamidi .”
Zahid stated in March that the government would unveil new strategies to benefit Felda shortly .
He is also resolved to expeditiously enact modifications to Felda , focusing on the net income of Felda settlers , to elevate them out of hardcore poverty .
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MOH ensures flour safety standards
ON APRIL 27 , 2024 , the Ministry of Health ( MOH ) confirmed that no local flour brand exceeds the legal limits for benzoyl peroxide content on the market .
Under the Food Regulations 1985 of the Food Act 1983 , benzoyl peroxide is permitted as a food conditioner in flour at a maximum rate of 50 mg per kg , as clarified by MOH in a recent statement .
The announcement also refers to the approval of benzoyl peroxide by the Codex Alimentarius Commission ( CAC ), an international body associated with the United Nations Joint Food and Agriculture Organisation ( FAO ) and the World Health Organisation ( WHO ) Food Standards Programme ( FAO / WHO ). The CAC allows benzoyl peroxide as an additive in wheat flour , not exceeding 60 mg per kg . Moreover , the Joint FAO / WHO Expert Committee on Food Additives has evaluated and affirmed the safety of benzoyl peroxide for food use within specified limits , both nationally and internationally .
MOH has acknowledged concerns circulating on social media regarding the potential health impacts of benzoyl peroxide in wheat flour and has previously issued statements in 2012 and 2017 to address any confusion on this topic .
Additionally , MOH actively monitors various flour brands in the market to ensure compliance with permitted additive levels .
Vertical farming vision : Sultan Mizan ’ s sustainable agriculture initiative
SULTAN Mizan Zainal Abidin of Terengganu has proposed exploring vertical farming as a modern approach to agriculture , highlighting its potential benefits in disease management and promoting circular economy practices .
In his speech during the celebration of his 62nd birthday at Istana Syarqiyyah , Terengganu , his Royal Highness emphasised vertical farming as a futuristic agricultural method that consolidates various farming activities within a single structure , equipped with infrastructure akin to a complete farm . Sultan Mizan stated that physical development in the state must
APPROXIMATELY 20 years ago , a significant event took place in the European market concerning the palm oil trade . This event occurred when a shipment of barrels carrying the Roundtable on Sustainable Palm Oil ( RSPO ) trademark arrived in Rotterdam , the Netherlands , on November 11 , 2008 .
Originating from Malaysia , this shipment contained the world ’ s inaugural cargo of certified sustainable palm oil ( CSPO ). be considered so that land use for the agri-food sector is not compromised , despite the state possessing approximately 244,000 hectares of agricultural land , of which half is used to cultivate rubber and oil palm .
“ I understand that one factor that draws investors to implement projects in this state is the availability of commercial-sized land ,” said Sultan Mizan .
“ With the declaration of Setiu as the food production hub of Terengganu , I hope more investment opportunities in the agricultural sector can bring abundant benefits to the people in the state .”
Two decades of sustainable palm oil : Europe ’ s RSPO journey
In addition to promoting advancements in agriculture , Sultan Mizan highlighted tourism ’ s crucial role in bolstering the state ’ s socio-economic status .
“ I hope my state government will strive to improve the infrastructure for the comfort of tourists and to prepare for the Visit Terengganu Year in 2027 . The basic infrastructure on resort islands , such as electricity and clean water supply , should be improved .”
Sultan Mizan also highlighted the need for strategic planning to ensure that island and coastal tourism significantly contributes to the state ’ s economic growth .
In 2008 , United Plantations ( UP ) in Malaysia became the pioneer palm oil grower to achieve certification for all its operations . Consequently , UP produced the initial shipment of RSPO and CSPO , which was then imported by AarhusKarlhamn ( AAK ) in the United Kingdom .
Since then , RSPO membership has grown substantially , increasing from 500 members in 2010 to nearly 6,000 by 2024 , with Europe contributing 2,854 members . In 2022 , the European market received 2,788,061 metric tons of RSPO CSPO , establishing Europe as the largest buyer ( 45 per cent ) of CSPO and a key driver in the global market ’ s transformation .
Through initiatives like DASPO ( Dutch Alliance for Sustainable Palm Oil ), the Dutch market was crucial in promoting RSPO-certified palm oil by 2015 . This goal was not only met but also inspired similar initiatives across Europe .