Agricultureentrepreneurshipcan define as managerial skill and entrepreneurial spirit are needed to startand run a profitable farm business and. Some of the farmers are alreadyexcellent managers and the spirit of an entrepreneur. Few of the farmers havedeveloped outstanding abilities to make the most of them are lack ofinnovative, do not want to takes risks, and lack the drive that is usuallyassociated with an entrepreneurial spirit. Hence, the farm-entrepreneurs haveto provide a better understanding of the concept and practice ofentrepreneurship with extension workers will be better able to help farmersdevelop the skills and spirit of an entrepreneur. Entrepreneurship is one of the main factorfor the survival of small scale farming in an ever-changing and increasinglycomplex global economy. Entrepreneurship can be the term of value of chain andmarket linkage with agriculture and farming usually.
The future of small-scalefarmers will be limited if they did not run their farm with moreentrepreneurial. Hence, they need to increase their produce for markets and forprofits, it may be a challenge for small-scale farmers to become moreentrepreneurial but they also can get help form extension worker and otherinstitutions. As an entrepreneur that is who that produces for the market.
Entrepreneur is a determined and creative leader, always looking foropportunities to improve and expand his business. They need responsibility tocalculated the risks for profits and losses. Furthermore, they need passionateabout the growing of business, always find for new opportunities and also beinnovators.
It will help the entrepreneur for better and more efficient andprofitable ways to do things. Being innovative is an important quality for afarmer-entrepreneur, especially when the business faces strong competition oroperates in a rapidly changing environment. Farmer-entrepreneurs see their farms as abusiness for earning profits. Small-scale farmers can also become entrepreneurs,they have shown a remarkable ability to adapt. They look for better ways toorganise their farms like example, they have try new crops and cultivars,better animals, and alternative technologies to increase productivity,diversify production, reduce risk and increase profits. They have become moremarket oriented and have learned to take calculated risks to open or create newmarkets for their products. Many small-scale farmers have many of the qualitiesof an entrepreneur.
However, they needto be innovative and forward-looking to manage their businesses as long-termventures with a view to making them sustainable. They need to be able toidentify opportunities and seize them. Some small-scale farmers do havethese qualities, but they still focus on maintaining their traditional way oflife.
Their production decisions are based on what they need not on what ispossible. The farmer-entrepreneur need to have a clear plan in his mind of whatis possible and the future he wants. They also known what is possible isdetermined by the market. The farmer-entrepreneur is always looking for newopportunities and knows that new opportunities are found in the market to makeprofits. An entrepreneurial farmer has the initiative, drive, capacity andability to take advantage of opportunities.Smallholderfarmers usually farm for one of four reasons for example exclusively for homeconsumption with rarely any surpluses produced, mostly for home consumption,but with the intention of selling surpluses on the market. Partly for themarket and partly for home consumption or exclusively for the market. Thesefour reason will effect the profit that the entrepreneur in his business.
Next, the speaker Ricky Toong Foo Weng hadmentioned that the global halal industry is a trend of the market and this isalso his research topic in his PHD report. According to the speaker he says,halal market is estimated to be worth around USD2.3 trillion (excluding Islamicfinance) with growing at an estimated annual rate of 20%, the industry isvalued at about USD560 billion a year. Hence, halal market is one of thefastest glowing in the world with around 1.8 billion.
The halal industry hasnow expanded no only in food sector and it also included pharmaceuticals,cosmetics, health products, toiletries and medical devices as well as servicesector components such as logistics, marketing, print and electronic media,packaging, branding, and financing. The halal industry has expanded furtherinto lifestyle offerings including halal travel and hospitality services aswell as fashion. This development has been triggered by the change in the mindset of Muslim consumers as well as ethical consumer trends worldwide. Moreover, the halal market is non-exclusive toMuslims, and has gained increasing acceptance among non-Muslim consumers whoassociate halal with ethical consumerism.
