SUMBANGAN AKTIVITI AGROMAKANAN DAN RANTAIAN NILAI TERHADAP SEKTOR KOPERASI MALAYSIA (Contribution of agricultural food activities and value chain to the cooperative sector in Malaysia)

Abstract

The National Agro-Food Policy 2.0 (DAN 2.0) emphasizes the modernization of the agricultural and industrial sectors along the agro-food value chain based on the increased use of automation and technology based on industrial revolution 4.0. However, the contribution of agro-food to cooperative earnings is still low due to lack of efficiency along the value chain. This study aims to identify the contribution of agro-food activities to cooperatives in Malaysia. Next, identify the contribution of cooperatives through value chain involvement in agro-food activities. Quantitative methods and sampling strategies use census methods, where all cooperatives involved in agro-food activities are taken into account for the collection of study data. This study uses the cooperative’s annual report as well as a questionnaire to obtain a profile of cooperatives that carry out agro-food activities. The findings of the study found that rice cultivation activities contributed to the highest income of the cooperative. Meanwhile, animal husbandry activities contribute the highest return on investment. Next, the results of the financial analysis prove that cooperatives involved in value chain activities at more than two levels will increase income. However, cooperatives involved in only one level of the value chain will record the lowest income. The implication of this study is that the cooperative sector through DAN 2.0 can play its role in empowering value chain activities that will have a positive impact on the financial aspect of cooperatives thus addressing the national security agenda in the future.