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