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News Straits Times Press, 31 March, 2007

Kelantan agri revolution

AN integrated agriculture biotechnology project, covering a massive 5,200ha in Lojing, Kelantan, is expected to revolutionise Malay- sia's agriculture industry when it is completed in five years.

The project, which begun in stages four years ago, is being undertaken by the Telemont Group of companies, which aims repair the damage done over the years in the Lojing highlands due to uncontrolled farming and development.

The ambitious project is set to change the Lojing landscape and also introduce advanced bio-tech farming methods to Malaysian farmers, particularly the vegetable growers in Lojing and nearby Cameron Highlands, Pahang, to enable them to compete globally in the perishable goods market.

Among the components of the project are reforestation and low-impact logging for sustainable forest development, large-scale integrated organic farming, husbandry of Dorper sheep, planting of pitaya (dragon fruit) and herbs, an ostrich farm, and an agriculture inland port (AIP).

The AIP is the mainstay of the project with research and development (R&D) playing a major role in the study and research of bio-tech methods to educate and help farmers keep abreast with new developments.

It will also serve as the centre for collection, packaging and distribution of their farm produce, with cold room facilities.

Through the AIP, downstream activities will be created under an "umbrella scheme" which will minimise wastage of low-quality produce, or those that are damaged due to seasonal over-supply of the vegetables grown.

Elaborating on the project, Telemont director Datuk Peter Khoo said that the AIP is the first of its kind in Malaysia,

An important feature in the AIP supply chain, he said is the computerised tracking system where all farm produce would be monitored from their origin (such as the source of the seeds), quality of the food content and freshness so that they meet the stringent standards of local and overseas markets.

Why Lojing?

Khoo said because Lojing is strategically located in the centre of Malaysia, and is along the Simpang Pulai-Gua Musang highway, which is easily accessible from the North-South Expressway.

The Telemont Group's 5,200ha land, comprising several plots, are located along the highway with altitudes ranging from 300m to 1,500m above sea level.

"And this is ideal for all kinds of hot and temperate crops, vegetation and plantation. The strategic location allows the group's integrated activities of farming, plantations, orchards, sheep farming, R&D and AIP to be easily visible to the locals and tourists, indirectly contributing to the country's growing agro and eco-tourism demand," he said.

All Telemont's components are within the vicinity of 15 to 30 minutes' drive.

The group projects that its activities and continuous programmes will accelerate the growth of Lojing as an agriculture hub, which will complement well with farming and tourism activities in Cameron Highlands.

"It is also in line with the Government's call for the development of the agriculture sector and the area of bio-technology research," he said.

To date Telemont has invested some RM100 million in farming and reforestation activities.

Khoo said RM200 million has been allocated for the AIP and R&D, and Telemont projects another RM300 million will be invested over the next five years in order to complete the set-up.

On reforestation, Khoo said Telemont, through its subsidiaries Alifya Forestry Sdn Bhd and MJB Forestry Sdn Bhd, had planted some 400ha of teak (about 338,000 trees) and mahogany (60,000 trees).

"In July this year we will begin planting rubber trees for reforestation and sustainable forest development. We will also start our herbal plantation around this time. Some 200ha has been allocated for this," he said.

Among the herbs are neem, tongkat ali and karas (for the gaharu raisins to produce perfume).

On farming, the company has already started planting dragon fruits (pitaya), which can be harvested next month, the Japanese pumpkin, chilli, corn and beans.

It has also started sheep farming venture by breeding the Dorper sheep (see accompanying story).

"The integrated agri-bio project with the AIP, when completed, will be the single largest entity in this region, and hopefully it will revolutionise the country's agriculture industry, and repair the damage done over the years with the uncontrolled development in Lojing," he said.

To kick-start the AIP, Telemont is allowed to sell off some 200ha of its land, located near the proposed inland port in Lojing, to local farmers.

Each farmer will have at least a two-hectare plot to carry out their activities, such as flower planting, organic farming and others.

To date, Telemont has already sold off 40 of the 90 lots to local farmers and foreigners.

"We will organise the lots in a such a way that one-third will be for the flower planters, another one-third for organic planting and the rest for regular farming.

"The State Government of Kelantan has already approved this, and the land has a 99-year leasehold. According to State Government quota, 40 per cent of the land must be held by Kelantan locals, 30 percent by Malaysians and another 30 per cent by foreigners, Khoo said.

Meanwhile, to position itself globally, the Telemont Group recently entered into two joint ventures with Chinese and Hong Kong investors.

The first memorandum of understanding (MOU) signed was between Telemont's subsidiary Bio Valley Sdn Bhd and the Dongguan Group of China.

The primary objective is for Dongguan to establish a similar AIP in China. Dongguan is a well-established group with a successful history of more than 10 years.

Its principal activities include township development, property and land ownership, general trading, engineering and franchise operator of more than 300 restaurants throughout China.

Under the MOU, Bio Valley and Dongguan will co-invest, manage and collaborate in the setting up of the AIP in Lojing and in China.

The location of Dongguan's AIP is in a site yet to be identified in southwestern China's agriculture zone.

"The MOU allows both the companies to cross import and export our respective produce and meet the increasing demands for quality food in each country, and for exports to other countries," said Khoo.

The second agreement was the Off-Take contract signed between the Outback Group of Hong Kong and Telemont's subsidiary Prima Juara Corp Sdn Bhd.

The contract is to allow Outback to purchase, market and distribute Telemont's Dorper sheep live and cut meat in Hong Kong, Macau and China.

 
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