Agriculture
entrepreneurship
can define as managerial skill and entrepreneurial spirit are needed to start
and run a profitable farm business and. Some of the farmers are already
excellent managers and the spirit of an entrepreneur. Few of the farmers have
developed outstanding abilities to make the most of them are lack of
innovative, do not want to takes risks, and lack the drive that is usually
associated with an entrepreneurial spirit. Hence, the farm-entrepreneurs have
to provide a better understanding of the concept and practice of
entrepreneurship with extension workers will be better able to help farmers
develop the skills and spirit of an entrepreneur.

 

   Entrepreneurship is one of the main factor
for the survival of small scale farming in an ever-changing and increasingly
complex global economy. Entrepreneurship can be the term of value of chain and
market linkage with agriculture and farming usually. The future of small-scale
farmers will be limited if they did not run their farm with more
entrepreneurial. Hence, they need to increase their produce for markets and for
profits, it may be a challenge for small-scale farmers to become more
entrepreneurial but they also can get help form extension worker and other
institutions. As an entrepreneur that is who that produces for the market.
Entrepreneur is a determined and creative leader, always looking for
opportunities to improve and expand his business. They need responsibility to
calculated the risks for profits and losses. Furthermore, they need passionate
about the growing of business, always find for new opportunities and also be
innovators. It will help the entrepreneur for better and more efficient and
profitable ways to do things. Being innovative is an important quality for a
farmer-entrepreneur, especially when the business faces strong competition or
operates in a rapidly changing environment.

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   Farmer-entrepreneurs see their farms as a
business for earning profits. Small-scale farmers can also become entrepreneurs,
they have shown a remarkable ability to adapt. They look for better ways to
organise 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 more
market oriented and have learned to take calculated risks to open or create new
markets for their products. Many small-scale farmers have many of the qualities
of an entrepreneur.

 

   However, they need
to be innovative and forward-looking to manage their businesses as long-term
ventures with a view to making them sustainable. They need to be able to
identify opportunities and seize them. Some small-scale farmers do have
these qualities, but they still focus on maintaining their traditional way of
life. Their production decisions are based on what they need not on what is
possible. The farmer-entrepreneur need to have a clear plan in his mind of what
is possible and the future he wants. They also known what is possible is
determined by the market. The farmer-entrepreneur is always looking for new
opportunities and knows that new opportunities are found in the market to make
profits. An entrepreneurial farmer has the initiative, drive, capacity and
ability to take advantage of opportunities.

Smallholder
farmers usually farm for one of four reasons for example exclusively for home
consumption with rarely any surpluses produced, mostly for home consumption,
but with the intention of selling surpluses on the market. Partly for the
market and partly for home consumption or exclusively for the market. These
four reason will effect the profit that the entrepreneur in his business.

 

   Next, the speaker Ricky Toong Foo Weng had
mentioned that the global halal industry is a trend of the market and this is
also 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 Islamic
finance) with growing at an estimated annual rate of 20%, the industry is
valued at about USD560 billion a year. Hence, halal market is one of the
fastest glowing in the world with around 1.8 billion. The halal industry has
now expanded no only in food sector and it also included pharmaceuticals,
cosmetics, health products, toiletries and medical devices as well as service
sector components such as logistics, marketing, print and electronic media,
packaging, branding, and financing. The halal industry has expanded further
into lifestyle offerings including halal travel and hospitality services as
well as fashion. This development has been triggered by the change in the mind
set of Muslim consumers as well as ethical consumer trends worldwide.

 

   Moreover, the halal market is non-exclusive to
Muslims, and has gained increasing acceptance among non-Muslim consumers who
associate halal with ethical consumerism. This is due to the values promoted by
halal – social responsibility, stewardship of the earth, economic and social
justice, animal welfare and ethical investment. The popularity of, and demand
for, halal certified products among non-Muslim consumers have been on the rise
as more consumers are looking for high quality, safe and ethical products. No
longer a mere religious obligation or observance for Muslims, halal (which
means “lawful” or “allowable”) has become a powerful market force, becoming
increasingly a world-wide market phenomenon for both Muslims and non-Muslims
alike.

 

As
the dynamics within the Muslim world change and globalisation trends continue
to shape consumers’ tastes, habit and spending patterns across the world It is
highly likely that the developing halal markets will have increasingly
influential roles in the established markets of the Middle East and Asia
particularly by influencing global corporate halal strategies.

 

Follow
by the point that speaker had give in the talk, organic food also be a trend
same with halal market. This is due to organic food was a niche market in Malaysia
some normal retailers and supermarkets, for instance, lack of carry organic
food. Consequently, some people took the initiative to setup informal,
home-based distribution centre to help to obtain and sell organic food. These
informal, home-based distributors were run by people who themselves followed
natural or alternative health systems and diets. Form all these informal ways
to gain organic food, which also Malaysian is supporting the healthy food
provided but the market have supply enough for the demand.

