TRAINING OF TRAINERS IN THE GLOBALGAP STANDARD FOR GREATER MARKET ACCESS
MOKTIR SINGH GARDIR SINGH,MALAYSIA
5-10 DEC,LAHORE,PAKISTAN
1. INTRODUCTION
Malaysian food industry is as diverse as the cultures in Malaysia with wide range of
processed food with Asian taste. This industry is predominantly Malaysian-owned,
dominated by small and medium scale companies (SMEs). Besides the SMEs, there are
notable foreign and MNCs companies producing processed food products in Malaysia. It
encompasses sectors such as meat, milk and egg products, cocoa and chocolate products,
fishery products, cereals and cereal products, processed fruits and vegetables,
confectionery, food ingredients, herbs and spices, beverages, animal feed, and others.
Total processed food contributed about RM18 billion and are exported to more than 200
countries, while import processed food totalled RM17.8 billion in 2015.
Major processed food exports were edible products and preparations (RM5.6 billion),
cocoa and cocoa preparations (RM4.1 billion), prepared cereals & flour preparations
(RM2.8 billion), dairy products (RM1.4 billion) and margarine and shortening (RM1.1
billion). Malaysia exported food products to more than 200 countries. Major export
destinations were Singapore, Indonesia, USA, Thailand and Republic of China. Raw
materials such as cereals and dairy products continued to be imported for further
processing.
The main imports of processed food were edible products and preparations (RM5.2
billion), dairy products ( RM3.5 billion) , sugar and sugar confectionary (RM3.4 billion),
prepared / preserved vegetables and fruits (RM1.8 billion) and cocoa and cocoa
preparations (RM1.5 billion) . Raw materials such as dairy products and cereals will
continue to be imported for further processing for human consumption and animal feed
production.
Malaysia is self-sufficient in poultry and eggs, but imports about 80% of its beef
requirements. Among the dairy products produced are milk powder, sweetened condensed
milk, pasteurized or sterilized liquid milk, ice cream, yoghurt and other fermented milk.
The fisheries product’s sub-sector is export oriented which includes processed seafood
products such as frozen and canned fish, fillet, surimi and surimi products. In the fruits
and vegetables sub-sector, premium fruits and vegetables has been identified under
National Key Economic Area (NKEA) with the aims to export local premium fruits and
vegetables to the Middle East and Europe, which import more than 50% of the global
production of higher quality local fruits and vegetables that comply with food safety
standards. Six high-value non-seasonal tropical fruits (rock melon, starfruit, papaya,
banana, pineapple and jackfruit) and three high-value highland vegetables (lettuce, tomato
and capsicum) have been identified as the target produce.
2. Production Data (Overview)
I would like to focus on 5 products that have shown significant increase in production and
at the same time have benefitted from the certification process which has enable it
directly or indirectly to have a bigger market access domestically or international market.
The first three have more significant effect on the export than the last two products.
The five (5) products are :
i. Poultry and Poultry products.
ii. Milk and Milk products
iii. Edible Birdnest(EBN)
iv. Beef products
v. Pork products
a) Livestock population : Table 1
No Livestock
Type
2011 2012 2013 2014 2015
1 Poultry 234,307,351 252,324,312 272,451,321 288,304,256 308,124,865
2 Dairy 34,698 32,587 32,146 33,165 33,200
3 Beef 656,351 630,976 635,723 629,203 630,500
4 EBN(Premise Registered)
582 4467 6190 8703 10036
5 Swine 1,816,557 1,851,842 1,842,953 1,844,103 1,828,860
Brief overview:
Livestock population that has a tremendous impact on the meat production in
Malaysia is Poultry. The poultry population has increased in tandem with increase in
demand from the domestic market and the international market for poultry and poultry
products. Whereas Dairy and Swine production has remained at the same level
because of limitation such as land, environment, technology and breeds used in
farming. On the other hand, the increase interest shown by farmers in Edible bird nest
has increased because of very high export demand from China and other countries
including health and other benefits from consuming birdnest..
b) Output of Livestock Products :Table 2
No Livestock
Product
2011 2012 2013 2014 2015
1 Poultry(mt) 1,222.04 1,301.48 1,390.66 1,507.92 1,544.78
2 Milk & Milk
Products (mil
liters)
70.87 72.41 73.99 75.27 76.04
3 Beef (mt) 48,835 51,277 51,715 52,857 50,493
4 EBN (mt)-
export
tonnage=prod
189,540 163,020 247,553 188,637 341,632
5 Pork (mt) 214,308 218,471 217,422 217,558 215,760
Brief overview:
Output of livestock products clearly shows that there has been a tremendous increase
at least 25% increase in the production of poultry and an increase of at least 45% in
the production of EBN.
