THE alternative food system could offer fresh produce and meat at lower prices to fulfil the Pakatan Harapan (PH) government’s aim of reducing living costs, said Daim Zainuddin.

The business tycoon and frequent adviser to the administration said the alternative food system, as opposed to the conventional food system with “middlemen”, can potentially offer vegetables, fish and meat to consumers at “wholesale prices”.

The alternative food system, which includes local suppliers and cooperatives, are being tested out in Selangor to connect farms and fishing ports to retail outlets.

Daim, who was integral in speaking with the supplier groups and setting up the networks, said if these pilot runs are successful, the government can expand the programme to become nationwide.

“I’ve done the research and I think it can be done,” Daim told The Malaysian Insight in an interview recently.

“I’ve seen in certain places I’ve visited, (Fish) landing areas, mini petrol stations which have cold rooms that can store fish and veggies,” Daim said describing the workings of these alternative suppliers.

“This is one of things that we can start soon to show people that the government is fulfilling its promises in its manifesto.”

The Domestic Trade and Consumer Affairs and the Agriculture Ministries had announced they were embarking on a study on the supply chains for food and essential goods as part of efforts to bring down prices, as PH pledged to do in its manifesto.

Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail told The Malaysian Insight in March the study was to identify the cost factors at each level of the supply chain from production to transport to wholesale to retail.

This was so that the government could determine whether prices were skewed by profiteering or monopoly.

Meanwhile, in his interview with The Malaysian Insight, Daim shared his research findings on the supply chain for fresh fish.

“I’ve been monitoring the price of food on a daily basis. The problem is the landed fish is RM5 (per kg). By the time the consumer buys it, it’s about RM23. There is a difference of RM17. Now who’s making that money?”

In his dialogue with suppliers and middlemen, Daim said he told them they had to find a way to keep costs and profits reasonable or else the government will cut them out.

“We’re not telling (the middlemen directly) to cut (their profit margins). We say, why are you making so much? If you don’t reduce, we will find alternatives. You choose.” – May 11, 2019.