This is due to the values promoted byhalal – social responsibility, stewardship of the earth, economic and socialjustice, animal welfare and ethical investment. The popularity of, and demandfor, halal certified products among non-Muslim consumers have been on the riseas more consumers are looking for high quality, safe and ethical products. Nolonger a mere religious obligation or observance for Muslims, halal (whichmeans “lawful” or “allowable”) has become a powerful market force, becomingincreasingly a world-wide market phenomenon for both Muslims and non-Muslimsalike. Asthe dynamics within the Muslim world change and globalisation trends continueto shape consumers’ tastes, habit and spending patterns across the world It ishighly likely that the developing halal markets will have increasinglyinfluential roles in the established markets of the Middle East and Asiaparticularly by influencing global corporate halal strategies. Followby the point that speaker had give in the talk, organic food also be a trendsame with halal market. This is due to organic food was a niche market in Malaysiasome normal retailers and supermarkets, for instance, lack of carry organicfood.
Consequently, some people took the initiative to setup informal,home-based distribution centre to help to obtain and sell organic food. Theseinformal, home-based distributors were run by people who themselves followednatural or alternative health systems and diets. Form all these informal waysto gain organic food, which also Malaysian is supporting the healthy foodprovided but the market have supply enough for the demand. Overin Malaysia, organic agriculture is still young in the market. The developmentof organic farming can be lead by NGOs (non-governmental organizations) and othersprivate sector. NGOs are played a pioneering and prominent role is CETDEM (Centrefor Environment, Technology and Development, Malaysia) who became wary ofconventional agriculture practices, in particular over issues on environmentdegradation, health of plantation workers from pesticide use, food safety, andlow external sustainable agriculture. Organic agriculture is an important typeof agriculture farming.
Scientific evidence currently show that the issues oforganic agriculture and organic food are not clear cut as proponents andopponents of organics would like to have us think. The evidence instead pointsto both the good and bad of organics. Discussions & Recommendations Farmer-entrepreneursoperate in a complex and dynamic environment. They are part of a largercollection of people including other farmers, suppliers, traders, transporters,processors and many others. Each of these has a role to play in producingproducts and moving them through to the market and value chain. They also needto respect each other and work together to make the whole system work betterand be more profitable.
Being an entrepreneur is a way of life and a way oflooking at the world to enjoy independence and freedom. They decide forthemselves what to do, they also need to face risks and to cope with the risksthey will face in the complex world in which they compete, they need to developan entrepreneurial spirit. Working under pressure and immediately accountablefor the outcomes good or bad of their decisions. While farmer-entrepreneurs arefree and independent, they do not work alone. They operate in a complex anddynamic environment. A farmer with an entrepreneurial spirit energetically, enthusiasticallyand carefully makes many different decisions about his farm in the context ofthe value chain that influences the profits of the farm business.
This is allhappening in a dynamic, ever-changing and uncertain setting. To make sure their farm businesses developand adapt in response to these changes, farmer entrepreneurs need to focusingon their purpose to do the best to turn every event to advantage.They also need toseize every opportunity and make the best of it to make the whole system workin favour. The ‘way of life’ of a farmer-entrepreneur also has its pros andcons, they are freedom in making decisions about the business and therelationship with family, control over what has to be done, when and in whatorder. They are working alone often in solitude to coping with a wide range ofmanagerial and daily tasks.
However, they will live with uncertainty if cannotgenerate profit you may not survive in the future. It also facing the riskingpersonal assets and security, high level of responsibility and risk of failure.Living with an inability to control the actions of stakeholders upon whom thesuccess of the business depends on develops trust and alliances with otherstakeholders where mutual benefits exist. They also need working in long timeand irregular hours to meet demands but they also can closely interwoven familyand business life. Last, good social is linked to the success of the businessand be ready working under pressure from stakeholders, by solving problems,experimenting, seizing opportunities, and learning from competitors. Entrepreneurshipdynamics but beyond this, successful farmer-entrepreneurs are technicallycompetent, innovative and plan ahead so they can steer their farm businessesthrough the stages of enterprise development – from establishment and survivalto rapid growth and maturity.
