Developing Malaysian Seed Industry- Prospects and Challenges

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51 Economic and Technology Management Review. Vol. 1 No. 1 (June) 2006: 51–59 Developing Malaysian seed industry: Prospects and challenges (Memajukan industri biji benih Malaysia: Prospek dan cabaran) Wan Jusoh Wan Mahmood* Key words: seeds and planting materials, seed industry, private seed companies, balance of trade, seed production programme Abstract Efforts to increase food production for both domestic consumption and export in recent years, have stimulated interest in the usage of good-quality seeds. Quality planting material is one of the main factors that determines the success of a commercial crop production. Currently, there is insufficient supply of good quality planting materials in Malaysia to cope with the increasing demand, resulting in farmers using imported seeds. Therefore, to ensure a reliable supply, the seed industry in the country must be developed. This paper outlines the current status of the seed industry, the prospects of seed production in various commodities and the constraints facing the industry. The strategies to strengthen the seed industry are also discussed. *Planting Materials, Seeds and Livestock Breed Production Unit, MARDI Station Jalan Kebun, 41720 Klang, Selangor Introduction The Malaysian government wants to modernize the agriculture sector with the objective of increasing food production. This is important for stabilizing the economy and reducing the yearly food import bill of RM13 billion. Consequently, agriculture has been identified as the third engine of economic growth in Malaysia, resulting in large scale farming projects being implemented throughout the country. In order to increase productivity, the various inputs (seeds and planting materials, labour, fertilizer, irrigation, crop protection and others) must be utilised effectively. Seed is considered as the primary and essential starting point of any agricultural projects. This concept holds good for any scale of production, whether it be in a small garden or on a large scale crop production. Lately, the Ministry of Agriculture and Agro-Based Industry (MOA) gave special focus on strengthening the local seed industry by formulating strategies to increase the supply of good-quality seeds and planting materials (which are still insufficient). It is envisaged that the demand for seeds will increase with the implementation of many commercial agriculture projects by the government and the private sectors. Seed industry status The seed industry comprises all the complex interlocking operations necessary to ensure a regular supply of uniform high-quality seeds to farmers. It is one of the group of industries, which make up the primary industry of agriculture. It relates to the general agriculture situation and to the socio-economic-political structure in a particular country. The seed industry has developed to varying levels in different countries, in tandem with the general agricultural development. The world’s seed market is expanding, especially in the Asia and Pacific region. The International Seed Federation estimated the total volume of annual seed consumption worldwide at approximately US$50 billion with developing countries as the major consumers (Thammasak 2003). The estimated seed requirements for some countries

description

Efforts to increase food production for both domestic consumption and export in recent years, have stimulated interest in the usage of good-quality seeds. Quality planting material is one of the main factors that determines the success of a commercial crop production. Currently, there is insufficient supply of good quality planting materials in Malaysia to cope with the increasing demand, resulting in farmers using imported seeds. Therefore, to ensure a reliable supply, the seed industry in the country must be developed. This paper outlines the current status of the seed industry, the prospects of seed production in various commodities and the constraints facing the industry. The strategies to strengthen the seed industry are also discussed.

Transcript of Developing Malaysian Seed Industry- Prospects and Challenges

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    Wan Jusoh Wan MahmoodEconomic and Technology Management Review. Vol. 1 No. 1 (June) 2006: 5159

    Developing Malaysian seed industry: Prospects and challenges(Memajukan industri biji benih Malaysia: Prospek dan cabaran)Wan Jusoh Wan Mahmood*

    Key words: seeds and planting materials, seed industry, private seed companies, balance oftrade, seed production programme

    AbstractEfforts to increase food production for both domestic consumption and export inrecent years, have stimulated interest in the usage of good-quality seeds. Qualityplanting material is one of the main factors that determines the success of acommercial crop production. Currently, there is insufficient supply of good qualityplanting materials in Malaysia to cope with the increasing demand, resulting infarmers using imported seeds. Therefore, to ensure a reliable supply, the seedindustry in the country must be developed. This paper outlines the current status ofthe seed industry, the prospects of seed production in various commodities and theconstraints facing the industry. The strategies to strengthen the seed industry arealso discussed.

