GOOGLING the Net with this phrase “Department of Agricultural Economics
in Malaysian universities” gave no matching link.
in Malaysian universities” gave no matching link.
This indicates the dearth or death of this discipline in the local academic
scene. In the 1970s through 1990s, there were departments of agricultural
economics in Universiti Pertanian Malaysia (currently named Universiti
Putra Malaysia) and Universiti Kebangsaan Malaysia, producing graduates in agricultural economics.
By the turn of the 21st century, there were no agricultural economics
departments, and the number of active agricultural economists in academia is less than 30.
The number of students pursuing agricultural economics programmes
at other levels has also dwindled in the last two decades.
The discipline of agricultural economics (AE) emerged in the early
20th century in the Land Grants universities in the United States. In the
beginning, AE was primarily concerned with farm management and
the assessment of production technologies through research and extension
services. These studies were apt for the era then.
But as agriculture evolved together with industrialisation and technological
advancement, the scope and roles of AE changed.
The American Association of Agricultural Economics defines AE as the
study of the economic forces that affect the food and fibre industry. The
areas of study include community and rural development, food safety
and nutrition, international trade, natural resources and environmental
economics, production economics, risk and uncertainty, consumer
behaviour and household economics, analysis of markets and
competition and agribusiness economics and management.
Clearly, AE has evolved from being farm-centric to covering a broader
spectrum of economic and management issues related to agriculture,
food and resources.
Meanwhile, agribusiness is emerging fast as the relevant discipline to
the industry. In 2006, agribusiness degrees represented over 60 per cent
of all degrees offered in the traditional agricultural economics area in
the US.
The emergence of agribusiness was driven by the change in the
structure of US agriculture as well as technological advancement. Firstly,
as more and more value-added activities moved off the farm, the size of
the processing and agricultural input sectors increased. Besides, the emergence
of biotechnology and precision farming created expanded research
possibilities in the field.
A similar trend is observed in Malaysia with some differences. As a
leading agricultural university, UPM established the Faculty of Agribusiness
and Resource Economics in 1971. Two of the departments in the
faculty were Department of Agricultural Economics and Department of
Resource Economics.
UPM was one of the leading universities in the country in producing
agricultural and resource economics graduates who were much needed by
the agriculture sector which contributed about one-third to the countr
y’s gross domestic product then.
However, as the contribution of agriculture to GDP declined, so was
the interest in AE education. In anticipation of the greater role of industries
and services in the economy, the university management decided
to change the old name to the current name (Universiti Putra Malaysia) in
1997.
The motive for the change was to allow the university to embrace a
much more diversified discipline to meet the growing demand for nonagricultural
graduates. As part of the move, the name of the Department of
Agricultural Economics was changed to Department of Agribusiness and
Information System and it was relocated to the Faculty of Agriculture.
The Department of Resource Economics was dissolved.
The enrolment for AE programmes declined significantly and
getting students to enrol was difficult.
The Malaysian Association of Agricultural Economics is barely surviving.
However, attempts have been made lately to revive this ailing association.
These are the symptoms of AE weakening in Malaysia.
Like in the US, the decline of AE in Malaysia is positively correlated with
the reduction of ag r iculture’s contribution to the GDP.
The relevant questions now are, should we allow the market to take its
course on AE or should the trend be addressed?
Ironically, despite the decline in AE and resource economics education in
Malaysia, the issues surrounding the country and the world at large are
agricultural as well as resource economics in nature.
The landscape of agriculture and food has changed radically in the last
decade or so. Top on the list is food insecurity concerns which reached
its height in 2008 when the world saw unprecedented record price hikes for
food.
The crude oil price increase has not only led to increase in cost of
production but food-biofuel competition for resources (particularly
land).
The intensification of chemical fertiliser and inputs on farms has resulted
in soil fertility loss as well as reduction in water quality.
The last decade saw climate change at work with a continuous
chain of natural and weather disasters affecting agriculture. These
included extreme weather and temperature change, floods, tsunamis,
earthquakes and environmental h a z a r d s.
The Doha round of world trade negotiations and the broader issues of
globalisation have direct implications to agriculture. The list goes on.
Without doubt, the world around us is swamped with numerous and
complex agricultural economic and resource economic issues now. Yet
AE has declined in importance at the universities.
This mismatch has to be rectif ied.
Although Malaysian agriculture emulates the declining trend as has
happened in the West, its performance has not.
The agriculture sector in the advanced economies is technologically
driven, highly productive, large scale and highly commercialised and ac -
counts for a larger share of the world market.
With the exception of palm oil, the Malaysian agriculture and food sector
has not developed on a par with its competitors in the West or even the
Asean region.
It suffers many setbacks such as low productivity, inefficiencies,
fragm e n t at i o n and small farms; it is lagging on all fronts.
Similarly, other issues such as production economics, market risks, financing,
marketing, trade, environmental issues and sustainable development
are more relevant now than e ve r.
The decline of AE was natural, but it is a cause for serious concern to
M a l ay s i a .
