1. Food Security & Challenges
Faced by Food Industry
Nik Ismail Nik Daud
UKM Holdings Sdn Bhd/
Malaysian Institute of Food Technology
nind@ukm.my
Paper Presented at the Food Science Student Annual Seminar, Universiti Malaysia Terengganu,
Kuala Terengganu, 19 March 2010

2. content
• Introduction
– Hunger Statistics
– Elements of Food security
• Factors affecting or aggravating food insecurity
• National Food Security Policy
• Managing food insecurity by Industry
• Role of food science and technology
• Food science students and food security

4. FACTS and FIGURES
GLOBAL HUNGER 1
925 million people do not have enough to eat - more
than the populations of USA, Canada and the
European Union;
(Source: FAO news release, 14 September 2010)

5. FACTS and FIGURES
GLOBAL HUNGER 2
98 percent of the world's hungry live in developing
countries;
(Source: FAO news release, 2010)

6. FACTS and FIGURES
GLOBAL HUNGER 3
Asia and the Pacific region is home to over half the
world’s population and nearly two thirds of the world’s
hungry people;
(Source: FAO news release, 2010)

7. FACTS and FIGURES
GLOBAL HUNGER 4
Women make up a little over half of the world's
population, but they account for over 60 percent of
the world’s hungry.
(Source: Strengthening efforts to eradicate
hunger..., ECOSOC, 2007)

8. FACTS and FIGURES
GLOBAL HUNGER 5
65 percent of the world's hungry live in only seven
countries: India, China, the Democratic Republic of
Congo, Bangladesh, Indonesia, Pakistan and
Ethiopia.
(Source: FAO news release, 2010)

9. FACTS and FIGURES
CHILD HUNGER 1
More than 70 percent of the world's 146 million
underweight children under age five years live in just
10 countries, with more than 50 per cent located in
South Asia alone;
(Source: Progress for Children: A Report Card on
Nutrition, UNICEF, 2006)

10. FACTS and FIGURES
CHILD HUNGER 2
10.9 million children under five die in developing
countries each year. Malnutrition and hunger-
related diseases cause 60 percent of the deaths;
(Source: The State of the World's Children,
UNICEF, 2007)

11. FACTS and FIGURES
CHILD HUNGER 3
The cost of under-nutrition to national economic
development is estimated at US$20-30 billion per
annum;
(Source: Progress for Children: A Report Card on
Nutrition, UNICEF, 2006)

12. FACTS and FIGURES
CHILD HUNGER 4
Every year WFP feeds more than 20 million
children in school feeding programmes in some 70
countries. In 2008, WFP fed a record 23 million
children.
(Source: WFP School Feeding Unit)

13. FACTS and FIGURES
MALNUTRITION 1
It is estimated that 684,000 child deaths worldwide
could be prevented by increasing access to vitamin
A and zinc
(Source: WFP Annual Report 2007)

14. FACTS and FIGURES
MALNUTRITION 2
Undernutrition contributes to 53 percent of the 9.7
million deaths of children under five each year in
developing countries.
(Source: Under five deaths by cause, UNICEF, 2006)

15. FACTS and FIGURES
MALNUTRITION 3
Lack of Vitamin A kills a million infants a year
(Source: Vitamin and Mineral Deficiency, A Global
Progress Report, UNICEF)

16. FACTS and FIGURES
MALNUTRITION 4
Iron deficiency is the most prevalent form of
malnutrition worldwide, affecting an estimated 2 billion
people. Eradicating iron deficiency can improve
national productivity levels by as much as 20 percent.
(Source: World Health Organization, WHO Global
Database on Anaemia)

17. FACTS and FIGURES
MALNUTRITION 5
Iron deficiency is impairing the mental development of
40-60 percent children in developing countries
(Source: Vitamin and Mineral Deficiency, A Global
Progress Report, p2, UNICEF)

18. FACTS and FIGURES
MALNUTRITION 6
Vitamin A deficiency affects approximately 25 percent of
the developing world’s pre-schoolers. It is associated
with blindness, susceptibility to disease and higher
mortality rates. It leads to the death of approximately 1-
3 million children each year.
(Source: UN Standing Committee on Nutrition. World
Nutrition Situation 5th report. 2005)

19. FACTS and FIGURES
MALNUTRITION 7
Iodine deficiency is the greatest single cause of mental
retardation and brain damage. Worldwide, 1.9 billion
people are at risk of iodine deficiency, which can easily
be prevented by adding iodine to salt
(Source: UN Standing Committee on Nutrition. World
Nutrition Situation 5th report. 2005)

20. FACTS and FIGURES
FOOD & HIV/AIDS 1
In the countries most heavily affected, HIV has
reduced life expectancy by more than 20 years,
slowed economic growth, and deepened household
poverty.
(Source: 2008 UNAIDS Global Report on the AIDS
Epidemic)

21. FACTS and FIGURES
FOOD & HIV/AIDS 2
In sub-Saharan Africa alone, the epidemic has
orphaned nearly 12 million children aged under 18
years.
(Source: 2008 UNAIDS Global Report on the AIDS
Epidemic).

