ID :
113575
Fri, 03/26/2010 - 13:45
Auther :
Shortlink :
https://oananews.org//node/113575
The shortlink copeid
FAMA`S HELPING HAND FOR CABBAGE GROWERS
By Mohd Azhar Ibrahim
CAMERON HIGHLANDS (Malaysia), March 26 (Bernama) -- The average Malaysian
consumes about 35 kilograms of cabbage per year and collectively munch through
some 6,000 metric tonnes of the leafy vegetable a month.
The demand for highland cabbage slightly increases during major festive
celebrations while production levels decrease significantly during the monsoon
seasons.
The bulk of the demand for this vegetable is attributed to institutional
buyers like hotels, educational institutions and hostels.
However, the farmers here most of whom cultivate imported hybrid seeds from
Japan, Taiwan and Korea on their rented 2-acre plots, can only produce between
4,000-5,000 metric tonnes per month.
The average highland farm produces between 15-20 metric tonnes of cabbage
per acre (0.44 hectares), which take between 75-90 days to mature.
CAMERON THE PERFECT PLACE TO GROW BRASSICA
Even though the cool climate of Cameron Highlands is conducive for growing
cabbage, farmers have to apply generous amount of poultry manure and imported
agrochemicals and pesticides in order to maintain crop quality.
This translates into a production cost of 65 sen per kilogram, which is the
highest compared with their counterparts in Thailand, Indonesia, China and even
Holland.
According to Cameron Highlands Indian Farmers Association committee member
Nanthakumar Suprumani, although crop yield has increased due to the use of
hybrid seeds, rising cost of production resources, especially fertilisers and
pesticides are chipping away his already slim margin.
"I now have to fork up RM120 (US$35) for the same bottle of fertiliser which
cost RM64 (US$18) in December 2009," Nanthakumar said.
Nanthakumar, whose farm is located at the foothill of Gunung Brinchang
(Brinchang Mountain), is perplexed as to why cheaper fertilisers from Thailand
are banned while cabbages from that country are allowed in.
"Surely the Thais use the same fertiliser for their crop!" the bewildered
farmer exclaimed.
Cameron Highlands vegetable growers are also finding it increasingly
difficult to recruit farm hands. Cameron Highlands is a highland located about
214km north of Kuala Lumpur.
THE DYNAMICS OF PRODUCTION LEVEL AND APPROVED PERMITS
To enable consumers to obtain their daily quota, the Federal Agricultural
Marketing Authority (FAMA) have set up a marketing information system to
determine monthly as well as seasonal production quotas and monitor
supply-demand considerations.
FAMA officers collaborate with representatives from the Cameron Highlands
Vegetable Growers Association to conduct monthly physical surveys to determine
production levels.
Based on feedback obtained, FAMA submits its findings and recommendations to
the Ministry of Agriculture and Agro-based Industry (MOA) which then issues
Approved Permits (APs) to cover anticipated shortfall with cheaper imports from
Thailand, Indonesia and China.
"The monthly production level at Cameron Highlands forms the basis for
determining the volume to be imported. Currently, about 3,000 metric tonnes are
brought in through APs every month," FAMA Director General Mohamed Shariff
Abdul Aziz said to Bernama recently.
"Although the APs function as a price stabiliser for highland cabbage, FAMA
itself does not issue these permits and that function is the prerogative of the
MOA," Shariff explained.
But when data upon which it relies is faulty, even the most carefully laid
out plan can go awry.
Inaccurate inputs from farmers lead to more imports than necessary and price
plummets as a result of the ensuing glut.
The situation is aggravated when opportunistic importers under-declare their
inbound cargo or employ duplicitous methods in the use of their permits. It does
not help that smugglers are getting into the act too.
Information through the grapevine has it that these factors were
instrumental to the price slump, which reached an all-time low of 40 sen a
kilogram in October 2009.
PRICING AND DISTRIBUTION
As is the practice in any commercial undertaking, the cost price of an item
increases as it changes hands.
In the cabbage business, the price margin between farmer and middleman
ranges from 100-200 percent. Top this up with another 100-150 percent between
the middleman and wholesaler; a further 100-200 percent between retailer and
consumer; and by the time the consumer picks up the cabbage from the grocery
shelf, the price tag is 3-4 times that at the farm gate.
Factors such as major festivals, price control, cheap imports, demand from
institutional buyers, and choice of distribution method can also influence
price.
Cameron Highlands cabbages are distributed through direct, contract and
consignment marketing. Since most farmers lack the logistics to deliver their
products directly to consumers, they enlist the services of middlemen.
