Agriculture has been identified as one of the key sectors to drive economic growth with the vision to make Sarawak a net exporter of high quality agriculture produce and products that meet the needs of both domestic and global markets under the Socio-Economic Transformation Program (SETP). The market potential of RM3 billion is there. However, efforts must be made to identify and implement new and innovative strategies, development concepts and the business models that are effective in transforming the agriculture sector to realise the vision of becoming the net exporter of high quality agriculture produce and products. In this regards, the Ministry of the Modernisation of Agriculture and Native Customary Rights and Regional Development, has adopted new ideas and initiatives that are related to the establishment of agriculture namely the Collection, Processing and Packaging Centre (CPPC), the application of digital technology in agr iculture including Global Positioning System (GPS), Geographical Information System (GIS) technology in agriculture mapping, the use of Internet of Things (IoT) and sensor technology in precision and smart farming and farm surveillance and the use of ICT in agriculture extension and marketing systems.
Deputy Chief Minister, Datuk Amar Douglas Uggah Embas, who is also the Minister of the Modernisation of Agriculture and Native Customary Rights and Regional Development, said the Government, in the efforts to transform the agriculture sector, will adopt new business development model and approach and change the mind-set of the agricultural producers, in particular the smallholder farmers.
Essentially, the new business models would harness the financial resources and business acumen of the private sector and leverage their management and technical expertise.
The skills and knowledge of small holder farmers, who participate in such ventures, will be enhanced in parallel to the private sectors participation in a commercial-led agro-business venture. In thi s c onne c t i on, the Government will give the private sector a bigger role in developing and managing the agriculture sector to ensure commercial viability and reducing the financial burden the Government.
Datuk Amar Douglas Uggah said the agriculture sector must be private sector driven as they have the latest technologies, huge capital, management skills and more importantly, readily available global market access for the agriculture produce and products.
His Ministry’s roles will be to facilitate investment and to effectively organise farmers to participate in the agriculture business sectors in order to benefit from the Agriculture transformation programme.
He said the State Food Trade Balance experienced a deficit of RM2.2 billion in 2010 going up to RM3.3 billion in 2016. This resulted from the huge importation of cereals and animal feed products. Therefore, efforts must be intensified to increase food production especially rice, cereals, animal feed, beef, muttons and dairy products.
At the same time, efforts must be intensified to develop other commodities and high value crops such as durian, coconut, pineapple and banana.
These crops have huge potentials for export markets. Datuk Amar Douglas Uggah said the State Agriculture Sector must be modernised by utilising digital technologies to increase production and commercialised by expanding the markets for the agriculture produce.
An allocation of RM80.0 million has been set aside to implement five main programmes and projects through the Department of Agriculture and Department of Veterinary Services under the Key Result Area (KRA).
The programs and projects to modernise and commercialise the Agriculture Sector are crop development, Collection, Processing and Packaging Centre, Farm Infrastructure, Cattle Integration with Oil Palm Plantations and Edible Bird’s Nest. He said a sum of RM20 million has been allocated for the construction of 204 infrastructure projects in the continuing efforts to implement farm road and Jalan Perhubungan Desa projects for the benefit of farmers.
Datuk Amar Douglas Uggah said the Government, in the continuing efforts to strengthen the commercialisation of agriculture produce, has approved RM8 million for the establishment of 4 Collection, Processing and Packaging Centers (CPPC) including Tarat, Serian and Layar Integrated Agriculture Station in Betong. A sum of RM31.9 million out of an allocation of RM37 million approved have been spent on crop development to assist smallholders for the establishment of income-generating projects namely oil palm, sago, coconut, pepper, fruits, Permanent Food Production Area (Taman Kekal Pengeluaran Makanan), Fruit Rehabilitation and Agriculture Diversification Program, benefiting 6,685 farm families. He said Agriculture production, especially in the agro-food sector, faces many obstacles when it comes to marketing.
Obviously, there is a need to organise the marketing process along the whole supply and value chain, starting from pre-production, production to post-harvest handling, processing, packaging and marketing to ensure that the produce can be marketed effectively. Hence, the Ministry has signed a Memorandum of Understanding with Top Fruits (Sarawak) Sdn Bhd, a well established Agro- Based company, which has wide expertise and experience in the fruit industry in both upstream and downstream business activities, to act as an anchor company to operate the Collection, Processing and Packaging Centre at Tarat, Serian.
The parent company of Top Fruits (Sarawak) Sdn Bhd, based in Johor, is currently exporting Musang King, a very popular durian and MD2 pineapple to China market. The areas of cooperation between the State Government and Top Fruits (Sarawak) Sdn Bhd include the development of fruit industry in Sarawak along the whole supply and value chain. The Ministry also plans to establish Fruit Belt or Durian Belt in the Southern Region of Sarawak.
The Ministry is negotiating with another company to be the Anchor Company to operate the CPPC at Layar Integrated Agriculture Station in Betong. Datuk Amar Douglas Uggah said the State Government, in an effort to institutionalise the marketing of agricultural product, is taking an initiative to streamline the functions and activities of numerous marketing outlets into an Integrated Agriculture Marketing System.
At the moment they are scattered and un-coordinated in their operations. The Integrated System should be able to provide an effective linkage from farm to market outlets that are managed by night market, PasarTani, Agro Bazaar, Collection Centers and livestock auction of agriculture produce. His Ministry is looking at the possibility of establishing an Integrated Wholesale Market modelled after the Jiangnan Market in Guangzhou, China for agriculture produce and products in the State. The Jiangnan Market is jointly owned by the Government, large agro-based company and landlord, but managed by a private business entity.
