The Petaling Jaya Night Farmers Market Project (Projek Pasar Tani Malam Petaling Jaya) A Community Food Project Plan By Denise Chin Consumer Research Analyst Federation of Malaysian Consumers Associations (FOMCA) December 2012 Overview The Buy Malaysia Campaign (Kempen Belilah Barangan Buatan Malaysia) introduced in 1984 and re-implemented in 1998, called for greater support for local industries and businesses as a result of the Asian Financial Crisis in 1997. The campaign was re-launched in 2009, in the hopes of creating behavioral change among consumers.1 While it emphasizes support for Malaysian brand items, the campaign should also extend its support to local farmers and produce with the increasing concerns for Malaysia’s food security. This document proposes a project aimed at fostering the farmer-consumer relationship that will help build a stronger local food system through the integration of farmers markets (pasar tani) with night markets (pasar malam) in the pilot community of Petaling Jaya, Selangor. Fostering the farmer-consumer relationship will be beneficial to the community by strengthening the food system and consequently, Malaysia’s food security. 1 Ministry of Domestic Trade, Co-operatives and Consumerism of Malaysia. 2012. “ ‘Buy Malaysia’ Campaign.” Accessed Nov 29, 2012 http://www.kpdnkk.gov.my/en/kempen-beli-barangan-malaysia;jsessionid=7149C1189EEBADF30D7FC56BF00F372C. Federation of Malaysian Consumers Associations (FOMCA) 1 Food Security in Malaysia Malaysia’s lack of emphasis on agriculture for local consumption dates back to colonial times. Post independence, the focus shifted to industrial development, further lessening priority on the local food system. At the same time, the business of export crops flourished, bringing in revenue with crops like rubber and palm oil. The traditional agriculture sector, involving rural farmers who farmed for local consumption, struggled due to the lack of investment and attention from government and businesses. Rural farmers suffered from a vicious cycle of poverty and lacking amenities to improve their situation. The country also became largely dependent on import crops. Malaysia is a net importer of food, where the value of imported goods is higher than export goods. Food imports totaled over RM3 billion (USD$1 billion)2 in 1985 and increased to RM13 billion (USD$4.3 billion) in 2010.3 The problems with the food system came to the fore during the global food crisis in 2007/2008. The worldwide increase in oil prices, higher demand for biofuels and trade decisions hugely affected several Asian and African countries, Malaysia included.4 As a result, the National Food Security Policy was implemented in 2008 to achieve sufficiency, sustainable farmer income and adequate and safe food supply.5 Rural farmers continue to be the focus of agricultural reform. Resettlement programs, incentives and subsidies have over the years been implemented, yet the problem of low returns and shrinking livelihoods still persist. Entrepreneurial training and assistance have been ongoing to support farmers with tools for future growth. The National Agro-Food Policy implemented in 2011 included several provisions for agricultural entrepreneurship, tying in the need to help rural farmers with improving Malaysia’s food system.6 The Buy Malaysia Campaign, as earlier mentioned, developed to encourage support for the local economy by buying local brand items. A key element missing from the philosophy of the campaign is the importance of buying local food and supporting local farmers. As a result, consumers lack empathy and understanding about the local food system. 2 Drury, Bruce. 1988. “The Limits of Conservative Reform: Agricultural Policy in Malaysia.” ASEAN Economic Bulletin 4(3): 287-301. Adnan, Hanim. 2011. “Food security policy may be extended.” The Star Newspaper April 9, 2011. Accessed Nov 23, 2012 http://biz.thestar.com.my/news/story.asp?file=/2011/4/9/business/8445971&sec=business. 4 European Commission DG Environment News Alert Service. 2011. “Causes of the 2007-2008 global food crisis identified.” Science for Environment Policy, SCU (ed). Bristol: University of the West of England. 5 Ministry of Agriculture and Agro-Based Industry of Malaysia. 2008. National Food Security Policy. Putrajaya, Malaysia. Accessed Nov 3, 2012 via doa.gov.my. 6 Bernama. 2012. “Najib Launches Agrofood Policy.” 1Malaysia: Personal Website of Dato’ Seri Najib Razak Jan 14, 2012. Accessed Dec 1, 2012 http://1malaysia.com.my/my/news_archive/najib-launches-national-agrofood-policy. 