Tuesday, 10 December 2024

Soaring Costs, Fruitless Returns?

A contrasting narrative has emerged within Malaysia’s fresh fruit market, highlighting the complexities of the agricultural sector. Government agencies said there has been enough of an uptick in fruit production to enhance self-sufficiency and export capabilities. However, wholesalers offered a different perspective, saying there is a decline in the local fruit supply due to rising costs and increased import dependence.

According to the Agriculture Department, Malaysia’s fruit production reached 1,889,000 tonnes last year, marking continued growth. Overall production has steadily increased from 1,827,000 tonnes in 2022 to 1,889,000 tonnes last year. This is a 3.34% rise.

Durian is the top-produced fruit with 529,000 tonnes harvested. The self-sufficiency rate of certain fruits also improved from 78.1% in 2022 to 79.8% last year, with langsat recording the highest rate at 135.3%.

However, not all fruits experienced gains. Mango production dipped slightly by 0.06% from 2022 to 2023, while mangosteen saw a more significant 6.11% decrease. There are also diverging trends depending on the area. While durian and pineapple saw modest increases, jackfruit nearly doubled in planted areas, driven by new market opportunities or favourable agricultural policies.

 


Last year, the supply of 10 selected fruits such as papaya, watermelon, star fruit, jackfruit, durian, pineapple, guava and rambutan was sufficient to meet domestic demand, with self-sufficiency rates exceeding 100%.

The main reasons are the low demand for these two types of fruit and the high cost of cultivation. Fruit suppliers seldom offer these kinds of fruits now. Such fruits are now mostly homegrown or harvested from orchards. They are usually sold at roadside stalls only. The decline in rambutan production is due to farmers struggling to make a profit as the wholesale price is only 50sen to RM1. This low return has led many farmers to stop growing rambutan trees.

As for mangosteen, they are primarily grown on the hills, so harvesting requires manual labour. The selling price ranges from RM1.50 to RM2, which has led to a gradual reduction in its cultivation by farmers.


Federation of Malaysian Fruit Farmers Association president said high operational costs have pushed Malaysian fruit prices higher than in other countries. Citing papaya as an example, the wholesale price was RM2 before the pandemic but has now doubled to RM4.

Farming on hilly terrain requires specialised machinery but current agricultural equipment is mostly designed for flat landscapes, hindering their plans for mechanisation. Furthermore, fruit farming is government-subsidised in some countries. This is not so in Malaysia. We need to focus on agriculture for self-sufficiency and other related reasons.


Reference:

Soaring costs, fruitless returns: While govt assures local production, farmers beg to differ, Khoo Gek San, The Star, 2 December 2024


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