On 18 May 2017, guest speaker Dr. Mohd Desa Hassim, CEO of International Tropical Fruits Network (TFNet), presented at the second KRI Brown Bag Seminar on a topic titled “Malaysia: Current Scenario and Way Forward for the Fruit Industry”. Dr. Mohd Desa started the session by discussing the importance of tropical fruit industry and current scenario in Malaysia, followed by the industry’s position in the global fruit trade. He then addressed the issues and challenges faced by the industry and wrapped up the discourse with suggestions on how to improve the industry moving forward.

1. Malaysia: Current Scenario and
the Way forward for the Fruit
Industry

2. 1. Introduction
2. The importance of Tropical Fruits
3. Status of the Malaysian Fruit Industry
4. Global Production and Trade
5. Malaysia’s position in the global fruit trade
6. Issues and Challenges
7. Recommendations
Presentation Outline

3. International Tropical Fruits Network (TFNet) is an
autonomous and self financing global network
established under the auspices of the Food and
Agriculture Organization of the United Nations
(FAO), whose mandate is to promote sustainable
development of the tropical fruit
industry globally in relation to production,
consumption and trade. It is both
intergovernmental and inter-institutional in nature.
What is TFNet?

4. Vision, Mission, and Objectives
Vision
TFNet will be a leading global player in
facilitating international cooperation in
production, consumption, logistics,
marketing and trade development in the
global tropical fruit sector.
Mission
TFNet will cooperate with member
countries to improve small farmer
income by enhancing productivity and
market access, increase global demand
and trade of tropical fruits, and alleviate
micronutrient malnutrition by promoting
tropical fruit consumption.
Objectives

5. The Importance of Tropical Fruits

6. The Importance of Tropical Fruits
• Tropical fruits are rich in pro-vitamin A, B-vitamins,
vitamin C, minerals, and many other trace elements
that can combat malnutrition.
• In addition to conventional nutrients, they also have
various bioactive polyphenols that purportedly have
beneficial effects such as improving intelligence and
increasing life span.
• Aside from combating malnutrition, the tropical fruit
industry contributes to the national economy and
income of small households in developing countries.
• The steady growth of global income and the rising
awareness of the nutritional benefits of tropical fruits
are generating a continuous increase in world
consumption.

7. Time
Productivity &
Quality
Traditional
International Standard
- Food security
- Food quality
- Food safety
- Environment friendly
- Green Technology
- Digital Marketing
FUTURE
Semi-Automation
& Mechanization
Requirement for high
and efficient
technology in the
production system
PRESENT
BEFORE
AGRICULTURE SECTOR
PRESENT & FUTURE
MALAYSIA’s FRUIT INDUSTRY BACKGROUND
Source: DOA 2016

8. Production of tropical fruits in
Malaysia is expected to
increase to 2.6 million metric
tonnes by 2020
with a growth rate of 3.8% per
annum.
National Agrofood Policy (2011-2020)
Current and Projected Status of Selected Fruits - 2000-
2020 (Million Metric Tonnes)

9. NAP (2011-2020) identified the following fruits as priority for export
development program
NAP (2011-2020) – cont.
1)Fruits for Export :
Pineapple, Starfruit,Watermelon, Papaya,
Banana and Jackfruit
2)Fruits for Processing :
Pineapple, Jackfruit and Durian (Frozen)
3)Fruits for Long term Export :
Durian, Rambutan and Mangosteen

10. The NKEA for Agriculture (EPP7) - Upgrading capabilities to produce
fruit and vegetable for premium markets identified the following fruits to
focus and prioritise
NKEA Agriculture
 MD2 Pineapple
 J32 Jackfruit
 B10 Starfruit
 Cavendish Banana
 KR1 rock melon
 Eksotika and Sekaki (Papaya)
This EPP is expected to contribute RM1.6 billion to GNI and 9,100
jobs by 2020.

