COOPERATIVES

They can help organise farmers’ activities, streamline quality control, packaging, delivery and promotions

TERENGGANU is famous for its instant and — two traditional foods, once sold at roadside stalls or small restaurants as popular breakfast and snack foods among the locals.

Both made their international debut this year in some restaurants in London and Australia. With a bit more improvement in their ingredients, taste and packaging, and

could be on the menu on long haul flights.

It can also be the alternative choice to our popular nasi lemak. The success story of

and did not come easy. It took more than four decades before they made it into the international market, and now the operators, especially the suppliers, are looking at expanding their markets beyond just serving at restaurants.

For instance, operators are considering supplying the foods to those performing the umrah and haj. They are not only looking at how to satisfy the palate of locals who miss home cooked dishes while on their pilgrimage, but also to attract pilgrims from other countries.

The rise in

and popularity started in the early 1990 when a few entrepreneurs challenged the norm of selling just for breakfast, and just as snacks.

The smaller traders were reluctant to spend extra hours to run the business until they saw the profits raked in by those who had dared to challenge the norm. The business had generated millions in revenue for the entrepreneurs. And, so the competition began. Their main concern then was how to manage the volume and wastage.

Obviously, the small-time traders had no idea of the vast potential the products had. And, for those who had gone the extra mile, they too, only confined the business to meeting the demand of local residents.

Over time, when the two foods began meeting demand from outside the state, things started to change. Between 2000 and 2004 the pace picked up. Today, this cottage industry has flourished with spillover effects, creating jobs for the locals. Some industry players are running their operations 18 hours a day, giving a chance for their workers to earn extra income. Those who benefitted from the growing demand for the products include fishermen, fishmongers, sago plantation owners, sago and flour suppliers, packaging suppliers, wholesalers, small enterprises and the operators. The ripple effect goes further down the line.

The and

business is a good example of how a humble traditional product can generate the economy and made many down liners successful and wealthy.

In part, the industry players need to thank the state government for going all the way to London and Australia to promote the products at trade fairs. Surprisingly, the response was overwhelming and prompted the government to push the industry to meet the demand.

Unfortunately, meeting the huge demand from importers on a weekly or monthly basis has somewhat slowed the industry. Some of the suppliers are unable to meet the demand. Industry players must come up with a strategic business plan to address this.

Perhaps, industry players could consolidate under a cooperative which handles quality control, packaging, delivery and promotions?

For example, the sweet potato and tapioca growers in Besut, Setiu and Marang are still selling fresh harvest from their smallholdings. Very few of them dare to venture downstream fearing competition and price under cutting. A cooperative can organise the activities of these farmers, especially on packaging and promotion, and get them to produce high quality sweet potatoes and processed into chips that can rival establish brands. Local sweet potato chips can also break into the international market, at least in Southeast Asia, for a start.

These ventures may seem small, but if it is organised under one umbrella, in this case a cooperative, the traders and farmers will have a reason to work harder and earn a more stable income because they no longer have to think about issues beyond their expertise.

It will also help to reduce the country’s food import bills which run close to RM40 billion last year. This reflects that Malaysia relies heavily on imports to feed its population — this may affect the country’s food security.

The food industry is lucrative, and the demand moves in tandem with the growth in population, not just regionally but internationally. The price of food is also impacted by the shrinking land that can be turned into productive farms.