Friday, July 31, 2009

why felda?

Malaysians eat a lot. According to a report, ‘...rapid expansion of the Malaysian economy over the past two decades has resulted in changing food consumption patterns and a growth in demand for agricultural products. Domestic production, however, cannot keep pace with rising demand. Demand for food, especially for wheat-based products, livestock, dairy products, sugar and vegetables, is expected to continue to increase. Imports are essential to meeting Malaysia’s food requirements.’
(From:
http://www.abare.gov.au/publications_html/crops/crops_08/malaysiafood.pdf)

‘Malaysia’s National Agricultural Plan 3 (NAP 3) caps the proportion of land that can be used for agricultural purposes at 20% of the total land area of 32.86 million hectares. This limit has not yet been reached.

Currently, Malaysia has about 18.55 million hectares of forest, compared to 4.3 million hectares of land under oil palm. Oil palm covers 65% of agricultural land.

30-35% of Malaysian palm oil is produced by smallholders. Oil palm cultivation has become a means to overcome rural poverty. The establishment of land schemes, for example by the Federal Land Development Authority (FELDA – http://www.felda.com.my) and the Federal Land Consolidation and Rehabilitation Authority (FELCRA), has resettled landless farmers who mainly grow oil palm. Today, FELDA manages about 853,000 hectares of plantations, providing employment for over 112,635 farmers. The land schemes are provided with basic amenities such as piped water, electricity, communications, roads, schools and healthcare, and offer further employment opportunities in these economic activities.

Palm oil currently contributes about 5-6% of Malaysian GDP and provides employment for 1.4 million workers (direct employment of 570,000). It triggers downstream activities and brings in revenue for national development and stability, with foreign exchange earnings amounting to an average of Euro 7.5 billion annually over the past 3 years.’
(From:
http://www.malaysiapalmoil.org/pdf/20080908-factsheet.pdf)

Therefore, to address the issue of 'changing food consumption patterns and a growth in demand for agricultural products', ...‘The government plans to turn all FELDA schemes into a national food warehouse capable of producing food on a large scale, Prime Minister Datuk Seri Najib Tun Abdul Razak said yesterday’

(From: FELDA to be National Food Warehouse, says PM.
The Sun; Kuala Lumpur. 8 July 2009. Front Page. http://www.sun2surf.com)

I have a couple of questions,

Why FELDA?
Why not other mega plantation conglomerates such as the SIME DARBY? (
http://www.simedarby.com/Corporate_Profile.aspx)

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