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The Decision to Adopt Organic Farming in Malaysia (based on the Key Informants
Point of View)
Nur Bahiah Mohamed Haris 1, 2, *, Guy Garrod1, Menelaos Gkartzios1 & Amy Proctor1
1School of Agriculture, Food and Rural Development,
Agriculture Building, King's Road, Newcastle University
Newcastle upon Tyne, Tyne and Wear, NE1 7RU, United Kingdom
2 Department of Agriculture Technology, Faculty of Agriculture,
Universiti Putra Malaysia, 43400 Serdang, Selangor, Malaysia
* Corresponding author, e-mail: bahiaharis@gmail.com
Abstract:
The Malaysian community has recently become more aware of the benefits of organic food
and its potential advantages for human health. Organic food may also contribute to achieving
more sustainable food production and have a positive impact on national food security.
However, in Malaysian situation, even though various strategies have been implemented by
the government to encourage more farmers to adopt organic practices, the number of certified
farmers still remains low. In fact, the demand from consumers for organic products continues
to increase, which cannot be met by local producers. As a result, there is a need to import
organic food from other countries. In this context, this study will investigate the factors that
influence farmers’ decisions to convert to organic farming, based on preliminary in depth
interviews with key informants such as policy intervention, high awareness among consumer,
farmers’ attitude, family background, labour, as well as land ownership. This study is
expected to inform policy making in Malaysia on how to encourage more farmers to
participate in organic farming practices so that local production can meet future demand. The
conceptual framework, methodologies, issues and challenges will be discussed briefly in this
paper.
Keywords: adoption, organic farmers, organic farming, sustainable agriculture, Malaysia
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1. Introduction
Improvements in lifestyles and associated changes in consumption are increasing the global
demand for food, with the consequence that the need to develop genuinely a sustainable food
production system becomes stronger every year. The limitations of arable land, which are
mainly the result of soil degradation, increased development, and climate change, threaten the
productivity of conventional farming systems. Hence, farming systems with a lower reliance
on external inputs offer some promise of greater sustainability. One well-known and widely
adopted low-input system is organic farming, where the practices rely more on
environmentally sustainable methods of agricultural production.
Organic farming has attracted increasing attention in recent decades, as it is considered to
have beneficial impacts on the future of sustainable food production while also addressing the
environmental problems associated with conventional agriculture (Mäder et al., 2002;
Edwards-Jones & Howells, 2001; Rigby & Cáceres, 2001; Lampkin & Padel, 1994) Organic
agriculture generally relies on the use of non-polluting inputs and the adoption of land
management techniques sympathetic to local ecosystems (Kallas, Serra, & Gil, 2010).
Organic farming is perceived by some farmers to offer solutions to environmental
degradation, depletion of non-renewable resources, food safety and other problems associated
with conventional agricultural practices (Lampkin & Padel, 1994).
Besides its positive impacts on the environment, organic farming has also indirectly
contributed to job creation, income generation, the development of new technologies and
indigenous knowledge, and network construction, as well as supporting rural development
(Darnhofer, 2005; Hamilton & Fischer 2003; Scialabba, 2000). Parrott et al. (2006) identified
two types of organic farming in developing countries: (1) officially certified organic farming;
and (2) informal organic farming. The first tends to focus on the export of organic products,
while the second involves small-scale activities to improve the livelihoods of individual
farmers (Goldberger, 2008). While certification systems are necessary to access international
markets, domestic markets for organic produce may initially develop around the informal
sector (Parrott et al., 2006).
2
Organic agriculture is the fastest growing agriculture-based industry in the world (Paull,
2011). The International Federation of Organic Agriculture Movements (IFOAM) has
become the main advocacy group for supporting the global organic movement (Paull, 2010).
Recently, data from the IFOAM indicated that organic agriculture is practiced in 160
countries, and that the land devoted to organic agriculture worldwide has more than doubled
from 15.8 million hectares in 2001 to 37.2 million hectares in 2011 (Paull, 2011). In addition,
there has also been an increase in organic agriculture land in Asia, Europe, North America
and Oceana (Willer, Lernoud, & Home, 2013). In Asia, the total area of organic agriculture is
nearly 3.7 million hectares, which constitutes ten percent of the world’s organic land. China
leads with 1.9 million per hectares, followed by India (1.1 million hectares).
In Malaysia, over recent decades, the agricultural sector has come to rely more on extensive
production practices. In order to reduce the negative impacts that derive from the
intensification of farming practices, environmentally friendly production methods such as
organic farming have been encouraged. While the government have implemented various
strategies to attract more farmers to engage in this area, the number of certified organic
farmers still remains low. In fact, the demand from consumers continues to increase and
cannot be met by local producers, and as a result, imports from other countries are required.