 

Over
in Malaysia, organic agriculture is still young in the market. The development
of organic farming can be lead by NGOs (non-governmental organizations) and others
private sector. NGOs are played a pioneering and prominent role is CETDEM (Centre
for Environment, Technology and Development, Malaysia) who became wary of
conventional agriculture practices, in particular over issues on environment
degradation, health of plantation workers from pesticide use, food safety, and
low external sustainable agriculture. Organic agriculture is an important type
of agriculture farming. Scientific evidence currently show that the issues of
organic agriculture and organic food are not clear cut as proponents and
opponents of organics would like to have us think. The evidence instead points
to both the good and bad of organics.

 

 

 

 

Discussions & Recommendations 

 

Farmer-entrepreneurs
operate in a complex and dynamic environment. They are part of a larger
collection of people including other farmers, suppliers, traders, transporters,
processors and many others. Each of these has a role to play in producing
products and moving them through to the market and value chain. They also need
to respect each other and work together to make the whole system work better
and be more profitable. Being an entrepreneur is a way of life and a way of
looking at the world to enjoy independence and freedom. They decide for
themselves what to do, they also need to face risks and to cope with the risks
they will face in the complex world in which they compete, they need to develop
an entrepreneurial spirit. Working under pressure and immediately accountable
for the outcomes good or bad of their decisions. While farmer-entrepreneurs are
free and independent, they do not work alone. They operate in a complex and
dynamic environment. A farmer with an entrepreneurial spirit energetically, enthusiastically
and carefully makes many different decisions about his farm in the context of
the value chain that influences the profits of the farm business. This is all
happening in a dynamic, ever-changing and uncertain setting.

 

    To make sure their farm businesses develop
and adapt in response to these changes, farmer entrepreneurs need to focusing
on their purpose to do the best to turn every event to advantage.

They also need to
seize every opportunity and make the best of it to make the whole system work
in favour. The ‘way of life’ of a farmer-entrepreneur also has its pros and
cons, they are freedom in making decisions about the business and the
relationship with family, control over what has to be done, when and in what
order. They are working alone often in solitude to coping with a wide range of
managerial and daily tasks. However, they will live with uncertainty if cannot
generate profit you may not survive in the future. It also facing the risking
personal assets and security, high level of responsibility and risk of failure.
Living with an inability to control the actions of stakeholders upon whom the
success of the business depends on develops trust and alliances with other
stakeholders where mutual benefits exist. They also need working in long time
and irregular hours to meet demands but they also can closely interwoven family
and business life. Last, good social is linked to the success of the business
and be ready working under pressure from stakeholders, by solving problems,
experimenting, seizing opportunities, and learning from competitors.

 

Entrepreneurship
dynamics but beyond this, successful farmer-entrepreneurs are technically
competent, innovative and plan ahead so they can steer their farm businesses
through the stages of enterprise development – from establishment and survival
to rapid growth and maturity. However, there are many challenges that these
farmers face: social barriers, economic barriers, regulations, access to
finance and information, and their own managerial capacity to cope with risks
and changes and to seize opportunities.

 

Next,
the appendage of “Halal”, to a product it has also become a global symbol for
quality assurance and lifestyle choice and not just a guarantee that the
product is permitted for Muslims. This is evident by the participation and
involvement of non-Muslim countries and organisations where halal is fast
emerging as the standard of choice. Many Western countries have recognised the
emerging global trend in consumerism towards halal products and services, and
are now racing to gain a footing in the halal industry.

 

A
growing market force Muslims represent an estimated 23% of the global
population or about 1.8 billion consumers with an average growth rate of 3% per
annum. If this growth trend continues, Muslims are expected to make up about
26% of the world’s total projected population of 2.2 billion in 2030. The two
strongest 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 Asia
Pacific and the number of Muslims from region are expected to reach 1.3 billion
by 2030. With Muslim youth now accounting for 11% of the world’s population and
representing just under half of the total global Muslim population, demand for
stylish halal brands is expected to increase significantly.

 

   Halal products on the rise and the halal
food marketplace is emerging as one of the most profitable and influential
market arenas in the world food business today. The halal food market has grown
strongly over the past decade and is now worth an estimated USD667 million. Halal
food represents close to 20% of the entire global food industry. With expected
increases in both population and income of halal consumers, future demand for
halal food is strong. The rising halal consumer power as a market force in
tandem with the growth of the Muslim population and their rising disposable
income. There is greater awareness among Muslims on the need and necessity to
consume only halal food.

 

   In Malaysia, for example, Muslim consumers
spent an average 14% of their food budget on meat. 60% of the halal meat is
imported from India, Australia and New Zealand. Countries like Brazil,
Argentina, New Zealand and Australia have established themselves as market
leaders in the export of halal meat and poultry. Halal food products are not
confined to meat and poultry, including other food items such as confectionary,
canned and frozen food, dairy produce, bakery products, organic food, beverages
and herbal products. Another growing sector of foods is comprised of
substitutes for products that traditionally contain non-halal (haram)
ingredients such as pork gelatine or alcohol. These products, which include
yogurt, biscuits, and chocolates, are now being modified so that they can be
marketed as halal.

