Avoid losing profits to middlemen by forming co-operatives, Dr Rundi tells Sarawak’s farmers

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(From front left) Dr Rundi arrives at the event with Education, Innovation and Talent Development Minister Datuk Roland Sagah Wee Inn. – Photo by Roystein Emmor

KUCHING (Oct 27): Farmers in Sarawak should form co-operatives to deal with the issue of profit-making middlemen, said Dato Sri Dr Stephen Rundi Utom.

The Minister of Food Industry, Commodity and Regional Development said over the last 10 months with the ministry, he has realised that farmers are unable to fully benefit from the commercialisation of farming due to middlemen.

“If you look at the situation, the party that takes advantage is the middlemen, where at the end of the day, the farmers do not get much profit.

“In that regard, I suggest that farmers in the state should form a co-operative, that can deal with the problems that the farmers must get a return commensurate with the work they do,” he told reporters after officiating at the ministry’s Family Appreciation Night 2022 yesterday.

He pointed out that Thailand and other countries that have shown progress in terms of farmers and the agricultural community have already formed effective co-operatives that not only have high production but are also able to do effective sales to control prices.

“This is what I want to do and now we are looking at how to find a way so that we can do this (co-operatives) to form an ecosystem and not give opportunities to middlemen, who take so much from the farmers and knowing that the latter need better incomes.

“We have co-operatives and farmers’ associations in some areas, make use of them. What I want is to form an ecosystem which has different roles,” he explained.

He added farmers interested to form co-operatives can get in touch with the ministry.

“Make an initiative first, based on your performance, we give output incentives not subsidies or to kick-off the project we may help from the aspect of infrastructure and others.

“If we can do complete the supply chain ecosystem, the farmers will also benefit. Try to transform the subsistence farming into commercialisation, especially those in the Bottom 40 per cent low-income (B40) group, to earn up to RM6,000 in household income per month by 2030.

“Subsistence farming must be transformed into a full-fledged commercial venture so that agriculture would move further into the future,” he said.

He added there are some 176,000 farmers registered under 28 farmers’ organisations in the state.

To encourage farmers to increase production, Dr Rundi said the ministry wants to create a farming icon who is known to be successful in production on a large scale to motivate other farmers.

“This icon is important because we see that he is one of a kind who has succeeded in agropreneur(ship), the ministry will give incentives for his efforts and his success will be emulated by others,” he said.