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)

DEFINATION
GTP Government Transformation Programme (Program Transformasi Kerajaan) Economic Transformation Programme (Program Tranformasi Ekonomi) National Key Economic Area (Bidang Ekonomi Utama Negara) Entry Point Project (Projek Keutamaan Permulaan) Business Opportunity (Peluang Perniagaan)

ETP -

NKEA -

EPP -

BO -

PM introduced 4 strategic thrusts towards developed nation status

People First Performance Now

1 2 3

6 NKRAs

12 NKEAs

29 MKRAs

131 EPPs 60 Biz Opps

10th & 11th Malaysia Plan

3

country, for everyone & for a long time

High-Income
Target USD 15,000 GNI per capita by 2020

Making us a rich

Enables all communities to benefit from the wealth of the country

Quality of Life

Inclusiveness

Sustainability

Meets present needs without compromising future generations

12 National Key Economic Areas (NKEAs)

Oil, Gas & Oil, Gas & Energy Energy

Financial Financial Services Services Greater Greater KL/Klang KL/Klang Valley Valley

Education Education

Tourism Tourism

Business Business Services Services

11 Economic Sectors + Greater KL/ Klang Valley

Wholesale Wholesale & Retail & Retail

Agriculture Agriculture Comms Comms Content & Content & Infra Infra

Electrical Electrical & Electronics & Electronics

Healthcare Healthcare Palm Oil Palm 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 Malaysias Competitive Edge Trapping Premium Markets Ensuring Food Security

Additional GNI: RM21.4 billion Jobs created: 74,000

16 EPPs

+
11 Business Opportunities

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 commercial scale and market centric models for horticulture (MAFC) and aquaculture (Blue Arch), and estate style seaweed farming (Uni Malaysia Sabah)

Double our national income

Aspirations
from agriculture

From USD7.5 billion in 2009 to USD16.6 billion by 2020 In predominantly rural areas and in East Malaysia where poverty levels are higher By 2-4X, and decrease income gap between urban and rural population Unlocking value from our biodiversity, where further packaging and downstream
application can increase revenue up to 10x versus raw goods

Create 74,000 new jobs Increase farmers income Capitalising on Malaysias

Themes
competitive advantage

Tapping premium markets Ensuring food security are

aligned with GNI objectives

Expanding the production of premium grade fruits and vegetables, certified shrimp and
premium processed food to fetch up to 5x premium in overseas markets

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 Malaysias strengths and capitalise on global market trends
Theme Description Favourable for swiftlet ranching, seaweed farming, crop production etc due to climate conditions and geographical position Unlock value from biodiversity by accelerating commercialisation of botanical drugs Entry Point Projects

Swiftlet Nests

Mini Estate Seaweed Integrated Cage Farming High Value Herbal Products Integration of Cattle into Palm Oil

Capitalise competitive advantage

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

Premium Market for Fruits and

Vegetables

Replication of i-ZAQs Fragrant Rice Variety for Non-irrigated

Areas Food Park / Incubator

Alignment of food security objective with increasing GNI

Increasing capacity for production of food crops to meet food security objectives Extracting the most value from production through commercialisiation and reduce subsidy dependency

Strengthen productivity of paddy

farming in MADA

Strengthen productivity of paddy farming

in other irrigated areas Dairy Cluster Cattle Feedlot

Participation in regional agriculture value chain

Undertaking contract farming activities overseas and providing regional services in niches such as molecular marker discovery Breeding and agriculture logistics Biotech as a regional service

Seed Industry Development

Overseas Cattle JV Acquisition FDI in Agriculture Biotech
8

NKEA Agriculture Entry Point Projects

EPP #
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

EPP Title
High Value Herbal Products EBN Swiftlet Farming Seaweed Industry Integrated Cage Farming Further Integration in Oil Palm Replication of IZAQ Premium Market for Fruits and Vegetables Food Park Fragrant Rice Variety Strengthen Productivity of Paddy Farming in MADA Strengthen Productivity of Paddy Farming in Other Granaries Expansion of Feedlotting Dairy Cluster Seed Industry Development Participations of MNC Overseas JV/Acquisition

Project Owner
Bhg. Industri Tanaman, Ternakan dan Perikanan Jab. Perkhidmatan Veterinar Jab. Perikanan Jab. Perikanan Jab. Perkhidmatan Veterinar Jab. Perikanan Jab. Pertanian Bhg. Industri Asas Tani MARDI MADA Bhg. Industri Padi dan Beras Jab. Perkhidmatan Veterinar Jab. Perkhidmatan Veterinar
Bhg. Khidmat Sokongan dan Pembangunan Industri Bhg. Khidmat Sokongan dan Pembangunan Industri

