(A reflection on the 61st Anniversary of FAMA by Datuk Mohamed Shariff Abdul Aziz who had served 36 years in FAMA from 1975 – 2011. Seconded to the Pepper Marketing Board Sarawak from 1985 – 1993 as the General Manager. Served as Ketua Pengarah FAMA from 2006 – 2011).
FAMA or Lembaga Pemasaran Pertanian Persekutuan is a government statutory body established under the Act of Parliament 144 and launched officially on 30 September 1965.
Six decades have passed since it’s establishment. A brief review is warranted to gauge its ongoing activities and its contributions and its measurable outcomes. FAMA was launched together with Bank Bumiputra on this day specifically to help the ailing rice farmers at that time who were reeling under much pressure from lack of credit and marketing facilities thus falling prey to the moneylenders and traders.
The ‘padi kuncha’ and the’ jual janji‘ systems prevailing at that time were wrecking the livelihood of the poor farmers who were trapped in the vicious circle of poverty. If the condition had being left unchecked it would have fomented unrest and become a ripe ground for insurgent recruitment among the disgruntled peasants as happened in the neighbouring countries.
FAMA was formed after a study was commissioned by the government to look into the marketing woes of the small scale agricultural farmers.
The assignment was given to H.C. Biggs from the Department of Technical Cooperation London in 1964. The Report by H.C. Biggs – ‘Report On The Marketing of Agricultural and Other Rural Produce in Malaysia’, (Arkib Negara KL), was tabled to the government, in which he recommended among others the formation of an Agricutural Marketing Board with Marketing Schemes and Regulations. (Mr. H. C. Biggs from the Ministry of Overseas Development United Kingdom was later attached to FAMA as Marketing Advisor for a short period in 1968 – The Eastern Sun 5 June 1968).
At the same time,The Bumiputra Economic Congress held on June 1965 had also made a resolution urging the government to establish a marketing board to overcome the marketing problems faced by the farmers especially padi farmers. This was one among the 69 resolutions implemented by the government. To quote the excerpts of the press conference at the establishment of FAMA on 30 September 1965 by Tun Abdul Razak Hussein the Deputy Prime Minister of Malaysia among others said, ‘……….the establishment of FAMA will certainly remedy some of the existing defects of the marketing system of rural produce. It will remedy the rural indebtedness and the credit system,……..’ (lib.perdana.org.my) (NOTES ON PRESS CONFERENCE BY THE DEPUTY PRIME MINISTER LAUNCHING THE BANK BUMIPUTERA AND FAMA HELD ON 30TH SEPTEMBER, 1965).
The Government had appointed Tan Sri Hanafiah Hussein, M.P., as Chairman of the Authority. Among its prominent Board members were Tun Dr Mahathir Mohamad and Professor Ungku Abdul Aziz. Thus FAMA started its journey in its quest to improve the livelihood of the small rural padi farmers as well as the rural smallholders. It was one of the initial statutory bodies set up by the government after FELDA and RIDA (became MARA later). FAMA was at that time one of the most sought after high flying statutory body for employment and for the services rendered.
There were three main Marketing Boards established under the FAMA Act each with its own management structure but overall under the Director-General of FAMA known earlier as the Deputy Chairman (DC) of FAMA.
It was headed by (Tan Sri) Abdul Aziz Yassin , a 33 year old young budding government official ( He is the elder brother of the 8th Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin).
The three Marketing Boards were Padi Marketing Board, Pepper Marketing Board and Agricultural Produce Marketing Board. There was also a Fisheries Marketing Section.
Each Board had their Marketing Regulations for the respective commodities. Over the years a lot of changes were made to the Act. In 1971 Lembaga Padi Dan Beras Negara was formed under Act of Parliament 1971.
In 1972 Pepper Marketing Board moved its operations to Sarawak and in 2007 it had become Lembaga Lada Malaysia under Act of Parliament 2006. In the end the other Marketing Board ,the Agricultural Produce Marketing Board was dissolved and became FAMA proper after the Act 144 was revised in 1974. The Malaysia Cocoa Board established in 1988 was also an offshoot of the Cocoa Market Regulations enforced by FAMA earlier.
