UNIVERSITI TEKNOLOGI MARA KAMPUS JASIN

AT223 FACULTY OF PLANTATION AND AGROTECHNOLOGY

ECO 410 MICROECONOMICS

INDIVIDUAL ASSIGNMENT 1
Prepared by :
NO. NAME ID STUDENT CLASS
01. Muhammad Afiq Ikhwan Bin 2022771813 M3 AT223 ( 2A)
Mohd Nor Azalee

PREPARED FOR :
Associate Professor Dr HAJI ABDUL RAHIM HAJI RIDZUAN

DATE OF SUBMISSION :
WEEK 13
TABLE OF CONTENT
NO. CONTENT PAGE
01. Summary of Article
Tittle : The farmers in Cameron Highlands say 3
there is a reason why they had to dump their
vegetables.( Article from The Star )

02. Point 1
- List of government intervention to overcome 4
the problem stated in article.
( include diagram )

03. Point 2
- List of advantages and disadvantages of the 5 -6
implemented policies based on article.
( include diagram )

04. Point 3
- Conclusion of article review and future 7
prediction in agriculture sector.

05. References 8
 1.0 SUMMARY OF ARTICLE
Retrieved from article The Star
Due to a confluence of factors, farmers in Cameron Highlands, a prominent
agricultural region, have been forced to discard significant amounts of their
agricultural products. This article investigates into the farmers' situation highlighting
the causes of the excessive dumping of vegetables as well as the broader implications
for both the farmers and the local economy. The first issue that may arise is
overproduction and unfavourable market conditions. We can see that farmers in
Cameron Highlands have been dealing with a surplus of vegetables as a result of
favourable weather and increased cultivation. However, excessive supply has collided
with unfavourable market conditions, such as decreased demand and low prices,
making it financially unprofitable for farmers to sell their agricultural products.Aside
from that, another critical factor contributing to the vegetable dumping crisis is a lack
of adequate cold storage facilities in the region. Farmers are unable to store their
produce for extended periods of time without proper storage infrastructure, forcing
them to discard vegetables that cannot be sold immediately.Furthermore, another
issue that arises is the economic and environmental impact, as the consequences of
this waste extend beyond the financial burden carried by farmers. Excess vegetables
not only result in significant economic losses, but also have environmental
consequences. If organic matter is allowed to rot, it can pollute the environment and
contribute to greenhouse gas emissions, exacerbating environmental degradation.The
terrible difficulty of Cameron Highlands farmers forced to dump their vegetables due
to overproduction, unfavourable market conditions, disrupted supply chains, and
limited storage facilities emphasizes the need for coordinated efforts to address these
challenges. Improving infrastructure and market access for farmers, as well as raising
consumer awareness, can help mitigate future crises and foster a more sustainable
agricultural sector in Cameron Highlands.It is important to note that the suitability
and effectiveness of these interventions may differ depending on the specific context
and challenges that farmers face in different regions. Governments should assess local
conditions and collaborate with relevant stakeholders to develop and implement
interventions that are tailored to their specific agricultural sector and farmer needs.
2.0 LIST OF GOVERNMENT INTERVENTION TO OVERCOME THE
PROBLEMS BASED ON ARTICLE
Governments can implement a variety of interventions to address the issue of farmers
discarding agricultural products due to seasonal events.
1) Crop Insurance Programmes: Governments can create or improve crop
insurance programmes to protect farmers from losses caused by adverse weather
events or other seasonal challenges. This reduces the risk of agricultural production
and encourages farmers to continue cultivating their crops.

2) Price Stabilization Mechanisms: Governments can use price stabilization

measures to keep agricultural product prices stable during periods of surplus. This can
include buying excess produce from farmers and storing it in strategic reserves to be
distributed during times of scarcity or market fluctuations.

3) Infrastructure Development: Governments can invest in agricultural

infrastructure development such as storage facilities, freezing chains, and
transportation networks. These facilities can help farmers reduce post-harvest losses
and store and transport their produce to markets even during difficult seasons.

4) Extension Services: Governments might enhance extension services through

providing farmers access to training, knowledge, and technical assistance. Extension
officers can teach farmers about alternative farming practices, crop diversification,
and ways to reduce the impact of seasonal events on agricultural production.