    *Planting Materials, Seeds and Livestock Breed Production Unit, MARDI Station Jalan Kebun, 41720 Klang, Selangor

    IntroductionThe Malaysian government wants tomodernize the agriculture sector with theobjective of increasing food production. Thisis important for stabilizing the economy andreducing the yearly food import bill ofRM13 billion. Consequently, agriculture hasbeen identified as the third engine of economicgrowth in Malaysia, resulting in large scalefarming projects being implementedthroughout the country. In order to increaseproductivity, the various inputs (seeds andplanting materials, labour, fertilizer, irrigation,crop protection and others) must be utilisedeffectively. Seed is considered as the primaryand essential starting point of any agriculturalprojects. This concept holds good for any scaleof production, whether it be in a small gardenor on a large scale crop production. Lately,the Ministry of Agriculture and Agro-BasedIndustry (MOA) gave special focus onstrengthening the local seed industry byformulating strategies to increase the supplyof good-quality seeds and planting materials(which are still insufficient). It is envisaged

    that the demand for seeds will increase withthe implementation of many commercialagriculture projects by the government andthe private sectors.

    Seed industry statusThe seed industry comprises all the complexinterlocking operations necessary to ensure aregular supply of uniform high-quality seedsto farmers. It is one of the group of industries,which make up the primary industry ofagriculture. It relates to the general agriculturesituation and to the socio-economic-politicalstructure in a particular country. The seedindustry has developed to varying levels indifferent countries, in tandem with the generalagricultural development. The worlds seedmarket is expanding, especially in the Asiaand Pacific region.

    The International Seed Federationestimated the total volume of annual seedconsumption worldwide at approximatelyUS$50 billion with developing countries asthe major consumers (Thammasak 2003). Theestimated seed requirements for some countries

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    in Asia are shown in Table 1. In the year 2000and in terms of weight, rice seeds rankedhighest for seeds consumed followed by wheat,maize, sunflower and vegetable seeds.Traditionally, the major seed-exportingcountries are also importing certain types ofseeds for local consumption. Currently, themajor seed producing countries are theUnited States, Netherlands, France, Denmark,Germany, Canada, Italy, Japan, Australia, NewZealand, China, Thailand, Taiwan, Korea andIndia. Over the past decade, hybrid seedtechnology has gained great attention, due toits high yielding potential.

    The seed industry in Malaysia is stilldeveloping even though it has been in existencefor a long time. It is a unique industry due tothe nature of agricultural development (basedon commodities), where the progress differsbetween crops. In the plantation sector (whichinvolves rubber, oil palm and cocoa), the seed

    industry is already well developed and stable.Hence, the seeds for plantation crops will notbe discussed in this paper. The major crops inthe Malaysian agricultural sector are rice,fruits, vegetables, field crops, herbs, flowers/ornamentals and coconut. In general, thesupply of high-quality seeds and plantingmaterials for these crops is still insufficientand inconsistent. This is attributed to the lackof breeding programmes (in certain crops),lack of focus on seed production and lack ofcoordinations among the players in the seedindustry. Currently, attempts are underway totransform and speed up the development ofthe agricultural sector as initiated by MOA.Therefore, it is necessary to revitalise andstrengthen the nations seed productionprogramme since it is one of the enablers inthe Balance of Trade (BOT) plan.

    Table 1. Estimated seed requirements of selected crops, based on production area and specified seedrates (thousand tonnes) for the year 2000

