Agriculture Dept fares poorly in livestock, rice programmes –AG Report

Posted on October 2, 2013, Wednesday

KUCHING: The Livestock Development Programme managed by the Department of Agriculture (DOA) has been graded “less than satisfactory” in the Auditor-General’s Report 2012 despite spending RM53.73 million from 2009 to 2012 to aid livestock breeders in the state.

The report said that an audit conducted from July to October 2012 revealed the programme utilised 96.1 per cent of its total allocation but its overall management was poor and identified seven weaknesses in its implementation.

A glaring deficiency was the absence of contract agreement for the procurement of livestock. Other weaknesses were incomplete livestock registration records and poor management of the livestock station which could have led to low birth rate but high mortality rate of the cattle.

In reaction to the audit comment, DOA had conducted a workshop to draft the Standard Operating Procedure (SOP) for all processes pertaining to livestock project management and station. The department also initiated some remedial actions including reviewing the implementation strategy for the programme; ensuring the signing of contract agreement before distributing the livestock; proper management of livestock station as well as proper and updating registration records of livestock.

Apart from its livestock programme, DOA’s Paddy Industry Development Programme (PPIP) which also involved Ministry of Modernisation of Agriculture Sarawak as well as Department of Irrigation and Drainage (DID) was also deemed “less than satisfactory” in its overall management. According to the report, PPIP was introduced as a development strategy to increase productivity and production of rice to achieve the state’s target of 70 per cent rice self-sufficiency level.

The report said that under the Ninth Malaysia Plan (9MP), DOA and DID had spent a total of RM235.03 million or 93.1 per cent out of RM252.48 million allocations received from both the state and federal government for PPIP.

However, the audit conducted from June to October 2012 showed that the programme failed to achieve the 70 per cent rice self-sufficiency at the end of 9the Malaysia Plan. The implementation of PPIP was blighted by impractical project design, non-compliance of financial procedures in procurement and payment for weedicides.

DOA also failed to meet the deadline for the construction of Stumbin Paddy Seeds Production and Processing Centre (SPPC) which was part of the programme. Meanwhile, the audit of AG conducted from May to July 2012 also found the overall financial performance of management of Mayang Tea Sdn Bhd (MTSB) “unsatisfactory”.

MTSB which is wholly owned by Sarawak Land Consolidation and Rehabilitation Authority (Salcra) was initially involved in planting, processing and marketing of tea on an area of 182.02 ha. However, since November 2011, MTSB has replaced its tea with oil palm on its former 100 ha of tea plantation.

MTSB had initiated remedial actions to ensure the success in its oil palm undertaking which included collecting and taking actions on the outstanding debts and optimising available resources to generate economic return to the company

Read more: http://www.theborneopost.com/2013/10/02/agriculture-dept-fares-poorly-in-livestock-rice-programmes-report/#ixzz2iMPIBOY0

Bai Dinh Pagoda

Bai Dinh Pagoda is the biggest pagoda in Vietnam built in Gia Sinh commune, Gia Vien district, Ninh Binh province with an area of 700 hectares. It take about 30 minutes drive (17 km) from Hoang Son Peace Hotel.

Bai Dinh Pagoda

Bai Dinh Pagoda is the biggest pagoda in Vietnam built in Gia Sinh commune, Gia Vien district, Ninh Binh province with an area of 700 hectares. It take about 30 minutes drive (17 km) from Hoang Son Peace Hotel.

Kirimitonas set to beef up cattle sector via NFC Read more: Kirimitonas set to beef up cattle sector via NFC

THE Malaysian-Japanese company that is poised to take over National Feedlot Centre (NFC) project has big plans to make a quantum leap to promote the local cattle industry and quality meat production using their extensive experience and logistics networking.

The new company are fully committed to repaying every dollar of the balance RM216 million loan provided by the government, said Datuk Nik Mohd Amin Majid, chairman of Kirimitonas Agro Sdn Bhd. 

He further added that Datuk Seri Dr Mohamad Salleh Ismail, the executive chairman of the National Feedlot Corp Sdn Bhd, the operator of the NFC project, had so far done a good job operationally to enhance the project value.