5) Market Access and Diversification: Governments are able to assist farmers

acquire market access by strengthening market links, establishing farmers' markets,
and encouraging direct farm-to-consumer sales. Furthermore, encouraging crop
diversification can help farmers reduce their reliance on a single crop and adapt to
changing climatic conditions.

6) Financial Assistance and Subsidies: Governments can provide financial

assistance, grants, subsidies, or low-interest loans to farmers to help them recover
from losses caused by seasonal events. This support can enable farmers to invest in
resilience-building measures and sustain their agricultural activities.
3.0 LIST OF ADVANTAGES AND DISADVANTAGES OF THE
IMPLEMENTED POLICIES BASED ON ARTICLE
Implementing policies to support farmers in preserving agricultural products in the
long term can have several advantages.

1) Reduced Food Losses and Waste: Policies that provide support and
infrastructure to preserve agricultural products help to reduce post-harvest losses and
food waste. This ensures that a greater proportion of harvested crops reach the market
and are ready for consumption, thereby contributing to food security.

2) Increased Farm Income: Preserving agricultural products enables farmers to

store and sell their produce during times of high demand or when prices are favorable.
This can lead to increased farm income, as farmers can access better markets and
negotiate better prices for their products.

3) Improved Market Access: Policies promoting agricultural product preservation

frequently include investments in infrastructure such as storage facilities, cold chains,
and transportation networks. This improves farmers' market access by allowing them
to efficiently store, transport, and distribute their products, even during difficult
seasons or in remote areas.

4) Risk Mitigation : Crop insurance programmes, for example, help to mitigate

the risks associated with agricultural production. Farmers are financially protected
from losses caused by bad weather or other seasonal challenges, reducing their
vulnerability and promoting long-term sustainability.

5) Farmers' Empowerment: Policy implementation that assists farmers in

preserving agricultural products empowers them by providing access to knowledge,
resources, and support services. This enables farmers to make informed decisions,
implement best practices, and manage their farming operations effectively, resulting
in increased productivity and improved livelihoods.
The policies aimed at supporting farmers in preserving agricultural products in the
long term have several advantages, it's important to consider potential disadvantages
as well.
1) High Implementation Costs: Building and maintaining the infrastructure
required for agricultural product preservation, such as storage facilities and cold
chains, can be expensive. Governments may need to allocate significant funds and
resources to establish and maintain these systems, putting public budgets under strain.

2) Limited Access for Small-Scale Farmers: Small-scale farmers may face

difficulties accessing and utilizing government infrastructure and support. They may
lack the financial resources or technical expertise to fully utilize storage facilities or
cold chains, limiting their ability to effectively preserve their agricultural products.

3) Potential for Market Distortion: If government interventions, such as price

stabilization mechanisms or market subsidies, are not carefully implemented, they can
lead to market distortions. Subsidies, for example, may artificially inflate prices or
create supply-demand imbalances, potentially disrupting overall market equilibrium.

4) Inadequate Maintenance and Upkeep: The long-term success of agricultural

infrastructure depends on proper maintenance and regular upkeep. If governments do
not allocate adequate maintenance resources, infrastructure will deteriorate over time,
reducing its effectiveness and potentially leading to increased post-harvest losses.

5) Market Concentration Risk: Market access and distribution channel policies

may inadvertently favour larger agribusinesses or intermediaries, resulting in market
concentration. This concentration can reduce competition and limit small-scale
farmers' ability to access markets directly, potentially disadvantageous them.

