Lecture 1 Notes: Introduction and Importance of Agricultural Industry

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) + Ager (cultivation)

  • Cultura (cultivation) / Cultivation or tillage of the soil

• Definition: The science or art of cultivation of the soil or the culture of plants or animals in the water systems and associated activities that may be required to produce, harvest and market useful crops and/or to raise animals for profit

• Source of definition: Lewis, R. A. (2002). Crc dictionary of Agricultural Sciences. CRC Press.

Agriculture Sector in Malaysia

• This sector experienced positive growth, indicating the positive effect of the master plan strategies.

• The production of all agro-food commodities increased marginally due to low productivity.

• The production growth is smaller than the growth in demand.

• Malaysia still relies on the import of agro-food commodities from global markets.

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

• The National Agrofood Policy 2021-2030 (DAN 2.0 / NAP 2.0) was enacted as an effort to:

  • drive economic growth

  • improve the well-being of the people

  • prioritize food security and nutrition

• Focuses on TWO main aspects:

  • Food security: ensuring the availability of food supplies so that all people always have access to sufficient and nutritious food

  • Economic growth and the contribution of the agrofood sector to the country's GDP, as well as increasing the income level of food producers to ensure their well-being

• Focuses on 4 sub-sectors, including:

  • Paddy and rice-based products

  • Fruits and vegetables

  • Livestock

  • Fisheries and aquaculture

Agriculture Sector in Malaysia (Continued)

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

Self-Sufficient Level (SSL) in Agro-Food Commodities

• Rice, vegetables, and chicken/duck eggs experienced an increase in SSL.

• Other major agro-food commodities experienced a reduction in SSL.

• Poultry meat and poultry eggs remained above 100.00% SSL from 2010 to 2020, i.e. the SSL was above the self-sufficiency threshold during this period.

• The SSL of fresh milk decreased dramatically by 37.35% in 2020 compared to 2010 due to the increase in consumption.

• Key terms:

  • Self-Sufficient Level (SSL): a measure of the extent to which a country can meet its demand for a commodity from domestic production.

  • Numerical references:

  • Poultry meat and poultry eggs: SSL > $100.00\%$ from 2010 to 2020.

  • Fresh milk: SSL decreased by $37.35\%$ in 2020 vs 2010.

Development of Agriculture in General

• Technological achievements include:

  • IoT, Big Data, AI

  • Tractors and machines

  • Computers and information technology

  • Satellites and sensors

  • Mobile devices and database software

• Timeline: Before 1900s → 1950 → 1970 → 1990 → 1994 → 2000 → Present

• Trend: A transition from low-tech mechanization to high-tech mechanization.

• Key idea: The integration of digital tech and automation has transformed agriculture from largely manual to highly automated and data-driven.

Low Tech vs High Tech in Agriculture

• Low tech: mechanical/manual tasks, little electronics or software

• High tech: software-based intelligence, sensors, automation, and AI

• Implications: Greater efficiency, flexibility, and safety; autonomous equipment (e.g., autonomous tractors) and autonomous harvesting are emerging.

Visual/Terminology Snapshots

• Smart farming and related imagery: modern agriculture visuals (e.g., automated systems, sensors, data dashboards) illustrate high-tech practices.

Practices in Agriculture

• Practices can be broadly categorized into:

  • 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:

  • Highly labor-intensive

  • Limited space and limited waste

  • Common in East Asia, South Asia, and Southeast Asia where population densities are high and land use is limited

• Intensive subsistence agriculture is common in high-density regions.

• Shifting cultivation (two processes):

  • Slash-and-burn agriculture

  • Grow crops on the cleared land for 2-3 years until the soil is depleted of nutrients (shifting cultivation)

Commercialised Farming

• Primary objective is to make a profit; produce food for sale in the global marketplace (agribusiness).

• Rarely sold directly to the consumer; often sold to food-processing companies.

• Features:

  • Monoculture or a combination of a few crops

  • Use of high-yield, modern varieties or clones

  • Large chemical inputs (pesticides, fertilizers)

  • Use of modern facilities, technology, and dependency on machines for planting, crop maintenance, and harvesting

Major Sectors in Agricultural Industry

• Sectors include: Crops, Livestock, Fisheries

• Sub-sectors within crops:

  • Paddy (food crops)

  • Industrial crops (oil palm, maize, sago, tapioca, sweet potatoes; in temperate regions: wheat, barley, oats, rye, potatoes)

  • Rubber tree, Cocoa, Coconut, etc. (plantation crops)

  • Horticultural crops: fruits, vegetables, flowers, ornamentals, turf grass, etc.

