The Johor Agriculture Department has received RM16.66 million from the Finance Ministry to implement a Food Security Programme as a move to turn Johor into Malaysia’s main food production hub.
According to Johor Menteri Besar Datuk Hasni Mohammad, the Johor Agriculture Department will coordinate six programmes to utilize the allocation. The programmes will involve 1,583 recipients comprising leading companies and entrepreneurs, commencing this year until 2022, to ensure an adequate and safe-to-consume food supply.
RM2 million from the total amount will be allocated to a collaboration programme between leading companies and farmers as well as the Agro-Based Industry (IAT)
The collaboration between leading companies that act as the industry players with IAT will help to deal with the buying and selling of crops, and subsequently establish contract farming agreements.
Hasni said that leading companies and entrepreneurs will reach an understanding to help achieve relevant market pricing which is beneficial to both parties based on the advice of the State Agriculture Department.
In addition, leading companies will be responsible for seeking markets both locally or for export while entrepreneurs will be responsible for ensuring the products are produced with the required quantity and quality, and safe to consume.
Both parties will receive incentives in the form of equipment, machinery, fixtures or infrastructure
Under the programme, each leading company will receive a maximum of RM50,000 incentive. On the other hand, each entrepreneur will receive a maximum of RM20,000 incentive.
Hasni added that the programme is aiming to improve productivity with the construction of a farm produce collection centre. This is to ensure that the marketing process runs smoothly, thus solving marketing issues and the dumping of agriculture products.
Also, this is an effort to bring entrepreneurs out of the B40 (Bottom 40) group. According to Hasni, the country’s subsistence rate would eventually increase as leading companies would be getting an adequate supply of quality agriculture products.
Meanwhile, the Memorandum of Understanding (MoU) was signed yesterday by relevant parties including six leading companies and 20 entrepreneurs for phase one.