11. Malaysia – Fruit Planted Area
Fruit planted area
dropped from 287,455
hectares in 2005 to
202,481 hectares in
2014 – 29.5% decline.
The trend indicates 4.5%
average annual decrease
fruit planted area since
last decade.
Source: MOA Agriculture Statistics and Agro-food Statistics (2008-2014)

12. Malaysia – Fruit Production Zones
Mango/Mangga
PERLIS

13. Fruits Hectarage, Malaysia 2015
Source: MOA, 2015
Reasons for high fruit cultivation in these states are:
1) Availability of land 2) Favourable soil conditions 3) Suitable environmental settings
States Ha
Johor 15,263
Sarawak 6,936
Pahang 4,700
TOP 3 fruit
producing
states

14. Malaysia – Fruit Production
Highest recorded in 2010 :
1,641,872 tonnes
Lowest was in 2006,
1,408,850 tonnes.
2015 production data (not
indicated) was 1,589,271.5
tonnes
Production trend shows
average production in the
period grew at 0.6% per
annum.

15. Malaysia – Fruit Consumption
*Computed based on per capita and population by Amin Mahir Abdullah, UPM (2016)
2005 - 2,169,500 tonnes; increased by almost 32% (2,870,092 tonnes in 2014)
The growth rate is estimated at 3.5% per annum. With this growth rate the
estimated demand in 2020 is forecasted to be 3.6 million tonnes. Demand for
fruits is expected to increase due to population growth (2.4% in 2013), changes
in taste and preferences, and changes in lifestyle.
Fruit Consumption (Tonnes)

16. Malaysia – Fruit Self-sufficiency Level
2005-fruits produced domestically supplied 74.7% of domestic fruit consumption.
2014- the capacity of domestic supply to fulfill the domestic demand decreased to
56%. Trend of fruit SSL from 2005 to 2014 declined at a rate of 2.7%/year

17. Malaysia – Fruit Self-sufficiency Level
Source: Agrofood statistics, MOA (2014)

18. Malaysia – Fruit Consumption Per Capita
Consumption per capita grew at the rate of 1.7% per year indicating
an increase in per person fruit intake per year. There was a 12%
increase in per capita consumption of fruit from 2005 to 2014.
Data source: FAO Statistical Yearbook 2013 and Agriculture Statistics and Agro-food Statistics (2008-2014)

19. Malaysia – Fruit Marketing
The table shows an increase in value by almost 77% from 2005
to 2014, i.e. from RM2.6 billion to RM4.7 billion
Data source: FAO Statistical Yearbook 2013 and Agriculture Statistics and Agro-food Statistics (2008-2014)

20. Global Production and Trade
In 2014, global tropical fruit production is
384 million tonnes
of tropical fruits are produced in
developing countries98%
80% of tropical fruits exports go to
developed countries
Total global exports of tropical fruits in 2014 is valued at
20 billion USD
In the past 10 years, tropical fruit imports
have been increasing by 3.48% annually.
Meanwhile, production has been
increasing by 2.68% annually.

21. Malaysia – Fruit Productivity
Tropical regions - Malaysia’s fruit productivity is only slightly higher (5.25%) than
Eastern Africa (the least productive region in the tropics).
Malaysia’s productivity - 79% lower than Southeast Asia average; 36% lower than
Middle Africa average; and 120% lower than Latin America and Caribbean
average; and approximately 59% lower than the world’s fruit productivity.
Data source: FAO Statistical Yearbook 2013.and Agriculture Statistics and Agro-food Statistics (2008-2014)
Fuirt Productivity: Malaysia versus Other Regions 2010
(Tonnes/Ha.)

22. Malaysia – Fruit Productivity
Fruit productivity in the Philippines, Indonesia, Thailand and Vietnam are 92%,
250%, 28% and 78% higher than in Malaysia.
The significantly low relative productivity needs to be addressed if Malaysia is to
embark on expanding fruit production and compete in both domestic and
international markets.
Data source: FAO Statistical Yearbook 2013.and Agriculture Statistics and Agro-food Statistics (2008-2014)
Fruit Productivity in Asian Countries 2010
(Tonnes/Ha.)

