FRUIT and vegetable farmers are in a bind following the 200% hike in fertiliser and pesticide cost, said farmers’ groups.

They said the only solution is government intervention, adding that about 30% of farmers are already at the point of foreclosure.

A multitude of factors is driving up the cost, as many materials are imported and global supply chain problems are disrupting trade although countries are re-emerging from the pandemic to reopen their economies, according to farmers’ association heads.

Compounding the matter is a shortage of foreign labour in the farming sector, with workers preferring to take up jobs at oil palm plantations – a sector that is also facing shortage of labour.

Malaysia Fruit Farmers Association president Hong Jok Hon said in his farming experience of 53 years, he has not encountered such a situation with multiple matters occurring simultaneously.

“There are various factors – big and small – happening around the world that have led to our current situation,” he told The Malaysian Insight

“Although the issue is not isolated to Malaysia, I hope the government will pay attention to our plight and provide fruit farmers with assistance.”

He said even if the economy is reopening, farmers have not increased the prices of their produce so as to not burden consumers.

But the Consumers’ Association of Penang (CAP) had yesterday said buyers are already paying up to 200% more for certain produce.

It did not state what is behind the price hike, but urged the government to immediately intervene.

Hong said farmers are limiting their produce by not growing more than they can sell, as consumer purchasing power is still below the pre-pandemic level.

If raw material prices continue to increase and there is no government assistance, at least 30% of fruit farmers will fold in the next six to 12 months, he added.

The price of herbicide has gone up by about 200%, insecticide by 30% to 50%, and farming equipment by 5% to 20%, according to farmers’ association heads.

The price of chemical fertilisers has spiked to RM3,700 to RM4,000 per tonne, from a mere RM1,700 per tonne.

Of the items that have increased in prices, 70% are imported either from China or Europe.

Perak Fruit Growers Association chairman Lim Poh Kuang said a lot of farmers are on the brink of bankruptcy.

The chemical fertiliser cost has steadily increased since August and is expected to continue going up, he added.

“Not only is it expensive, but we are also experiencing a shortage of goods as some farmers decided to stock up in anticipation of price hikes.”

Malaysia Federation of Vegetable Farmers Association president Lim Ser Kwee said a farmer can stock up to three months’ worth of fertiliser, at most.

“After that, we run into cash flow problems again and wonder whether we can afford to buy more fertiliser.”

If this persists, consumers may have to pay more for vegetables, especially with Chinese New Year approaching after Christmas, he added.

The Malaysia Federation of Vegetable Farmers Association has submitted a memorandum to the government to highlight the issues and hopes they will be resolved soon.

Lim said one notable issue is the foreign labour shortage, which has led to a significant drop in production.

Putrajaya’s ban on any incoming migrant labour during the Covid-19 pandemic has led to this shortage, persisting even after the federal government lifted the ban last month.

Prime Minister Ismail Sabri Yaakob had recently said the government is aware of the problems faced by farmers following the price hike of raw materials.

The relevant ministries have been instructed to resolve them, by ensuring prices are reduced and farmers receive aid, he added. – November 24, 2021.