The Centre provides trading areas, storage facility, internal transportation services, quality control and other services for local farm producers and importers. The Guangzhou Jiangnan Wholesale Market comprises wholesalers of different agriculture products. The wholesalers may have their own commercial farm but can also act as collectors of agriculture produce from other commercial farms or from smallholders.
Datuk Amar Douglas Uggah s a id the e s t abl i shment o f Integrated Wholesale Market in the State is expected to promote a more competitive and sustainable market for agriculture products and produce that ultimately would be beneficial to the agriculture primary producers particularly farmers in rural areas and buyers. However, the success of the integrated wholesale market system depends on the efficient operation of the Collection, Processing and Packaging Centre (CPPC) that acts as feeders for the agriculture sector.
He said the Government is committed to implement the six (6) Key Result Areas of the Cabinet Committee on Socio- Economic Transformation namely to modernise and commercialise the agriculture sector, Application of Digital Technology, Accelerate Implementation of Crop Development ; Establish Agro Park to spearhead modern agriculture production, Update on Venture Capital and increase Ruminant Population: Cattle, Buffalo and Goat to speed-up economic growth and to achieve the desired socio-economic transformation.
Sarawak, which is free from Foot and Mouth Diseases (FMD) and having a vast tract of land under oil palm plantation, which can be integrated with cattle and goat, has great potential in the development of livestock industry. Hence, the Ministry is targeting to increase the Self Sufficiency Level (SSL) through the Department of Veterinary Services for beef from the present 10% to 50% and mutton from 15% to 25% by 2030.
The Mini s t r y , through the Depa r tment o f Ve t e r ina r y Services, will implement the following initiatives In order to achieve these Self Sufficiency Level targets by:
• utilising Artificial Insemination (AI) to increase the calving rate for ruminant namely cattle, buffalo and goat;
• Importing both female and male cattle and goats from Australia and buffalo from Sabah to increase our breeding stocks. Presently, we have 5,500 buffaloes, 16,700 cattles and 14,700 goats;
• Intensifying the integration for cattle rearing in oil palm plantations in the State;
• Establishing a breeding centre for cattle in Kuching and Miri;
• Equipping the Maragang Buffalo Station in Lawas with the latest facilities for farmers training, holding and supplying of breeder buffaloes;
• Inviting private sector investment in large scale cattle, buffalo and goat rearing with participation of landowners utilising financial facilities provided by the venture capital;
• Training of f icers in Good Animal Husbandry Practices and Veterinary Health including Artificial Insemination to enable them to provide effective technical and advisory services to our livestock breeders;
• Intensifying the implementation of existing programs and projects especially through Pawah Scheme under the Department of Veterinary Services, Sarawak to increase the ruminant population;
• Organising breeders to participate as out-grower to anchor companies which have the management expertise, technology, capital and markets; and
• Utilising digital technology (micro chip) in herd health management and traceability. The Ministry through the Depa r tment of Ve t e r ina r y Services Sarawak plans to establish animal auction centre for livestock to provide direct trading outlet for breeders and buyers especially during the festive season; and organise livestock competition in conjunction with Hari Peladang, to further promote the development of livestock industry in the State: Datuk Amar Douglas Uggah said Sarawak, with an Exclusive Economic Zone (EEZ) of 160,000 square kilometres or 40 percent of the National EEZ has a large potential for the development of deep sea fishing industry. The estimate for captured fish is about 330,000 metric tonnes per year.
The State Government, realising the potential of deep sea fishing industry, has built two (2) Fishery Complexes in Tanjung Manis Integrated Fishery Complex in Mukah Division and Tanjung Bako Fishery Port in Kuching Division. Currently, the development of the fishery industry is hampered mainly by the encroachment by illegal foreign fishing vessels and less stringent usage of Vessel Monitoring System (VMS).
The Ministry is coordinating with the various agencies, which are involved in surveillance and regulating deep sea fishing activities in Economic Exclusive Zone (EEZ). This is important to ensure that all registered deep sea fishing vessels land their catch at the designated fishing ports and to prevent any encroachment by foreign vessels.
Datuk Amar Douglas Uggah said it is imperative for Sarawak to systematically manage the resources and development of this industry. Hence, the Ministry has established Jawatankuasa Perakuan Permit Perikanan Laut Dalam Peringkat Negeri Sarawak and developed strict evaluation criteria for the issuance of deep sea fishing vessel permits, which must be issued to genuine local operators only. Now, the State Level Committee must evaluate any application for deep sea fishing permit and make recommendation to the Approving authority.
This should be able to help to promote private sector investments in downstream fishery industries such as the setting up of more processing plants, ice block making plants, grading and packaging facilities, ship building and shipyard for vessel maintenance. He said the State Government will establish Agro Park as a new initiative to provide land for the landless potential agro-preneurs in the efforts to boost food production.
It will provide land and divide it into lots of economic size. The land will be rented to genuine agro-entrepreneurs to produce high value agriculture products using modern agriculture methods such as smart farming, digital technology and the use of internet to market their products. Besides, the Government will also provide basic infrastructure facilities, utilities and technical advisory services. Participants of the Agro Park, who require financial assistance, can apply for venture capital fund from his Ministry.
The Government has identified an area of 500 acres in Sarikei Division and has held discussion with related agencies to look into the various development components of Agro Park including access road, water and electricity supply, telecommunication, drainage and irrigation infrastructure, soil capability and possible business models to manage the Park.
Besides, there is also a plan to establish Agro Park in Samarahan Division, which has the basic support facilities especially internet connectivity. The Ministry shall consider the establishment of the Agro Park in other suitable areas in Sarawak to increase production of agriculture product.