    Country Rice Wheat Maize Sunflower Cucurbits Watermelons Tomatoes Cabbages(25 kg/ha) (25 kg/ha) (12.5 kg/ha) (7.5 kg/ha) (2 kg/ha) (0.75 kg/ha) (200 g/ha) (200 g/ha)Australia 3.9 301.8 1.1 1.25 0.01 0.02 0.0004Bangladesh 327 21.25 0.03 0.05 0.003 0.002Cambodia 49.5 0.9 China 714.7 666.2 293.4 6.5 0.45 1.0 0.16 0.23Democratic People

    of Korea 14.3 2.6 6.2 0.02 0.3 0.002 0.008India 1,112.50 668.7 81.5 16.9 0.7 0.01 0.1 0.05Indonesia 294.8 41.3 0.05 0.01 0.02Iran 137.5 2 0.10 0.1 0.02 Japan 42.5 4.6 0.03 0.003 0.001Laos 12 Malaysia 18 0.004 0.0003Myanmar 162.5 2.6 2.5 2.4 Nepal 39 16.3 10.3 New Zealand 1.13 11.6 0.0002Pakistan 56.3 211.6 0.7 0.03 0.014 0.006 0.0008Philippines 101.6 31.1 0.02 0.005 0.003 0.002Rep. of Korea 3.9 0.2 0.02 0.004 0.001 0.011Sri Lanka 21.3 0.4 0.02 0.001 0.001Thailand 245 14.8 0.03 0.02 0.002 0.004Vietnam 187.5 9.0 0.014 0.001Others 50 5.2 2.5 0.8 0.05 0.011 0.004 0.004Total 3,456.3 2,039.5 508.83 28.55 1.57 1.492 0.335 0.3357Source: Thammasak 2003

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    Seed requirement and supply situationRice In relation to other crops, the rice seedindustry is well developed and coordinated inMalaysia. It involves important departmentsand agencies such as MARDI, Department ofAgriculture (DOA), MADA, KADA, LPP,FELCRA, KETARA and local seedcompanies. Rice breeding research has beengiven a high priority by MARDI. MARDIproduces breeder and foundation seeds ofrecommended varieties and then supplies themto development agencies which later produceregistered and certified seeds for distributionto the farmers. The major varieties currentlyunder production are MR 84, MR 159,MR 167, MR 185, MR 211, MR 219, MR 220,MRQ 34, MRQ 50, MRQ 74, Pulut Sidingand Pulut Hitam. The Department ofAgriculture is the main producer of rice seedsin the country (about 32% of the totalrequirement). It has a number of processingplants strategically located in the double ricecropping areas. The other producers ofregistered and certified rice seeds aregovernment agencies and local privatecompanies. Significant amount of farm-savedseeds are also used by the farmers. Hence, thesupply of rice seeds is planned and monitoredby the government. The yearly countryrequirement for the rice seeds is estimated at60,000 tonnes where 53,000 tonnes areproduced by various agencies leaving a deficitof 7,000 tonnes (Izham et al. 2003).

    Fruits Most fruits are propagated eithervegetatively (clonal seedlings/plant parts) orby seeds. The well known commercial fruitsin Malaysia are durian, rambutan, duku langsat(Lansium species), mangosteen, mango, guava,banana, jackfruit, citrus, pomelo, ciku, papaya,pineapple and watermelon. MARDI isresponsible for fruit breeding programme.Some of the varieties/clones that have beendeveloped by MARDI are durian (MDUR 78,79, 88), ciku (MEGA), pomelo (Melomas),papaya (Eksotika and Eksotika 2), andpineapple (Josapine and Maspine). TheDepartment of Agriculture (DOA) and localseed companies/nurseries are also producing

    locally recommended clones. Despite all theseefforts, the supply of seeds and plantingmaterials is still insufficient to cater for thelocal demand. It is estimated that the countryneeds about 1 million fruit seedlings, 4 millionpineapple suckers, 60 kg papaya seeds and1.5 tonnes of watermelon seeds yearly.

    Vegetables Vegetable is an importantcomponent in the diet of Malaysians. The areaplanted with vegetable crops was40,000 hectares in 2001 (Anon. 2001). Due tothe commercialisation of vegetablesthroughout the country, demand for seeds isalso increasing. The yearly requirement ofvegetable seeds is 265 tonnes but the localproduction is only 13 tonnes (Izham et al.2003). This deficit of 252 tonnes/year is beingimported from overseas. In the Asia and Pacificregion, the major vegetable seed producingcountries are China, Taiwan, Korea, Japan,Australia, Thailand, India and New Zealand.Seed importation is done through various seedcompanies namely Sin Seng Huat Seed S/B,Soon Huat Seed Corporation, LeckatCorporation S/B, Known-You Seed Companyand others. With the introduction of hybridseed technology, more and more hybridvegetable seeds are being imported intoMalaysia.