c) Export of Livestock Products :Table 3 No Livestock
Product
2011 2012 2013 2014 2015
1 Poultry(mt) 52,345 68,000 84,283 109,911 104,804
2 Milk & Milk
Products
(mt)
600,000 700,000 858,381 942,406 1,040,525
3 Beef (mt) 14,000 16,000 18,572 13,600 15,535
4 EBN (mt) 145,800 125,400 190,426 145,106 262,794
5 Swine (mt) 1350 1600 1809 1472 1476
Brief overview:
The export of livestock products shows great potential for Malaysia particularly for
poultry, dairy and EBN products. Almost all 3 products has increased by 50% to
100%. We are 120% self-sufficient in poultry and therefore still capable to export the
extra mainly to Singapore and rest of the world. Although Malaysia is a net importer
of milk but by additional processing Malaysia re-export dairy value added products
which has high demand in international markets. In addition high demand for EBN
from P.R.China has boosted the export of EBN from Malaysia which is able to
comply to the export conditions set by China. Refer to Appendix 4.
3. Issues and Challenges Faced By Farmers
i. Farm registration (Birdnest and others)
Farm registration is very important for traceability especially when you are
exporting to an international market.
No cooperation from farmers, farmers are worried the income tax department
will come after them because once they register their farm, the output can be
calculated and the profit will be taxable which they might not be declaring.
ii. Licensing
Problem with some local council because it’s a new industry. The industry
has developed the last few years and then, later local by-laws was put in
place to regulate the industry. Which by than had already mushroomed
into a booming industry and the farms were mostly located in densely
populated area above active or inactive shoplots and houses. Some local
councils put rules in place to ensure new bird houses to be located away
from densely populated areas.
License fees very high in some local councils.
iii. Quality Assurance System(QAS)
Poor understanding in implementing quality assurance system such as
MyGAP.
Not very committed to ensuring quality system is working.
Records not readily available
iv. Farm Locations & Licenses – Long Term Guarantees From The Governments
Poultry and Pig farmers mainly worry because of rapid development
surrounding farms they have to close down and lose their lifelong
investments
When they want to move are unable to relocate or unable to obtain the
necessary land or other approval necessary to restart their operations.
Even with Modern Farming Techniques the buffer zone between human
human dwelling and farms vary from one area to another (none or zero (0)
meter to 5km)
v. Not Exporting Value Added Products But Raw Materials
Malaysia is exporting raw clean EBN but not value added processes
products which has more value and brings in higher revenue to the
country.
4. Issues and Challenges Faced In Exporting Major Agriculture Products
i. Right Competent Authority
Difficulties in engaging to the right competent authority / division /
personnel, if we submit letters/questionnaires, it does not reach to the
authority / no reply also.
ii. Different requirements at different entry points, effect goods clearance.
Meeting Regulatory Compliance When Exporting - Many SME exporters
and big industries exporting the first time find it difficult to understand the
export documentation required and the other procedure required which
also sometimes involve multiple agencies.
iii. Unclear policy from importing country, not being transparent.
Some importing countries do not have clear written standard or documents
that clearly spell out their requirements and this can be confusing to the
exporters.
This also can delay the export and the customer might lose his or her
business deal.
iv. Focus On Single Country NOT Multiple Country When Exporting
The export of birdnest is mainly focus on China, because of the very high
demand. But when China banned the export of birdnest because of Nitrate
in birdnest due to health hazards, the price of birdnest drop drastically
from RM10,000 to RM2000 and the industry was badly affected example
a lot of farmers had taken loans to start new farms and had an impact on
repayment of bank loans.
v. Not Exporting Value Added Products But Raw Materials
Malaysia is exporting raw clean EBN but not value added processes
products which has more value and brings in higher revenue to the
country.
5. Current Program or Initiatives By Government To Improve Production and
Productivity of Key Agricultural Commodities
A. Poultry
National Poultry Production Policy ( 2017 – 2027)
Directives from the Minister of Agriculture and Agro-based Industry
Minister during a dialogue session with the Federation of Livestock
Farmers' Associations of Malaysia (FLFAM) on June 20, 2016.
The poultry industry has contributed significantly to the country from an
economic standpoint, income, employment and food supply to the people.
Refer to Appendix 1.