Jab. Perkhidmatan Haiwan

A total of RM 18.7 billion is required to implement the EPPs

Investment requirement by EPP RM juta Replication of IZAQ Paddy farming in MADA Participations of MNCs Paddy farming in other granaries EBN Swiflet Farming Premium market for fruits and vegetables High Value Herbal Products Integrated Cage Aquaculture Farming Food Park / Incubator Seaweed Farming in Sabah Others (6 EPPs) 93 0 0 64
169 237 234

Public funding Private funding

Total RM juta 3,152 0 2,666 1,943 0 1,830 1,773 1,422 839 720 576 525 3,251

GNI/ Investment 0.40 0.39 0.52 0.75 2.56 1.10 2.64 1.92 1.54 2.68 0.41
10

Target GNI of RM 21.44 billion will be achieved by implementing 16 Entry Point Projects (EPPs) and 11 Business Opportunities
The top 10 EPPs add up
2020 GNI contribution from top 10 EPPs (RM million) to 93% of the incremental GNI

RM 18 billion

The remaining EPPs have

smaller GNI impact, but are important from:

A food security
perspective (e.g. beef and milk selfsufficiency)
EBN Swiflet Farming Premium Seaweed Integrated Replica- Paddy High Paddy Cage FFV Farming tion of Farming Value Farming in Sabah Aquaculture in other iZAQ in Herbal Sistem MADA Products Granaries Biotech MNCs Food Park Others *

An inclusiveness
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

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

Premium Snack

Ornamental Fish

Herbal Product Distributor

Aqua Feed Mill

Nutra from Other Herbs

FDI for Tropical Herbs

Free Range Chicken

Mushroom Project

SFI Facilities

Aqua Export Center

Readyto-eat Jackfruit 11

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 21 18 36 11
56

Average monthly income RM per month

Avg. monthly income of paddy farmers in Muda area

4.3 x
1,400

6,000

1 35 6 2 9 -25 1 21 2 12

99

2009: Individual owner operators on 2ha farms

2020: Operate 10ha farms on profit sharing basis

Avg. monthly income of papaya farmers 4x

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

2% 10% 50% 89% 48% 28% 72% 44% 56% 46% 54% 96%
< RM1k RM 1-4k >RM 4k

3x
1,000

4,100

4%

2009: Individual out growers on <1ha farms

2020: Operate 3ha farms on contract farming basis

Avg. monthly income of aquaculture operators 2.4 x

Horticulture

Herbs

Swiftlets

Livestock

Aqua culture

Biotech

4,100 1,000

2009

2020 12

Inclusiveness: Initiatives are spread out geographically to promote balanced growth

Sg Telaga Langkawi Tasik Pedu Kuala Sanglang Pitas Kota Belud Sg Padas and Sg Kalias Merang Mercang Durian Mentangau Ulu Lepar Tg Batu Lanchang Muadzam Keratong Shah Mukim Mercung Paddy farming Papaya contract farming clusters MD2 Pineapple contract farming clusters Vegetable farming Herbal cultivation park Dairy farming clusters Sungai Johor Aquaculture Swiftlet Tanjung Manis Bakun Dam Batang Ai Lingga/Banting and Bijat Stumbin Sg Gum Gum

Ranau Tambisan Pengagau

Lenggong

Rantau Tasik Temenggor Manis Selama Tasik Kenyir Lojing Pasir Cegar Raja Perah Trolak Cameron Highlands

Mercong

Pulau Tioman Rompin

PMs level: Update PM once a quarter 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

Prime Minister
Steering Committee Chair: Lead Minister (MoA)
Secretariat: PEMANDU/ Delivery Management Office (MoA)
Members: MoA KSU KP Jab. Pertanian KP Jab. Perkhid. Haiwan KP Jab. Perikanan KP MARDI KP FAMA Peng. Besar MADA S/Usaha Tetap Sabah and Sarawak Agriculture Ministry

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
EPP 9: Sime Darby EPP 10: BERNAS EPP 11 : Felcra Bernas

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

Team 6: Support: KSI

Owner
EPP 1: MOA EPP 7: Jab. Pertanian

Owner
EPP 3, 4, 6: Jab. Perikanan

Owner
EPP 2, 5, 12,13, 16: Jab. Perkhidmatan Veterinar

Owner
EPP 8: Bhg. Indus. Asas Tani

Owner
EPP 14, 15: KSI

Implementer

Implementer
EPP 1 : ECERDC Biotropics IMR FRIM EPP 7 : MAFC

Implementer
EPP 3 : DOF Sabah UMS EPP 4 : DOF PS EPP 6 : DOF Blue Archipelago Private sector

Implementer
EPP 2 : DVS and Private sector EPP 12 : NFC Felda Global EPP 13 : NFC Felda Global EPP 16 : Private sector