23. Malaysia – Fruit Exports
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
2010 2011 2012 2013 2014
Export revenue of selected tropical fruits (in RM)
2010 2011 2012 2013 2014
Watermelon 56,646,099 57,676,095 55,596,845 59,853,277 78,921,159
Durian 17,270,764 27,048,136 31,612,100 36,700,420 33,276,382
Mangosteen 2,123,945 4,572,844 3,633,816 20,120,231 32,657,564
Banana 22,552,371 24,737,277 21,159,749 22,475,372 25,263,604
Pineapple 22,198,554 16,602,622 17,121,797 17,698,866 24,352,689
Papaya 11,386,746 11,383,003 8,432,894 8,765,686 12,033,052
Mango 3,545,194 3,420,794 3,725,759 3,522,937 5,245,485
Guava 1,756,272 1,772,028 1,470,774 2,366,008 3,425,090
Langsat 2,389,941 478,085 1,374,848 1,798,335 3,042,287
Tamarind 1,633,569 3,003,758 6,381,642 1,542,339 1,991,368
Rambutan 1,393,218 1,293,149 1,482,903 1,867,912 1,889,560
Sapodilla 114,931 109,400 94,274 90,346 491,522
Avocado 3,355 19,728 14,693 229 202,985

24. Malaysia’s Position Globally for Fruit Production
(2015)
Source: FAOSTAT
1.
India
2.
China
3.
Filipina
4.
Indonesia
5.
Thailand
6.
Banglades
h
7.
Brazil
8.
Pakistan
9.
Columbia
10.
Mexico
11.
Madagascar
12
13.
Tunisia
15.
Zambia
16.
Sepanyol
17.
Equador
18.
Guinea
19.
Tanzania
20.
14
. Malaysia
Rank Country Production
(tonne)
Major Fruit
1 India 5,273,000 Banana
2 China
(Mainland)
3,577,515 Watermelon
3 Philippines 3,300,000 Banana
4 Indonesia 2,689,466 Banana
5 Thailand 2,234,369 Mangosteen
Mango
Guava
6 Bangladesh 1,005,000 Mango
Mangosteen
Guava
7 Brazil 838,244 Banana
8 Pakistan 500,000 Mango
Mangosteen
Guava
9 Colombia 460,000 Mango
Mangosteen
Guava
10 Mexico 404,807 Banana
11 Madagascar 233,000 Banana
12 Peru 170,000 Mango
Mangosteen
Guava
13 Tunisia 97,729 Watermelon
14 Malaysia 83,075 Durian
Banana
15 Zambia 82,000 Banana
16 Sepanyol 60,762 Watermelon
17 Equador 53,216 Banana
18 Guinea 50,653 Banana
19 Tanzania 50,500 Banana
20 Cote d Ivoire 50,300 Banana

25. Malaysia‟s Position in Major Global Fruit Exports (2014)
Avocado
1. Mexico (0.56 M mt)
2. Netherlands (0.12 M mt)
3. Peru (0.12 M mt)
4. Chile (0.08 M mt)
5. Spain (0.06 M mt)
…
Malaysia = NONE
Banana
1. Ecuador (5.35 M mt)
2. Philippines (3.28 M mt)
3. Guatemala (1.95 M mt)
4. Costa Rica (1.92 M mt)
5. Colombia (1.55 M mt)
…
38. Malaysia
(18,814 mt)
Mango
1. Mexico (0.34 M mt)
2. India (0.26 M mt)
3. Thailand (0.25 M mt)
4. Peru (0.13 M mt)
5. Brazil (0.12 M mt)
…
20. Malaysia
(9,847 mt)
Pineapple
1. Costa Rica (1.96 M mt)
2. Philippines (0.49 M mt)
3. Netherlands (0.20 m mt)
4. Belgium (0.14 M mt)
5. USA (0.11 M mt)
…
15. Malaysia (17,580 mt)
Watermelon
1. Mexico (0.63 M mt)
2. Spain (0.54 M mt)
3. USA (0.21 M mt)
4. Italy (0.19 M mt)
5. Vietnam (0.19 M mt)
…
12. Malaysia (50,668 mt)
Others
1. Thailand (0.36 M mt)
2. China HK (0.34 M mt)
3. USA (0.02 M mt)
4. Egypt (0.02 M mt)
5. Malaysia (0.02 M mt)
Papaya
1. Mexico (0.11 M mt)
2. Guatemala (0.03 M mt)
3. Brazil (0.02 M mt)
4. Belize (0.02 M mt)
5. Malaysia (0.02 M mt)