Countries have already achieved self-sufficiency in poultry meat more
than 100% since 1983, 33 years have passed
The industry needs to be strengthened and improved its contribution to the
State, with a wider scope
National Poultry Production Policy : 3 Objectives
1. Guarantee the supply of chicken meat and eggs are adequate and continuous,
affordable and meet the needs from the aspects of halal, quality and food
safety for consumers and processors.
i. Increase Self Sufficient Level (SSL) from 104% to 200% for broilers
and from 113% to 200% for laying birds.
ii. Increase production of raw materials required by processing industry
2. Increasing the contributions of the poultry industry towards national earnings
and economy
i. Improve and expand export markets for chicken meat and eggs as well
as value-added products. Target Countries: Examples: ASEAN, Japan
(Olympics 2020), Hong Kong, China, the Middle East, the European
Union
ii. Reducing the balance of trade deficit
3. Competitiveness and sustainability of the industry can be improved to make
Malaysia as a supplier of halal poultry products which are important in the
global market
i. Land Usage
ii. Pollution Control
B. Edible Bird Nest (EBN)
The government will like to increase the export of EBN in 2020 to 50% raw
uncleaned nest (RUN), 25% raw cleaned birdnest (RC) and processed product at
25%.Currently in 2015 the export of raw uncleaned is at 34%,10% raw cleaned
birdnest and processed product at 4%.
Issues such as premise registration, traceability and MyGAP has been resolved at the
farm level earlier. At the collecting centre / proessing plant issues such as plant
registration, traceability system in place for origin of product, MyGAP and registered
with CNCA from China. Recently few weeks back China has agreed to import raw
uncleaned birdnest and this will further boost export of this products. Also issues
related to health certificate and certificate of origin is still being discussed.
C. Modern Pig Farming (MPF)
In Malaysia, almost all pig farms are licensed for operation. The Department of
Veterinary Services (DVS), Ministry of Agriculture and Agro Based Industry
launched Modern Pig Farming (MPF) system by Minister Of Agriculture in
December 2014, farmers given 3 years to modernize pig farms starting 2015.
Well managed farms are generally the larger scale farms which are regularly audited,
and have a good animal husbandry practice (GAHP) in place and are certified under
the Livestock Farm Certification Scheme (‘SALT’), also having properly written
Standard Operating Procedure (SOP). Generally poorly managed farms have low sow
population,low level of bio-security and hence less productive.
These criteria for MPF are:
i. close house- sealed enclosures;
ii. a zero discharge waste management system;
iii. enclosures located at least 200 metres from houses, schools,
clinics, houses of worship and public amenities;
iv. and the adoption of Good Animal Husbandry Practices
(GAHP).
D. Dairy
The government is promoting and encouraging the private sector to invest and
involve in the dairy industry. At the same time,this company act as a anchor company
to several dairy farmers to develop small holders farmers with the purpose of
increasing milk production in the form Dairy Cluster. This concept is based on 70:30,
whereby private sector invest 70% of the total cost of the project and the government
pays the remaining 30% based on reimbursement.
E. Beef
To government is focused on capacity building of farmers through strategic extension
program and livestock loan scheme (PROPER) and National Key Economic Area
(NKEA), Entry Point Project (EPP 5), to encourage cattle integration in oil palm.
6. Overview of Malaysia Good Agricultural Practice (MyGAP)
MyGAP (Malaysian Good Agricultural Practices) was launched by the Minister of
Agriculture and Agro-based Industry on 28 August 2013. MyGAP is a rebranding exercise of
Malaysian Farm Certification Scheme for Good Agricultural Practices (SALM), Livestock
Farm Practices Scheme (SALT), and Malaysian Aquaculture Farm Certification Scheme
(SPLAM). MyGAP is a comprehensive certification scheme for agricultural, aquaculture and
livestock sector. MyGAP is implemented based on Malaysian Standard (MS). MS 1784:2005
Crop Commodities – Good Agricultural Practice is used for agricultural sector module and
MS 1998:2007 Good Aquaculture Practice (GaqP) – Aquaculture Farm – General Guidelines
and MS 2467:2012 – Code of Practice for Seaweed Cultivation used for aquaculture sector
module. Whereas MS 2027:2006 Good Animal Husbandry Practice is for livestock sector.
Good Agricultural Practice (GAP) is an agricultural practice which emphasises on
environmental, economy and social aspects to ensure the produce is safe and of good quality.
MyGAP is an Economic Transformation Programme (ETP) initiative under the Strategic
Reform Initiatives – Competitions, Standard and Liberalisation (SRI-CSL) which in an
enabler to the National Key Economic Area – Agriculture (NKEA – Agriculture).Refer to
Appendix 3 and Department of Agriculture Appendix 5.
Type of Certifications:
a) Malaysia Good Farm Practice(SALM)
A certification scheme formulated by the Department of Agriculture in the year 2002, to
extend recognition to farms practicing GAP following an environmental-friendly concept and
preservation of the welfare and safety of workers, in order to produce quality and safe
produce suitable for consumption. The scheme was developed according to Malaysian
Standard MS 1784:2005 Crop Commodities – Good Agricultural Practice (GAP).
b) Malaysian Aquaculture Farm Certification Scheme (SPLAM)
The Malaysian Aquaculture Farm Certification Scheme (SPLAM) was introduced in 2005
comprised of Pond Aquaculture Rearing System, Cage Tank, Hatchery and Seaweed
production.
