KUCHING: The state government via Venture Capital wants to see more anchor companies get into agriculture by investing in related technologies for better production.
“We have two strategies. One is the subsidies, whereby we provide the planting materials, the basic requirement for a new farmer,” said Deputy Chief Minister Datuk Amar Douglas Uggah Embas, yesterday.
He was officiating at the state’s Premium Pineapple Pioneer Project First Harvest at Kampung Padang Pan in Bau.
“But once they reached a higher level, we cannot give them subsidies anymore. This is where our second strategy, Venture Capital, comes in.
“We know, even at this higher level, farmers still need financial assistance, which is why Venture Capital was set up by the state government in 2017.
“With Venture Capital, it is a lot easier than going to a bank which has many terms and conditions.”
He elaborated that Venture Capital is not a loan, but equity participation.
“For a loan, the farmer needs to pay on monthly basis with interest, but in this case we can buy shares. Once a farmer has become successful, he can sell back the shares to us, or we sell back the shares to him,” he explained.
Uggah said the state government had allocated RM200 million for Venture Capital this year.
“Our Chief Minister (Datuk Patinggi Abang Johari Tun Openg) wants to move away from subsidies to the creation of entrepreneurs and make good managers out of our farmers.
“He wants to see our farmers manage their farms, grow to a viable size that will increase their income, and push them beyond the poverty level to the middle income group or even beyond.
“As you can see, David Disam, the developer of this pineapple estate is earning a monthly income of about RM30,000 from his 10-acre enterprise.”
Premium Pineapple farm has 100 acres of MD2 pineapple variety.
“We have a few farms in Kota Samarahan and one in Miri totalling about 100 hectares, but this is the first big 100 acres of MD2 pineapple variety while the others plant mixed varieties.
“What is most interesting is if you go to Kota Samarahan it is flat peat land. Here the land slopes by more than 30 degrees,” said Uggah.
According to him, with only 14 months to fruiting time, a pineapple farm yields faster compared to oil palm.
Uggah said pineapple products will also be placed in the State Agro Fest this year.
Accompanying Uggah yesterday were Agriculture Assistant Minister Dr Abdul Rahman Ismail; Pineapple Industries Board Malaysia deputy director-general Mohd Khairunizamri M Salleh; Serembu assemblyman Miro Simuh; and the Modernisation of Agriculture, Native Land and Regional Development Ministry’s permanent secretary Datuk Ik Paon Joyik.