    Field crops, pasture and cover crops Themajor types of field crops in Malaysia arecorn, groundnut, sweet potato, cassava, yamand ginger. MARDI had released a number offield crop varieties for cultivation, includingManis Madu, Masmadu (sweet corn), MKT 1(groundnut), Gendut, Telong, Jalomas (sweetpotato), Sri Pontian, Sri Kanji 1, Sri Kanji 2(cassava) and MKS 1 (green soybean). In sweetcorn production, imported hybrid seeds aremore popular amongst farmers due to its highyield and better market potential. The usageof sweet potato and cassava planting materialsare small due to the lack of downstreamactivities while pasture and cover crop plantingmaterials are imported from Australia, Indiaand Philippines.

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    Flowers and ornamentals The major cropsin floriculture industry are orchids, temperateflowers, pot plants and ornamentals. Plantingmaterials are in the form of seeds, live plants,bulbs, tubers, rhizomes and cuttings. For orchidand temperate flowers, the industry dependsheavily on the consistent supply of newhybrids/varieties from overseas (Thailand,Taiwan, Netherlands and China)

    The yearly local seed requirement isshown in Table 2.

    Seed trade Malaysia, like many othercountries in Southeast Asia, is both an importerand an exporter of seeds. The seeds ofvegetables, sweet corn, melons, pasture andcover crops are mostly imported while someof the orchids and ornamental plants areexported. In general, the BOT for the seed andplanting material industry in Malaysia is in

    deficit. The import value exceeds the exportvalue by about RM18.22 million in 2000,RM17.88 million in 2001 and RM12.25million in 2002 (Ahmad Tajuddin 2005)(Table 3).

    The way forward for the Malaysian seedindustryBased on the yearly seed requirement andimport-export situation, it is obvious thatimprovement strategies need to be undertakento strengthen the local seed industry. The rapidgrowth of agricultural development isincreasing the demands for high-quality seedsand planting materials. Malaysia also has tocatch up with the other Southeast Asiacountries with regards to agriculturaldevelopment. Generally, two conditions areneeded to set up a successful seed productionprogramme. Firstly, seeds should be needed

    Table 3. Export-import of seeds and planting materials for the period 20002002 by major commoditygroups

    Seed Group Export (RM mil.) Import (RM mil.) BOT (RM mil.)2000 2001 2002 AGR 2000 2001 2002 AGR 2000 2001 2002

    (%) (%)Vegetables 0.36 0.55 1.26 62.29 8.36 8.48 7.91 2.79 8.00 7.93 6.65Fruits 0.94 1.24 2.87 56.09 2.55 2.45 1.89 14.8 1.61 1.21 0.98Ornamentals 1.29 2.37 3.30 46.80 5.81 6.69 5.72 0.77 4.51 4.32 2.42Cover crops 0.12 0.00 0.02 81.1 4.22 4.42 4.18 0.38 4.10 4.42 4.16Total 2.71 4.16 7.45 50.62 20.94 22.04 19.60 3.02 18.22 17.88 12.25Source: Ahmad Tajuddin (2005)AGR = Average Growth RateBOT = Balance of Trade

    Table 2. Estimated yearly requirements of seeds and planting materials in PeninsularMalaysia (2002)Seeds/Planting materials Requirement Local supply DeficitRice seeds (tonnes) 60,000 53,100 6,900Vegetables (tonnes) 265 13 252Fruit seedlings (millions) 2.5 1.5 1Pineapple suckers (millions) 8 4 4Papayas (kg) 160 100 60Watermelons (tonnes) 1.5 1.5Coconut seedlings (millions) 1.2 1.0 0.2Flowers and landscape plants 81.7 85.0 3.3

    (RM million) (export)Source: Izham et al. (2003)