The objective of the scheme is to produce safe and high quality aquaculture products for
consumption, produced in a manner that will not cause any hazardous effect to the
environment, animal welfare and complied with the workers safety and health requirement.
The SPLAM is a voluntary scheme which applies the Good Aquaculture Practice, responsible
and environmentally friendly at the farm level.
c) Malaysia Livestock Farm Certification Scheme/ Skim Amalan Ladang Ternakan
(SALT) Skim Amalan Ladang Ternakan (SALT) was introduced in 2003. This scheme is based on
good husbandry practices of healthy livestock for safe and quality farm produce. Good
Agriculture Practice (GAP) and Good Animal Husbandry Practice (GAHP) which comprised
of herd health programme, biosecurity sanitary & phytosanitary together with waste and
pollution management in place are the criteria for the SALT certification. The SALT criteria
is in tandem
7. Number Of Farms And Plants Certified
Total number plants and farms certified for 2015 are VHM(164), MyGAP Farm (428) and
MyGAP Birdnest (1904) as seen below.
Year No. of
Certified farm
2002-2005 150
2006-2010 136
2011 70
2012 157
2013 313
2014 533
2015 535
2016 664
Total 2558
8. Promotion of Malaysian GAP(Refer to Appendix 2)
i. Exhibition
ii. Mass Media e.g. Carnival by TV Program
iii. Publication
iv. Billboard
v. Selling GAP product at supermarket.
vi. Training e.g. Schedule of Training for all stakeholders
vii. Seminar for auditors
viii. Training of New Auditors
ix. Hands on Training for Auditors
Year VHM MyGAP Farm MyGAP Birdnest
2011 105 367 807
2012 128 370 1141
2013 142 384 1542
2014 154 400 1695
2015 164 428 1904
Department of Agriculture :
Department of Veterinary Services :
x. Export Talk Promotion
Effort and commitment by DVS to promote the export as in Appendix 6.
9. Factors/Drivers To Encourage Farmers To Get Their Farm Certified to
MyGAP.
i. Buyer demand seller to obtain certification before he starts buying. (e..g. Halal
or VHM)
ii. Mandatory all export farms and plants shall be MyGAP certified to facilitate
export procedures by the competent authority.
iii. Overseas exhibition organized by MATRADE where incentives are given to
certified farms or plants to promote their certified goods.
iv. Local hypermarkets and processors including hotel requests some sort of
certifications before they can buy their produce.
10. Issues and Challenges in Promoting GAP certifications to the small farms in
Malaysia.
i. Same Price : Certified and non-certified products sold locally are at the same
price. This tend to put off some serious interested organization wanting to
certify their farms or plants.
ii. High cost to meet the standards such as farm towards Good Animal
Husbandry Practice (GAHP) or plants towards Veterinary Health Mak (VHM)
certifications.
iii. Language barrier and poor understanding of the benefits of certifications
which can increase their sales and market share.
iv. Number of government officials actively involved in MyGAP certifications is
low and one of the main limiting factors to increase participation.
v. Only export establishments and domestic plants that are asked to certify
otherwise its voluntary and there is no pressure to comply to the certifications.
11. Recommendations to Increase Market Access:
Appointing a special desk officer for market access
Many developed countries such as Australia which is a major exporter of
agriculture products faced a lot of challenges when exporting their meat
and meat products. A good example will be when Malaysia ban the export
of beef from Australia because of non-compliance to halal. Within a week
the embassy and the relevant authority with their Market Access Officer
from Australia organizing a meeting in Malaysia to resolve this issues and
they manage to resolve this within a short period and they quickly
resumed their export of beef, mutton and lamb products.
12. Future Direction Increase the number of farms with MyGAP certification to encourage
quality and safe to eat produce for domestic and export market.
Increase consumers' awareness and demand for quality and safe to eat
produce with MyGAP logo on it.
Increase the Malaysian agricultural produce competitiveness at
international level.
Benchmarked with international GAP certification scheme such as
ASEAN GAP and Global GAP.
Appendix 1: Development of Poultry Industry Through Four Decades
70’s 80’s
90’s 2000’s
APPENDIX 2 :Promotion MyGAP
SEMINAR FOR AUDITORS
August 2016
HANDS-ON TRAINING FOR AUDITORS
Promotion program with NGO
PROMOTION AT HYPERMARKET
CARREFOUR – SUBANG JAYA
Promotion at TESCO
Promotion – carnival by TV programme
APPENDIX 3;Development of MyGAP Certification in Malaysia
APPENDIX 4:Animal Product Export Market
APPENDIX 5:Department Of Agriculture (DOA)
APPENDIX 6: Effort & Commitment by DVS