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Crop Diversification in the Asia-Pacific region - United Nations in ...

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should be attractive to justify <strong>the</strong> <strong>in</strong>vestment <strong>in</strong> <strong>the</strong>se activities. Take for example <strong>the</strong>processed fruit <strong>in</strong>dustry. The <strong>in</strong>dustry that <strong>in</strong>cludes juices, puree, concentrates and processedfruit products has become one of <strong>the</strong> world's major agri-bus<strong>in</strong>esses. There are opportunities<strong>in</strong> this area such as m<strong>in</strong>imally processed fruits, tropical fruit juices, natural food <strong>in</strong>gredients,functional food, modified food <strong>in</strong>gredients, health food, convenience food, frozen fruits,beverages and high fibre products.The chang<strong>in</strong>g consumer tastes for environmentally friendly goods or pesticide freegoods open <strong>the</strong> door for organic farm<strong>in</strong>g or soil-less culture techniques of production. Thepopularity of portable hydroponics conta<strong>in</strong>ers among <strong>the</strong> hobbyists signals <strong>the</strong> opportunitiesfor bigger commercial ventures.As production becomes more competitive, <strong>the</strong>re is a need to be more efficient, withhigh productivity and m<strong>in</strong>imal costs. Precision farm<strong>in</strong>g through <strong>the</strong> use of advancedtechnologies such as remote sens<strong>in</strong>g, Geographical Information System (GIS), GlobalPosition<strong>in</strong>g System (GPS) and Decision Support System (DSS) must be given dueconsideration. The oil palm plantations are show<strong>in</strong>g keen <strong>in</strong>terest <strong>in</strong> this venture for <strong>the</strong>good of <strong>the</strong> <strong>in</strong>dustry.5.3 ProspectsThe demand for rice <strong>in</strong> both <strong>in</strong>ternational and domestic markets is expected to<strong>in</strong>crease. In <strong>the</strong> domestic market, <strong>the</strong> consumption of rice is projected to <strong>in</strong>crease from 1.8million tonnes <strong>in</strong> 1995 to 2.3 million tonnes <strong>in</strong> 2010 due to population <strong>in</strong>crease. Under atight supply situation <strong>in</strong> <strong>the</strong> <strong>in</strong>ternational market <strong>the</strong>re exists prospects to expand domesticproduction of rice to cater for domestic demand. At <strong>the</strong> same time <strong>in</strong>creas<strong>in</strong>g <strong>in</strong>come andhigher standards of liv<strong>in</strong>g will lead to chang<strong>in</strong>g preferences towards higher quality rice.Given <strong>the</strong> price premium for high quality rice, <strong>the</strong>re is potential for development of <strong>the</strong> rice<strong>in</strong>dustry based on this product group.The prospects for growth of <strong>the</strong> fruit <strong>in</strong>dustry are bright due to <strong>the</strong> expected <strong>in</strong>crease<strong>in</strong> domestic consumption of both fresh and processed fruits and expand<strong>in</strong>g world demand fortropical fresh and processed fruits. Based on production capability and demand, <strong>the</strong>re ispotential for <strong>the</strong> country to enhance production of fruits and be competitive to cater forselected fresh fruits demand <strong>in</strong> <strong>the</strong> domestic market and <strong>in</strong> niche export markets.Based on cost structure and demand, <strong>the</strong>re are prospects for Malaysia to concentrateon production of high quality fresh vegetables for both domestic and export markets and alsoon a few selected vegetables for process<strong>in</strong>g. Us<strong>in</strong>g high technology for grow<strong>in</strong>g vegetablesunder controlled environment, <strong>the</strong>re is potential for production of high value temperatevegetables such as cauliflower, broccoli, celery, leek and bell pepper <strong>in</strong> <strong>the</strong> lowlands forimport substitution.6. GOVERNMENT POLICIES AND STRATEGIES FOR CROPDIVERSIFICATIONIn <strong>the</strong> 1960’s and 1970’s, with abundant land and cheap labour, Malaysia pursued anexpansionary policy on rice and export crops such as rubber, oil palm and cocoa. TheGovernment undertook heavy <strong>in</strong>vestments <strong>in</strong> <strong>in</strong>frastructure, <strong>in</strong>stitutional build<strong>in</strong>g and new69

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