Prior to this, the local price of organic vegetables increased to up to three times the price one
of comparable conventional products, mainly due to the greater labour requirements of
organic agriculture (Ahmad, 2001).
A review of the literature related to organic farming and sustainable agriculture in Malaysia
suggests that this topic has been well researched. Studies have explored different aspects of
organic farming including; (1) farmers’ adoption of sustainable agriculture practices (SAP)
and good agriculture practices (GAP) (Tey et al., 2014; Terano, Yahya, Mohamed, & Saimin,
2014; Tey, 2013; Barrow, 2009; Hashim, Mustapha, & Siwar, 2008); (2) consumer
preferences and behaviour (Chamhuri & Batt, 2015; Ibitoye & Nawi, 2014; Othman &
Rahman, 2014; Wee et al. 2014; Terano, Yahya, Mohamed, & Saimin, 2014; Mohamad et
al.(2014); Ahmad & Juhdi, 2013; Che Wel.,et al. 2012; Saleki & Seyedsaleki, 2012; Shafie &
Rennie, 2012); (3) the market and supply chain management for fresh fruit and vegetables
industries (Stanton et al. 2011; Man et al., 2009; Ali, et al., 2008); and (4) knowledge transfer
among extension agents and the key actors involved in the agricultural community (Shariff et
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al. 2014; Tiraieyari et al., 2013; Tiraieyari & Uli, 2011). However, far too little attention has
been paid to farmers’ adoption of organic farming practices (Jamal et al., 2014; Tiraieyari et
al, 2014; Assis, & Mohd Ismail, 2011).
While research on organic farming in Malaysia has produced considerable information
regarding consumer preferences and market demand, less attention has been paid to the
production side, particularly the adoption of organic farming. Hence, this study is designed to
highlight the factors that influence farmers to adopt organic farming, particularly from the
key informants’ point of view. This study also investigate policy and government practices
and implementation regarding the development of organic production in Malaysia.
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2. Organic Farming in Malaysia
Organic practices have been highlighted in various Malaysian national plans and policies. It
started with the National Agriculture Policy (NAP3) (1998-2010), where organic agriculture
was identified as a market opportunity mainly for vegetables and fruit growers and continues
in the National Agro-Food Policy (2011-2020), where organic agriculture became a major
issue in adopting sustainable development.
In addition, the most recent organic programme, The SWITCH-Asia Program, was launched
by the European Union to promote Sustainable Consumption Production (SCP) across the
Asian region, including Malaysia. It was initiated in 2012, and in 2014 the Economic Plan
Unit (EPU) of the Prime Minister’s Department became the SCP representatives that
coordinate the relevant activities of government and non-government agencies. This includes
activities and programmes that promote organic farming activities.
In successive Malaysian Plans, organic farming has become a key objective for the
development of the agricultural sector. Malaysian Five Year National Plans were introduced
after independence (1957), and organic production became the main focus for agriculture
development since the 8th Malaysian Plan (2001-2005). In this plan, the government set out
its plans to promote organic agriculture, including the allocation of funding, infrastructure
improvements, the initiation of training and support services, and the establishment of a
certification scheme. The focus on organic production has continued until now (The 11th
Malaysian Plan (2016-2020)) where the organic movement has become the main agenda
under sustainable development in the New Economic Model. This demonstrates how organic
agriculture has become increasingly important in Malaysia over recent years, as various
strategies have been set up to ensure that more adopt organic farming practices.
Organic farmers rely on two sources of information: government and non-governmental
organisations (NGO). In the government sector, the Department of Agriculture Malaysia
(DoA) is the body that is most actively involved with farmers. Conventional farmers who
intend to apply for certification, or organic farmers who need to renew their certification need
approval from this agency. DoA also control the Malaysian Organic Scheme (MyOrganic) in
term of the approval process, disseminating knowledge and training, as well as monitoring
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and inspecting farms. Each state has their own agriculture officer who is responsible for the
monitoring and certification process. In terms of the NGOs, there are two main organisations
that assist the organic movement: the Centre of Environment, Technology and Development
Malaysia (CETDEM) and Organic Alliance Malaysia (OAM). Both have a different roles, but
share the main purpose of promoting organic development in Malaysia. The CETDEM
initiated the organic pathway in Malaysia in 1986, and are still actively involved with organic
farmers and now provide fundamental training and knowledge exchange among farmers.
