Chapter 5. Profitability of fertilizer use

Smallholders are usually ready to use fertilizers if they are easily accessible and, most importantly, if they are affordable and their use is profitable. Access to fertilizers in Malaysia is not a problem as there are many dealers around the country. The market is open and very competitive but prices have been rising in line with international prices. The government helps small farmers with fertilizer subsidies in order to improve their income and hence alleviate rural poverty.

In this chapter, information is given on the prices of some crops, the prices of some fertilizers in the Malaysian market and profitability based on the use of compound fertilizer NPK 12-12-17 (cost benefit analysis) for selected crops.

FERTILIZER AND CROP PRICES

Table 24 gives the prices of selected crops at farm gate level for the years 2000 and 2001 with 1997 for comparison. Among the industrial crops, in 2001, tobacco fetched the highest market price followed by cocoa, rubber and oil-palm. For fruit crops, starfruit and watermelon were the most and least expensive respectively. Among the selected vegetables, hot chili and cucumber were the most and least expensive respectively. Table 25 shows the prices of some fertilizers in various Malaysian states in December 2003. The prices do not differ much across states.

TABLE 24
Farm gate selling prices of crop produce

^a Market prices.
Source: Federal Agricultural Marketing Authority; Ministry of Primary Industries.

TABLE 25
Fertilizer prices (RM) in December 2003 per 50 kg bag of selected fertilizer products in various states

TE = trace elements
Source: Department of Agriculture, Peninsular Malaysia (Unpublished data).

TABLE 26
Crop fertilizer price ratios* in 2003 for selected fruit and vegetable crops

* Based on NPK 12-12-17 prices.