 

The
global halal market has emerged as a new growth sector in the global economy
and is creating a strong presence in developed countries. With a growing
consumer base, and increasing growth in many parts of the world, the industry
is set to become a competitive force in world international trade. The halal
industry has now expanded well beyond the food sector further widening the
economic potentials for halal. Asia has the fastest growing region for halal
products is Asia, driven by countries like Indonesia, Malaysia, Pakistan, China
and India. Since this region has the largest Muslim population in the world,
Asia has become an important and lucrative halal market. The increase in purchasing
power of consumers in this region also brings about demand for more diversified
products, opening up a new and growing market for halal producers. A number of
Asian countries have been actively promoting themselves as centres for halal
production, standardisation, research, and international trade.

 

Malaysia
has been aggressively promoting itself as a leader in the global halal
industry. The market size of the halal industry in Malaysia is estimated to be
USD1.9 billion with 90% contributed by the food industry. Export of halal
products contributed about 5.1% of the country’s total export and is expected
to record an increase of 6% in 2013. The major bulk of halal products exported
were ingredients, food and beverage and palm oil. The top country destinations
of halal products from Malaysia are China, the US, Singapore, Netherlands and
Japan. In Malaysia, a more holistic approach towards the development of a halal
industry and creating a halal ecosystem is being undertaken by the government
with 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 to
contribute 5.8% to the country’s gross domestic plan by 2020 from less than 2%
currently.

 

Compared
to other countries in the region, Malaysians are among the most knowledgeable
in organic food and their health benefits. The Chinese still remain the major
consumers of organic food in Malaysia, the younger Chinese generation have
started to take a keen interest in organic food, unlike in the past where it
was mostly the older Chinese generation. Other races such as the Malays and
Indians have also started to try organic food, although their numbers still
make up a small fraction of Malaysian consumers.

 

Since
2006, very few family-run organic shops have opened. Instead, their roles have
been taken over by big retailers like Cold Storage, Jusco Supermarket, Tesco,
Giant, and Carrefour. All large supermarkets in Malaysia is carrying certified
organic food in large quantities and varieties. Smaller and more upscale
supermarkets like Mercato, Isetan Supermarket, and Village Grocer also stock
certified organic food. The hub of vegetable farming in Malaysia can be found
in Cameron Highlands. Grace Cup Sdn. Bhd. and Cameron Organic Produce Sdn. Bhd.
It is established by Lee Ong Sing in 1997 have established organic vegetable
farms 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 of
local organic produce is not keeping up with the increased demand. Local supply
can fall by as much as 50 per cent in certain periods of the year. Beside the
inconsistent supply, the varieties of local organic food are also limited.
Consequently, Malaysia still needs to heavily import organic produce from other
countries, especially from Australia, U.S., and New Zealand.

 

Another
problem facing organic food consumers in Malaysia is the price difference
between organic and conventional food. Although it is well known that organic
food is more expensive than conventional food, their price difference in
Malaysia 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 higher
price and limited variety of organic food in Malaysia, we can foresee that
organic agriculture and food would continue to rise rapidly in Malaysia as
Malaysians become more health and environmentally aware.

 

 

 

 

Conclusion 

 

In the conclusion, follow by the speaker mentioned in
the talk Agricultural companies increasingly have to adapt to the vagaries of
the market, changing consumer habits, enhanced environmental regulations, new
requirements for product quality, chain management, food safety, sustainability
and etc. These changes have cleared the way for new entrants, innovation, and
portfolio entrepreneurship. It is recognized by politicians, practitioners as
well as scientists that farmers and growers increasingly require. They
need to be innovative and forward-looking to manage their businesses as
long-term ventures with a view to making them sustainable. They need to be able
to identify opportunities and seize them.

 

   The global
halal market has emerged as a new growth sector in the global economy and is
creating a strong presence in developed countries. Halal no longer applies to
solely food production and consumption. The halal industry has now evolved from
merely halal food products to a holistic halal concept that encompasses the
entire value of commercial activities. It has extended beyond food into the
realm of business and trade and is fast becoming a global symbol of quality
assurance as well as a lifestyle choice for both Muslims and non-Muslims.
Increasing demand for halal products is being seen in a number of Muslim
countries, with strong economic growth fuelling demand. Rising income levels in
these key markets have led to higher consumption rates and more opportunities
for halal food producers. The largest of these markets are located in Southeast
Asia and West Asia.

 

    In the talk, Mr Ricky Thoong had given the
statistic of the rate in Malaysian there are 4 people in 10 will get cancer. For
the others, they need healthy food, this is a reason that agriculture has
potential 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 normal
retailers and supermarkets, for instance, lack of carry organic food. Despite
the higher price and limited variety of organic food in Malaysia, we can
foresee that organic agriculture and food would continue to rise rapidly in
Malaysia as Malaysians become more health and environmentally aware.

 

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