Preventing outflow of RM600m: SugarBun’s modern maize venture to help local farmers and save on foreign exchange
KOTA BELUD: Minister of Agriculture, Fisheries and Food Industry Datuk Seri Dr Jeffrey Kitingan praised a private Sabah initiative that aims to eventually help Sabah prevent the outflow of RM600 million in maize grain imports yearly.He also expressed admiration for Malaysian fast food operator SugarBun’s pilot project in Kg Bobot, here, to cultivate maize on a commercial scale using sophisticated methods.“We can produce more corn if we can mechanise corn plantations. I am very impressed,” he said, adding that the State Government would assist in encouraging villagers to plant more maize, particularly on idle lands. This will allow them to be productive and because maize is in high demand, our department can assist in providing seedlings and fertiliser. Marketing is not an issue because many people would like to buy them, particularly poultry farms,” he said, following a site visit.SugarBun Group of Companies Managing Director Datuk Joseph Ambrose Lee said the venture would not only boost Sabah’s maize production but set the stage for a more sustainable and prosperous future for the State.
“This is modern farming for the young generation and not traditional hard labour in the field,” he said.The initiative is also in line with modernising agriculture for the younger generation and contributes to the Prime Minister’s Malaysia Madani People’s Income Initiative.SugarBun aims to produce 2,000 metric tons of grain maize a month through the project out of the 200,000 metric tons Sabah needs yearly as feedstock for chicken. It would assist local farmers in the planting and off take all produce. SugarBun with its partner, Evergrowth Integrated Food Industries SB, a local chicken breeder would work together to produce chicken, not just for SugarBun’s broasted chicken outlets but also meet local demand. SugarBun aims to assist the Government in reducing import of feedstock, increasing production of chicken locally and in so doing keep fresh chicken meat at affordable prices, said Ambrose.Ambrose said there are an estimated one million hectares under 230,000 Native titles which can be developed to meet the food security needs of the State.
“We’ve wanted to do this for a long time because it represents a whole vertical value chain for us,” said Ambrose, adding that SugarBun required 6,000 chickens every day.“We believe we should do something to help the local agricultural and food production industries.“Every month, we import almost 20,000 tonnes of maize grain in Sabah and nearly RM600 million a year. “Since we are part of this value chain and we have a bit of a bargaining power with chicken farmers and chicken suppliers, we encourage them to deal with local farmers.“We can then help local farmers sell this maize to the chicken farmers and the chicken suppliers,” he said.“If we can produce at least 20,000 tonnes per month, Sabah will save approximately RM600 million per year. With that RM600 million multiplying at least 10 times, if we succeed, we would have rolled over RM6 billion in the state in a year,” he said. “It will take time. The pilot project took us nearly a year to complete. Hopefully, this will be a catalyst for maize production in Sabah,” he said.
Project Director Datuk Raymond Tan said the Maize Farm is the first pilot project by SugarBun to plant on a commercial scale in collaboration with a local native landowner in Kota Belud. Under the arrangement, the landowner is assisted in preparing his land; provided maize seedlings and carries out the entire planting process by engaging villagers using hi-tech agricultural equipment. SugarBun with its group of companies would provide the venture capital and Verde introduces regenerative planting application (RPA). All expenses are paid by SugarBun. The landowner shares the proceeds of sale after deducting the operations costs after every successful crop is harvested and sold. He said eight acres were planted with maize in mid-August and within 100 days, an estimated 60 metric tons of maize was ready to be harvested.The entire planting process was designed by a young local start-up, Trinity Agroviser PLT. The planting programme included regulated water systems; automatic seeding machine; drone to apply pesticides when necessary; a harvester; de-kernelling machines and kernel drying machines. Other than operating tractors or excavators, the machineries require young mechanical and electrical engineers.