This is because the problem-laden agriculture and food sector holds the
key towards sustainable development in the future and AE is crucial in
seeking answers and options.
scene. In the 1970s through 1990s, there were departments of agricultural
economics in Universiti Pertanian Malaysia (currently named Universiti
Putra Malaysia) and Universiti Kebangsaan Malaysia, producing graduates in agricultural economics.
By the turn of the 21st century, there were no agricultural economics
departments, and the number of active agricultural economists in academia is less than 30.
The number of students pursuing agricultural economics programmes
at other levels has also dwindled in the last two decades.
The discipline of agricultural economics (AE) emerged in the early
20th century in the Land Grants universities in the United States. In the
beginning, AE was primarily concerned with farm management and
the assessment of production technologies through research and extension
services. These studies were apt for the era then.
But as agriculture evolved together with industrialisation and technological
advancement, the scope and roles of AE changed.
The American Association of Agricultural Economics defines AE as the
study of the economic forces that affect the food and fibre industry. The
areas of study include community and rural development, food safety
and nutrition, international trade, natural resources and environmental
economics, production economics, risk and uncertainty, consumer
behaviour and household economics, analysis of markets and
competition and agribusiness economics and management.
Clearly, AE has evolved from being farm-centric to covering a broader
spectrum of economic and management issues related to agriculture,
food and resources.
Meanwhile, agribusiness is emerging fast as the relevant discipline to
the industry. In 2006, agribusiness degrees represented over 60 per cent
of all degrees offered in the traditional agricultural economics area in
the US.
The emergence of agribusiness was driven by the change in the
structure of US agriculture as well as technological advancement. Firstly,
as more and more value-added activities moved off the farm, the size of
the processing and agricultural input sectors increased. Besides, the emergence
of biotechnology and precision farming created expanded research
possibilities in the field.
A similar trend is observed in Malaysia with some differences. As a
leading agricultural university, UPM established the Faculty of Agribusiness
and Resource Economics in 1971. Two of the departments in the
faculty were Department of Agricultural Economics and Department of
Resource Economics.
UPM was one of the leading universities in the country in producing
agricultural and resource economics graduates who were much needed by
the agriculture sector which contributed about one-third to the countr
y’s gross domestic product then.
However, as the contribution of agriculture to GDP declined, so was
the interest in AE education. In anticipation of the greater role of industries
and services in the economy, the university management decided
to change the old name to the current name (Universiti Putra Malaysia) in
1997.
The motive for the change was to allow the university to embrace a
much more diversified discipline to meet the growing demand for nonagricultural
graduates. As part of the move, the name of the Department of
Agricultural Economics was changed to Department of Agribusiness and
Information System and it was relocated to the Faculty of Agriculture.
The Department of Resource Economics was dissolved.
The enrolment for AE programmes declined significantly and
getting students to enrol was difficult.
The Malaysian Association of Agricultural Economics is barely surviving.
However, attempts have been made lately to revive this ailing association.
These are the symptoms of AE weakening in Malaysia.
Like in the US, the decline of AE in Malaysia is positively correlated with
the reduction of ag r iculture’s contribution to the GDP.
The relevant questions now are, should we allow the market to take its
course on AE or should the trend be addressed?
Ironically, despite the decline in AE and resource economics education in
Malaysia, the issues surrounding the country and the world at large are
agricultural as well as resource economics in nature.
The landscape of agriculture and food has changed radically in the last
decade or so. Top on the list is food insecurity concerns which reached
its height in 2008 when the world saw unprecedented record price hikes for
food.
The crude oil price increase has not only led to increase in cost of
production but food-biofuel competition for resources (particularly
land).
The intensification of chemical fertiliser and inputs on farms has resulted
in soil fertility loss as well as reduction in water quality.
The last decade saw climate change at work with a continuous
chain of natural and weather disasters affecting agriculture. These
included extreme weather and temperature change, floods, tsunamis,
earthquakes and environmental h a z a r d s.
The Doha round of world trade negotiations and the broader issues of
globalisation have direct implications to agriculture. The list goes on.
Without doubt, the world around us is swamped with numerous and
complex agricultural economic and resource economic issues now. Yet
AE has declined in importance at the universities.
This mismatch has to be rectif ied.
Although Malaysian agriculture emulates the declining trend as has
happened in the West, its performance has not.
The agriculture sector in the advanced economies is technologically
driven, highly productive, large scale and highly commercialised and ac -
counts for a larger share of the world market.
With the exception of palm oil, the Malaysian agriculture and food sector
has not developed on a par with its competitors in the West or even the
Asean region.
It suffers many setbacks such as low productivity, inefficiencies,
fragm e n t at i o n and small farms; it is lagging on all fronts.
Similarly, other issues such as production economics, market risks, financing,
marketing, trade, environmental issues and sustainable development
are more relevant now than e ve r.
The decline of AE was natural, but it is a cause for serious concern to
M a l ay s i a .
This is because the problem-laden agriculture and food sector holds the
key towards sustainable development in the future and AE is crucial in
seeking answers and options.
PROF FATIMAH MOHAMED ARSHAD
Institute of Agricultural and Food Policy Studies
Universiti Putra Malaysia
Serdang, Selangor
Institute of Agricultural and Food Policy Studies
Universiti Putra Malaysia
Serdang, Selangor
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