In consignment marketing the farmer will only know his farm gate price after
the consignee has sold off the produce at the Selayang wholesale market.
However, not all the 120 wholesalers who serve Cameron Highlands farmers
always have their clients' interest close at heart. The lack of transparency
hinders the farmers from verifying whether the price they get is justified.
As hapless producers who play no role in the pricing decision, cabbage
growers lament that the fruit of their diligent labour is often squandered by
the middlemen.
"We are completely at the mercy of the wholesalers," Nanthakumar said.
Expressing his agreement, agro-entrepreneur Syed Abdul Rahman who operates
the Al-Mashoor Agro Park in Tanah Rata urged the authorities to closely monitor
the activities of the wholesalers to ensure their prices are genuine and fair.
VIABLE MARKETING ALTERNATIVE
When angry farmers threatened to dump their stock at FAMA's premises in
Cameron Highlands last October, FAMA salved frayed nerves when it bought some
500 metric tonnes of cabbage for RM350,000 (US$10,294) which was then
distributed to hypermarkets throughout the Klang valley.
Almost overnight, the retail price went up to RM1.30-RM1.40 a kilogram.
It went up to RM3.50(about US$1)/ kilogram when the quota for APs in
December was reduced by 65 percent, upon FAMA's recommendation.
Through FAMA, Cameron Highlands cabbage growers know they are getting a fair
price for their effort and like many others Nanthakumar now channels his produce
exclusively to FAMA.
Due to the already limited farm land in Cameron Highlands, cabbage
production is not likely to increase significantly unless farmers employ hi-tech
methods like fertigation system or hydroponic farming.
However, such methods require considerable initial capital outlay that is
apparently in short supply. Even if they have the means, many shy away from
doing so in view of the temporary nature of their land tenure and the scarcity
of labour.
According to Cameron Highlands Vegetable Growers Association Secretary, Chay
Ee Mong, farming on the highland is labour intensive but farmers are not getting
the number of workers they need.
Consequently, the APs are not going to disappear any time soon.
"FAMA will maintain its vigilance through constant monitoring and
enforcement, to prevent any hiccups in the marketing process, which would cause
price upheavals. We will ensure Cameron Highlands vegetable growers get
reasonable returns for their effort," Shariff assured.
Nevertheless, farmers have to play their part too. As long as they do not
under-declare production levels, there will be no glut.
-- BERNAMA
CAMERON HIGHLANDS (Malaysia), March 26 (Bernama) -- The average Malaysian
consumes about 35 kilograms of cabbage per year and collectively munch through
some 6,000 metric tonnes of the leafy vegetable a month.
The demand for highland cabbage slightly increases during major festive
celebrations while production levels decrease significantly during the monsoon
seasons.
The bulk of the demand for this vegetable is attributed to institutional
buyers like hotels, educational institutions and hostels.
However, the farmers here most of whom cultivate imported hybrid seeds from
Japan, Taiwan and Korea on their rented 2-acre plots, can only produce between
4,000-5,000 metric tonnes per month.
The average highland farm produces between 15-20 metric tonnes of cabbage
per acre (0.44 hectares), which take between 75-90 days to mature.
CAMERON THE PERFECT PLACE TO GROW BRASSICA
Even though the cool climate of Cameron Highlands is conducive for growing
cabbage, farmers have to apply generous amount of poultry manure and imported
agrochemicals and pesticides in order to maintain crop quality.
This translates into a production cost of 65 sen per kilogram, which is the
highest compared with their counterparts in Thailand, Indonesia, China and even
Holland.
According to Cameron Highlands Indian Farmers Association committee member
Nanthakumar Suprumani, although crop yield has increased due to the use of
hybrid seeds, rising cost of production resources, especially fertilisers and
pesticides are chipping away his already slim margin.
"I now have to fork up RM120 (US$35) for the same bottle of fertiliser which
cost RM64 (US$18) in December 2009," Nanthakumar said.
Nanthakumar, whose farm is located at the foothill of Gunung Brinchang
(Brinchang Mountain), is perplexed as to why cheaper fertilisers from Thailand
are banned while cabbages from that country are allowed in.
"Surely the Thais use the same fertiliser for their crop!" the bewildered
farmer exclaimed.
Cameron Highlands vegetable growers are also finding it increasingly
difficult to recruit farm hands. Cameron Highlands is a highland located about
214km north of Kuala Lumpur.