Implementer
EPP 8 : FAMA MAFC

Implementer
EPP 14, 15 : BiotechCorp MARDI DOA DOF DVS

14

Agenda Background of NKEA Agriculture EPPs Brief Overview of EPPs NKEA Agriculture Reflected in Minister KPI 2011 (MKPI 2011)

15

EPP 1 :

High Value Herbal Products

GNI Impact RM

Jobs Created

2.2
billion

2,000

Project Details 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

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: i. Establishment of Herbal Development Office

2011 Allocation

2012 Allocation

RM 73.0 million

RM 82.4 million

RM 5.9 million

RM 6.0 million
16

This is due to concentrated efforts in the primary processing, cultivation and extraction, but not in other high-value add activities
Value
Level of activities in Malaysia

Current Malaysias scenario Ideal curve

Increase in value
Primary Processing of Herbs Cultivation

Increase in value
Extract & Product Development Special Formulation & GMP Manufacturing Internationall Marketing & Distribution

Discovery & Devt of Pre & Identification of Post Clinical Herbal Targets Testing and IP

17

4 clusters will be formed, each with a different research areas

1 Discovery Discover, identify and evaluate new bioactive compounds that are useful for the purpose of medicine, therapeutic and health welfare (wellness) Biochemical profiling Ethno-botanical and ethno-pharmacological documentaion Identify methodology for the development of biological resources in a sustainable way Phytochemical analysis for the identification of bioactive markers Documentation into monographs of Pharmacopediea 2 Crop Production & Agronomy Ex-situ conservation of medicinal and aromatic plants Domestication of wild herbs Establish gene banks for crop production and breeding programs Evaluation, screening and mass production of accession with high bioactive compound New varieties or elite planting materials Agronomic studies for cultivation and suitable pre-and post-harvest handling Ethnobiology studies and documentation 3 Toxicology / Pre- Clinical Studies Develop new approach to increase the status of medicinal herb to therapeutic agent Evaluate toxicity or therapeutic potential of the bioresources Develop, optimize and diversify related bioassay protocols Carry out efficacy and safety study of the standard extracts and formulated products Preliminary dose findings Investigate pharmacokinetics and pharmacodynamics of the bioactives 4 Standardization & Product Development Develop standardization protocols and standard extract bank for local and indigenous plants Develop quality, safe and efficacious cosmaceutical, neutraceuticals and biopharmaceutical products Biological separation screening and identification of active molecular structure; and purify drug component Develop chemical fingerprints and standardized medicinal plant extracts Increased added value through enrichment of the scientific contents
18

* Development of Malaysia as the hub for clinical studies is currently under discussion by the healthcare sector

KPI 2011 for EPP #1

KPIs 1. Total investment by companies to conduct clinical trial for nutraceutical products 2. Mobilization of CoE to conduct research for product development 3. Establishment of marketing plan for nutraceuticals and botanical drugs 4. Establishment of Herbal Cultivation Park at Pasir Raja and Chegar Perah Target 2011 RM 640,000 5 products 13 research 5 100%

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EPP 2 :

Project Details

EBN Swiftlet Farming

GNI Impact RM Jobs Created

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

4.5
billion

20,800
Scope of Public Funding 2011 Allocation
RM 6.0 million

2012 Allocation
RM 7.4 million

Development Expenditure: i.R&D Activity for Downstream Processing ii.Acquisition of lab equipments for lab test on EBN iii.Enforcement and traceability system 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

20

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 Benefits of utilising Anchor Companies Bypass middle Bypass middle men men

Operators

Operators

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 Retail products directly to restaurants and other retailers Better able to track volume and production

Anchor Companies (PMC)

Key Attributes of Anchor Companies

Increase Increase product value product value and margin and margin

Critical Mass Consistent quality and traceability Funding Availability Market Development work Value added products (Belong to operators, processors & traders)

Product Product development development

Increase Increase market size market size

Smaller operators and traders will leverage on anchor companies that provide direct links to market

Market Market Information Information

21

KPI 2011 for EPP #2

KPIs 1. Total number of newly registered EBN premise 2. Total newly certified processing plant (VHM) and EBN premises (SALT) Target 2011 2000 15 plants certified VHM/GMP 1000 GAHP 100% 100% 8 centres 100% RM100 mill

4. To establish new EBN website for traceability 5. To establish R&D referral centre with UPM 6. To establish new EBN Collection and raw-clean EBN processing Centre 7. To establish new EBN international trading house 8. Total sales value for EBN

22

EPP 3 :

Mini Estate for Seaweed

GNI Impact RM

Jobs Created

1.4
billion Scope of Public Funding

13,000

Project Details 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.