3 Federation of Malaysian Consumers Associations (FOMCA) 2 Farmers Markets (Pasar Tani) and Night Markets (Pasar Malam) Farmers Markets (Pasar Tani) Under the wing of the Federal Agricultural Marketing Authority (FAMA), farmers markets were introduced to strengthen the ties of farmers with consumers without soliciting the help of the middleman. The concept was first introduced in 1985 in the town of Johor Bahru.7 These farmers markets host a range of products and produce from local farmers who are also required to attend training programs, workshops and seminars in marketing, entrepreneurial motivation, and accounting. The farmers/producers are assigned to a designated farmers market in the nearby area to sell their products every week. These markets show a wide display of efforts to grow the food system. FAMA also provides several forms of assistance to farmers. These include advisory services, easy payment schemes for equipment purchase, and secretariat services such as price information guide and the promotion of new products. FAMA also initiated the Wholesome Farmers Market, Mega Farmers Market and the Mega and Caravans Farmers Markets. There currently exist over 300 farmers markets in the country, operating mostly in the mornings, from 7am12pm, and several in the late afternoon to evening.8 Since its implementation, the pasar tani has successfully attracted 17,300 traders whose incomes have increased due to their participation in the market. Plans have been made for more pasar tani locations to expand the project further.9 Despite its successes, the pasar tani has faced several problems: The inclusion of sellers other than farmers in the market has created a situation contradictory to the main goal of the market. Non-farmers who source produce from farms at discounted prices act as ‘marketer-traders’ and subsequently sell at farmers markets at reduced prices, upsetting the price-settings of other farmers. They in fact act as middlemen. ‘Retailer-traders’ have also become participants at farmers markets. These traders obtain their supplies from wholesalers and re-sell goods to consumers. As a result, farmers markets have become heterogeneous with the inclusion of non-farmer produce, and caused some customer dissatisfaction. Farmers in rural areas (most farms are estimated to be about 100 kilometers away from the designated farmers market) face difficulty in making the commute to farmers markets especially in the early hours of the day. The inconvenience in 7 Federal Agricultural Marketing Authority. 2012. “Farmers Markets.” Accessed Dec 7, 2012 http://www.fama.gov.my/web/guest/pasar. 8 http://www.fama.gov.my/html/themes/fama/images/fama/content/jadualpasartani2008.pdf 9 Ab Hamid, Noor Raihanand Nor Khomar Ishak. “Farmers’ Participation and Supply Chain Issues: A Case Study of Farmers Markets in Kuala Lumpur Vicinity.” 2011. Case Study. Accessed Dec 6, 2012 http://www.aabri.com/LV11Manuscripts/LV11063.pdf. Federation of Malaysian Consumers Associations (FOMCA) 3 working out logistics under a time constraint has cost some farmers their participation in the market. The early operation hours set for the markets also have an effect on consumers. Markets held on weekdays make it inconvenient for consumers to frequent, while early hours on weekends are also less desirable. Farmers markets are limited, sparse and held at fixed locations, which make it difficult for consumers to frequent. Those who live in close proximity will be at a greater benefit that those who live further away from designated farmers markets. Night Markets (Pasar Malam) Held at the municipal level, night markets (pasar malam) are a neighborhood attraction. Weekly gatherings of local street vendors displaying the diversity in Malaysian street cuisine and more recently, offering fusion concoctions attract crowds of people living in and outside the neighborhood. Also on sale are a variety of products, ranging from clothing to toys to medicinal products to jewelry. A pasar malam takes place in available open spaces – in open parking lots or more commonly, taking over significant portions of neighborhood blocks and main streets. They are known to be the cause of major traffic congestions stretching sizeable distances away from the actual market. These markets are set up temporarily for the night; vendors drive to neighborhoods two to three hours before the actual start time to set up their booths. Night markets are held in synchronization with the waste collection schedule in each neighborhood, solving the issue of garbage disposal. Night markets are an attractive display of