However, there are many challenges that thesefarmers face: social barriers, economic barriers, regulations, access tofinance and information, and their own managerial capacity to cope with risksand changes and to seize opportunities. Next,the appendage of “Halal”, to a product it has also become a global symbol forquality assurance and lifestyle choice and not just a guarantee that theproduct is permitted for Muslims. This is evident by the participation andinvolvement of non-Muslim countries and organisations where halal is fastemerging as the standard of choice. Many Western countries have recognised theemerging global trend in consumerism towards halal products and services, andare now racing to gain a footing in the halal industry. Agrowing market force Muslims represent an estimated 23% of the globalpopulation or about 1.8 billion consumers with an average growth rate of 3% perannum. If this growth trend continues, Muslims are expected to make up about26% of the world’s total projected population of 2.2 billion in 2030.
The twostrongest markets for halal products are the Asia Pacific and the Middle East.More than half of the global Muslim population lives in the South Asia and AsiaPacific and the number of Muslims from region are expected to reach 1.3 billionby 2030.
With Muslim youth now accounting for 11% of the world’s population andrepresenting just under half of the total global Muslim population, demand forstylish halal brands is expected to increase significantly. Halal products on the rise and the halalfood marketplace is emerging as one of the most profitable and influentialmarket arenas in the world food business today. The halal food market has grownstrongly over the past decade and is now worth an estimated USD667 million. Halalfood represents close to 20% of the entire global food industry. With expectedincreases in both population and income of halal consumers, future demand forhalal food is strong.
The rising halal consumer power as a market force intandem with the growth of the Muslim population and their rising disposableincome. There is greater awareness among Muslims on the need and necessity toconsume only halal food. In Malaysia, for example, Muslim consumersspent an average 14% of their food budget on meat. 60% of the halal meat isimported from India, Australia and New Zealand. Countries like Brazil,Argentina, New Zealand and Australia have established themselves as marketleaders in the export of halal meat and poultry. Halal food products are notconfined to meat and poultry, including other food items such as confectionary,canned and frozen food, dairy produce, bakery products, organic food, beveragesand herbal products.
Another growing sector of foods is comprised ofsubstitutes for products that traditionally contain non-halal (haram)ingredients such as pork gelatine or alcohol. These products, which includeyogurt, biscuits, and chocolates, are now being modified so that they can bemarketed as halal. Theglobal halal market has emerged as a new growth sector in the global economyand is creating a strong presence in developed countries. With a growingconsumer base, and increasing growth in many parts of the world, the industryis set to become a competitive force in world international trade. The halalindustry has now expanded well beyond the food sector further widening theeconomic potentials for halal. Asia has the fastest growing region for halalproducts is Asia, driven by countries like Indonesia, Malaysia, Pakistan, Chinaand India. Since this region has the largest Muslim population in the world,Asia has become an important and lucrative halal market. The increase in purchasingpower of consumers in this region also brings about demand for more diversifiedproducts, opening up a new and growing market for halal producers.
A number ofAsian countries have been actively promoting themselves as centres for halalproduction, standardisation, research, and international trade. Malaysiahas been aggressively promoting itself as a leader in the global halalindustry. The market size of the halal industry in Malaysia is estimated to beUSD1.9 billion with 90% contributed by the food industry. Export of halalproducts contributed about 5.1% of the country’s total export and is expectedto record an increase of 6% in 2013. The major bulk of halal products exportedwere ingredients, food and beverage and palm oil. The top country destinationsof halal products from Malaysia are China, the US, Singapore, Netherlands andJapan.
In Malaysia, a more holistic approach towards the development of a halalindustry and creating a halal ecosystem is being undertaken by the governmentwith the principal aim of positioning Malaysia as a global halal hub by 2020.As one of the country’s engines of growth, the halal industry is expected tocontribute 5.8% to the country’s gross domestic plan by 2020 from less than 2%currently.
