Diploma in planting industrial management PDF

DIPLOMA IN PLANTING INDUSTRY MANAGEMENT
FACULTY PLANTATION AND AGROTECHNOLOGY
CASE STUDY
AGR313:
PRINCIPLE OF AGRICULTURE MARKETING
NAME MUHAMMAD AFIQ SYAMIM BIN RAMLI
MATRIX.NO 2018414888
GROUP M3AT1105G
LECTURER
NAME
MISS SUZANA AGUS BT SALIM

TABLE OF CONTENT
NODETAILPAGES
1INTRODUCTION2
2CURRENT ISSUES IN MALAYSIAN COMMODITY3
3CHALLENGES FACED BY MALAYSIAN COMMODITY4
4RECOMMENDATIONS AND CONCLUSION5
5REFERENCES6
1

INTRODUCTION
Agriculture remains an important sector of Malaysia's economy, contributing 12 percent to
the national GDP and providing employment for 16 percent of the population. The British
established large-scale plantations and introduced new commercial crops (rubber in 1876,
palm oil in 1917, and cocoa in the 1950s). The 3 main crops rubber, palm oil, and cocoa
have dominated agricultural exports ever since, although the Malaysian share of the world's
production of these crops declined steadily during the last 2 decades. Next, Malaysia is the
second-largest producer of palm oil globally after its neighbour, Indonesia. Asian countries
account for 85% of global palm oil exports and Malaysia is the second-largest exporter with
a 32.6% market share, behind Indonesia which controls 51.7% of the global export market.
According to the Malaysian Palm Oil Council, the country accounts for 29% of world palm oil
production and 37% of the world exports. Malaysia has cultivated and commercialised oil
palm plantations long before the country gained independence, and 2017 marked the
commodity’s centennial. The Department of Statistics Malaysia noted that the palm oil sector
made up 46.9% of agriculture’s contribution to the national GDP in 2015. The industry’s
economy, which is heavily dependent on crop production, has been impacted by the world’s
dry spell and the increasing exports activities of palm oil and related products from
Indonesia. In 2016, Malaysia produced 29.4% of the global palm oil demand from only 0.1%
of global agricultural land. Palm oil is the most consumed vegetables oil in the world, with
60.96 million metric tonnes consumed globally between 2015 and 2016. After that, the
agriculture, fisheries and forestry sectors employ about 10 per cent of Malaysia's workforce
and account for about eight per cent of the country's GDP. Palm oil, rubber, cocoa, and
timber products account for about half of the output while other important contributors
include fruits and tropical rice. Malaysia is the second largest producer and exporter of palm
oil in the world after Indonesia. Malaysia's palm oil production accounted for 28 per cent of
world production and 33 per cent of world exports in 2019. As additional land for palm oil
production is not available, any increase in national production at this time should come from
yields and increased productivity. Malaysian palm oil companies also have a large presence
in Indonesia and have invested in palm oil mills in major markets such as Europe, India,
China, and the United States. Most of the largest and most successful companies in
Malaysia are oil palm plantation enterprises where the state has a share of ownership.
2