the local culture and entrepreneurship.10 In order to participate in a pasar malam, vendors are required to obtain a license from the local municipality and be able to display it if and when inspected. Vendors are not supplied with any other facilities. Most are able to provide for themselves with electric generators and trucks that have storage space for equipment. As a result of the large crowds drawn by pasar malam, vendors reap large benefits from this semi-informal economy. A survey conducted by the Technology University of Malaysia determined that most pasar malam vendors believed they could sustain steady incomes through their pasar malam businesses.11 Pasar malam have been known to cause massive traffic jams. Their location, oftentimes taking over main neighborhood streets has been a cause for concern as road accidents are common. Despite the coordination with the neighborhood waste management system, the garbage problem at pasar malam is major. Vendors often opt for the cheapest packaging option, causing much wastage and irresponsible disposal of Styrofoam and unrecyclables. 10 Zakariya, Khalilah. “Elasti(c)ity: Rediscovering the Night Market as An Itinerant Urban Space.” 2010. Presented at the 1st International Conference on Sustainable Architecture & Urban Design 2010: Issues on Global Energy Crisis and its Impacts on Design, 3-4 March 2010. Accessed Dec 7, 2012 http://www.academia.edu/226111/CONFERENCE_PAPER_ELASTI_C_ITY_REDISCOVERING_THE_NIGHT_MARKET_AS_A N_ITINERANT_URBAN_SPACE. 11 Abd Wahid Bin Mukhari and Lee Ai Chu. “Faktor-Faktor Yang Mendorong Peniaga Untuk Berniaga Di Pasar Malam Di Taman Ungku Tun Aminah, Skudai, Johor.” 2008. Faculty of Education, Technology University of Malaysia. Accessed Dec 7, 2012 http://eprints.utm.my/11380/1/Faktor3.pdf Federation of Malaysian Consumers Associations (FOMCA) 4 The City of Petaling Jaya Located on the outskirt of Kuala Lumpur in the state of Selangor, Petaling Jaya (PJ) developed as a satellite township of residential and industrial areas. PJ grew rapidly as a result of the rural-urban migration and due to the growing overpopulation of Kuala Lumpur. Its proximity to Kuala Lumpur, the capital city, makes it an ideal location for those wanting to live affordably and close to the central business district. Over the years, the city has developed vastly and can be described as complementary to the capital city, with residents depending on the two cities almost interchangeably. Granted city status in 2006, the Petaling Jaya City Council (Majlis Bandaraya Petaling Jaya, MPPJ) was selected by the Ministry of Housing and Local Government to be the pioneers of Local Agenda 21 (LA 21), a project adapted from the United Nations Development Programme’s Agenda 21 by Malaysia’s Economic Planning Unit.12 12 Agenda 21 was the main outcome at the UN Earth Summit in Rio de Janeiro, 1992. It was proposed that Agenda 21 be the action plan for countries to strive toward global sustainable development. Federation of Malaysian Consumers Associations (FOMCA) 5 In taking on this task, the MBPJ formed four specialized Local Agenda 21 Work Committees to accomplish the goals set out by Agenda 21 at the local level. These work committees are focused on economic development, security, social integration and the environment, and have detailed out four action plans for the city’s development.13 The Petaling Jaya Night Farmers Market Project (Project Pasar Tani Malam Petaling Jaya) The farmers market and night market are platforms that encourage the growth of agriculture for local consumption, which provide an opportunity to extend the Buy Malaysia Campaign to the local food system. However, the problems that exist with both markets must be addressed to ensure both farmers and consumers benefit from the market. The Federation of Malaysian Consumers Associations (FOMCA) therefore is proposing the implementation of a pilot project integrating elements of the pasar tani into the pasar malam, called the Petaling Jaya Night Farmers Market Project (Project Pasar Tani Malam Petaling Jaya). A local committee dedicated to strengthening the local food system by providing farmer assistance at night markets and educating consumers about the origins of their food, will be among the main tasks of the committee. Needs and Opportunity Assessment Petaling Jaya is a thriving city with a progressive municipal council. The goals of LA 21 allow for the inclusion of an additional working group focused on sustainable food systems, an important component to sustainable development that is currently absent from the