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    for the local and export markets. Secondly,seeds of good quality should be produced inthe country profitably. Under these twoconditions, a viable seed industry can beestablished if specific programmes areundertaken in the following areas: Plant breeding including genetic research

    and cultivars assessment Maintenance of stock seeds Multiplication/field-scale production Seed processing Quality control system legislation,

    certification, testing and quarantine Marketing and distribution Extension activities

    Historically, the government (through variousdepartments/agencies) had organised fournational seed symposiums in the years 1976,1994, 2003 and 2005. The main objectives ofthe symposium were to discuss the progressof seed technology in the country, and to planfuture development. However, the seedindustry is still dormant inspite of the manytechnical papers presentations and deliberateddiscussions. Nevertheless, these symposiumshave triggered more awareness and pressureto the policy makers, especially the Ministryof Agriculture and Agro-Based Industry, inupgrading the national seed industry.Considering the current status of the seedbusiness in Malaysia, the objectives ofdeveloping the seed industry are: To provide sufficient and consistent supply

    of high-quality seeds and planting materialsfor recommended varieties/cultivars

    To reduce seed import bill (to support BOTprogramme)

    To upgrade the local seed industry via theadvancement of seed technology in Asiaand the Pacific region

    To invest in the seed industry as one of thebusiness opportunities

    To maximise the utilisation of bio-diversityin tropical crops/species

    Several critical facets need to be consideredin developing the seed industry. They includethe supply and demand, technical capability,

    environmental, infrastructure and facility,leadership and experience, government policyand above all, the economic viability of theseed industry. The economic factor is a relativeterm which depends on the type of crops andtheir management. Subsequently, the cost ofproduction can be reduced in the long term byproper crop management and utilisation ofmodern equipments. Malaysia is bestowedwith an agro-climatic condition that isconducive for research and the developmentof seeds and planting materials for tropicalcrops. Today, the players (governmentdepartments/agencies and private institutions)are ready to carry out their more effectiveroles. These players include governmentdepartments/agencies (DOA, MARDI, LPP,FELCRA, FELDA, UPM, UKM, FRIM,KADA and MADA), private seed companies(Excel Seed S/B, Leckat Corporation S/B, SinSeng Huat Seed S/B, Soon Huat Seed S/B,Synergy Farm, Hexagon Green S/B, WellgrowHorticulture Centre and others) and othernon-governmental institutions. In terms ofinfrastructures and facilities, DOA hasestablished seed processing plants in strategiclocations for rice, vegetables and field cropswhile MARDI has set up good facilities forseed processing at Serdang and at MARDIJalan Kebun, Selangor. In the aspect oflegislation, steps are being undertaken by thegovernment to control and coordinate the seedindustry by establishing the National Seed Act.

    Prospects and opportunitiesThe seed supply and demand analyses and thesocio-economic viability factors indicated thatseed and planting material production for thefollowing commodities should be upgraded tomeet the countrys needs.

    RiceMARDI is presently entrusted with the task ofrice breeding and improvement. It producesand distributes breeder and foundation seeds.From the foundation seeds, registered andcertified seeds are produced by DOA, otherlocal agencies including the private companies.The national production and distribution of

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    rice seeds are well coordinated by the NationalRice Seed Assessment Committee (NRSAC)throughout the country. The switch fromtransplanting to direct seeding technology, hasresulted in a tremendous increase in demandof rice seeds (60,000 tonnes/year). Farmersare also beginning to renew their seed stocksevery season. The reasons are the assuranceof good quality seeds sold at a relatively lowprice by the government agencies and the useof good prime seeds to combat grassy weeds.To ensure the usage of high-quality rice seeds,MOA is stepping up the production of certifiedseeds, thereby, sustaining the prospect of abright and a viable rice seed industry. As therice industry is given a high priority by thegovernment, MARDI should continue its rolein varietal improvement and the provision offoundation seeds to the implementationagencies. Lately, hybrid rice technology hasreceived great attention in China, India,Vietnam, Philippines, Bangladesh, Indonesia,Myanmar and Sri Lanka. Malaysia has alsostarted a breeding programme with a prominentChinese scientist to produce hybrid ricevarieties.

