Mohd Zahid Laton, FPP UiTM Pahang                                   CHAPTER 6INVOLVEMENTS OF GOVERNMENT AGENCIES IN AGRICU...
Mohd Zahid Laton, FPP UiTM Pahang2.     Government agencies involved in providing the technical assistance;       2.1    M...
Mohd Zahid Laton, FPP UiTM Pahang6.     The government role in the transportation. The Road TransportationDepartment provi...
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Agriculture Marketing (Mkt165) chapter 6-involvement ofgovernagencyinagrmktg


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Agriculture Marketing (Mkt165) chapter 6-involvement ofgovernagencyinagrmktg

  1. 1. Mohd Zahid Laton, FPP UiTM Pahang CHAPTER 6INVOLVEMENTS OF GOVERNMENT AGENCIES IN AGRICULTURAL MARKETING1. Government agencies involved in the process of agricultural productionand marketing; 1.1 FAMA. FAMA (Federal Agricultural Marketing Authority) ia the marketing agency established under Ministry of Agriculture. Formulate on 30th September 1965 for coordinating, controling, supervising and assisting eksport and import activities regarding to the agricultural products including vegetables, fruits, grains and aqua-culture. 1.2 MARDEC. At its foundation in 1969, MARDECs first task was to improve the quality of the rubber produced by Malaysias smallholders, and to reorganize its marketing. MARDEC Berhad is now an integrated conglomerate with world-wide connections, engaged in Rubber and Polymer Processing, Trading and Manufacturing. 1.3 BERNAS. Padiberas Nasional Berhad (BERNAS) is a company listed on the Main Board of Bursa Malaysia. As the nations partner in the domestic paddy and rice industry, BERNAS and its group of companies are involved in the procurement and processing of paddy; as well as the importation, warehousing, distribution and marketing of rice in Malaysia. BERNAS currently controls about 24% of the paddy market and 45% of the local rice demand. 1.4 LTN. Lembaga Tembakau Negara is the agency established to restructure tobbaco production system to increase efficiency, reducing cost and the competitiveness of the tobbaco. LTN intend to increase the sosio- economy of farmers in the tobbacco industry. 1.5 MITI. The Ministry of Commerce and Industry was established in April 1956 and situated in Government Office, Jalan Raja. The Ministry was then renamed the Ministry of Trade and Industry in February 1972. The vision is to make Malaysia the preferred investment destination and among the most globally competitive trading nations by 2020. 1.6 MATRADE. Malaysia External Trade Development Corporation (MATRADE), was established in March 1993 as a statutory agency under the Ministry of International Trade Industry (MITI). As Malaysia’s national export promotion agency, MATRADE is responsible for assisting Malaysian companies succeed in the international market. MATRADE’s vision of making Malaysia the premier exporting nation is paired with its mission to develop and promote Malaysia’s exports to the world. 1
  2. 2. Mohd Zahid Laton, FPP UiTM Pahang2. Government agencies involved in providing the technical assistance; 2.1 MARDI. The main objective of MARDI (Malaysian Agricultural Research & Development Institute) is to develop indigenous science and technology capabilities in support of the development and modernization of the national food and agricultural sector. 2.2 MPOB. The Malaysian Palm Oil Board (MPOB) is the premier government agency that is responsible for promoting, developing and advancing the country’s palm oil industry. It is also responsible for providing scientific and technological leadership to support the development of the palm oil industry in Malaysia. 2.3 FRI. The Fisheries Research Institute (FRI) conducts studies in various fields of aquatic organism such as fish, mollusk and shrimp. 2.4 Department of Veterinary Services. DVS providing veterinary services in industry regarding to animal for the public interests. DVS purpose is to encourage the production of livestock and value-added industry.3. The government role in the price policy. Most agricultural commoditymarkets usually function under the regular forces of demand and supply. Thegovernment also fixes minimum support prices or statutory prices for certain cropsin order to protect the interests of farmers and encourage them to increaseproduction. If the price of these commodities falls below the support limit, thegovernment arranges to buy these crops on state account.4. Agricultural commodities are homogeneous products. For example, palm oilof the same type and grade whether it is produced in the different location is used tomake cooking oil. Manufacturers regard price as the main determinant of their palmoil purchases. Commodities are produced on a large number of farms, eachaccounting for a small part of total output. No individual farmer can influence pricesby limiting supplies to the market. Because of these characteristics, individualproducers cannot influence market forces. Prices can be low and quite variable,depending on the level of output. Higher production usually translates into lowerprice for most commodities. At such times, incomes of most farmers are bolsteredby commodity programs designed to even out the large swings in prices.5. The government role in the storage. The storage, pricing and marketing ofagricultural commodities is as important for high profits as the process ofproduction. This is the reason why the government since 1951 has laid stress on thedevelopment of physical markets, on farm and off farm storage structures, facilitiesfor standardization and grading, packaging and transportation through differentFive Year Plans. 2
  3. 3. Mohd Zahid Laton, FPP UiTM Pahang6. The government role in the transportation. The Road TransportationDepartment provides insightful agricultural transportation information and analysisto help move agricultural products to market. The Road Transportation Departmentinforms, represents, and assists agricultural shippers and government policymakersthrough market reports, regulatory representation, economic analysis, technicalassistance, and responding to inquiries. Through several companies such PLUS,MTD, and other highway builder, government seriously involves in the developmentof roadway facilities to migrate the agricultural product from location to otherlocation, and to move those commodities to the port, assembling centres, and otherlocation for further processing.7. The government role in grading. Through several agencies, grading willtake places to standardize the commodities product especially for the exportpurposes. At one time Lembaga Koko Malaysia is the only one of the agency thatgrades the cocoa produced in Malaysia for export.8. The major issues and problems of farmer’s marketing which justifygovernment intervention or involvement in agriculture; 8.1 Farm prices and income problems. 8.2 Food security. 8.3 Market and price are not able to allocate resources properly. 8.4 Conflicting outcome of farm policies. 8.5 Protecting consumers of lower income group. 3