agenda. It is an ideal location to start a pilot project such as the integration of pasar tani with pasar malam. The city is holds 19 night markets weekly at various locations that draw large crowds. Its location in the state of Selangor is also strategic, as a variety of farms –vegetable, poultry and aquaculture – exist within the state. The recent implementation of the PJ City Food Bank Project14 is indication that the city is open to similar projects to strengthen the food system. In 2000, a community needs assessment was conducted during a Local Agenda 21 workshop to identify the issues that concern the residents of Petaling Jaya. The three main issues identified were safety, social integration and the environment, which consequently led to the formation of committees focused on these issues.15 The latter two issues fit with the need to establish a better food system that is in coordination with achieving food security in the country. 13 Local Agenda 21 Petaling Jaya. “Local Agenda 21 Petaling Jaya Cronology.” 2006. Accessed Dec 8, 2012 http://eps.mbpj.gov.my/la21/english/agenda21.html. 14 http://www.mbpj.gov.my/c/document_library/get_file?uuid=46d0f8e0-0119-4799-b8d5-843fe5b99daa&groupId=426004 15 Local Agenda 21 Petaling Jaya. “Local Agenda 21 Petaling Jaya Cronology.” 2006. Accessed Dec 8, 2012 http://eps.mbpj.gov.my/la21/english/agenda21.html. Federation of Malaysian Consumers Associations (FOMCA) 6 The Petaling Jaya Night Farmers Market Project Plan The Petaling Jaya Night Farmers Market Project will strengthen the local food system by creating a farmer-consumer relationship. Fine-tuning the existing farmers market program under FAMA will do this. It will provide a space for local farmers to sell their produce at night markets and lessen the burden of having to travel wide distances to designated farmers markets at inconvenient hours of the day, as night markets are less sparse and in closer proximities to farmers. At the same time, consumers will have more access to locally grown food at their local pasar malam and at a more convenient time. This integration will involve several government bodies and organizations: Petaling Jaya Local Agenda 21 (LA 21) This project will require the formation of a new food security committee in the Petaling Jaya Local Agenda 21 who will spearhead the initiative. The committee will be formed by electing interested experts and members of community groups, in addition to having an appointed member from LA 21, FAMA and MBPJ. This committee’s overarching goal will be to promote and strengthen food security in the city. Its inaugural duty will be to lead this project. The committee will administer the integration of farmers markets with night markets by matching local farmers with the nearest night market through a concerted effort with FAMA and MBPJ. The partnership with FAMA will extend to provide trainings and services specific to the goals of LA 21 and the city in striving for sustainable development. LA 21 will develop ideas to create consumer awareness about local food. One method could be by requiring all farmers to display the details of their farm (ie. location, main produce), allowing buyers to learn about farmers, and strike up conversations which will help farmers understand their customer base and buyers gain a better appreciation for local food. LA 21 will also look into improving and addressing problems at night markets, such as safety, especially those held on busy and important streets. It will also look into implementing more sustainable waste management practices such as requiring vendors switch to environmentally-friendly packaging and encourage consumers to bring their own containers and shopping bags. Decision-making in the LA 21 committee will primarily be among the members with input from FAMA and MBPJ. Community feedback and input will be heard at public meetings held every so often. Federal Agricultural Marketing Authority (FAMA) The integration of farmers markets with night markets will involve the cooperation of FAMA in obtaining farmer database and toolkits that will assist the implementation of the project by the LA 21 food security committee. FAMA’s expertise in training and services Federation of Malaysian Consumers Associations (FOMCA) 7 will be of great help to the LA 21 committee and this partnership is most important to move forward with the project. Petaling Jaya City Council (MBPJ) The MBPJ’s involvement in this project will be minimal yet imperative to its success. Because night markets fall under the jurisdiction of the local municipality, the