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 Operational Expenditure: i.Rental and operations of SPV

RM 46.25 million

RM 16.0 million

RM 1.82 million

23

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 Farm management and replication Each cluster will consists of blocks that will be managed by individuals/SMEs and will share common infrastructure Block 1 Block 6 Block 2 Water depth

45 90 cm

Water velocity

20 40 m/sec

Water salinity

30 40 ppt

Integrated Complex
Block 5 Block 4 Block 3

Water temperature

27 30oC

Farm Size 200 ha

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 Co A 200 ha x2 Co B 200 ha

Environmentally
Management

sustainable Able to implement GAP and mechanisation

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
24

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
mechanical harvesters Engage with and provide feedback to the Government on farm manuals and best practices

Anchor Company

Manage individual blocks of seaweed farms using

SME 1 Farmer 1 SME 2

Farmer 2 SME

guidelines and inputs by the anchor companies Undertake operational costs and where applicable capex requirement Agreement on profit sharing/ contract farming mechanism with the anchor companies

The Government Engage with the private sectors to develop basic farm manuals for the 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
25

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 Water tank Drying platform Landing platform Seed tying complex Casino table Generator and storage area Impact 1 Reduce time spent at sea which is less productive Time spent based on location Percent
Time at sea Time at land

30% 80% 70% Landing platform

100%

Seed nursery table

20% Without With complex complex Land based nursery and casino table reduce time at sea 2 Easier management of workers

Better living standard for

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
26

Accommodation complex

KPI 2011 for EPP #3

KPIs 1. Total land areas gazetted for seaweed farming 2. Total mini estate established 3. To establish database for identified areas 4. Total tonnage of dry seaweed produced 5. To begin construction of R&D centre Target 2011 28,000 ha 15 mini estates 100% 16,580 MT 1 centre

27

EPP 4 :

Integrated Cage Farming

GNI Impact RM

Jobs Created

1.4
billion Scope of Public Funding

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 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.

2011 Allocation

2012 Allocation

Development Expenditure: i.Basic infrastructure (e.g. jetties, access roads, main piping) ii.Broodstock centre (e.g. hatchery, quarantine facilities, multiplying centre) Operational Expenditure

RM 47.0 million

RM 32.3 million

28

Integrated cage farming approach has been identified as a primary method to boost production of the targeted species
Key advantages of cage farming Mechanisms to improve productivity and quality
1

Easier to get state

Fast approval of sites authoritys approval to utilise sites Vast potential areas available such as in lakes/reservoirs and estuaries (public water bodies) Lower capital cost for both the government (basic infra e.g. jetty, roads) and the private sector (cages cheaper than RAS and ponds) 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 Grow out Processing

Ensure SMEs
use good quality seeds sourced from anchor company Reliable supply of seeds

SMEs have to
adhere to SOPs to ensure better growth and survival Standardised technology

Processing sites
are located near the vicinity to lower cost Sufficient volume to export valueadded products

Lower capital cost

2 Application of best practices

HDPE polar circle

and bigger GI cages are proven new culture systems Technology

Good
aquaculture practice to ensure bio security & quality Regular monitoring by DoF
29

Fish has no off flavor taste

due to running water

Ce buffer zone rti fic for each at io module n Certification requirement at every value chain

Qu ali ty

Higher productivity

Provision of

KPI 2011 for EPP #4

KPIs 1. Total number of cages in operation 2. Total production of farmed fish Target 2011 40 19,458 MT

30

EPP 5 :

Further Integration in Oil Palm

Project Details 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.

GNI Impact RM

Jobs Created

150
million

3,600

Scope of Public Funding

Development Expenditure: i.Purchase of breeder cattles to kickstart operations Operational Expenditure

2011 Allocation
RM 31.4 million -

2012 Allocation
RM 67.0 million -

31

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

Key benefits of integration in oil palm Breeding intensive. Ability to produce feeder cattle for the feedlot business as well as introduce a new market segment, free grazing beef Systematic rotational grazing system. Reduces labour, weeding, chemical and fertilizing costs for oil palm estates Palm Oil sustainability certification standards (RSPO) will be easier to meet due to less chemical usage for weeding

Biological Mower. Eats Weeds in oil palm estates

2
Shortens the Nutrient Cycle

3 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

Maximize use of plantation lands. Using palm oil plantation lands for grazing

32

KPI 2011 for EPP #5

KPIs 1. Total number of heads 2. Total land area available (hectares) Target 2011 120,00 480,000

33

EPP 6 :

Project Details

Replication of IZAQ

Establishment of an aquaculture park with an average

1.3
billion

GNI Impact RM

Jobs Created

12,000

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. 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 species e.g lobster, seabass Identified anchor companies: JEFI Aquatech, QL Resources
2011 Allocation 2012 Allocation