22. FACTS and FIGURES
FOOD & HIV/AIDS 3
WFP and UNAIDS project that it will cost on
average US $0.70 cents per day to nutritionally
support an AIDS patient and his/her family.
(Source: Cost of Nutritional Support for HIV/AIDS
Projects, WFP, July 2008)

23. FACTS and FIGURES
FOOD & HIV/AIDS 4
Assistance for orphans and vulnerable children is
estimated at US$0.31 per day.
(Source: Cost of Nutritional Support for HIV/AIDS
Projects, WFP, July 2008)

24. Availability
Accessibility
FOOD SECURITY
Utilization
Stability
FAO 2006

25. Levels of Food Security
Individual Household National Regional Global

26. Terms Related to Food Security
Nutrition Security meeting all nutritional needs
Food Insecurity ability to acquire is limited or uncertain
Hunger pain due to lack of food
Under-nourishment not meeting nutritional needs
Malnutrition deficiencies, excesses or imbalances

27. Food Security
Happens when all people and at all times
have access to enough food that are:
– affordable, safe and healthy
– culturally acceptable
– meets specific dietary needs
– is obtained in a dignified manner
– is produced in ways that are environmentally
sound and socially just

28. Continuous increase in
world population
Agriculture land is decreasing
Poverty Increase Food prices
Factors Contributing or
Aggravating Food Insecurity
Climate Change
Natural Calamities
Rise of oil price
Biofuel production
Wars & Conflicts
World trade rules

29. Continuous increase in world
population mostly in poorest and least
developed countries
Year World population
(Billion)
1950 2.5
2000 6.5
2011 7.0
2050 9.0

30. Agriculture land is Decreasing
Housing,
urbanization,
roads, soil erosion,
expansion of
desert, water crisis

31. Climate Change

34. Natural Calamities

35. Volcano eruptions in Indonesia 2010

36. Volcano eruptions
in Indonesia 2010

37. Natural Calamities

38. Flooding in Australia 2011

39. Draught
in India
1999

40. Draught in China 2009

41. Rise of oil price

42. Biofuels production
Environmentalist
promote biofuel to
reduce pollution
but plantations
reduce farm crops
- Corn,
sugarcane,
oilpalm, jatropha

43. WARS & CONFLICTS (2009)

44. Increase Food prices

45. Country Rice Production
(million mt/year)
• China 166 (32.7%)
• India 132 (26.0%)
• Indonesia 52 (10.2%)
• Bangladesh 38 (7.5%)
• Vietnam 36 (6.8%)
• Thailand 27 (5.3%)
• Myanmar 24 (4.8%)
• Philippines 14 (2.8%)
• Brazil 10 (2.0%)
• Japan 9.7 (1.9%)

46. Rice is one of top grains consumed but only 6-7% of production globally traded.
( wheat 20%, corn 11%, soya bean 35%)
FAO

47. Grain importers

48. Poverty
% total household expenditure on
food
• US 7 • Pakistan 46
• Britain 9 • Kenya 45
• Australia 11 • Indonesia 43
• Malaysia 6-15 • Nigeria 40
• Egypt 38
USDA

49. World trade rules
– Free market
monopolised by huge
corporations affecting
local market and
producers
– Subsidies to western
farmers
• US provide US$300bil
subsidy
• OECD provide
~US$20,000/farmer/year
– Develop trade barriers

50. Malaysia’s Food Security Initiatives
• National food security policy formulated in
2008 following the world food crisis
• RM3billion was allocated (2008-2010)
• objectives are:
– Increase output and productivity of agro-food
sector to SSL
– Enough food of quality and safe to consume
– Promote agriculture entrepreneurship
MoA