LA 21 committee will work closely with MBPJ to identify locations of night markets and then with the help of FAMA to determine farms in proximity to the markets. Ministry of Domestic Trade, Co-operatives and Consumerism A collaboration with the Ministry will place the project under the umbrella of initiatives for the Buy Malaysia Campaign. In doing so, the project will lead the way for future similar and food-related initiatives that center on local food. The project aims to achieve several goals: To address food security at the local level. This pilot project will attempt to foster the farmer-consumer relationship to strengthen the food system and lead to food security. To increase farmer earnings and subsequently reduce the occurrence of poverty among local farmers. To include local food in the agenda for the Buy Malaysia Campaign as another approach to addressing food security. To improve on the issues farmers and consumers face with the current farmers market program under FAMA. To address farmer needs for a more convenient time and avenue to reach consumers, and also for consumers to gain from fresh, local produce from local farms. To increase consumer awareness on the importance of supporting local farmers. With this, consumers will understand the troubles faced by local farmers and have a better idea of the food system in Malaysia and in general. This will lead to better appreciation of local food. To address the problems faced at night markets and implement more sustainable methods of waste management. Night markets are cultural experiences that should not be a threat to the safety of consumers or ignore the environmental impacts of consumption. Federation of Malaysian Consumers Associations (FOMCA) 8 Project Implementation In order to assess the progress of the project, the accomplishment of several key steps will allow us to determine a milestone. Approval for the formation of a food security committee within the LA 21 Forming a committee that is committed to strengthening the food system and this project Establishing a partnership with FAMA and MBPJ Agreements from local farmers to participate in the program and attend LA 21 trainings and workshops Having a significant number of local farmers interested to participate at night markets, enough for consumers to distinguish the fresh, local produce from other vendors. Increase in farmer earnings as a result of participation in night markets. Farmer-consumer relationship assessed through observing customer loyalty among farmers and consumers Better consumer practices in waste disposal. Vendor cooperation in utilizing more environmentally-friendly packaging. The inclusion of local farmers and food into the agenda for the Buy Malaysia Campaign. The organization of similar efforts at the local, state and national level An understanding of the local food system and farmer struggles assessed by conducting surveys from time to time. These surveys will also allow the LA 21 committee to evaluate the effectiveness of the program. Risks The implementation of this project may not be to the advantage of FAMA who has worked hard at building a farmer base for its farmers market program. The implementation of this project may cause the farmers market to become redundant. FAMA may also be reluctant to form this partnership, which will greatly affect the implementation of the project. Another possible risk is that there might simply be no change. Consumers may continue to be either ignorant or unaffected by the inclusion of local farmers at night markets. They might also be resistant to bringing their own food containers as it requires more planning ahead to attend a night market. Funding The project will be funded by the federal government with the support of FAMA, MBPJ and Ministry of Domestic Trade, Co-operatives and Consumerism. Funds are to be used for a portion of worker salary for members of the LA21 committee and develop ideas and plans for the implementation of the project. Federation of Malaysian Consumers Associations (FOMCA) 9 Further research The project still requires a more dedicated community- and needs-assessment focused on the local food system. By determining the needs of the community, the details of project could be tweaked accordingly. Research on the needs of farmers is also still lacking. Whether or not it would be beneficial for them to attend more training sessions or be provided with more services and infrastructure could be looked into, to further understand and help improve their livelihoods. Federation of Malaysian Consumers Associations (FOMCA) 10