26. Malaysia – Fruit Imports
2010 2011 2012 2013 2014
Mango 23,905,508 32,400,937 43,162,218 49,820,623 47,497,913
Banana 1,228,729 2,562,662 7,940,065 21,684,462 32,071,640
Tamarind 18,127,979 45,860,119 30,481,618 23,571,498 25,019,956
Durian 5,402,543 8,288,384 9,868,269 11,815,580 14,080,818
Mangosteen 3,161,843 2,166,805 4,159,635 13,574,346 11,181,162
Watermelon 4,608,477 6,688,039 6,154,484 9,741,110 9,172,194
Guava 1,388,968 2,044,017 1,910,933 1,612,529 5,499,592
Avocado 987,343 1,431,769 1,729,244 2,948,700 4,345,692
Pineapple 925,727 2,325,750 3,149,989 3,466,582 3,635,623
Rambutan 3,234,621 2,838,670 3,690,783 4,195,558 1,776,077
Langsat 1,471,374 157,173 461,990 1,430,421 1,550,671
Sapodilla 44,762 34,552 156,640 165,059 303,318
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
2010 2011 2012 2013 2014
Import cost of selected tropical fruits (in RM)

27. Malaysia – Fruit Imports
China
RM534.67 m
Malaysia – Fruit Imports
Where Malaysia imports from…
Data Source: FAMA, 2014
0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
Thailand Indonesia Filipina Vietnam Singapura Myanmar
RM(OOO)
ASEAN Countries
China
RM534.67 m
USA
RM340.41 m
South Africa
RM 251.32 m
Thailand
RM 220.75 m
New
Zealand
RM
95.21m
%
28.87
15.84
11.69
10.27
4.43
Others
RM
707.37m
32.91

28. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Eksport 443 435 438 469 492 570 577 587 632 735 897
Import 699 733 869 1085 1220 1364 1539 1755 2117 2258 3082
Balance -256 -298 -431 -616 -728 -794 -962 -1168 -1485 -1523 -2185
-3000
-2000
-1000
0
1000
2000
3000
4000
RM MILLION
Import, Export and BOT for Fruits
(2005-2020)
Source: DOA, 2015

29. Balance of Trade (2015) - Fruits
964,437
3,181,854
Value: RM „000
Source: DOA, 2015
-2,217,417

30. Is Production at its Maximum?
Type of Fruits
Average
Yield
Yield
Potential
Yield Gap
Mt/Ha Mt/Ha %
Starfruit 14.1 35 40.29
Papaya 24.1 60 40.17
Cempedak 6.2 15.2 40.79
Sapodila 11.5 29 39.66
Dokong 6.4 11.9 53.78
Duku 7.1 10 71.00
Durian 7.2 13.2 54.55
Guava 23.9 40 59.75
Langsat 7.4 5.4 137.04
Pomelo 9.8 10.5 93.33
Sweet Orange 9.5 24 39.58
Mango 6.7 6.5 103.08
Mangosteen 8.4 22 38.18
Dragonfruit 9.7 10 97.00
Pineapple 30.4 62 49.03
Jackfruit 9.2 19.3 47.67
Banana 12.7 24 52.92
Pulasan 3.1 8.3 37.35
Rambutan 5.3 8.3 63.86
Salak 5.4 8.7 62.07
Watermelon 17.9 30 59.67
0
10
20
30
40
50
60
70
Starfruit
Papaya
Cempedak
Sapodila
Dokong
Duku
Durian
Guava
Langsat
Pomelo
SweetOrange
Mango
Mangosteen
Dragonfruit
Pineapple
Jackfruit
Banana
Pulasan
Rambutan
Salak
Watermelon
Yield Gap Analysis
Average Yield Mt/Ha Potential Yield Mt/Ha
If No, Why?...
(Source: DOA, 2015)