They also encourage other people to become involved in organic agriculture with a variety of
exciting programmes that promote public awareness and encourage participation. On the
other hand, the OAM is involved in the marketing of organic products, where it helps in
promoting, developing and implementing a code of conduct for the marketing of organic
products. The OAM main emphasis is on the organic products, while CETDEM concentrates
on organic farmers.
The consumption of organic food is in Malaysia is currently increasing, due to rising health
consciousness alongside the growth of organic agriculture (Mohamad et al., 2014). In fact,
Malaysian consumers are becoming more interested in organic products, raising demand
significantly (Ahmad & Juhdi, 2013). The intention of purchasing organic food (including
rice) is significantly influenced by the consumer’s perception of its environmental and health
attributes (Wee et al., 2014; Mohamed et al., 2014; Ibitoye & Nawi, 2014; Shafie & Rennie,
2012). In addition, sensory attributes such as nutritional value, taste, freshness and
appearance also play an important role for consumers when purchasing organic food (Shafie
& Rennie, 2012). Many organic buyers believe organic food to be healthier, tastier, and better
for the environment compared to conventional food (Ahmad & Juhdi, 2013). However, Wee
et al., (2014) argue that the quality of organic foods does not influence the consumer to
purchase the products. Food quality is usually associated with freshness, food safety,
nutritional quality and value, while freshness has become the most important consumer
preference when purchasing vegetables and meat in Malaysia (Chamhuri & Batt, 2015).
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3. Certification in Organic Farming
The basic principles that underpin organic production globally have not changed much over
the past 65 years. Currently, organic agriculture is defined as consisting of the following four
principles (IFOAM, 2011):
i. Principle of health: Organic Agriculture should sustain and enhance the health
of soils, plants, animals, humans and the planet as one and indivisible.
ii. Principle of ecology: Organic Agriculture should be based on living ecological
systems and cycles, work with them, emulate them and help sustain them.
iii. Principle of fairness: Organic Agriculture should build on relationships that
ensure fairness with regard to the common environment and life opportunities
iv. Principle of care: Organic Agriculture should be managed in a precautionary
and responsible manner to protect the health and well-being of current and
future generations and the environment.
Underpinned by these principles, the Malaysian organic scheme (myOrganic) which is a
rebranding of the former Malaysian Organic Scheme Standard (SOM) certification, is set up
to recognise farms that practice organic farming based on the Malaysian Standard MS
1529:2015 (Plant-based organically produced foods-requirements for production, processing,
handling, labelling and marketing; First Revision). The new scheme is an improvement on
the previous one, and it will cover all aspects of production including vegetables, fisheries
and poultry. Initially, it will highlight vegetable production before moving on to the other
sectors in the future.
In order for farmers to apply for MyOrganic certification, they have to fulfil a set of
requirements listed by the DoA. Then, an officer will inspect the farm and prepare a report.
Once approved, the farmers need to prepare some soil and water samples (and send them to
the DoA for auditing. The result is presented to the Farm Certification Committee and, if
approved, the certification will be released to the farmer. Farmers need to renew the
certification every year but do not need to pay for the renewal process.
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To date, organic food remains a niche market, but it is growing rapidly. The proportion of
organic farming has increased substantially year on year, and in 2013 the Department of
Agriculture (DoA) reported that there were a total of 89 organic farms (occupying 1633.89 ha
of land) compared to only 27 organic farms in 2001 with a total area of 131.2 ha of land. In
2014, 142 farms applied for certification, covering approximately 1757ha of land. The
majority of the organic farmers are from Johor states, followed by Pulau Pinang and Pahang
(Department of Agriculture, 2015). Most of the organic crops are vegetables and mushrooms,
with very few producing fruit. Most organic fruit are imported from Australia, New Zealand,
China, Korea and Japan (Tiraieyari, Hamzah, & Samah, 2014).
4. Methodology
The main aim of this study is to identify the factors that influence farmers to adopt organic
farming practices from the standpoint of a group of key informants. A series of exploratory
semi-structured interviews were conducted to provide the primary data for this study. This
approach is highly flexible and permits respondents to define the world in their own unique
ways (Merriam, 2013).
In qualitative research, developing the interview guide is always considered an important
process (Krauss et al., 2009). Merriam (2013) refers to this as a list of questions that the
researcher intends to ask in the interview. Creswell (2007) proposed that the interview guide
for semi-structured interview need not exceed five or six general questions. Hence in this
study, the interview guide was divided into four main topics;
(1) The key informant’s role and contribution in developing organic activities
(2) Problem and challenges facing the organic movement
(3) Factors influencing farmers to adopt organic farming
(4) Future observations about the development of organic production.