  • Oil crops: Peanut, Maize, Rapeseed, Sunflower; Oil palm, Coconut; Olive, Jatropha, etc.

• Livestock categories:

  • Mono-gastric: single-chamber stomach (e.g., swine, horse)

  • Ruminants: four-chamber stomach (rumen, omasum, abomasum, reticulum) – efficient converters of forage into meat (e.g., goat, sheep, cattle, buffaloes)

  • Poultry: birds that have feathers and lay eggs (e.g., chicken, ducks, quails, ostrich, goose, etc.)

• Fisheries subsectors:

  • Food fish sector and non-food fish sector

  • Marine, Inland, Ornamental capture fisheries

  • Aquaculture fisheries

Subsector of Fisheries

• Fisheries subsectors include: food fish, non-food fish, marine/inland, ornamental capture fisheries, aquaculture fisheries.

Activity

• Activity: Identify ministries, departments, and agencies involved in agriculture development in Malaysia and their roles/functions. Share the information with your friends!

Roles of Agricultural Agencies Involved in Agricultural Development

• To achieve the objectives of the National Agriculture Policy, the government has set up ministries, departments and other agricultural agencies to hasten agricultural developments and 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

• Other government bodies that support agriculture:

  • Department of Agriculture (DOA)

  • Jabatan Pertanian Malaysia (DOA)

  • Department of Fisheries (DOFM)

  • Federal Agricultural Marketing Authority (FAMA)

  • Veterinary Services (DVS)

  • Malaysian Agricultural Research and Development Institute (MARDI)

  • Malaysian Palm Oil Board (MPOB)

  • Malaysian Rubber Board (MRB)

Government Agencies and Roles (Expanded)

• Roles of agricultural agencies involved in development:

  • To hasten agricultural developments

  • To help farmers, smallholders, fishermen, and livestock breeders

Private Corporate and Estate Agencies

• Many corporate sectors and estate agencies involved in agricultural development, especially in:

  • Cultivation and management of oil palm, rubber, cocoa, fruit, coconut

  • 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 (in Sabah)

  • Others: Dunlop, Socfin, KL-Kepong, etc.

Summary: Agriculture Agencies and Potential Employers of Agricultural Graduates

• Diagrammatic summary illustrating the interconnected roles of: Universities, Private sectors, and Government Agencies in agriculture development.

Importance of Agriculture Industry

• 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

Three Core Reasons Why Agriculture Is Important

1) Support Livelihood

• Agriculture can help reduce poverty, raise incomes, and improve food security for $80\%$ of the world's poor who live in rural areas and work mainly in farming

• It sustains village economy by generating food, employment, and related livelihoods

• Agriculture is a huge employment provider in rural areas, employing daily wage laborers and skilled workers in fields and related activities
  2) Providing Raw Materials

• Many raw materials derive from agriculture, from lumber for construction to herbs for flavoring foods

• Example: Corn is used to produce foods and forms the foundation for ethanol (biofuel)

• Resins: plant products used in adhesives, coatings, paints used in construction
  3) Encouraging Economic Development

• Agriculture impacts global trade by supporting jobs and driving economic development

• Countries with strong agricultural sectors tend to have:

  • Employment growth in other sectors

  • Higher per capita incomes

  • Technology innovation and improved farm management practices for productivity and profitability

How Is Agriculture Important? Products Derived from Agriculture

plays a central role in meeting consumer and business market demand in a world with interconnected economies.

• 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 vehicles for travel

  • Preparing and eating food

  • Mind-ing health through medicines and treatments

• Examples of everyday connections to agricultural products:

  • Shelter: wood and plant-based materials like bamboo

  • Morning routine: mint in toothpaste; caffeine from coffee bean

  • Dressing up: cotton, hemp, ramie, flax; bio-based grooming products

  • Cleaning: surfactants and solvents derived from biomass

  • Driving to work: rubber from trees; biodiesel from crops like corn

  • Entertainment: paper from trees; musical instruments using plant-based materials

  • Education: pencils and paper from trees

The End of Lecture 1 (Summary Reference)

• Recap of key concepts:

  • Definition and scope of agriculture

  • Global and national agricultural policy context

  • Sectoral structure: crops, livestock, fisheries

  • Subsistence vs commercial farming paradigms

  • Role of technology and innovation in agriculture

  • Role of government ministries, agencies, and private sector in development

  • The broad importance of agriculture to livelihoods, materials, and economies