    FruitsThe fruit acreage in Malaysia has increasedsignificantly from 156,000 ha in 1990 to320,000 ha in 2000 (Anon. 2001). The countryfocuses on the development of 8 + 2 fruittypes which include pineapple, papaya, mango,citrus, watermelon, guava, starfruit, durian,rambutan and jackfruit. Other fruits such asbanana, mangosteen, ciku, duku (Lansiumspecies) are also included. In terms of demand,per capita fruit consumption (Siti Hawa 2003)is expected to increase from 32 kg in 1995 to50 kg in 2010, thereby resulting in a probableincreasing demand for seeds and plantingmaterials.

    The basic problems currently areinsufficient supply of existing varieties/clonesand lack of new improved cultivars. There areonly a few recommended varieties for eachfruit type due to the tedious, time-consumingand complex exercise of breeding programme.With a yearly deficit of 1 million fruit

    seedlings, 4 million pineapple suckers, 60 kgof papaya seeds and 1.5 tonnes of watermelonseeds (Table 2); a lot of production activitiesneed to be carried out. Since the availabilityof new potential varieties is one of the keyelements in the fruit industry, plant breedingand varietal improvement must thus be givena high priority. The potential of local fruitcultivars and indigenous species must also befully exploited. In terms of watermelon seeds,Malaysia imports 1.5 tonnes of seeds/yearworth RM2 million. In view of the increasingprice of imported seeds, it is worthwhilestarting our own watermelon hybrid seedbreeding programme. However, importationof seeds have to be continued.

    VegetablesVegetable production in Peninsular Malaysiagrew steadily from 11,604 ha in 1980 to about40,000 ha in 2000 (Anon. 2001). As indicatedin Table 2, the yearly requirement of vegetableseeds is 265 tonnes, mostly met by importation(252 tonnes). The local production is only13 tonnes (5%) per year and mainly producedby DOA, MARDI and farmers farm-savedseeds. This phenomenon (95% imported) hasnot changed very much since the existence ofvegetable production in Malaysia. However,with the introduction of BOT programme, thisissue needs special attention by the respectivegovernment agencies. Even though most ofthe imported seeds have high yielding potentialand better consumers acceptance, they havemany disadvantages, including inconsistencyin supply, very expensive prices and noguarantee in seed quality. Lately, DOA andMARDI have increased the production of localopen-pollinated varieties (fruit vegetables) fordistribution to the farmers. To keep in stepwith the development of the seed industry inneighbouring countries, research in hybridvegetable seeds must also be carried out. Theother opportunity is the promotion andutilisation of indigenous vegetables, whichcould create a new market. They are also easyto grow, more resistant to abiotic stresses andare more nutritious.

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    Tropical flowers, ornamentals and foliageplantsPresently, the floriculture industry in Malaysiahas expanded to become a dynamic exportindustry in the agricultural sector. In 2003,the export value was RM101 million whileimport products was worth RM5.12 million.In the floriculture industry, the crops/productsinclude temperate flowers, orchids, ornamentalplants, foliages and dried flowers. Most of theplanting materials (seeds, bulbs, tissue cultureplants, cuttings and seedlings) are importedfrom overseas. In 2004, Malaysia imported467 tonnes of flower seeds (includingvegetable seeds), 1,245,000 flasks of tissueculture materials, 16,540,000 bulbs, 2,680,000cuttings and 1,388,000 seedlings of varioustypes of floriculture crops (Anon. 2004). Withthe production of new hybrids, the industryrequires substantial investment in research andvarietal improvement. Due to urbanisation andhousing development, the pot plant trade andlandscaping are also growing fast with anincreasing demand. Malaysia is known for itsbio-megadiversity, thus the possibility ofutilising indigenous species/wildflowers is verybright. The other niche market is thedevelopment of tropical fragrant flowers whichare abundantly available.