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

RM 253.0 million

RM 169.5 million

34

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 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 Ability to consistently ensure Quality, Safety & Ecology for all products. More effective environmental controls for premium standards Replication of IZAQs and its locations 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
35

that is fully integrated and certified to create competitive advantage in the premium market segment Feed Hatchery Grow out Processing Marketing

IZAQ Grow-out ponds (BAP / GlobalGAP) Processing (HACCP, GMP & ACC)

Certification, Accreditation & Verification system on site

Feedmill

Hatchery

Premium Markets

KPI 2011 for EPP #6

KPIs 1. Total areas earmarked for IZAQ 2. To establish sites for IZAQ for construction Target 2011 500 ha 2 IZAQs 50%

36

EPP 7 :

Project Details

Premium Market for Fresh Fruits & Vegetables

GNI Impact RM Jobs Created

1.6
billion

9,100

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. 2011 Allocation 2012 Allocation

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

RM 80.0 million

RM 177.6 million

37

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 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 Individual Farmers

Source:MAFC Berhad

38

Anchor companys 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 Domestic Retails Food Services Food Manufacturers International

Banana

CPPC
Pineapple 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)

CPPC CPPC

DC

Market access matching demand with supply Network with local and foreign retailers Branding, promotion and advertising Manage mode of transportation to export market
39

The implementation roadmap strive towards developing agripreneur into more anchor players
Phase 0 : 2010 Small and fragmented Agripreneur
USD19 USD19 million million

Phase 1 : 2011 2014 Anchor & Agripreneur Partnership

USD343 USD343 million million

Phase 2 : 2015 2020

USD491 USD491 million million

Formation of cooperative Elevation of selected commercial entities to anchor

Cluster A

Cluster B

Cluster A

Cluster B

Cluster A

Cluster B

Small and fragmented

agripeneurs Lack economies of scale Lack post harvest facilities & management

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
Anchor company Commercial entity

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

Individual Farmers

Farmers Cooperative

40

KPI 2011 for EPP #7

KPIs 1. Total investment by anchor companies 2. Total export volume for fresh fruits and vegetables 3. Total products from intercropping of oil palm with banana 4. Total products from Intercropping oil palm with pineapple Target 2011 RM 268.8 million 14,000 MT 3,000 MT 7,750 MT

41

EPP 8 :

Project Details

Food Park / Incubator

Development of integrated food park based on anchor company approach to co-ordinate SMEs and smallholders and produce in large-scale, fully accredited system.

GNI Impact RM

Jobs Created

883.2
million

5,000

Scope of Public Funding

Development Expenditure Operational Expenditure

2011 Allocation
-

2012 Allocation
-

42

EPP 9 :

Project Details

Fragrant Rice Variety for Non-Granary Areas

GNI Impact RM Jobs Created

133
million

4,998

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

43

KPI 2011 for EPP #9

KPIs 1. Total tonnage of fragrant rice produced 2. Total area planted 3. R&D for production of new Basmati-type and agronomic packages for both type by 2013 Target 2011 580 MT 180 ha 25%

44

EPP 10 :

Project Details

Paddy Farming in MADA

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

GNI Impact RM

Jobs Created

1.0
billion

- 14,900

Scope of Public Funding

Development Expenditure i.Incentives for farmers to exit land ii.Irrigation for 10 blocks in MADA Operational Expenditure i.Roadshows for promotion of land amalgamation scheme ii.Establishment of SPV

2011 Allocation
RM 90.0 million

2012 Allocation
RM 77.6 million

RM 7.78 million

RM 10.0 million

45

Key messages transformation of paddy farming

1

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 Cooperatives / entrepreneur farmers

Reduce no of workers on the land by 3x, adopt larger scale mechanisation, better agriculture practices

Contract: Fixed rental / profit sharing / mgmt fees Agrees to outsource land mgmt

Loans the capital required to pay advance rental

3 Proposed model enables income of

landowner and land operator to increase
RM667* Current: Rental income RM1000** Future: Profit sharing

4 Subsidies needs to be restructured

RM550 mil

Abolish IPH
RM290 mil
Future: direct assistance to needy groups

Gain
through profit sharing of higher yield

GSR + IPH

and direct GSR to the target groups

Restructure
paddy price subsidy / pay direct income support 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

RM240 mil

RM191 mil
2020 subsidy Restructure with higher output subsidy

Paddy price subsidy (MADA only)

* Yield of 5mt/ha, paddy price with subsidy RM1248/mt ** Yield of 8mt/ha, paddy price RM1000/mt, no subsidy, 2 ha own land + 8 ha managed for third party

46 46

KPI 2011 for EPP #10

KPIs 1. Total land areas amalgamation (hectare) 2. Table subsidy rationalisation roadmap for Cabinets approval 3. Total land areas approved to be acquired for infrastructure Target 2011 5,000 ha By April 121 ha

47

EPP 11 :

Project Details

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 Jobs Created

Government that will manage the paddy farming activities from upstream to downstream

1.4
billion

- 9,600

Establish R&D programme to improve yield of Sarawak

rice varieties, improving drought tolerance, pest and disease resistance etc.