- GREEN BOOK PLAN (RANCANGAN BUKU HIJAU)
The main thrust of FAMA then was the implementation of the Green Book Plan. In 1974, the Buku Hijau (Green Book) programme was launched to encourage the people to engage in gardening or farming to curb inflation. With a large number of Malaysians living in urban areas, community farms were opened up in cities, towns and in rubber estates. Smallholders in rural areas too were given incentives to increase their production. FAMA was tasked in helping in the marketing of the excess production. Marketing facilities, State and District FAMA offices were opened up throughout Malaysia. In line with the Green Book Plan, a Guidebook ‘Market Potential Study of Selected Agricultural Produce’ was published by FAMA, updated from time to time, and distributed to the Farmers’ Associations and to interested parties. The rural economy boomed with such initiatives by FAMA.
- MARKET INFORMATION SYSTEM
The success of the Green Book Programme was also the initiation of an efficient Supply Monitoring Mechanism for Agricultural Produce. The program involved data collection, compilation, analysis, reporting and finally dissemination to the target groups. This Market Information System had been improved and updated over the years and it is now the most important function of FAMA. This was what that was envisaged from the time FAMA was established, among its functions to be a one stop centre for all marketing information pertaining to agricultural produce in the country. This role is the core activity of FAMA – briefly, from data collection to dissemination to target groups including analysis and reporting to the higher ups for policy directions.
- EAT MORE LOCAL FRUITS CAMPAIGN
(The total sales value of local fruit production is approximately RM7.76 Billion. (Statistics Department Malaysia) and the Total Production Volume estimated at 1.89 million metric tonnes annually (Agriculture Ministry Malaysia).
The other success story of FAMA is the ‘Eat More Local Fruit Campaign’ launched by FAMA in 1968. Since then it has been the mainstay of FAMA’s activities reinforcing a vibrant fruit industry in Malaysia. This was a successful campaign which ultimately forced the local hotel chains to serve more local fruits instead of serving only imported fruits. This is an ongoing campaign carried out in different forms to increase the local demand and consumption. Improving the packaging, branding and even giving marketable names to some local fruits. Examples include altering the name of Mango Sala to Perlis Sunshine Mangoes giving it a much needed marketing boost. Citrus Valley Oranges for Oranges from Dungun Terengganu (In September 1958 a Malay farmer was the first in the country to successfully grow mandarin oranges commercially on a 4 acre orange grove in Ajil Terengganu – Straits Times September 20,1958). Sabah Pomelos were in great demand in the peninsula rivalling the Tambun Pomelos. Square Watermelon was grown for the first time in Malaysia by Mr. Kallianan in Selangor. Malay Apple – Jambu Merah the improved local kampung variety was cultivated commercially in Temiang Renchong Johore. Honey Jackfruits grown in Johor have secured a niche market in Singapore. A new yellow-skin variety of Dragon Fruit has shown increasing demand locally and overseas. Honey Dew from Projek Di Raja Kelantan showed much potential. New fruit varieties were continually developed by the local fruit industry entrepreneurs which needs government support in promoting them locally and for export.
For Pepper promotion the tagline used for promotion was ‘ Sarawak Pepper Flavours The World’ and a International Cook Book with recipes using Sarawak Pepper was published in collaboration with Kuching Hilton. The cookbook was distributed throughout the world through the Hilton chain. This effort was in response to the request by the Chairman of Sarawak SEDC (State Economic Development Corporation) to plan a long term campaign to ensure Sarawak Pepper is seen and placed on the tables in the restaurants of all the major hotels all over the world.
The Cookbook project was a small effort towards achieving the long term plan. Pepper production is shrinking rapidly in Sarawak due mainly to the heavy labour intensity involved. Certain acreage may have to be maintained through gazette or incentive scheme. An aggressive marketing campaign should be launched as embarked by Korea Ginseng and Russian Caviar by the respective authorities. The focus should be on embarking in downstream quality processing and the processed product exported direct to established manufacturers overseas. (The Chairman of SEDC Dato’ Effendi bin Norwawi was the Federal Minister of Agriculture from 1999 – 2004).
