New Agri-food Marketing System for Fresh Fruits and Vegetables in Malaysia: Some Structural Perspectives

Author(s): Fatimah Mohamed Arshad

Keywords: Agri-food marketing, fresh fruit and vegetables, structural perspective

DOI:
 

Full text download here

Abstract: This paper examines the development of the new supply chain in Malaysia and its structural implications to the local fresh produce (fruits and vegetables) industry, particularly the small producers. It traces the growth of the new retail formats such as hypermarkets, departmental stores and supermarkets. The growth of these new retailers intensified in the late 1990s, as globalisation brought in capital-rich multi-national retailers into the local marketing scene. The structural differences between the new supply chain and conventional marketing are compared. Within less than a decade, the new super retailers were able to capture a significant market share of the local fruits and vegetables at the expense of the small time local retailers. Their procurement system which emphasises on consistent supply and rigid quality standards indirectly cuts off the small farmers from the supply chain. New type of intermediaries, packing houses have emerged replacing the traditional middlemen role usually performed by small time wholesalers or traders at the farm level. To integrate the small farmers into the new supply chain entails are formation programme that enhances productivity, product quality and institutional restructuring towards cooperative movement.

References
 

Abbott, J.C. (1987). Agricultural Marketing Enterprises for the Developing World. Australia: Cambridge University Press.

 

Alias R., Shazali A. M. & Dayang Affizzah A. M. (2006). Demand Analysis of FAFH Homes’ in Malaysia. Staff Paper 6/2006. Faculty of Economics and Management, Universiti Putra Malaysia, Serdang, Selangor.

 

Azizi M. N. (2005, December). Reinventing the Agriculture: Moving up the Value Chain. Paper presented at the National Outlook Conference, organized by MIER,  Kuala Lumpur, 6-7 December. Retrieved from www.mier.org.my/presentations/ archives/pdf/Azizi.pdf

 

Bain, J. S. (1968). Industrial Organization. New York: Wiley.

 

Boehlje, M. (1999). Structural Changes in the Agricultural Industries: How Do We Measure, Analyze, and Understand Them?, American Journal of Agricultural Economics, 81(5), 1028-1041.

 

Companies Commission of Malaysia (2007). Suruhanjaya Syarikat Malaysia. Retrieved from http://www.ssm.com.my/

 

Department of International Development (DFID) (2004). Concentration in food supply and retail chains. Retrieved from http://dfid-agriculture-consultation.nri.org/ summaries/wp13.pdf

 

Euromonitor (2006). Retailing in Malaysia. Retrieved from http://www.euromonitor.com/ Retailing_in_Malaysia

 

Euromonitor (2010). Retailing in Malaysia. Retrieved from http://www.euromonitor.com/ Retailing_in_Malaysia

 

Fatimah, M. A. (1999). Prospek Pemasaran Terus Keluaran Pertanian dan Makanan di Malaysia, paper presented at the Seminar Kebangsaan Pasar Tani, organised by FAMA, Port Dickson, 20-21 September, 11 p.

 

Fatimah, M. A. & Khalid A. R. (2008). New Agri-food Marketing System: Structural and Impact Analyses, research report submitted to Federal Agricultural Marketing Authority, Malaysia, 205 pp.

 

Fatimah, M. A., Alias, R. & Zainalabidin, M. (2005). The Fruits Industry in Malaysia: Issues and Challenges. Serdang: Universiti Putra Malaysia Press.

 

New Agri-food Marketing System for Fresh Fruit and Vegetables in Malaysia:Some Structural Perspectives

 

Fatimah, M. A., Zainalabidin M. & Ismail, L. (2006, November). Changes in Agri-  Food Supply Change in Malaysia: Implications on Marketing Training Needs. Paper presented at the FAO/AFMA/FAMA Regional Workshop on Agricultural Marketing Training, organized by Food and Agricultural Organization of the United Nations (FAO), Agricultural and Food Marketing Association for Asia and the Pacific (AFMA), Federal Agricultural Marketing Authority of Malaysia (FAMA), Ministry of Agriculture and Agro-based Industries (MoA), Kuala Lumpur, Malaysia, 20 –25 November.

 

Federal Agricultural Marketing Authority (FAMA) (2010). Mesyuarat Jawatankuasa Teknikal HIP-Ladang Kontrak, 27 January. FAMA: Shah Alam.