51. Paddy and Rice Programs in NFS
Policy
• Agriculture inputs subsidy:
Irrigation, pest control, fertilizers, land
levelling, lime application, mechanization,
miller subsidy, productivity incentives, etc
• Subsidized 15% broken rice
• Promote R&D to increase productivity
• Increase stockpile level from 92k to 239k
MT.
Tey 2010

52. For 2011, MoA was allocated RM2.77
billion to:
• Help farmers to increase rice production
• Ensure adequate supply of rice in the
market
• Develop large scale aquaculture zone
• Expand livestock breeding-oil palm
plantation integration
Bernama Jan 10, 2011

53. Malaysia announces plans to boost
rice production, RM1billion earmarked
http://oryza.com/Asia Pacific/Malaysia, posted on Apr 2008
Indonesia and Malaysia look to cooperate
on food security in ASEAN
The Jakarta Post, March 08, 2011

54. Malaysia Targets 45-Day Rice Stockpile, Food
Security (Update 1) so that foodstuff remains
affordable for all
Food security will be strategically addressed under
10th Malaysia Plan
Bloomberg Businessweek, June 10, 2010

55. Raw material supply for local industry
• We do not produce enough for the industry
• We are a net importer of food even during
normal times
• Industry has little control over prices of
imports
• Generally we are not a low cost producer
• The situation worsens in times of
uncertainty in supply

56. Foods we bring in
In 2008, Malaysia's food imports totaled RM28
billion.
Major food imports were cereal and cereal
preparations, cocoa, vegetables and fruits, dairy
products and animal feed.
Malaysia imports 70-80% of its beef and 90% of its
mutton requirements.
Raw materials such as cereals and dairy products
will continue to be imported for further
processing for human consumption as well as for
the production of animal feed.
70 per cent of its food ingredient requirement are
imported

57. Managing food security by industry
• Secure long term arrangement with
suppliers
– Manufacturer – farmers partnership
– Acquisition of primary producers
• Apply food supply chain management
tools
• Adopt appropriate operation management
approach

58. Managing food security by industry

59. A Manufacturing facility
Many suppliers
supplier processing
processing Customers
RM inventory FP inventory
Supply Chain Management
Manufacturing facility
B
Few suppliers
f processing Outbound Logistic Customers

60. Managing food security by industry (and
government)

61. aims to increase the content of value-added
activities in any given process

62. Managing food security by industry

63. Role of Food Science and Technology
• Factors contributing to food insecurity (
current and future) are many and multi-
dimensional
• Many of these factors cannot be controlled
or solved by FST alone
• But food insecurity cannot be solved
without the contribution of FST.

64. Fighting food insecurity
UNIVERSITY/
RESEARCH INSTITUTES
GOVERNMENT INDUSTRY
AGENCIES
Role of
FOOD SCIENTISTS &
INTERNATIONAL TECHNOLOGISTS
AGENCIES CONSUMER
ASSOCIATIONS
SCIENTIFIC ADVOCATE
NGOs GROUPS

65. Role of Food Sci & Technologist
• Reduce waste throughout supply chain
• Make food more shelf-stable and retain
nutritional value
• Ensure food are safe and fulfill nutritional needs
of all individuals
• Produce food which are culturally/socially/
religiously acceptable
• Develop food and processes during crisis
• Develop production systems that are
environmentally sustainable.

66. Role of Food Sci & Technologist
• Improve or adapt traditional food and processes to
exploit locally available resources
• To develop alternative staple food to reduce over-
dependence on a single commodity.
• Develop and apply new S&T to improve food safety,
quality and processes e.g. nanotechnology,
biotechnology, etc
• To improve functionality of food
• Education in FS&T to all stakeholders
• Contribute in decision making affecting food security

67. IUFoST delegates recognise the indispensable
role of food science and technology in eliminating
or reducing food insecurity worldwide
• Promotion of the safety and quality of all foods
• Reduction of physical and nutritional losses in the food value chain
• Adaptation and improvement of traditional foods and processes, while
respecting the traditional, ethical, cultural and religious aspects involved
• Beneficial application of science and technology
• Development and dissemination of improved knowledge of food
composition
• Facilitation of domestic and international food trade
• Development of food materials with improved functionality
• More efficient and environmentally sustainable food production,
processing and packaging
• Education in nutrition, food science and technology at all levels
15th World Congress in Food Science & Technology 2010

68. For FST Students and Food Security
• Improve understanding on the complexity of
food security
• Involve in voluntary work to fight food insecurity
• Organize or participate in public awareness
programs on food security

69. Conclusion

70. Thank you