The New Supply Chains in Malaysia: Implications to the Fruits and Vegetables Producers

Part of the India Studies in Business and Economics book series (ISBE)


The agricultural produce and food marketing in Malaysia are moving in tandem, albeit at a slower rate, with the structural changes that have taken place in the retail sector. Since 1980s, food retailing in the developed world has been characterized by the rapid development of large retail chains that integrate the wholesale function into their own company to become self-distributing chains. Due to big-scale operation, these retail chains have been able to introduce cost-saving innovations such as centralization of procurement, use of preferred supplier registries, formal contracts with suppliers and the promulgation of private quality standards. The saturation of consumer markets in the European Union (EU) and the growth of consumers’ disposable income in the developing economies have driven some of these retail chains to those areas including Malaysia. By mid and late 1990s, accelerated by globalization and enabled by information technology, a number of multinational retail chains have opened up hypermarkets in Malaysia. Some farm structural transformations are necessary to enhance the smallholders’ capacity and bargaining power to enable them to participate in the new supply chain structure.


Supply Chain Customer Relationship Management Price Discovery Retail Sector Marketing System 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Abbott JC (1987) Agricultural marketing enterprises for the developing world. Cambridge University Press, LondonGoogle Scholar
  2. Arshad FM, Rahim KA (2008) New agri-food marketing system: structural and impact analyses, research report submitted to Federal Agricultural Marketing Authority. Malaysia, 205 pGoogle Scholar
  3. Bain JS (1968) Industrial organization. Wiley, New YorkGoogle Scholar
  4. Boehlje M (1999) Structural changes in the agricultural industries: how do we measure, analyze, and understand them? Am J Agric Econ 81(5):1028–1041CrossRefGoogle Scholar
  5. Companies Commission of Malaysia (CCM) (2007) Annual report of companies.
  6. Department of Statistics, Malaysia (2003). Retail trade. Putrajaya: department of statistics. MalaysiaGoogle Scholar
  7. DFID (Department of International Development) (2004) Concentration in food supply and retail chains Accessed 20 Jan 2008
  8. Euromonitor (a) (2005) Retailing in Malaysia. Accessed 2 Oct 2005
  9. Euromonitor (b) (2012) Retailing in Malaysia. Accessed 6 June 2012
  10. Federal Agricultural Marketing Authority (FAMA) (2010) Meeting of the High Impact Project (Contract Farming), 27 Jan, Shah AlamGoogle Scholar
  11. Food and Agriculture Organisation (FAOa) (2004). Report on the FAO/AFMA/FAMA Regional Workshop on the Growth of Supermarkets as Retailers of Fresh Produce. Kuala Lumpur, Oct 4–7 Accessed 10 Jan 2007
  12. Food and Agriculture Organisation (FAOb) (2005) Spotlight: farmers and supermarkets in Asia. Accessed 10 April 2010
  13. Giovannucci D, Purcell T (2008) Standards and Agricultural Trade in Asia, ADB Institute Discussion Paper No. 107. Accessed 10 Apr 2010
  14. Herfindahl OC, (1950) Concentration in the U.S. steel industry. Unpublished Ph.D. dissertation, Columbia UniversityGoogle Scholar
  15. Hirschman AO (1945) National power and structure of foreign trade. University of California Press, USAGoogle Scholar
  16. Hu D (2005) A revolution in food marketing, pacific food system outlook 2005–6. Accessed 18 Nov 2006
  17. Hussein MA, Arshad FM, Abdullah N MustaphaR, Isa AHassanM, Yew TS, Kuperan K, Gibbons ET (1986) Fish marketing in Peninsular Malaysia, consultancy report submitted to Lembaga Kemajuan Ikan Malaysia, Kuala Lumpur, MalaysiaGoogle Scholar
  18. Kaynak E (1986) Food marketing systems: less developed countries practices. J Food Mark 5(3):21–37Google Scholar
  19. Kim HH (2005) How to successfully link rural producers to the urban market. Paper prepared for presentation at the Seminar on ‘Cooperative Integration of Agricultural Marketing’ organized by International Agricultural Cooperative Organization (ICAO), ColombiaGoogle Scholar
  20. Malaysia (2006) Ninth Malaysia Plan (2006–2010). Kuala Lumpur: Percetakan Nasional Malaysia BerhadGoogle Scholar
  21. Man N, Arshad FM, Mohamed Z, Ismail M, Abdullah AM, Latiff IAbd, Repin MF, Mawi NMohd, Rahim HA (2008) Supply chain management of the Malaysian fruits and vegetables, research report submitted to Federal Agricultural Marketing Authority, Malaysia, 85 pGoogle Scholar
  22. Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) (2008) Personal communication with the Head, Policy and Strategic Planning DivisionGoogle Scholar
  23. Mohamed Arshad F, Radam A, Mohamed Z (2005) The fruits industry in Malaysia: issues and challenges. University Putra Malaysia Press, Serdang, p 99Google Scholar
  24. Mohamed Arshad F, Mohamed Z, Latif I (2006) Changes in agri-food supply change in Malaysia: implications on marketing training needs, paper presented at the FAO/AFMA/FAMA Regional Workshop on Agricultural Marketing Training, organized by Food and Agricultural Organization of the United Nations (FAO), Agricultural and Food Marketing Association for Asia and the Pacific (AFMA), Federal Agricultural Marketing Authority of Malaysia (FAMA), Ministry of Agriculture and Agro-based Industries (MoA), Kuala Lumpur, Malaysia, 20–25 NovGoogle Scholar
  25. Ngah AM (2005) Reinventing the agriculture: moving up the value chain. Paper presented at the National Outlook Conference, organized by MIER, Kuala Lumpur, 6–7 Dec. Accessed 18 Nov 2006
  26. Omar IH (1994) Market power, vertical linkages and government policy, the fish industry in Peninsular Malaysia. Oxford University Press, Kuala LumpurGoogle Scholar
  27. PECC (2006) A revolution in food marketing, Pacific Food System Outlook 2005–6. Accessed 18 Nov 2006
  28. Reardon T, Timmer CP, Barrett CB, Berdegue J (2003) The rise of supermarkets in Africa, Asia, and Latin America. Am J Agric Econ 85(5):1140–1146CrossRefGoogle Scholar
  29. Saimin S (2004) The growth of supermarkets in Malaysia, paper presented at the Workshop on the Growth of Supermarkets as Retailers of Fresh Produce, Regional Workshop by FAO/AFMA/FAMA, 4–7 October. Kuala LumpurGoogle Scholar
  30. Shepherd AW (2004) The implications of supermarket development for horticultural farmers and traditional marketing systems in Asia, paper presented to the FAO/AFMA/FAMA Regional Workshop on the Growth of Supermarkets as Retailers of Fresh Produce, Kuala Lumpur, Oct 4–7Google Scholar

Copyright information

© Springer India 2016

Authors and Affiliations

  1. 1.Institute of Agricultural and Food Policy StudiesUniversiti Putra MalaysiaSerdangMalaysia

Personalised recommendations