CHAPTER 8 : AGRICULTURE AND THE MALAYSIAN ECONOMY (CROPS DIVERSIFICATION)
Monday 7 December 2015 @ 15:32

DIVERSIFICATION IN AGRICULTURE
1. DEFINITION OF DIVERSIFICATION
Diversification of agriculture refers to the shift from the regional dominance of one crop to regional production of a number of crops, to meet ever increasing demand for cereals, pulses, vegetables, fruits, oilseeds, fibres, fodder and grasses, fuel, etc. It aims to improve soil health and a dynamic equilibrium of the agro-ecosystem.

2. TWO APPROACH IN CROP DIVERSIFICATION
       1. HORIZONTAL DIVERSIFICATION.
First is horizontal diversification, which is the primary approach to crop diversification in production agriculture. Here, diversification takes place through crop intensification by adding new high-value crops to existing cropping systems as a way to improve the overall productivity of a farm or region's farming economy.
Oil palm, rubber, cocoa and rice have been and continue to be the major crops grown by the private and public sectors. However, other crops such as coconut, tropical fruits, vegetables, flowers, annual crops etc., are being grown by the smallholders and the private sector.
       2. VERTICAL DIVERSIFICATION
The second is the vertical diversification approach in which farmers and others add value to products through processing, regional branding, packaging, merchandising, or other efforts to enhance the product. Opportunities for crop diversification vary depending on risks, opportunities and the feasibility of proposed changes within a socio-economic and agro-economic context. 

3. CAUSES CROP DIVERSIFICATION IS APPLIED

  • Increasing income on small farm holdings.
  • Withstanding price fluctuation.
  • Mitigating ill-effects of aberrant weather.
  • Balancing food demand.
  • Improving fodder for livestock animals.
  • Conservation of natural resources (soil, water, etc.).
  • Minimizing environmental pollution.
  • Reducing dependence on off-farm inputs.
  • Decreasing insect pests, diseases and weed problems.
  • Increasing community Food security
4. CHALLANGES OF CROP DIVERSIFICATION

  • Need to reduce labour requirements in agriculture~ need to maximize land utilization
  • Strengthen the competitiveness of Malaysian agriculture 
  • Need to enhance private sector investment in food production 
  • Smallholders need to be transformed into a more commercial sector 
  • More innovative and efficient agricultural practices
Diversification in agriculture' has tremendous impact on the agro-socio-economic impact and uplifting of resource-poor farming communities. It generates income and employment for rural youth year round for the ultimate benefits of the farmers in the country. It implies the use of local resources in a larger mix of diverse cropping systems and livestock, aquaculture and other non-farm sectors in the rural areas. With the globalization of markets in the WTO era, diversification in agriculture is one means to increase the total production and productivity in terms of quality, quantity and monetary gains under diverse agro-climatic situations of the country.