"That's why our auditor allow us to take the assets and liabilities of NFC. Since the loan repayments are up-to-date, we will continue its repayments. This is a very commercially viable project," added Nik Mod Amin. 

Among the big plans that Kirimitonas Agro has for the local cattle industry is to produce what it dubbed as the Malay Beef, similar in quality to the famed beef from the Wagyu cattle.
The local cattle industry is currently far behind developed countries in terms of producing quality beef.

However, with the participation of Hannan Foods Group (HFG), Japan's largest meat and second largest food company, via Kirimitonas Agro, Malaysia is expected to make a quantum leap in the quality meat production. 

Kirimitonas is taking over the assets and liabilities of National Feedlot Corp Sdn Bhd.

Nik Mod Amin said the company is fortunate to have roped in HFG as a partner.

The Japanese giant, he said, was looking for opportunities to expand its operations, especially in the halal food market as there are a lot of demand for halal meat.

"HFG received a lot of order inquiries for Wagyu beef from buyers in the Middle East and elsewhere but it could not cater for the orders as it does not produce halal meat.

"When we promoted the idea of taking over the NFC, HFG was very interested as not only Malaysia is well-known as a halal food hub, but also the NFC concept itself is familiar to them (the company)," Nik Mod Amin said in an interview on Sunday.

Kirimitonas is a 60-40 joint venture between local company Otoshitos Sdn Bhd and Aruk Mert C. Ltd, an associate company of HFG in charged of expanding the group's halal business.

Aruk Mert director Kakishima Takaaki, who was also at the interview, said the NFC concept has attracted HFG as Japan itself implemented it 50 years ago.

"After the World War II, Japan found itself too dependent on imported food, including beef.

"As food security was a priority, the government then implemented, among others, feedlot centre projects, where satellite farms were created to fatten up the cattle needed for the abattoirs at the centre," he said.

Since then, Japan has managed to develop cattle breeds called Wagyu (literally means Japanese cattle), of which meat fetches a high price.

Nik Mod Amin said HFG, which has 25 affiliate companies and four overseas procurement centres (namely in the United States, Australia, South Korea and China), will be able to share its experience and resources to ensure the success of the NFC project.

"Its procurement capability itself will ensure that NFC will be in a better position to buy live cattle from all over the world at favourable prices," he said.

On the major factors that have drawn Kirimitonas' participation in the project, Nik Mod Amin said it is the concept itself as it involves the whole process of the industry, from farming, processing, distribution to restaurants.

Furthermore, NFC, the operator, has completed the infrastructure for the full implementation of the project, planned by the government to achieve 40 per cent self-sufficiency in beef supply as part of the country's food security programme.

"When we evaluated the company, we found the comprehensive plan and investment put in are similar to the initiative implemented by the Japanese government with Hannan 50 years ago.

"We believe that this socio-economic project will be a long-term project. We came in at the right time to continue the project, and with ready infrastructure, we can take off immediately," said Nik Mod Amin.

Over the last eight months, Kirimitonas has visited NFC facilities in Gemas, Negri Sembilan, and found the 1,500-hectare model farm and abattoir operational with the infrastructure all completed.

Seventy-one satellite and contract farms, out of the 310 to be set up by the government under the Implementation Agreement with NFC, are also operational.

"With these developments, we are confident that the target of producing 250,000 cattle in five years can be achieved."
However, he stressed that like many agricultural projects, the NFC initiative is long-term.

Kirimitonas, which last week signed a Letter of Intent with the government to take over the project, expects negotiations to be completed in six months.

Under its plan, the company wants to see three more abattoirs being built, covering the northern, southern, western and eastern regions.

It also plans to undertake projects such as feed mills and downstream activities such as halal gelatin and cosmetics, possibly involving other partners.

"Apart from its meat, the cattle have so many uses. Only their skull can't be used," said Nik Mod Amin.

Currently, Malaysia's live cattle population stand at about 900,000 heads, while consumption is about the same amount, forcing the country to import 76 per cent of its annual requirement.

Read more: Kirimitonas set to beef up cattle sector via NFC http://www.btimes.com.my/articles/20130423005621/Article/#ixzz2VPoqe82k