Certification 

TOS 77, September 2007

The Malaysian organic market is expected to grow by 20% per annum. In the current 9th Malaysia Plan, the Government projects the organic industry to be worth RM800 million (EUR 170.6 million) in five years. The Ministry of Agriculture plans to have 20,000 hectares under organic farming by the year 2010. However, the government certification programme, provided free of charge, only completed seven out of the 70 applications received over the 3.5 years of implementation. Foreign certification bodies certifying to foreign regulations and requirements for exports are relatively expensive and not fully appropriate to sector conditions in the country. Can market growth continue without market assurance? Organic Alliance Malaysia, the sector association, shares its plans to address the situation.

Total land under organic management, as announced by the Department of Agriculture (DoA) in April 2007, is 2,367 ha, an 18 fold increase from 131 ha in 2001 (see table below). Local production consists mainly of vegetables and fruit. There are also unconfirmed reports of palm oil companies embarking on organic oil palm production and self claimed organic poultry production, both of which are not included in the figures.

Imported organic products play a major role in meeting market demand, a condition that reflects the food sector in general. In 2005 total food imports for Malaysia were valued at about RM14 billion (Eur 3 billion), which after the value of food exported is offsetted gave a balance of RM5 billion (Eur 1.1 billion). The agriculture industry profits through value addition of local or imported raw materials with local processing.

Fresh organic produce is imported mainly from Australia and New Zealand. Processed products, mainly grains, pasta, juices, cereals and beverages, come from as far away as the United States and Europe. A few items are sourced from Thailand. Local processing of organic products started later, from 2000, with products like bread, noodles, soy sauce, soy milk, tofu, etc. Today there are up to a dozen organic wholesalers in Malaysia, and more than 130 organic retail outlets throughout the country, but with the majority concentrated around Kuala Lumpur, the capital city. Major supermarket chains, such as Jaya Jusco and Tesco, stock organic products, and have become the lead distribution channel for organic products in the country, while other large corporations and state agencies are now showing investment interest. A number of pioneer organic wholesale and retail companies have been bought out in the last three years. Sporadic seminars and fairs are still being organised by NGOs, sometimes in collaboration with the government Department of Agriculture (DoA). However, organic promotion is, by and large, today done by wholesalers and retailers through handouts, brochures and newsletters.

In the current 9th Malaysia Plan, the government projects the organic industry to be worth RM800 million (EUR 170.6 million) in five years. The Ministry of Agriculture plans to have 20,000 hectares under organic farming by year 2010.

13 of 20 Good Reasons To Buy Organic 

Avoid GMOs. Independent testing of the long-term health effects of GMO foods
on humans has not been carried out. The many exemptions from GE labelling laws in
Australia makes it impossible to know which grocery items use GMO-derived ingredients.
Certified organic foods are a great way to avoid GMOs.

Source: BFA