31. Mismatch of Agroclimatic conditions?
(Source: Met. Department 2016)

32. High Production Costs?
Source: DOA 2016
Type of Fruit Years
STARFRUIT 20
PAPAYA 3
CEMPEDAK 20
DOKONG 25
SOURSOP 15
DURIAN (CLONE) 25
DURIAN (KAMPONG) 25
ROSE APPLE 15
GUAVA 10
POMELO 20
SWEET LIME 15
CHOK ANAN MANGO (MA
224)
15
HARUMANIS MANGO 15
MANGOSTEEN 25
JOSAPHINE PINEAPPLE
(PEAT SOIL)
MORIS PINEAPPLE (PEAT
SOIL)
MORIS PINEAPPLE
(MINERAL SOIL)
PINEAPPLE N36 (PEAT
SOIL)
PINEAPPLE N36 (MINERAL
SOIL)
MD2 PINEAPPLE (PEAT
SOIL)
MD2 PINEAPPLE
(MINERAL SOIL)
JACKFRUIT 15
PISANG BERANGAN 2
PISANG TANDUK/LANG 2
PITAYA 10
RAMBUTAN 20
ROCK MELON
(FERTIGATION)
5
WATERMELON 1 SEASON
RM0.00
RM50,000.00
RM100,000.00
RM150,000.00
RM200,000.00
RM250,000.00
RM300,000.00
RM350,000.00
RM400,000.00
RM450,000.00
RM500,000.00
Production Costs Analysis per Economic Lifespan of Fruits
(2016)
Production costs Input costs Labour costs Miscellaneous costs Contingency costs

33. Malaysia – FRUIT VALUE ADDED
Agro-based-Fruit products/Juice/Cordial
Increase in
number of
operators at an
average annual
growth - 20%
Sales value
average annual
growth – 28.5%
Data source: FAO Statistical Yearbook 2013 and Agriculture Statistics and Agro-food Statistics (2008-2014)
Year
Sales value
(RMMillion) Operators Average Sales
2006 4.80 94 51,063.83
2007 4.60 96 47,916.67
2008 9.10 114 79,824.56
2009 9.50 127 74,803.15
2010 6.00 108 55,555.56
2011 31.70 285 111,228.07
2012 24.20 313 77,316.29
2013 33.85 304 111,348.68
2014 35.00 300 116,666.67
Fruit Products/Juice/Cordial

34. First impressions…

36. Malaysia FRUIT – Performance Summary
Parameter Performance
Production Grew 0.6%/annum
Area Planted Declined 3.5%/annum
Productivity Grew 0.9%/annum (slow)
Agro-based (Fruit)
Products/Juice/Cordial
Participants 20% average annual growth
Average sales value 28.5% average annual growth
Market Structure Long chain Concentrated at wholesale
Marketing Margin Do change
Pricing Not transparent
Trade Imports 12.6% average annual growth
Exports 5.9% average annual growth
BOT 17.7% average annual deficit
Source: UPM/DOA, 2016

37. Issues and Challenges
Lack of economies of scale for smallholder production
Improper supply chain management/handling
Inconsistent and inadequate supply
Lack of strategic alliances between foreign importers,
wholesalers and distributors and farm
Lack of awareness among foreign consumers on Malaysian fruits
Mismatch of export preferences and target markets
Insufficient EUROGAP/GLOBAL GAP compliance
Seasonality issues
Fluctuating currency value (MYR)

39. Way Forward?
WAY
FORWARD
R&D for Industry
- Climate Change
Adaptation
-Post harvest technologies
-Pest and disease
-Toiletries and
Nutraceutical
-Cosmetics Production
- Large Scale (1-MFT)
- Sustainable and
Green Technology
-Market centric
Value
Creation
- Processing
- Food Safety
-Global GAP
Agro-tourism
Capacity
development
& Logistics
Policy and
Trade
- Land Utilization
-Trade Agreements
Tax insentive
Marketing
and
Branding
-Malaysia Best
-MyGAP
-MyOrganic
- Promotion
campaigns

40. Way Forward?

41. Way Forward?

42. Branding and Value Added Creation
SABA BANANA PROJECT

43. Recommendations
These recommendations are based on the five programmes of the “Action
Plan Towards Revitalizing the Malaysian Fruit Industry” developed during
the workshop on “Enhancing Linkages among Small-Scale Producers and
Other Stakeholders in the Value Chain” held in Langkawi on 8-10 August
2016.
1. Research and development on Malaysian fruit industry
2. Ensuring sustainable production.
3. Value adding through fruit processing (i.e. downstream processing) and
food safety standards
4. Intensifying fruit marketing and market access.
5. Promote extension, socio-economic and entrepreneurship

44. 1 Million Fruit Tree (1-MFT) Planting Campaign

45. Stay connected to TFNet
Like us on our Official Facebook Page @ TFNetOfficial
Join our Official Facebook Group
Visit our Website: www.itfnet.org

46. Forthcoming events by TFNet

47. Malaysia: Current Scenario and
the Way forward for the Fruit
Industry
THANK YOU