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Stats Dept: Agriculture, fishing and livestock impacted by MCO, sales drop and supply chain affected

Due to the higher demand for rice compared to production, this means the country needs to import rice from abroad annually to sustain household demand. — Reuters pic
Due to the higher demand for rice compared to production, this means the country needs to import rice from abroad annually to sustain household demand. — Reuters pic

KUALA LUMPUR, June 5 — The movement control order (MCO) against the Covid-19 pandemic implemented on March 18 has created concerns that the nation's supply of crops, produce, foodstuff, and raw materials will be further affected.

The Department of Statistics' study on the MCO's impact revealed that although rice farmers, mainly in Kedah, are yet to be affected since the last harvest was in February, the situation is still being monitored to ascertain if things will change.

“The GDP value of Malaysian rice was RM2,407 million in 2018, with an output of 2.6 million metric tonnes. However the household demand for rice exceeds output, estimated to be RM4,224 million in 2016,” said the study.

Due to the higher demand for rice compared to production, this means the country needs to import rice from abroad annually to sustain household demand.

Similarly the country's rubber output, which was already in decline since 2018, has been further aggravated by the MCO as its prices fall.

“Pre-MCO conditions for rubber tapping yielded 150 kg every six days, with the collection and sale of rubber scraps depending on weather conditions. At the time, rubber scraps sold for RM2.40 per kg.

“Presently many rubber tappers are upset at being unable to sell their scraps due to a lack of buyers, while the collection and sale has been limited to three times a week. Scrap prices have now fallen to RM1.90 per kg,” the study read.

It also noted Malaysia's rubber output, from 722 metric tonnes in 2015 or RM3,348 million in GDP value, to 603 metric tonnes in 2018 or RM2,897 million in GDP value. Small tenant-hold rubber tappers still dominate the industry, accounting for 92.1 per cent of all rubber tapping.

For fruits and crops, the MCO has led to a drop in sales and prices. Chili farmers have seen their sales drop by nearly 50 per cent, as their produce cannot be exported like normal. Watermelon prices are now RM0.70 per kg compared to RM1.40 per kg, badly affecting sales.

Mango farmers, primarily of the Harum Manis variety grown in Perlis, have seen their customers' purchasing power limited by the MCO and a ceasing of commercial activities since farmer's markets cannot operate as usual.

“Similarly the pandemic and MCO has severely affected the livelihoods of fishermen, with a drop in sales by as much as 25 per cent. Fishermen situated in Kuala Kedah are particularly impacted.

“For aqua-culture including breeders of catfish, prawns, and freshwater fish, they have reported a drop in sales due to no demand from restaurants, as their customer base is forced to stop operating and a lessened demand from the general domestic market,” said the study.

It added that breeding operations may be affected in the event of a food stock shortage. In 2019 alone, aqua-culture growth declined by 10.7 per cent, which is expected to worsen due to the MCO and pandemic.

For chicken and duck breeders and suppliers, although permitted to operate as normal and with sufficient supply to meet market demands, the value of their sales has been affected due to constraints of marketing their products more widely as it is limited to certain wholesalers.

“The sales value is also affected by the lack of demand specifically from restaurants and wet markers. Duck breeders in particular find it hard to source for their regular feed, and have instead switched to alternatives like papaya and sago,” said the study.

In contrast to the other industries, chicken egg suppliers have reported an increase of profits by up to 90 per cent during the MCO. However they also report slight difficulties in sourcing for feed, as their existing supply is already dwindling.

Similarly cow and goat breeders report their sales value increasing by 40 per cent since the MCO was implemented, due to the high demand for raw meat. Yet they face the same problems, with the Kedah Group of Farming Corporations Sdn Bhd reporting very limited sources for livestock feed.

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