Scope of Public Funding

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 Operational Expenditure

2011 Allocation

2012 Allocation

RM 136.0 million

RM 173.9 million

48

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
coordinate the functions required to support the granary

35% of farmers income are from non-farming

/ non-paddy sources

In some areas e.g. IADAs

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

Less than 30,000 ha with

Smaller areas
some granaries i.e. Kemasin Semerak and KETARA approximately 5,000 ha

KADA covers an area of 32,167 ha

Large area

49

EPP 12 :

Project Details

Expansion of Feedlotting

Establishment of 300 satellite farms to support the

GNI Impact RM

Jobs Created

182.4
million

2,000

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 certification of abattoir, cold-chain delivery of chilled cuts, promoting market awareness of buffalo meat vs beef, and developing downstream (beef byproducts).

Scope of Public Funding

Development Expenditure Operational Expenditure

2011 Allocation
-

2012 Allocation
-

50

Through increased supply from integration, dairy operations and anchor companies with overseas stakes, feedlotting activity can be expanded
Anchor X has own farm overseas
Integrated Downstream Operations

Cattle from oil palm

Cattle from dairy farms

Needs to be upgraded
and/or privatized

Certified & Halal meat

Abattoirs Satellite Farmers DVS land Plantation companies produce fodder Feed mills processing and slaughter

0% Wastage (capitalize
on all cattle parts)

Premium packaging with

Premium packaging and cold chain grading to educate consumers

Anchor / NFC

Independent Small / medium feedlotters

Cold chain delivery of

chilled cuts

Market awareness &

Anchor X NFC 25% ssl Market 40% ssl
Consolidated & Integrated Downstream Operations

differentiation between frozen buffalo meat and fresh beef

Development of products
for beef byproducts (Pet foods, leather, gelatin, food processing)
51

KPI 2011 for EPP #12

KPIs 1. Total number of heads 2. Total kg of beef produced (mil MT) 3. Ratio of domestic production vs total consumption Target 2011 19,800 2,800 MT 1:3.3 (51,161 MT : 170,475 MT)

52

EPP 13 :

Project Details

Dairy Cluster

GNI Impact RM

Jobs Created

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.

326
million

800

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

53

In addition, most milk collection centers across the country are running at a loss, lacking volume from producers to be profitable
Profit / Loss of Selected MCCs 100% = 13 MCCs across Malaysia Profitable Key Issues with Malaysias Dairy Farming Industry Management Lack of expertise (Artificial Insemination, Feed formulation, cold chain logistics, fodder production) Commercial management experience Small scale

Running at loss

Cost of milk handling ranges from 0.22 cents per litre RM9.50
per litre Only 1 MCC (Pahang Jerantut) profitable due to proximity to large scale commercial dairy farms Milk sold to factories at RM2.40 per litre, but still unable to cover costs Quality of milk collected Grade AA Grade A Grade A minus

Nutrition Poor quality forage High cost of feed High dependence on concentrate feed

Breed variety Good genetics limited Lack of strong breeding initiatives

Extension services Inadequate extension services

Majority of milk collected is of highest grade, showing that

traditional style dairy farming can produce good quality milk Average of only 5 litres per animal per day collected, which is 57 liters less productive (in terms of quantity) vs. commercial scale dairy farming

Land Limited land available Land insufficient for fodder production Ideally prefer land above 1,000 metres
54

KPI 2011 for EPP #13

KPIs 1. Total production of fresh milk (mil liter) 2. Total heads of dairy cow 3. Production of milk per cow per lactation (litres per day) Target 2011 12 mil liter 25,500 15 liter

55

EPP 14 :

Project Details

Seed Industry Development

Introduction of Marker-Assisted Selection technology to produce progeny with desired traits e.g high-yielding, disease-resistant Establishment of National Seed Council (National Seed Steering Committee as interim structure) to oversee the development of seed industry in Malaysia to reduce dependency on imported seeds/breeding material

GNI Impact RM

Jobs Created

467
million

5,400

Scope of Public Funding

Development Expenditure i.Purchasing of equipment to complete laboratory (Market Assisted Selection technology) Operational Expenditure

2011 Allocation
RM 5.0 million -

2012 Allocation
RM 1.1 million -

56

Proposed for a National Seed Council to oversee the linkages between CMDV and seed and planting material producers
Seed/Breeding Material Industry Proposed Structure for Development of Seed/Breeding Material Industry

National Seed Council*

Governing body to provide strategic development of Malaysian seed /breeding industry Consolidate ministries, breeders, F1 producers and farmers to ensure all stakeholder reap the benefits