    Field crops, pasture and cover cropsAmongst the field crops, sweet corn isconsidered a global crop. The major sweetcorn producing countries in Asia are Thailand,China, Korea, India, Indonesia, Philippines andTaiwan, while Malaysia is one of the majorconsumers. In Malaysia, the demand for freshconsumption and processed sweet corn isincreasing. Most of the local seed requirementis imported. At present, DOA and MARDIare producing some sweet corn varieties,namely Masmadu, Manis Madu and ThaiSupersweet. However, these varieties areovershadowed by imported hybrid varieties,suggesting that research in hybrid seedproduction technology must be given highpriority, since corn can be easily grown inMalaysia. The other crops that have potentialin the future are sweet potato, cassava and

    yam. However, these local crops need thesupport from downstream industries in orderto create demand for their planting materials.For pasture and cover crops, local seedproduction is not viable due to the high cost ofproduction and unsuitable weather conditions.

    Challenges and constraintsIn commercial farming, high-quality seeds andplanting materials must be available at theright time and in sufficient quantities (eithersupplied by the government or private seedcompanies). The present high seed import bill,is a real challenge for the MOA. Issues andconstraints in developing Malaysian seedindustry can therefore be classified as follows: Technical and institutional problems

    Currently, there is no single agency (onestop agency) responsible for farmersgetting the recommended seeds andplanting materials. In contrast, there aretoo many players or agencies existing inthe seed industry but their functions arenot well defined. For the private seedcompanies, their participation is only inseed trading rather than in seedmultiplication; hence it will be difficultfor the government to regulate them. Theother problems are lack of breeding work,lack of trained personnel in seedtechnology and lack of modern seedprocessing plants and facilities.

    Problems associated with seed supply anddemandIn general, there is insufficient supply ofrecommended seeds and planting materialsin the country. The seed multiplicationprogramme is unable to meet with theincreasing demand due to thecommercialisation of the agriculture sector.The seeds of certain crops such asvegetables, watermelons and sweet cornare mostly imported from overseas. Thiscan result in problems such as low seedquality and inconsistency in supply.Another problem is the difficulty inestimating the demand for seeds due tomany factors particularly cropping

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    patterns, type of crops, location, plantingseasons and fluctuating market.

    Government policy and leadershipIn Malaysia, each agricultural agencyimplements its own seed and plantingmaterial production programme to meettheir requirements. With no single body tocoordinate the national seed industry, thereare duplications in their work, wasting oftime and resources as well as unhealthycompetition among the relevant agencies.The National Seed Policy is not yetimplemented by the government. Thispolicy is important for an effective seedproduction and distribution programmewhich covers various components in theseed supply chain such as the PlantBreeders Rights, Plant Variety Protection,Seed Act, Gene Bank, Seed QualityControl and Legislation.

    Agro-climatic suitabilitySeed production ideally requires a dry spellfor good seed maturation and also for theharvesting period. In Malaysia, althoughthere is a dry spell, the general hot andmoist climatic condition coupled withfrequent heavy rain are not ideal for seedproduction. Some crops of temperate originneed a cold spell to flower or produceseeds after flowering. But this condition isnot available in our tropical climate. Thus,the seed production of these crops (mostlyvegetables) here is limited. If temperatevegetable seeds were to be produced here,additional cost is needed for the setting upof facilities for the controlledenvironments.

    Socio-economic problemsThe use of good quality seeds is notappreciated by the farmers. Some farmersprefer imported seeds compared with localseeds. In general, seed production is a highcost venture which cannot be carried outby the small farmers. Another problem islack of promotion and marketing activitiesfor the newly released varieties.

    Lack of international linkagesThere are many international organisationswhich coordinate the worlds seed industryin the aspects of seed technology, seedtrade and regulatory affairs. The potentialbenefits to the local seed industry aretremendous if the government agencieshave a close collaboration or networkingwith the relevant organisations. However,there is still lack of strategic alliance andcooperation between local players in theseed industry and internationalorganisations.

    Development strategiesThe recommendations for strategies to meetthese challenges and to strengthen the localseed industry are as follows: Promote the awareness of the importance

    of good-quality seeds in agriculturaldevelopment.

