Soaring costs, fruitless returns: While govt assures local production, farmers beg to differ

 

PETALING JAYA: 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, indicating the country’s strong food availability,” its director-general Datuk Nor Sam Alwi said in an interview.

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.

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“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%,” said Nor Sam.

To boost local fruit production, the department had allocated RM65mil under the 12th Malaysia Plan for initiatives covering irrigation systems, farm infrastructure and technology transfer.

An additional RM20mil was set aside for short-term fruit crops like watermelon, papaya and banana.

“We are also expanding the country’s food production capacity by establishing new agrofood parks, with RM20mil allocated for 2021 to 2025 to develop 600ha of land,” she said.

However, wholesalers like Chin Nyuk Moy, who is Kuala Lumpur Fruits Wholesalers’ Association president, said the supply of local fruits such as rambutan and mangosteen had noticeably dropped over the past decade.

“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,” she said.

Such fruits, Chin said, 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,” she added.

As for mangosteen, Chin said 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.”

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Instead, she said, they opt to grow durian, which yields higher profits.

Chin also highlighted Malaysia’s growing import dependence on fruits like pineapple and bananas.

“Vietnam and the Philippines have become key suppliers, though imports come at a premium, costing up to RM60 for a 13kg box,” she said.

Federation of Malaysian Fruit Farmers Association president Datuk Lawrence Ting said high operational costs have pushed Malaysian fruit prices higher than in other countries.

In a memorandum, the association outlined policy changes driving up expenses, including a 25% salary hike from the minimum wage increase, a 6.67% rise in costs from reduced productivity and an 18% monthly increase per foreign worker.

Ting voiced concern that the continuous climb in operating costs may compel many producers to downsize or cease operations entirely.

“Malaysian fruit prices have gone up due to operational costs, labour shortage, limited agricultural land and rising prices of fertiliser and pesticide,” he said.

Citing papaya as an example, Ting said the wholesale price was RM2 before the pandemic but has now doubled to RM4.

He also said farming on hilly terrain requires specialised machinery but current agricultural equipment is mostly designed for flat landscapes, hindering their plans for mechanisation.

Furthermore, Ting said fruit farming is government-subsidised in some countries.

“Our farmers receive no such support,” he claimed.

Edmond Chow, a long-time banana grower, has reduced cultivation by 10% to 15% due to high costs and labour shortages.

He lamented policy deficiencies, notably the lack of restrictions on banana imports and the failure to prioritise local fruits.

“Imported bananas cost around RM2.60 per kg, compared with local (bananas) at RM2.50 at the start of the year.

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“Last year, banana prices fell below 80sen per kg.

“An abundance of imports meant farmers had to discard their unsold produce,” he said.

Papaya grower Alvin Lo said farmers have also reduced papaya cultivation over the past two years, primarily due to a 30% to 40% rise in various costs.

“In recent years, farmers would only grow papaya varieties (if there is) market demand.

“Small Hawaii papayas that were once exported to Hong Kong are now rarely seen in the market.

“Papaya prices are based on market demand.

“Even if cultivation costs increase, farmers will still end up making a loss if demand is low,” he said. - Star