National Seed Council

Marker Development Center

Provide validation services for already available traits in crops/animals using samples given by breeders Collaborate with breeders in development of new markers

Center for Marker Discovery & Validation (CMDV)

Breeders
Nucleus to breed the high-quality genetic material developed by CMDV Provide local access of high-quality genetic material to F1 Seed Producers

Seed/Animal Producers
Multiplier of high-quality genetic material procured from breeders. Provide farmers easy access to high-value genetic material at no extra cost. Multiplier Effect

* All breeding material for agriculture (seeds, planting materials, breeding animals, broodstock)

57

MAS enhances conventional breeding through 4 key components

How Marker-Assisted Selection (MAS) enhances Conventional Breeding (CB)

Reduce the number of breeding

1 Speed cycles required to bring new lines to market (50% less time)

Projected increase in production volume of rice based on breeding of one selected trait (salinity-tolerant) USD billion

5.4
Eliminate environmental variation
2 Consistency from evaluation trials and also allow screening for resistance to pathogens without further risk

5.5

5.1 4.9
4.6 4.6

5.2
MAS

Eliminate also-rans from a

3 Efficient breeding program at a much earlier stage. A breeder will only work with superior progeny. Allow selection for traits difficult to qualify phenotypically (e.g. diseaseresistance)

4.6

4.6

4.6

CB

Allow breeders to manage

4 Effective complex multigenic traits unlocking a whole new level of potential for their breeding program such as breeding for better nutrition

12

13

14

15 16 Year of release

Source:Smart Breeding (Greenpeace.org), Economic Impact Analysis of Marker-Assisted Breeding in Rice, Alpuerto, Vida-Lina Esperanza Battad

58

KPI 2011 for EPP #14

KPIs 1. Total validation by Center for Marker Discovery and Validation 2. Establishment of National Seed Council 3. Revision of policies to attract private sectors participation 4. Total seeds produced using MAS Target 2011 10 100% 100% 600 tonnes

59

EPP 15 :

Project Details Attracting FDI in Agricultural Biotechnology into Malaysia contributes into multiple area that benefits the industry and develops highly skilled human capital Leveraging on Biotechcorp as the implementing agency. Biotechcorp will formulate the package necessary to secure FDI into the country.

FDI in Agriculture Biotechnology

GNI Impact RM

Jobs Created

820
million

1,200

Scope of Public Funding

Development Expenditure i.Construction of facilities for companies Operational Expenditure

2011 Allocation
RM 15.0 million -

2012 Allocation
-

60

Growing commodity prices, increase carbon credit trading activity and tighter regulatory framework spur the need for Agriculture Biotech
Key growing trends Commodity 1 prices Resulting in Bioyield enhancers becomes more valuable Farmers motivated to find technologies that enhances fertilizer efficiency Companies in biofertilizer business selling their carbon credits to developed countries Farmers will be rewarded by farming with CO2 efficiency

Increasing commodity prices

and scarce resources Increase in the price of chemical fertilizers

Carbon credit 2 trading

Due to intensive agriculture,

it has expanded the growth in concentrations of greenhouse gases (GHGs) Carbon credit is the key component of national & international to mitigate the growth of GHG various pesticide active ingredients (MRL) Regulations on usage of artificial flavours & fragrances

3 Regulatory framework

Regulatory pressure on

Making biological solutions increasingly attractive Increases usage on biocontrol Bio-based flavours & fragrances

61

3 key focus areas for Agriculture Biotechnology Industry Bio-fertilisers, biopesticides and flavour & fragrances
Biofertilisers Apply living microorganisms to seed, plant surfaces or soil to colonise the rhizosphere and promote growth thus adding nutrients through natural processes (e.g. microorganisms to increase soil pH) Bio-yield enhancers Microbial-based products that stimulate various biochemical pathways related to enhancing the growth and yield of crops (e.g. microbial nitrogen fertility solution for nonlegume crops) Potential market by 2020: USD46.7 billion

microbial-based solutions to traditional

herbicides, fungicides, and insecticides Falls into three major sectors: i. Subspecies and strains of Bacillus thuringiensis which produces different mix of protein that binds to an insect larvae gut ii. Plant-Incorporated-Protectants (PIPs) are pesticidal substances that plants produce from genetic material that has been added to the plant. iii. Biochemical pesticides are naturally occurring substances that control pests by non-toxic mechanisms such as scented plant extracts. Potential market by 2020: USD2.05 billion

oBi

Bi o- f En ertili ha s e nc rs/ ers Bi o- y iel d

pe s ti es cid

FDI

Flavours & Fragrances

Produce flavor compounds, flavor delivery

technology and fragrances from enzymatic processes & biosynthesis used in foods, beverages and consumer products (e.g., cosmetic creams) Potential market by 2020: USD46.6 billion
62

KPI 2011 for EPP #15

KPIs 1. Total investment by MNC 2. Sites secured for construction/move-in 3. Total sales from MNCs Product Target 2011 RM 92 million 1 RM 256 million

63

EPP 16 :

Project Details

Overseas JV/Acquisition

Secure a consistent and affordable source of live animals for breeding, feedlotting, and dairy operations over the next 10 years
Scope has been expanded to include other potential areas in agriculture e.g poultry with purpose of bringing in profit into the country Identified companies includes SEDC Sarawak, Intan Farm, Felda Global Venture Holding, NFC.

