by Professor Dato Dr. Ahmad Ibrahim,
CORN is in the news again. It started with the rise in prices of chicken, the most popular source of protein for Malaysians.
The supply and price of chickens sparked a heated discussion on social media.
Various analyses and theories were shared on the issue, but one that constantly popped up concerning chicken feed.
It then became known to the public that the hike in prices was connected to the cost of animal feed, which is a significant expenditure in the production of chickens.
The spike in the global price of animal feed is rooted in the Russia-Ukraine conflict as well as supply shortfalls from other major producing countries, not to mention the yet-to-be resolved logistics that were disrupted by the Covid-19 pandemic.
The grain corn industry is relatively small in Malaysia. However, the development of the livestock industry, especially ruminants, broilers, and swine, requires millions of tonnes of grain corn as the main component of their feeds.
Malaysia imports nearly 100% of its grain corn needs from countries like Brazil and Argentina. There have been efforts to grow our own corn before, with many farmers joining the venture to supply the domestic market. Even rubber smallholders grew corn to supplement their income.
Unfortunately, there was no proper channel to market their produce. As a result, much was left to rot or sold at prices not befitting their investment.
Like everything else, there needs to be a proper and efficient market for corn if it is to become a commodity. Palm oil is a good example of a commodity that benefits from the presence of an efficient market.
The Agriculture and Food Industries Ministry is targeting a 30% increase in grain corn production for the animal feed industry in the next five years. This is to meet the demand and accommodate the need for animal feed while reducing our dependence on imported grain corn. Grain corn has been cultivated in Malaysia since the 80s, but this crop is not popular among farmers who prefer to grow sweet corn, which fetches a higher price.
Other countries in ASEAN are way ahead of us in terms of grain corn production.
One study has suggested some reasons why grain corn farming has not really taken off in Malaysia. There is no suitable variety to be planted; the cost of production is very high; there is no suitable machinery available, especially for harvesting and drying, and there is not much government support and intervention in marketing the produce.
It is no wonder then that Malaysia must import grain corn every year. We import about 300,000 tonnes, which cost almost RM4bil. This is a big drain on the nation’s foreign exchange. Furthermore, the amount spent has been increasing by 10% every year.
The government has targeted the cultivation of about 80,000ha of grain corn nationwide by 2033, but how do we make sure that this target is realized?
What is going to be different this time around in terms of the strategy? What are the lessons we can learn from past efforts?
We need to avoid repeating the past mistakes moving forward, otherwise, we will again embark on a similar program a few years down the road.
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