    Implement a long term breedingprogramme for hybrid seed technology.Shortage of breeders in the agriculturalsector should be overcome by thegovernment.

    Upgrade and coordinate seedmultiplication programme throughout thecountry by forming a National SeedMultiplication Committee. The functionsof various departments/agencies as wellas seed companies must be well defined.The lead agencies must focus on their rolesonly and not to be involved with otherplayers which have little to contribute.

    Establish and upgrade seed processingplants and seed quality control laboratories.This includes proper storage facilities atthe farmers development centres. DOAsfacilities and vast experience in seedproduction should be used as the modelfor a comprehensive national seedproduction programme.

    Develop an effective mechanism fortechnology transfer and extension.

    Establish and formulate National Seed Act,Seed Certification Scheme, National SeedCouncil and gene bank.

    Carry out regular seed market studies.

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    Maximise the utilisation of local tropicalcrop species such as wild plants, wildflowers and indigenous vegetables inbreeding and varietal development.

    Provide incentives and capital for seedproducers.

    Establish strategic alliances with import-export companies and international seedinstitutions i.e. International Seed TestingAssociation (ISTA), International SeedTrade Federation (ISTF), AVRDC andAsean Pacific Seed Association (APSA).

    ConclusionThere is still a wide gap between demand andsupply in the seed and planting materialindustry in Malaysia. The importation of seedsin large amount would be detrimental to thenations economy. However, the seed industrysub-sector has a very bright potential forcontributing to the transformation ofagriculture. Nevertheless, it faces manychallenges in the seed supply chain and theoverall agricultural development. Specialpriority must also be given to plant breedingand capacity building in seed multiplicationactivities.

    ReferencesAhmad Tajuddin, Z. (2005). Status and strategies in

    the development of seed and planting materialindustries in Malaysia. Proc. 4th National SeedSymposium, 2829 June 2005, Putrajaya.p.16. Kuala Lumpur: Malaysian Associationof Seed Technologies

    Anon. (2001). Crop Statistics Malaysia. Departmentof Agriculture, Kuala Lumpur, Malaysia.Kuala Lumpur: DOA

    (2004). Crop Statistics Malaysia. Departmentof Agriculture, Kuala Lumpur, Malaysia.Kuala Lumpur: DOA

    Izham, A., Zainol, A.A., Leong, A.C. andShahadan, M. ( 2003). Production of qualityseeds and planting materials by MARDI. Proc.3rd National Seed Symposium, 89 April 2003,Putrajaya, p. 324. Kuala Lumpur: MalaysianAssociation of Seed Technologies

    Siti Hawa, J. (2003). Recent advances in fruitproduction: Varietal improvement. Proc. 3rdNational Seed Symposium, 89 April 2003,Putrajaya, p. 6. Kuala Lumpur: MalaysianAssociation of Seed Technologies

    Thammasak, T. (2003). Expanding seed market inAsia and Pacific. Asian Seed and PlantingMaterial Magazine, 10: 69

    AbstrakUsaha-usaha bagi meningkatkan pengeluaran makanan untuk permintaan tempatandan juga eksport sejak akhir-akhir ini telah menimbulkan minat untuk menggunakanbiji benih berkualiti. Bahan tanaman berkualiti adalah salah satu daripada faktor-faktor yang menentukan kejayaan sesuatu projek pengeluaran tanaman secarakomersial. Pada masa ini, bekalan bahan tanaman berkualiti di Malaysia tidakmencukupi untuk memenuhi permintaan yang semakin bertambah, menyebabkanpetani-petani terpaksa bergantung kepada benih yang diimport. Bagi menentukanbekalan yang terjamin, industri biji benih negara hendaklah dimajukan. Kertas kerjaini menerangkan status semasa industri biji benih, prospek dalam pengeluaran bijibenih untuk berbagai-bagai komoditi serta halangan-halangan yang dihadapi dalammemajukannya. Strategi-strategi bagi meningkatkan keupayaan industri biji benihjuga dibincangkan.