GNI Impact RM

Jobs Created

115.2
million

Nil

Scope of Public Funding

Development Expenditure Operational Expenditure

2011 Allocation
-

2012 Allocation
-

64

KPI 2011 for EPP #16

KPIs 1. Total revenue generated from oversea ventures (RM mil) Target 2011 21

65

Agenda Background of NKEA Agriculture EPPs Brief Overview of EPPs NKEA Agriculture Reflected in Minister KPI 2011 (MKPI 2011)

66

Y.B. Datuk Seri Noh Omar HHH Minister of Agriculture and Agro-based Industry
NKEA: EPPs 1. Expanding the production of swiftlet nest (EPP#2, Agriculture) 1. 2. 1.1 Total sales value for edible bird nest RM19.2 mil RM100 mil 3. 4. Traceability, enforcement & certification R&D of downstream processing and sustainable ranching Implementation of Swiftlet Industry Guideline (1GP) To set up EBN International Trading House 40%

2. Venturing into commercial scale seaweed farming in Sabah (EPP#3, Agriculture) 1. 2.1 Tonnage of dried seaweed produced 13,890 MT 16,580 MT 2. 3. 4. 3. Farming using integrated cage aquaculture (EPP#4, Agriculture) 3.1 Total production of farmed fish 4. Replication IZAQ to tap market for premium shrimp (EPP#6, Agriculture) 4.1 Total export from IZAQ Still under construction 1. 2. 3. 4. 1. 2. 3. 4. Feasibility study Identification & selection of site (2 sites) EIA submission & approval Construction Land preparation, nursery and infrastructure Field planting Extension & advisory services Crop maintenance 15,458 MT 19,458 MT 1. 2. 3. 4. Site selection Feasibility study Gazetting of area Selection of anchor company Establishment of Seaweed Industrial Zone Establishment of farming system Downstream processing program (product development) Establishing quality and standard

5. Upgrading capabilities to produce fruit and vegetables for premium markets (EPP#7, Agriculture) 5.1 Total export volume of premium fruits and vegetables 5.2 Intercrop Development (Banana) 5.3 Intercrop Development (Pineapple) NA Fruits & Vegetables 14,000 MT Banana: 3,000 MT Pineapple: 7,750 MT

67

6. Scaling up and strengthening productivity of paddy farming in the Muda Area (EPP#10, Agriculture) 1. Conduct feasibility study for SPV 2. Develop implementation approach 3. Seek consensus & gather response from farmers & related parties on the proposed land acquisition & financial offer 4. Finalised land acquisition process and compensation involved 1. Operationalised satellite farms 2. Construction of abattoir under NFC 3. Selection & appointment of other anchor companies 4. Completion of identified satellite farms (20 units) Implementation CDC Plan Development of farm infrastructure Development of pasture land Development of ruminant feed milling industry

6.1 Total of land area amalgamated

0 ha

5,000 ha

7. Strengthening anchor companies in cattle feedlots (EPP#12, Agriculture) 1:3.3 51,161: 170,475

7.1 Ratio of domestic production vs total consumption

1:3.4 46,510:162,357

8. Partnering with a large foreign dairy to establish dairy clusters in Malaysia (EPP#13, Agriculture) 8.1 Total production of fresh milk 1. 2. 75.77 mil Liter 3. 4.

62.62 mil Liter

9. Establishing a leadership position in regional breeding services (EPP#14, Agriculture) 1. Concept paper & approval for National Seed Council (NSC) 2. Formulation of Seed Act (crops, livestock & fisheries) 3. Setting up of Center for Marker Discovery & Validation (CMDV) 4. Establishment of National Livestock Breeding Center (NLBC) 1. Background study of strength & weakness of country in biofertilizer, biopesticides, flavor & fragrances area 2. Engagement with key stakeholders to bring in MNC 3. Identification & selection of a list of MNCs 4. Initial engagement with MNC

9.1 Total production of seed 9.2 Total number of validations achieved

NA NA

600 MT 10

10. Securing foreign direct investment in agriculture biotech (EPP#15, Agriculture)

10.1 Total sales from MNCs products

NA

RM256 mil

68

THANK YOU

69