Malaysia Fruit's Supply Chain Issues and Chanllenges

Issues and Challenges

1) Inconsistent supply and quality of fruits
2) Unorganised fruit small holdings, small individual farm units
3) Unsuitability of fruit varieties for most downstream processing
4) Limited local market
5) Inadequate technology - post harvest handling, mechanization, package technology for pest control
6) Marketing chain problem
7) Inadequate transport, handling facilities and storage facilities
8) High transport cost
9) Packaging quality and cleanliness
10)Little or no incentive to improve produce quality as higher quality is not rewarded by better prices at farm level
11)Lack of direct trader-farmer linkages / access to market
12) No traceability
13) Growing concern over product quality and safety
14) Reported deaths from fresh fruit consumption
15) High pesticide residue detected in fruits
16) Bacterial infection fruits
17) Customers are more demanding
18) Quality and safety
19) Cost competitiveness
20) Competition has intensified at the international front
21) Deregulation - low cost producers
22) Increasing non-tariff barriers - stringent standards, labelling, sanitary and phytosanitary measures
23) Globalization - aggregation and consolidation, market saturation
Improved technology - transport and logistics, communication, biotechnology


Strategic Direction and Thrust

1) Development objective (NAP3)
2) Ensure adequate and reliable supply of high quality and safe fruits to meet domestic demand for fresh as well as for the processing industries
3) Develop the fruit industry based on strategic advantage of selected fruits and capitalized the niche international markets for fresh tropical fruits and fruit products
4) Increasing efficiency and productivity
5) Ensuring consistent supply of quality produce
6) Encourage nucleus fruit estates
7) Group planting
8) Permanent food production zones
9) Adoption of Good Agricultural Practices
10) Increasing marketing efficiency
11) Promotion of direct marketing
12) Contract farming
13) Promoting private sector participation
14) Large scale fruit production and processing
15) Provide investment incentives
16) Developing and transforming small producers to large scale entrepreneurs
17) Provision of incentives, support services and facilities
18) Focus on selected fruit types
19) At the national level 13 fruits types have been identified
20) The state needs to identify priority fruits based on market demand and its competitive advantage
21) Strengthening marketing capabilities
22) Marketing research
23) Market promotion
24) Developing Malaysian brand
25) Intensified R&D
26) Pest and disease control
27) New varieties
28) Post harvest technology - reduce spoilage and extended shelf life
29) New products
30) Strengthening infrastructures
31) Farm collection centre
32) Packing house facilities
33) Trading centre and whole sale markets