02/08/2025

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Supply chain bane for vegetable farmers

o Experts say higher prices of greens not reflected at farm level as producers only see minimal profit while intermediaries benefit from current distribution system

‘Plan reflects strong support for Sabah’ KOTA KINABALU: Development programmes and allocations for Sabah under the 13th Malaysia Plan (13MP) clearly reflect the federal government’s continued support for the state government, said Chief Minister Datuk Seri Hajiji Noor. He said development programmes and allocations under 13MP are also aligned with the Sabah Maju Jaya Development Plan. “It clearly reflects the federal government’s support for Sabah under the leadership of Prime Minister Datuk Seri Anwar Ibrahim,” he said in a statement on Thursday. Hajiji expressed satisfaction that several high-impact projects proposed by the state government were included in 13MP, including the expansion of critical utilities such as water and sewerage, roads, flood mitigation and healthcare. When tabling 13MP in the Dewan Rakyat yesterdy, Anwar said the government is placing special emphasis on positioning Sabah and Sarawak as competitive national sustainable energy hubs at the regional level under 13MP. – Bernama With farmers still struggling to break even and consumers feeling the pinch, experts warn that unless structural reforms are prioritised, food affordability and agricultural sustainability will remain difficult to reconcile. further pushing up prices before produce even leaves the farm. “Transport from farm to collection centres and retail outlets also contributes significantly, especially when the supply chain involves multiple layers,” she said. On average, she estimated that farmers receive only 20% to 40% of the final retail price, with the remainder going to intermediaries. “These middlemen – wholesalers, market agents and logistics handlers – often dominate the distribution process, taking profit margins at each stage. The more fragmented the supply chain, the higher the final price, even though the farmer’s profit remains minimal.” However, Fazleen said strengthening direct-to-consumer models could provide a way forward, if supported by proper infrastructure. “Empowering cooperatives and online platforms to connect farmers with end-users can reduce price distortion. “Regulatory guidelines on intermediary profit margins could also prevent excessive markups,” she added. According to the Statistics Department, food and beverage inflation in June stood at 2.1%, while the vegetables subgroup recorded a further decline – from -5.5% in May to -7.2% in June. Despite that, key vegetable items such as cucumber, red chillies and French beans saw month-on-month price increases of up to RM1.38 per kilogramme.

Ű BY FAIZ RUZMAN newsdesk@thesundaily.com

In SELANGOR , Menteri Besar Datuk Seri Amirudin Shari welcomed 13MP as a comprehensive plan that complemented existing state initiatives as well as uplifted communities. He said a key highlight was the development of Carey Port in Kuala Langat, expressing the state’s readiness to cooperate with the federal government to expedite the project, which was set to alleviate congestion at Port Klang. Amirudin also praised the plan to add 300 Demand-Responsive Transit vans, 1,200 buses, and 217 train sets to improve public transport access, especially for those in the Klang Valley. He further lauded the recognition of waste-to-energy technology and the government’s pledge to create 1.2 million new jobs in manufacturing and digital economy, which would benefit graduates in the state. In PAHANG , Menteri Besar Datuk Seri Wan Rosdy Wan Ismail hailed the establishment of the National Food Production Hub as a timely and necessary initiative, especially for the East Coast region. wholesalers, agents, transporters and cold chain operators – who dominate the supply chain. “Farmers lack bargaining power and depend heavily on agents or wholesalers to reach markets. There’s also a lag in farmgate prices adjusting to retail trends,” he said. He added that farmers remain burdened by high logistics, labour and agricultural input costs. These expenses are often passed on to consumers, but not reflected in actual grower profits. “Many farmers don’t have access to cold storage, efficient transport or even real-time market pricing, making it hard to optimise returns.” To address the imbalance, FVFAM has proposed three structural reforms: creating direct-to-market sales platforms under farmer cooperatives, introducing daily reference prices for major vegetables and restructuring wholesale markets by capping commissions and promoting shorter supply chains. “Farmers earning fair returns and consumers paying reasonable prices are foundational to national food security,” Lim said. Universiti Teknologi Mara agricultural economist Assoc Prof Dr Fazleen Abdul Fatah echoed these concerns, noting that rising vegetable prices are not solely driven by import dependency or general inflation, but by systemic challenges in production and distribution. market