Comparedto other countries in the region, Malaysians are among the most knowledgeablein organic food and their health benefits. The Chinese still remain the majorconsumers of organic food in Malaysia, the younger Chinese generation havestarted to take a keen interest in organic food, unlike in the past where itwas mostly the older Chinese generation. Other races such as the Malays andIndians have also started to try organic food, although their numbers stillmake up a small fraction of Malaysian consumers. Since2006, very few family-run organic shops have opened. Instead, their roles havebeen taken over by big retailers like Cold Storage, Jusco Supermarket, Tesco,Giant, and Carrefour.
All large supermarkets in Malaysia is carrying certifiedorganic food in large quantities and varieties. Smaller and more upscalesupermarkets like Mercato, Isetan Supermarket, and Village Grocer also stockcertified organic food. The hub of vegetable farming in Malaysia can be foundin Cameron Highlands.
Grace Cup Sdn. Bhd. and Cameron Organic Produce Sdn.
Bhd.It is established by Lee Ong Sing in 1997 have established organic vegetablefarms in Cameron Highlands. Nonetheless,organic agriculture and food are facing several challenges in Malaysia.Although the demand for organic food in Malaysia is growing, the supply oflocal organic produce is not keeping up with the increased demand. Local supplycan fall by as much as 50 per cent in certain periods of the year.
Beside theinconsistent supply, the varieties of local organic food are also limited.Consequently, Malaysia still needs to heavily import organic produce from othercountries, especially from Australia, U.S., and New Zealand. Anotherproblem facing organic food consumers in Malaysia is the price differencebetween organic and conventional food. Although it is well known that organicfood is more expensive than conventional food, their price difference inMalaysia is particularly substantial, by as much as 100 to 300 per cent,compared to only 25 to 30% price gap in the U.S.
and E.U. Despite the higherprice and limited variety of organic food in Malaysia, we can foresee thatorganic agriculture and food would continue to rise rapidly in Malaysia asMalaysians become more health and environmentally aware. Conclusion In the conclusion, follow by the speaker mentioned inthe talk Agricultural companies increasingly have to adapt to the vagaries ofthe market, changing consumer habits, enhanced environmental regulations, newrequirements for product quality, chain management, food safety, sustainabilityand etc.
These changes have cleared the way for new entrants, innovation, andportfolio entrepreneurship. It is recognized by politicians, practitioners aswell as scientists that farmers and growers increasingly require. Theyneed to be innovative and forward-looking to manage their businesses aslong-term ventures with a view to making them sustainable. They need to be ableto identify opportunities and seize them.
The globalhalal market has emerged as a new growth sector in the global economy and iscreating a strong presence in developed countries. Halal no longer applies tosolely food production and consumption. The halal industry has now evolved frommerely halal food products to a holistic halal concept that encompasses theentire value of commercial activities. It has extended beyond food into therealm of business and trade and is fast becoming a global symbol of qualityassurance as well as a lifestyle choice for both Muslims and non-Muslims.Increasing demand for halal products is being seen in a number of Muslimcountries, with strong economic growth fuelling demand. Rising income levels inthese key markets have led to higher consumption rates and more opportunitiesfor halal food producers. The largest of these markets are located in SoutheastAsia and West Asia.
In the talk, Mr Ricky Thoong had given thestatistic of the rate in Malaysian there are 4 people in 10 will get cancer. Forthe others, they need healthy food, this is a reason that agriculture haspotential in the market. Organic food also be a trend same with halal market.This is due to organic food was a niche market in Malaysia some normalretailers and supermarkets, for instance, lack of carry organic food.
Despitethe higher price and limited variety of organic food in Malaysia, we canforesee that organic agriculture and food would continue to rise rapidly inMalaysia as Malaysians become more health and environmentally aware.