Data was collected between July and August 2015. Seven respondents from various policy
and practice backgrounds were interviewed. These included representatives from the Ministry
of Agriculture and Agro-Based Industry Malaysia (MoA), the Department of Agriculture
Malaysia (DoA), Non-Governmental Organisation (NGOs) that comprised of the Centre of
8
Environment, Technology and Development Malaysia (CETDEM) and Organic Alliance
Malaysia (OAM), the research and development (R&D) from Malaysian Agricultural
Research and Development Institute (MARDI), and also the main retailers (AEON) that
promote organic development in Malaysia. The interviews were conducted at locations
chosen by the respondents, and the purpose of the exercise was explained to the respondent
prior to commencing the interview. The use of a tape recorder was also explained, and
participants were informed that the interview would only take about one hour and that they
could stop the discussion at any time if they wished.
This qualitative approach was intended to provide an in-depth understanding of respondents’
perceptions regarding farmers’ adoption of organic practices. These exploratory interviews
will form the basis for the later phase of quantitative modeling, by highlighting potential
variables influential in farmers’ decisions to adopt organic farming.
5. Result and Discussion
Based on a preliminary analysis of the interviews, there are six main factors that influence
farmers to adopt organic farming. These findings will underpin a later phase of quantitative
modelling, which will be able to draw inferences from a larger sample. The factors include:
5.1 Policy Context & Government Intervention
Farmers need support particularly from government, agencies and NGOs. Basically
farmers require some additional funding sources to assist conversion such as subsidies
or loans. This would help to support their on-farm costs (e.g. soil conservation,
production, labour, and packaging costs). As retailers from AEON mentioned:
I think that in this case we really need the government to support the
conversion of small farmers who have an interest in growing organic
vegetables because growing organic vegetables is different from conventional
ones.
They also require additional training, as according to the CETDEM, only limited
training is provided by the government and most of the training farmers currently
receive is from NGOs. For example:
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So they have to provide more training and focus on technical issues. So that’s
why, I think they must work in collaboration with NGOs like CETDEM.
The key informants from DoA also mentioned that it is essential to improve extension
services by providing the extension workers with a technical knowledge of organic
farming and allowing them to spend more time advising farmers. As she mentioned:
The main thing is training and extension services, as we provide farming
training all across the state and support them until they can survive on their
own. In fact, they become entrepreneurs as they sell the product to other
farmers.
This findings is consistent with those of other studies that revealed the organic
farmers adoption is mainly determined by the contact with extension and advisory
services, such as government agencies, extension services and NGOs (Sodjinou et al.,
2015; Barhoum, 2010; Gibbon, 2008). In addition, the lack of economic incentives
also can be an important barrier to conversion to organic farming (Uematsu &
Mishra, 2012).
5.2 High Awareness among Consumers
Even though demand for organic products has risen, it is associated with certain
groups, e.g. cancer patients and more educated households. Therefore the key
informants proposed that all consumers should be educated about organic products
and that they should be aware of their potential importance for health and the
environment. The related agencies should also promote more innovative marketing of
organic produce in order to encourage the community, and especially young people,
to become interested in organic production. As one of the NGO suggested:
I think the best way is to get people to know more about organics, is through
young people. If people understand more about organic of course they will
demand for organic products.
It similar with the previous study that suggested by increasing health awareness and
individual’s well-being will promote the adoption of organic farming (Mzoughi,
2014). Moreover, this findings match with those observed in earlier studies where the
development of knowledge and awareness regarding environmental issues will
increase the adoption of organic farming which positively associated with organic
certification ( Sarker and Y. Itohara, 2009; Burton, Rigby, & Young, 1999). However,
10
further studies reported that the environmental awareness aspects is considered as the
moderate motives in farmers’ decision to grow organic (Fairweather, 1999; Padel,
2001).
5.3 Farmers’ Attitude
Organic farming requires commitment, passion and integrity. Farmers need to have a
positive attitude to gain trust from consumers (for the accreditation scheme) and they
have to follow the rigid certification process. The applicant must submit to the
following criteria: (1) site inspection, (2) analysis for pesticides residues, heavy
metals and microbes and (3) verification of farm practices, in order to be a certified
organic farmer. All processes need a high commitment and based on the respondents
view, not all farmers are capable of fulfilling these requirements due to their age, lack
of knowledge or passion. The AEON retailers put it best:
Farmers need to think positively. I do hope that farmers don’t give up easily.
They need to have passion.
This results agree with the findings of other studies, in which discovered that farmers’
attitudes and preferences are important determinants of adoption decisions (Nandi et
al., 2015; Burton et al., 1999; D’Souza, 1993;). In term of personal characteristics,
Läpple (2012) described the organic farmers as a highly environmental person, less
motivated by economic reason and generally less risk than the conventional farmers.