- EXPORT OF LOCAL FRUITS
( Malaysia’s total annual export value for fruits and vegetable products in 2023 is approximately around RM4billion – Bernama).
For export purposes of all the local fruits only durian has shown potential (RM1.51 billion in 2023) especially to Mainland China but faces stiff competition from Thailand. Earlier Carombola (Starfruit) and Solo Papayas showed much potential but it could not sustain due to various reasons. Supply availability was one of them. Other potential export fruits include Mangosteen, Harum Manis Mango, Dragon Fruit, Guava, Pineapple, Cavendish Bananas and Rambutan. The way forward should be dedicated plantings for export with all the necessary facilities. Durian entrepreneurs have started focussing on plantations with integrated facilities for grading, processing and inspection for export. FAMA has to help in the promotional activities overseas especially in opening up new export destinations.
- DIRECT TRADING OF FARM PRODUCE
(The target group involved will be around 400,000 Farm Families
consisting of subsistence farmers and small scale farm operators
with uneconomic sized holdings).
FAMA had embarked on direct trading operations since 1974. FAMA buys directly from the farmers and sells the produce in the urban markets. The government had given allocation as working capital for the trading operations. It is a non-profit operation, meaning it has to manage the funds in a business like fashion and the profits generated is ploughed back into the working capital to enable more area coverage and bigger trading volume. The objective is to mop up a certain volume of the produce in production centres to stabilise the farm level market prices. During gluts more produce had to be bought as salvage operations. Such salvage operations were carried out by FAMA for various products in the earlier years when the prices slumped due to overproduction. Examples include the salvage operations for tomatoes in a Cameron Highlands in the 80s. (The NST had cried in its headline ‘ Love’s Labour Lost’ when the farmers were dumping the tomatoes to waste – Straits Times 8 May 1980). This operation by FAMA had to some extent succeeded in breaking the cartel like hold the wholesalers had on the farmers where buying price of the fresh produce was determined and paid to the farmers only after the wholesalers had sold the produce at the wholesale markets.
The other crops include coconuts in Bagan Datoh Perak in 1985; cocoa beans in Sabak Bernam and Sarawak around the same time; groundnuts in Kelantan & Terengganu in 1975; and other localised operations from time to time for the fresh produce. These operations have succeeded in stabilising farm level market prices of the various commodities.
- MARKETING INFRASTRUCTURE DEVELOPMENT
Since it’s establishment in 1965 FAMA had built a series of Marketing facilities from Padi Processing Factories to Produce Collection Centres, factories, cold rooms, grading and processing centres throughout the country. This has helped market agricultural products from the farm to the consumers in a structured and smooth manner. The centres should be reviewed often lest it becomes a white elephant from lack of use. There are also unused lands in the asset list. This should be put to productive use or be leased out to agricultural produce growers on a short term basis.
- DOWNSTREAM PROCESSED PRODUCTS PROMOTION
Processed products of the very small scale entrepreneurs need much improvements in terms of branding, packaging and promotion. It’s very small scale operations mostly backyard industries without the volume for growing big. For these products FAMA provides market excess in local supermarkets with in-store promotions and in agriculture exhibitions. In some supermarkets an area inside their place were provided to concessionaires for their products to be sold directly to consumers. Quality control and production volume are the major impediments for the products’ progress. Various measures were taken by FAMA to improve the situation but it is still work-in -progress. There are too many government agencies involved in the development of IKS (Industri Kecil Dan Sederhana) products and several Ministries too have overlapping functions in this respect but the target groups are different.
- FRANCHISE DEVELOPMENT
This is a relatively a new role for FAMA since the 80s. During the era of Tan Sri Sanusi Junid as the Minister of Agriculture, lots of new ideas were thrown up and some of them were implemented which prompted that these programmes started by FAMA could be franchised for further expansion nation-wide. Some of the entities include ‘Fried Rabbit Meat Kiosks’, ‘Food Trucks’, ‘ Fresh Milk Kiosks’, ‘ Young Coconut Drink Kiosk’. Some of them could not be sustained due to lack of logistical support for its operations.
