GPL Introduction
GPL Introduction
B. THE INTRODUCTION OF GPL REGULATION
- To increase the Local Product Competitiveness
Trade liberalisation under the World Trade Organisation (WTO) and the ASEAN Free Trade Area (AFTA) will cause agricultural countries to face more intense competition from other manufacturing countries. To ensure that producers are able to compete in the supply of agricultural produce to the premier supply chain in the international market, the application of rules that emphasise on the 3P factors of grading, packaging and labelling will facilitate access to the market of the importing country as standards developed according to the guidelines of FAO / CODEX and comply with the terms of the WTO agreement. - Market Transparency Through the Malaysian Standard Application
The implementation of GPL Regulation guarantees a transparent marketing concept where farmers who practise grading activities based on Malaysian Standard (MS) are entitled to obtain appropriate prices with the grade issued. Middlemen or wholesalers will not be a pricing arbitrary without reference to the Malaysian Standards (MS) and this shall guarantee that the manufacturers will not be suppressed because the MS can become the yardstick in determining the quality of agricultural produces. - To increase Farmer’s Income Through Post-Harvest Damage Reduction
Packaging aspect is also important in determining the quality of agricultural produces. According to Norsida et al. (2008), researchers found that 70 percent of retailers / wholesalers accept the damage outcome of vegetables and fruits by 11 to 20 percent arising from use of inappropriate packaging. The risk of post harvest damage is quite high causing poor pricing and high disposal of damaged produce to farmers. Therefore, 3P Regulation sets that all agricultural produces should be packed accordingly and provides maximum protection from any damage during handling and transportation. This will increase farmers' income by saving from post-harvest high losses. - To Strengthen Existing Export Market
Singapore and Brunei are the traditional markets for Malaysian agricultural produces. Agri-Food & Veterinary Authority (AVA) of Singapore and Brunei Agriculture Department have been enforcing the labelling and packaging of Malaysian agricultural produce exported to the said countries. In addition, these countries have a stringent system of pesticide residues (MRLs) check.
Through GPL Regulation, exports of fruits and vegetables will not be affected after the farmers adopted good agricultural practices and in turn complied with the standards and the standards set by the importing countries. Through the application of labels in each packaging box, farmers / producers who produce agricultural produce with high pesticide residue content, can be identified through the samples tested in the laboratory. If exported agricultural produces do not comply with the 3P, then certainly the importers will shift to other neighbouring countries such as Thailand and Indonesia. - Prevent Dumping Activities
In 2009, Malaysia imported fruits valued at RM1.24 billion and vegetables valued at RM2.27 billion. Under the WTO agreement, all countries can no longer restrict free trade, but the 3P Regulation requires only quality agricultural produces that follow Malaysian Standard (MS) or CODEX are allowed to be imported.
For example, local entrepreneurs who operate mango orchards found that they could not compete with mangoes imported from neighbouring countries. This is because imported mango is sold at a much cheaper price in the market. This happens because the imported produce is outside the scope of MS grade and the attitude of consumers in Malaysia who prioritise price than quality. - Producers and Product Information
Traceability or tracing the origins of products is a growing trend in the sale of food for safety and food hygiene. The same applies for the labelling requirements prescribed under GPL Regulation which is the traceability needs of a particular product in the control of pesticide residues (MRLs) for security purposes. This is the requirement to complete the terms and conditions highlighted in the labelling of the Food Regulations 1985, Ministry of Health Malaysia.
The use the label on the packaging of agricultural produces is important because it provides information on the manufacturer, type of commodity, grade and size of the produce to be sold. This information is important to the buyer and seller to determine the terms of the transaction based on the grade and size specified. For example, the issue of E. coli bacteria content in cucumber in Europe has recently shown that the importance of a label on every food product. If there is no label that gives information on the country of origin of the cucumber, surely the authorities cannot detect where the bacteria comes from and at the same time, the authorities can take appropriate action to the manufacturers involved.