6) Dependence on Government Support: Farmers' self-reliance and

entrepreneurial spirit may suffer if they become overly reliant on government
assistance and intervention to preserve their agricultural products. This can limit their
ability to adapt to market dynamics and make independent storage, pricing, and
marketing decisions.
4.0 CONCLUSION OF ARTICLE REVIEW AND FUTURE PREDICTION IN
AGRICULTURE SECTOR
Farmers experiencing difficulties selling or disposing of their crops, resulting in
significant financial losses, is a complex issue with numerous contributing factors.
However, potential conclusions or approaches to addressing this issue must be
considered.Therefore,improving transportation networks, storage facilities, and
market connections can assist farmers in connecting with potential buyers and
reducing post-harvest losses. Improving rural infrastructure can help with crop
transportation to urban markets and reduce spoilage or waste.In addition, farmers'
income-generating opportunities can be increased by encouraging them to diversify
their crops and engage in value-added activities such as processing and packaging.
This method allows farmers to access different market segments while reducing their
reliance on a single crop or market.Subsequently, facilitating farmer cooperative
formation can provide small-scale farmers with collective bargaining power.
Cooperatives can negotiate fair prices with buyers, buy in bulk at lower prices, and
market their products collectively. This approach empowers farmers and strengthens
their supply chain position.Moreover, through supportive policies, subsidies, and
incentives, governments can play a critical role in addressing this issue. They can
invest in agricultural infrastructure, develop market-driven policies, implement fair
trade practices, and offer financial assistance or insurance to farmers who suffer crop
losses.After that, partnerships between farmers, private companies, and non-
governmental organizations (NGOs) may assist in the development of new
approaches. Private companies can provide expertise in the field, market access, and
investment, whereas non-governmental organizations (NGOs) can help with capacity
building, advocacy, and connecting farmers to relevant resources.In conclusion, the
government has a vital role to play in helping farmers manage their waste agricultural
products responsibly. By investing in infrastructure, providing education and
incentives, fostering collaborations, and enforcing regulations, the government can
support farmers in adopting sustainable waste management practices. These initiatives
not only mitigate environmental concerns but also contribute to the overall well-being
and prosperity of the agricultural sector and the communities it serves.
5.0 REFERENCES
1) Department of Agriculture, DOA.Program Pertanian Bandar.( 7 March 2021)
Retrieved from : http://www.doa.gov.my/index.php/pages/view/332
2) Abu Dardak,R.; Muhammad, R.M.Urban Agriculture as an Alternative Food
Source.Food Fertil.( 18 March 2022 ) Retrieved from :
https://ap.fftc.org.tw/article/2886
3) Stephanie, L.Small-time Kundasang Farmers Getting Help to Get Produce to
Market.Star News.( 14 March 2022 ) Retrieved from :
https://www.thestar.com.my/news/nation/2020/04/11/small-time-kundasang-
farmers-getting-help-to-get-produce-to-market
4) Olivia, M.MCO: Sabah Farmer Distributing Vegetables for Free rather than
Letting Them Go to Waste.New Straits Time.( 18 March 2022 ) Retrieved
from:https://www.nst.com.my/news/nation/2020/04/583608/mco-sabah-
farmer-distributing-vegetables-free-rather-letting-them-go
5) Hairuddin,M.A.;Zainol Abidin, A.Z.;Abdul Rashid.Agriculture Food Supply
Chain Scenario during the Covid-19 Pandemic in Malaysia.FFTC
Agric.Policy Platf.( 18 March 2022 ) Retrieved from:
https://ap.fftc.org.tw/article/2679
6) Ng, X.Y.;Wahid, R. Cameron Highlands Farmers Dump Hundreds of Tonnes
of Vegetables.Malaysiakini.( 13 May 2021) Retrieved from:
https://www.malaysiakini.com/news/516704
7) Bernama.PENJANA : Lebih Ramai Disasar Ceburi Pertanian Bandar.BH
Online.( 22 May 2021) Retrieved from :
https://www.bharian.com.my/berita/nasional/2020/06/700925/penjana-lebih-
ramai-disasar-ceburi-pertanian-bandar
8) Razak, A.; Roff,M.Status and Potential of Urban and Peri-Urban Agriculture
in Malaysia.( 18 March 2022 ) Retrieved from: https://moam.info/status-and-
potential-of-urban-and-peri-urban-agriculture-in-
malaysia_5a1e8fcc1723dd960d56e6c7.html
9) Kumar, R.Five Reasons Why Urban Farming is the Most Important Movement
of Our Time.( 16 May 2021 ) Retrieved from :
http://magazine.good.is/articles/five-reasons-why-urban-farming-is-the-most-
important-movement-of-our-time