More specifically, in term of adoption rate, the early adopters were found to be less
profit compared to other groups, while environmental attitudes and social learning
were identified to be the important determinants for all adopter groups (Läpple &
Rensburg, 2011).
5.4 Labour Force
Farmers require more labour to help them to manage the farm. This situation usually
occurs on larger farms, where organic cultivation is chiefly manual and labour
intensive. This requires farmers to transfer the knowledge and skills to the labour
appropriately, and this may time consuming. Larger farms also tend to have a more
professional management and a trained labor force and possess economies of scale.
11
Hence, greater farm income is likely to be positively related to the sustainable
adoption (Tey, 2013). As one of the NGOs mentioned:
The labour force is also a serious problem in agriculture, so that’s something
that farmers should pay attention to.
Based on his suggestions, it is essential that farmers are knowledgeable and choose
their workers wisely. According to the literature, the bigger the farm size the more
difficult it is to handle the organic farming (Sodjinou et al., 2015). Hence farmers who
having a large family labour size are more advantages on managing the farm
compared to others (Sarker and Y. Itohara, 2009).
5.5 Family Support
In order to farm organically, farmers need to have enthusiasm and courage, hence
they require strong support from their families. Family background and the
encouragement of family members may help organic farmers to become successful. In
addition, most of organic farmers are old and their land will inherited by their
children, therefore they really need to motivate young people to replace them in the
future. The MoA had mentioned:
That’s why organic is very tough industry. We need support from family,
government, NGOs, everybody, and then of course we can actually develop a
better movement.
This results is in line with other studies which explained that the adoption is higher
among small family farms that usually getting problem on the loans (Kallas et al.,
2010). On the contrary, family labour also play the important role in the organic
adoption since it give the opportunity for poor farmers to solve their financial
constraints (Sodjinou et al., 2015).
5.6 Land ownership
This is specific to Pahang only, where the majority of farmers rent their farms (on a
contract basis). The issue of Temporary Occupation License (TOLs) is not new in
Cameron, Pahang. It originated in the 1980s, when farmers were allowed to cultivate
land temporarily with permission renewed annually by the government. This means
that it is hard to obtain certification, as farmers need the owner of the land to apply for
12
the certification. Some tenant farmers produce organic crops, but apply for
certification from other countries (e.g. USA and Australia). This results related with
Nepal and Bangladesh studies where the land ownership determines the economic
prosperity of an individual and only farmers that having larger farms have enough
capital and more likely to adopt the organic production (Karki, Schleenbecker, &
Hamm, 2011; Sarker and Y. Itohara, 2009).
13
6. Conclusion
This study reveals that even though the number of organic farms has increased, supported by
various strategies that have been implemented by the government and NGOs to encourage
more farmers to convert to organic production, the sector still cannot fulfil demand from
Malaysian consumers. The results presented here suggest that the contribution of government
and related agencies may facilitate farmers who wish to convert to organic production. It also
appears that many farmers are not confident enough to become involved in organic
production or that they lack sufficient knowledge of organic farming, so preventing them
from adopting organic methods. Therefore, the government and policy maker should consider
allocating funds to encourage small scale organic producers or allocating funding to those
farmers who wish to convert to organic production. The Department of Agriculture, and
particularly the front line extension workers, play a major role by providing training to the
farmers so that they feel more confident to adopt organic techniques. The Government should
also assist the farmers in term of marketing by standardising the premium price and helping
them to improve their market access. NGOs and the big retailers can play their part by
disseminating information and transferring the knowledge on the benefits of organic
production to the public as well as raising public awareness on sustainable environmental
management. This study also noted that there is still a need to upgrade the extension services
by designing an innovative education tools such as mobile technology to foster the learning
process. Moreover, the organic farmers organisation should be actively develop so that it will
promote more organic development in the future, as well as to link with the research
organisation for future technology development.
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LIST OF ABBREVIATIONS
CETDEM
Centre of Environment Technology & Development
DoA
Department of Agriculture Malaysia
EPU
Economic Plan Unit
IFOAM
International Federation of Organic Agriculture
Movement
MARDI
Malaysian Agricultural Research and Development
Institute
MoA
Ministry of Agriculture
MyOrganic
Malaysian Organic Scheme
NAP
National Agriculture Policy
NGO
Non-Governmental Agency
OAM
Organic Alliance Malaysia
SAP
Sustainable Agriculture Practices
SCP
Sustainable Consumption Production
SOM
Malaysian Organic Scheme Standard
TOLs
Temporary Occupation License