Lecture 1 Notes: Introduction and Importance of Agricultural Industry to Malaysia

Learning Outcomes

  • From this lecture, students are able to:
    • Understand the world agriculture civilization
    • Identify the major sectors in agriculture industry
    • Understand the roles of agricultural agencies
    • Describe the importance of agriculture industry

Introduction to Agriculture

  • Agriculture is derived from Latin words:
    • Agri = field
    • Cultura = cultivation/tillage of the soil
  • Definition (as presented):
    • The science or art of cultivation of the soil, or the culture of plants or animals in the water systems, and associated activities required to produce, harvest and market useful crops and/or to raise animals for profit (Lewis, R. A. (2002). CRC dictionary of Agricultural Sciences. CRC Press.)

Agriculture Sector in Malaysia

  • The sector showed positive growth, indicating the positive effect of master plan strategies.
  • Production of agro-food commodities increased marginally due to low productivity.
  • The production growth is smaller than the growth in demand.
  • Malaysia still relies on imports of agro-food commodities from global markets.

National Agro-Food Policy, 2021-2030 (DAN 2.0 / NAP 2.0)

  • Enacted to drive economic growth and improve the well-being of the people, with a priority on food security and nutrition.

Focus Areas and Sub-sectors

  • Focuses on TWO main aspects:
    • Food security: ensuring availability of food supplies so all people always have access to sufficient and nutritious food.
    • Economic growth: contribution of the Agrofood sector to the country’s GDP, plus increasing income levels of food producers for their well-being.
  • Focuses on FOUR sub-sectors:
    • Paddy and rice-based products
    • Fruits and vegetables
    • Livestock
    • Fisheries and aquaculture

Agriculture Sector in Malaysia (GDP and SSL context)

  • The value-added contribution of the agricultural sector to GDP has shrunk, indicating a transition to other economic activities.

Self-Sufficiency Level (SSL) in Malaysia (overview)

  • Rice, vegetables, and chicken/duck eggs experienced an increase in SSL.
  • Other major agro-food commodities experienced a reduction.
  • Poultry meat and poultry eggs remained above 100.00% SSL from 2010 to 2020, indicating self-sufficiency in these areas during the period.
  • The SSL of fresh milk decreased dramatically by 37.35% in 2020 compared to 2010 due to increased consumption. See: SSL = 37.35%37.35\% decrease.

Development of Agriculture in General

  • Time period overview:
    • Before 1900s
    • 1950s
    • 1970s
    • 1990s
    • 1994
    • 2000
    • Present
  • Trend: A transition from low-tech mechanization to high-tech mechanization.
  • Technologies involved include IoT, Big Data, AI, computers and information technology, satellites and sensors, mobiles and database software.
  • Emphasis: IoT, big data, and AI are central to modern agriculture.

Technology and Innovation in Agriculture

  • Evolution from low-tech to high-tech systems:
    • Low-tech: replaced or supported the mechanical functionalities of humans; limited software/electronics.
    • High-tech: more flexible, software-based AI; autonomous systems; greater task flexibility; human supervision remains for safety.
  • Examples of technological transitions:
    • Tractors, ploughs, seeders, planters, harvesters (early) → autonomous tractors, autonomous harvesting (modern).
  • The shift includes mechatronics and robotics integration in farming operations.

Low Tech vs High Tech (Summary)

  • Low Technology: limited electronics, sensors, or software; heavy human supervision; mechanical-based tasks.
  • High Technology: significant software, AI, electronics; autonomous and semi-autonomous systems; smart farming, data-driven decisions.

Smart Farming and Visuals

  • Smart Farming context features the use of advanced technologies to optimize farming practices (e.g., imaging, sensors, data analytics).
  • Images and visuals referenced: Alamy stock photo representing Smart Farming concepts.

Practices in Agriculture

  • Practices broadly categorized into two main types:
    • Subsistence farming
    • Commercialised farming

Subsistence Farming

  • Production of food primarily for consumption by the farmer and their family.
  • Mostly found in less developed countries.
  • Characteristics often include high labor-intensity, limited space, and limited waste.
  • Common in East Asia, South Asia, and Southeast Asia where population densities are high and land is limited.

Subsistence Farming (expanded)

  • Farmers shift around to new locations every few years to farm new land.
  • It was a common method of farming in the First Agricultural Revolution.
  • Two processes in shifting cultivation:
    • Slash-and-burn agriculture
    • Grow crops on cleared land for 2-3 years until the soil nutrients are depleted.
  • Term: Shifting Cultivation

Commercialised Farming

  • Primary objective is profit and sale in the global marketplace (agribusiness).
  • Rarely sold directly to consumers; often sold to food-processing companies.
  • Characteristics:
    • Monoculture or a combination of few crops
    • Use of high-yielding, modern varieties or clones
    • Large chemical inputs (pesticides, fertilizers)
    • Use of modern facilities, technology, and reliance on machines for planting, crop maintenance, and harvesting

Major Sectors in Agricultural Industry

  • Major sectors include:
    • Crops
    • Livestock
    • Fisheries
    • Horticulture
  • Crops are categorized into groups by usage:
    • Food Crops: Paddy (rice), maize, sago, tapioca, sweet potatoes, etc.
    • Industrial Crops: Oil palm, rubber tree, cocoa, coconut, etc.
    • Other temperate crops: Wheat, barley, oats, rye, potatoes
    • Oil Crops: Peanut, maize, rapeseed, sunflower; also oil palm, coconut, olive, jatropha
    • Plantation crops (also known as major crops in some contexts)
    • Horticultural Crops: Fruits, vegetables, flowers, ornamentals, turf grass, etc.