THE DYNAMICS OF PRODUCTION LEVEL AND APPROVED PERMITS
To enable consumers to obtain their daily quota, the Federal Agricultural
Marketing Authority (FAMA) have set up a marketing information system to
determine monthly as well as seasonal production quotas and monitor
supply-demand considerations.
FAMA officers collaborate with representatives from the Cameron Highlands
Vegetable Growers Association to conduct monthly physical surveys to determine
production levels.
Based on feedback obtained, FAMA submits its findings and recommendations to
the Ministry of Agriculture and Agro-based Industry (MOA) which then issues
Approved Permits (APs) to cover anticipated shortfall with cheaper imports from
Thailand, Indonesia and China.
"The monthly production level at Cameron Highlands forms the basis for
determining the volume to be imported. Currently, about 3,000 metric tonnes are
brought in through APs every month," FAMA Director General Mohamed Shariff
Abdul Aziz said to Bernama recently.
"Although the APs function as a price stabiliser for highland cabbage, FAMA
itself does not issue these permits and that function is the prerogative of the
MOA," Shariff explained.
But when data upon which it relies is faulty, even the most carefully laid
out plan can go awry.
Inaccurate inputs from farmers lead to more imports than necessary and price
plummets as a result of the ensuing glut.
The situation is aggravated when opportunistic importers under-declare their
inbound cargo or employ duplicitous methods in the use of their permits. It does
not help that smugglers are getting into the act too.
Information through the grapevine has it that these factors were
instrumental to the price slump, which reached an all-time low of 40 sen a
kilogram in October 2009.
PRICING AND DISTRIBUTION
As is the practice in any commercial undertaking, the cost price of an item
increases as it changes hands.
In the cabbage business, the price margin between farmer and middleman
ranges from 100-200 percent. Top this up with another 100-150 percent between
the middleman and wholesaler; a further 100-200 percent between retailer and
consumer; and by the time the consumer picks up the cabbage from the grocery
shelf, the price tag is 3-4 times that at the farm gate.
Factors such as major festivals, price control, cheap imports, demand from
institutional buyers, and choice of distribution method can also influence
price.
Cameron Highlands cabbages are distributed through direct, contract and
consignment marketing. Since most farmers lack the logistics to deliver their
products directly to consumers, they enlist the services of middlemen.
In consignment marketing the farmer will only know his farm gate price after
the consignee has sold off the produce at the Selayang wholesale market.
However, not all the 120 wholesalers who serve Cameron Highlands farmers
always have their clients' interest close at heart. The lack of transparency
hinders the farmers from verifying whether the price they get is justified.
As hapless producers who play no role in the pricing decision, cabbage
growers lament that the fruit of their diligent labour is often squandered by
the middlemen.
"We are completely at the mercy of the wholesalers," Nanthakumar said.
Expressing his agreement, agro-entrepreneur Syed Abdul Rahman who operates
the Al-Mashoor Agro Park in Tanah Rata urged the authorities to closely monitor
the activities of the wholesalers to ensure their prices are genuine and fair.
VIABLE MARKETING ALTERNATIVE
When angry farmers threatened to dump their stock at FAMA's premises in
Cameron Highlands last October, FAMA salved frayed nerves when it bought some
500 metric tonnes of cabbage for RM350,000 (US$10,294) which was then
distributed to hypermarkets throughout the Klang valley.
Almost overnight, the retail price went up to RM1.30-RM1.40 a kilogram.
It went up to RM3.50(about US$1)/ kilogram when the quota for APs in
December was reduced by 65 percent, upon FAMA's recommendation.
Through FAMA, Cameron Highlands cabbage growers know they are getting a fair
price for their effort and like many others Nanthakumar now channels his produce
exclusively to FAMA.
Due to the already limited farm land in Cameron Highlands, cabbage
production is not likely to increase significantly unless farmers employ hi-tech
methods like fertigation system or hydroponic farming.
However, such methods require considerable initial capital outlay that is
apparently in short supply. Even if they have the means, many shy away from
doing so in view of the temporary nature of their land tenure and the scarcity
of labour.
According to Cameron Highlands Vegetable Growers Association Secretary, Chay
Ee Mong, farming on the highland is labour intensive but farmers are not getting
the number of workers they need.
Consequently, the APs are not going to disappear any time soon.
"FAMA will maintain its vigilance through constant monitoring and
enforcement, to prevent any hiccups in the marketing process, which would cause
price upheavals. We will ensure Cameron Highlands vegetable growers get
reasonable returns for their effort," Shariff assured.
Nevertheless, farmers have to play their part too. As long as they do not
under-declare production levels, there will be no glut.
-- BERNAMA
