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Khazanah Research Institute: Only 11pc of agrifood smallholders have government certification

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Publish date: Mon, 25 Mar 2024, 10:03 AM

KUALA LUMPUR: A survey of smallholders across different food crops, livestock, and aquaculture subsectors in Malaysia showed that only 11pc of smallholders adhere to the Malaysian Standard for crops, aquaculture and livestock.

The take up rate by smallholders in Sabah and Sarawak are much lower.

Known as MyGAP, the certification is a comprehensive one for crops, aquaculture and livestock, under Malaysian Standard (MS) 1784:2005 Crop Commodities - Good Agricultural Practice, MS 1998:2007 Good Aquaculture Practice and MS 2027:2006 Good Animal Husbandry Practice for livestock.

The survey of smallholders across different food crops, livestock, and aquaculture subsectors in Malaysia, is a part of Khazanah Nasional Bhd's efforts under the Food and Energy Security theme in Dana Impak to understand the challenges faced by Malaysian smallholders.

It was funded by Khazanah Nasional and conducted in collaboration with Khazanah Research Institute (KRI) and Think City.

It surveyed 3,300 agrifood smallholders nationwide, comprising three key subsectors: crops, aquaculture, and livestock.

KRI said in a statement today on its latest report on the matter, that greater policy initiatives are needed  to improve smallholders' socioeconomic status and food production capacity.

KRI's latest report, "Understanding the Landscape of Agrifood Smallholders in Malaysia: Climate Risks, Sustainable Standards, and Gender Gap", delves into three key pressing issues of agrifood smallholders in Malaysia: climate risks, farm sustainability certificate adoption, and gender gaps.

The report found that MyGAP adoption rates were lower among agrifood smallholders in Sabah and Sarawak, individuals with lower education levels, and those with shorter farming experience.

MyGAP has been associated with larger food industry players, as it facilitates their market penetration (both local and foreign) due to the quality assurance provided by the certification.

However, the advantages of certification for smallholders have been overlooked.

In its report KRI highlighted several favourable outcomes correlated to MyGAP adoption among agrifood smallholders, including improved perceived financial literacy and security, greater stability in marketing channels, and a higher likelihood of receiving farming support.

Although MyGAP offers various advantages, its adoption remains low, mainly due to a lack of awareness among smallholders about the programme's existence.

Furthermore, those who do apply often face lengthy waits for application approval. This demands the programme to be further refined and promoted in order to enhance adoption and overall improve agricultural sustainability.

KRI proposed that the adoption rate be increased by implementing targeted programmes aimed at commonly excluded demographics, especially smallholders in Sabah and Sarawak, those with lower education backgrounds, and shorter farming experience.

Additionally, it called for streamlining the application process, and reducing bureaucracy to create a more smallholder-friendly system to enhance the appeal of MyGAP.

It also suggested exploring incentives and group certification options to alleviate financial burdens and incentivise smallholders to adopt the programme which comes with a high compliance cost.

 

https://www.nst.com.my/business/corporate/2024/03/1030026/khazanah-research-institute-only-11pc-agrifood-smallholders-have

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