The one project that succeeded was the ’ KopieSatu Mobile Kiosk’ at least in establishing a business model and a hub for its operations . For further expansion program through franchise development it is still work-in-progress.
- FARMERS MARKET ( PASAR TANI)
This project has become the most visible activity of FAMA. Pasar Tani was started in 1985 and it is now 41 years in existence. There had even been a wedding ceremony held in Pasar Tani Larkin Johor Bharu (the first Pasar Tani which was started in 1985) a few years back where the couple were the third generation children of Pasar Tani participants. Each Pasar Tani has become a close knit community. When Pasar Tani was first planned it was to be a temporary setup in places where there were no public markets. Once a public market is built these Pasar Tani participants will be placed permanently as traders in the markets. Some Permanent Pasar Tani and Wholesale Pasar Tani were also established by FAMA. It has continued for over 40 years managed now by the third generation participants.
FAMA has to find an exit strategy for the Pasar Tani project to move forward. A Pasar Tani cooperative structure could be considered to be managed by professionals in the future. The supply chain management should start from contract farming for supplies to depot management for distribution to the various Pasar Tani outlets.
- MANAGEMENT OF MARKET OUTLETS
Agrobazaars, Fresh Fruit Stalls, Agrocaravans and such other outlets were established by FAMA to be managed by entrepreneurs. FAMA monitors its development and oversees its progress. These outlets should be left to the respective entrepreneurs to run it efficiently and profitably. Even established supermarkets could not manage such retail outlets or in mentoring the entrepreneurs to a profitable end. FAMA’s role in these ventures should be focussed on supply distribution of the agricultural products to the outlets. Distribution of certain controlled items to these outlets are at times managed by FAMA as required by the government.
There are other activities carried out by FAMA such as the enforcement of the Marketing Regulations established for selected agricultural commodities involving licensing and the related activities. Such schemes had been enforced for padi, pepper, cocoa, coffee, coconuts and in some areas for vegetables. Padi and Cocoa have been transferred to the the respective agencies for enforcement. However for the other commodities if such schemes are still being enforced by FAMA, which may have outlived their usefulness and its effectiveness should be reviewed and slowly done away with.
The way forward for FAMA is to review its activities in line with the new aspirations of the government and the other stakeholders. Move away from wallowing in the same old mundane activities. FAMA has to stay relevant and visible in its services to the target groups. When we ask the layman about FAMA more often than not they will respond Pasar Tani because this activity is the most visible to the public. Food Fairs and Fun Fairs which FAMA is also visibly involved in should be side line activities for promotional purposes. FAMA should focus on bigger things. Activities like Food Stockpile, Auction Centres for selected commodities, Integrated Depots for Farm Produce, Market Information Portal with up to date data, Upgraded Advisory Centre for Agricultural Marketing, Market Research Centres for selected commodities and related activities should be considered. Some of these may have already be done but it is not visible enough to the general public. Planning for such big endeavours should begin now. FAMA officers should focus on marketing not as one Minister once commented ‘……they (FAMA officers) seem to be doing everything except marketing’. (personal conversation with Y.B. Minister 2007). These officers are capable of generating fresh new ideas to streamline the marketing of agricultural produce with the latest knowledge and technology available without waiting passively for orders from above. Another Minister had also given a general remark on FAMA as, ‘………you can only go so far flogging an old horse like FAMA.’ ( Article in NST titled ‘ To succeed , put one person in charge’ 29 June 2008). What was said 18 years ago might still be relevant if remedial measures have not being taken and weaknesses not yet rectified.
FAMA officers are all highly qualified and are capable of pushing up FAMA to greater heights to serve better the target groups in particular and the public at large. Give back to society what they have provided for you in abundance. However the work is more challenging as Malaysia is moving from the era of subsistence agriculture (when FAMA was established in 1965) to a vibrant modern agriculture now. Thus it is pertinent for all the related parties to embrace the latest technology and innovations towards ensuring food security, achieving self-sufficiency in the essential food items and commercial viability of the sector.
Happy 61st Anniversary FAMA.
Datuk Mohamed Shariff Abdul Aziz