 

Food and Agriculture Organisation (FAO) (2004, October). Report on the FAO/AFMA/ FAMA Regional Workshop on the Growth of Supermarkets as Retailers of Fresh Produce. Kuala Lumpur, October 4-7. Retrieved from www.fao.org/ag/agS/subjects/en/agmarket/docs/klrep_no.pdf

 

Food and Agriculture Organization (FAO) (2005). Spotlight: Farmers and supermarkets in Asia. Retrieved from www.fao.org/ag/magazine/0505sp1.htm

 

Giovannucci, D. & Purcell, T. ( 2008). Standards and Agricultural Trade in Asia , ADB Institute Discussion Paper No. 107. Retrieved from http://papers.ssrn.com/sol3/ papers.cfm?abstract_id=1330266

 

Herfindahl, O.C. (1950). Concentration in the U.S. Steel Industry (Unpublished Ph.D’s dissertation). New York: Columbia University.

 

Hong, H. K. (2005). How to Successfully Link Rural Producers to the Urban Market. Paper prepared for presentation at the Seminar on Cooperative Integration of Agricultural Marketing organized by International Agricultural Cooperative Organization (ICAO), Colombia.

 

Hu, D. (2005). A Revolution in Food Marketing, Pacific Food System Outlook 2005-6. Retrieved from http://www.pecc.org/food/papers/pfso2005-06.pdf

 

Ishak, H. O. (1994). Market Power, Vertical Linkages and Government Policy, The Fish Industry in Peninsular Malaysia. Kuala Lumpur: Oxford University Press.

 

Kaynak,  E.  (1986).  Food  Marketing  Systems:  Less  Developed  Countries  Practices, Journal of Food Marketing, 21–37.

 

Malaysia (2006). Report on Household Expenditure Survey 2004/5, Department of Statistics Malaysia. Putrajaya: Department of Statistics.

 

Malaysia (2006). Ninth Malaysia Plan (2006-2010). Kuala Lumpur: Percetakan Nasional Malaysia Berhad.

 

Manalili, N.M. & Locel, A.C.T. (2005). Regoverning Market: Securing Small Producer Participation in Restructured National and Regional Agri-food System, Southeast Asia Overview. SEAMEO Regional Centre for Graduate Study and Research in Agriculture (SEARCA) College, Philippines.

 

Mohd Ariff. H., Fatimah M. A., Nik Mustapha Raja Abdullah, Abu Hassan Mad Isa, Tai Shzee Yew, K. Kuperan & E. T. Gibbons (1986). Fish Marketing in Peninsular Malaysia, Consultancy Report submitted to Lembaga Kemajuan Ikan Malaysia, Kuala Lumpur, Malaysia.

 

Norsida Man, Fatimah Mohamed Arshad, Zainalabidin Mohamed, Mansor Ismail, Amin Mahir Abdullah, Ismail Abd. Latiff, Muhamad Fadzil Repin, Nolila Mohd. Mawi & Haron A. Rahim (2008). Supply Chain Management of the Malaysian Fruits and Vegetables, research report submitted to Federal Agricultural Marketing Authority, Malaysia, 85pp.

 

PECC (The Pacific Economic Corporation Council) (2006). A Revolution in Food Marketing, Pacific Food System Outlook 2005-6. Retrieved from http://www.pecc.org/food/papers/pfso2005-06.pdf

 

PricewaterhouseCoopers (2003). Retail & Consumer from New Delhi to New Zealand. Retrieve from  www.pwc.com/gx/eng/about/ind/retail/exec_summary asia_2003.pdf

 

Reardon, T., C.P. Timmer, C.B. Barrett, & J. Berdegue (2003). The Rise of Supermarkets in Africa, Asia, and Latin America, American Journal of Agricultural Economics, 85 (5), 1140-1146.

 

New Agri-food Marketing System for Fresh Fruit and Vegetables in Malaysia:Some Structural Perspectives

 

Sahbani S. (2004, October). The Growth of Supermarkets in Malaysia. Paper presented at the Workshop on the Growth of Supermarkets as Retailers of Fresh Produce, Regional Workshop by FAO/AFMA/FAMA , 4-7 October, Kuala Lumpur.

 

Shepherd, A. W. (2004). The implications of supermarket development for horticultural farmers and traditional marketing systems in Asia. Paper presented to the FAO/ AFMA/FAMA Regional Workshop on the Growth of Supermarkets as Retailers of Fresh Produce, Kuala Lumpur, October 4-7.

 

USDA (2006). Gain report, Malaysia: Exporter Guide, GAIN Report Number: MY6042, USDA Foreign Agricultural Services. Retrieved from

 http://www.pwc.com/gx/eng/about/ind/retail/growth/malaysia.pdf