Livestock

  • Definition: domesticated animals reared for food.
  • Major livestock categories:
    • Mono-gastric: stomach with one compartment (e.g., swine, horse)
    • Ruminants: four-compartment stomach (rumen, omasum, abomasum, reticulum) and efficient at converting grass/forage to meat (e.g., goat, sheep, cattle, buffalo)
    • Poultry: birds that lay eggs (e.g., chicken, ducks, quails, ostrich, etc.)

Fisheries Subsector

  • Subsector of Fisheries Industry includes:
    • Food fish sector
    • Non-food fish sector
  • Components:
    • Marine fisheries
    • Inland fisheries
    • Ornamental fisheries
    • Aquaculture

Activity: Roles of Agricultural Agencies

  • Task: Identify ministries, departments, and agencies involved in agriculture development in Malaysia and their roles/functions.
  • Share findings with peers.

Roles of Agricultural Agencies Involved in Agricultural Development

  • Objective: To achieve the National Agriculture Policy objectives, the government has set up ministries, departments, and other agencies to:
    • hasten agricultural developments
    • help farmers, smallholders, fishermen, and livestock breeders

Ministries Involved in Agriculture Development

  • Ministries:
    • Ministry of Agriculture and Food Security (MAFS)
    • Ministry of Plantation and Commodities
    • Ministry of Rural and Regional Development

Agencies under the Ministries (Illustrative List)

  • Ministry of Agriculture and Food Security (MAFS)
  • Department of Agriculture (DOA)
  • Department of Fisheries (DOFM)
  • Federal Agricultural Marketing Authority (FAMA)
  • Department of Veterinary Services (DVS)
  • Malaysian Agricultural Research and Development Institute (MARDI)
  • Cocoa Board (Malaysian Cocoa Board, MCB)
  • Malaysian Palm Oil Board (MPOB)
  • Rubber Board (MRB)
  • RISDA (Rubber Industry Smallholders Development Authority)
  • FELCRA Berhad (Federation of Charities and Rural Community Development) / FELCRA Berhad and related entities
  • PEKEBUN KECIL (Smallholders-related bodies, RISDA presence)

Private Corporate and Estate Agencies in Agriculture

  • Many corporate sectors and estate agencies are involved in agriculture, especially in:
    • oil palm, rubber, cocoa
    • fruit, coconut, and related industries such as processing, manufacturing, and export
  • Major corporate agencies include: Sime Darby (merged with Guthrie + Golden Hope), IOI, FELDA and FGV, Lembaga Tabung Haji, Lembaga Tabung Angkatan Tentera (LTAT), Borneo Samudera & SLDB (Sabah), among others (e.g., Dunlop, Socfin, KL-Kepong)

Summary: Agriculture Agencies and Potential Employers of Agriculture Graduates

  • Diagrammatically: Agencies (government), Private sectors, and Universities as key players in agriculture development.
  • Potential employers include universities, private sectors, and government agencies.

Importance of Agriculture Industry: 3 Major Reasons

  • Agriculture impacts society in many ways:
    • Supporting livelihoods through food, habitat, and jobs
    • Providing raw materials for food and other products
    • Building strong economies through trade
  • Source: The Balance Small Business

1) Support Livelihood

  • Agriculture helps reduce poverty, raise incomes, and improve food security for about 80% of the world’s poor who live in rural areas and work mainly in farming.
  • It sustains village economies by generating food, employment, and related livelihoods.
  • The agriculture sector is a major employment provider in rural areas, offering employment to daily wage laborers as well as skilled workers in the fields and related activities.

2) Providing Raw Materials

  • Many raw materials come from agriculture, including lumber for construction and herbs for flavoring foods.
  • Example: Corn is used to produce foods and as a foundation for ethanol (a type of fuel).
  • Resins: plant products used in adhesives, coatings, and paints used in construction.

3) Encouraging Economic Development

  • Agriculture impacts global trade and supports job creation and economic development in related sectors.
  • Countries with strong agricultural sectors experience:
    • higher employment growth in other sectors
    • higher per capita incomes
    • technology innovation and improved farm management practices to boost productivity and profitability

How Is Agriculture Important? Types of Products Derived

  • Fruits and vegetables
  • Animal feed
  • Natural rubber production
  • Cotton for clothing
  • Biofuels
  • Industrial products
  • Pharmaceutical products

Importance of Agriculture in Everyday Life

  • Agricultural products provide essential resources for daily activities, such as:
    • Getting ready for work in the morning (coffee and clothes)
    • Washing hands with soap
    • Fueling our vehicles (rubber from rubber trees; biodiesel from crops like corn)
    • Preparing and eating food
    • Mind health through medicines and treatments
  • Sources include Commodity.com, U.S. EPA, ThoughtCo, and USDA.

More Everyday Life Examples

  • Shelter: wood and plant-based materials (e.g., bamboo) for decor and construction
  • Morning routine: mint in toothpaste; caffeine in coffee
  • Dressing up: cotton, hemp, ramie, flax; bio-based materials in grooming products
  • Cleaning: detergents and cleaning products derived from biomass (surfactants, solvents)
  • Driving to work: rubber and biodiesel fuels (ethanol from corn)
  • Entertainment: paper from trees; musical instruments from plant materials (e.g., reed instruments)
  • Education: pencils and paper textbooks derived from wood and other plant-based materials

The End

  • SUMMARY of key themes: Agriculture as a driver of livelihoods, raw materials, and economic development; the role of policy, technology, and institutions in shaping agricultural outcomes.
  • References to ongoing innovations and the interconnection between agriculture and everyday life.