PETALING JAYA: Inflation may have eased to 1.1% in June 2025 but vegetable prices are still rising, highlighting persistent bottlenecks in the supply chain and the complex role of intermediaries in shaping food costs. Key produce such as red chillies, cucumbers and French beans recorded steady month-on-month price increases despite overall deflation in the vegetable subgroup. The disconnect has prompted concern among farmers, economists and consumer groups who warn that the current distribution model benefits intermediaries more than producers or the public. Federation of Vegetable Farmers Association Malaysia (FVFAM) president Lim Ser Kwee said retail price hikes are not necessarily being reflected at the farm level. “For example, the price of red chillies in Kulai increased from RM16.40 to RM16.62 per kilogramme between May and June while tomatoes and kailan also showed similar upward trends. “Yet, in areas like Cameron Highlands and Kota Tinggi, farm level prices have remained flat or seen only marginal gains,” he said. Lim attributed the disparity to a long-standing network of intermediaries – including In PENANG , Chief Minister Chow Kon Yeow said the plan’s focus on digitalisation, advanced technology and the development of a values based Madani social system aligned with the state’s vision under Penang 2030, which was introduced in 2018. “As the ‘Silicon Valley of the East’, Penang appreciates the high-value projects listed, which promise strong investment returns. “This proves that the state remains a significant contributor to national investment. “It also supports the national ambition to remain a leading player in the high-value semiconductor industry,” he said in a statement. Chow added that infrastructure projects such as the Mutiara Line Light Rail Transit and upgrades to the PLUS Highway from Juru to Sungai Dua would enhance existing facilities and improve connectivity across regions. On the proposed expansion of the Penang International Airport, Chow

adding that limited harvests reduce supply and drive up prices. Fazleen said input costs, including fertilisers, pesticides and manual labour, have also continued to rise,

“Even though most vegetables are grown domestically, factors like post harvest loss due to plant diseases, poor soil quality and climate variability affect yields,” she said,

13MP lauded as catalyst for high-impact development KUALA LUMPUR: The 13th Malaysia Plan (13MP) tabled by Prime Minister Datuk Seri Anwar Ibrahim in Parliament on Thursday is expected to redesign the nation’s economic and development landscape towards a more inclusive, sustainable and responsible future. said it would enhance the user experience, and hoped it would be completed as scheduled to boost inter-regional connectivity. “We thank the federal government, as the east coast needs such a development hub. At the state level, we’ve already planned a halal hub, and implementation is under way. support industrial growth and create local employment. At the same time, he said the establishment of Lumut Maritime Industrial City and the Kerian Integrated Green Industrial Park would expand industrial development to coastal areas such as Manjung and Kerian.

“We have identified and prepared the site to ensure the halal hub in the state becomes a reality,” he said, noting that federal support would be vital for its success. In NEGERI SEMBILAN , Menteri Besar Datuk Seri Aminuddin Harun welcomed the government’s priority on building and upgrading public hospitals, including Tuanku Jaafar Hospital 2, as proof of its commitment to public well-being. He also praised the inclusion of the Sungai Gemencheh Flood Mitigation Project in Tampin, which was expected to significantly reduce flood risks and safeguard the welfare of affected communities. In PERAK , State Tourism, Industry, Investment and Corridor Development Committee chairman Loh Sze Yee said the development of the third regasification terminal in Lumut would boost national energy security and reinforce Lumut’s role as a regional energy hub. He said the project was expected to attract high-quality investments in clean and sustainable energy sectors,

Meanwhile, in SABAH , Parti Bersatu Rakyat Sabah president Datuk Seri Arthur Joseph Kurup welcomed the special focus on Sabah, including the development of the Kota Kinabalu Industrial Park, upgrades to biodiesel blending depots in Sandakan and Lahad Datu, and strategic infrastructure projects such as the Pan Borneo Highway. Kurup, who is also Agriculture and Food Security deputy minister, said the five-year plan offers new hope for Sabah residents by closing the development gaps and unlocking economic opportunities, particularly in agriculture – key sector for the state’s rural communities. He also emphasised the importance of rural youth involvement through TVET programmes and TVET Madani financing schemes, which are expected to create a new generation of skilled agropreneurs. – Bernama