Rising costs reshape what farmers grow

SHAH ALAM – From delayed planting to reduced yields, Malaysian farmers are already feeling the strain of rising fertiliser and energy costs, forcing some to rethink what they grow this season.

Escalating input costs and supply disruptions are placing immediate pressure on planting decisions, particularly for short-cycle crops.

Cameron Highlands Vegetable Growers Association deputy president Lau Weng Soow said leafy vegetables such as choy sum, lettuce and spinach are the most affected due to their short growth cycles.

He explained that any spike in fertiliser prices or delays in supply quickly forces farmers to cut usage or scale back planting areas.

“Many farmers are reducing fertiliser use or postponing sowing to avoid potential losses,” he said.

Lau added that fruit vegetables — including tomatoes, chillies and cucumbers — are also at risk, as they require higher fertiliser input, which could affect both yield and quality.

He said disruptions to shipping routes are driving up the cost of key agricultural inputs such as fertilisers, animal feed and wheat, creating a broader cost-push effect across the food chain.

“Rising input costs will gradually lead to higher food prices in the coming weeks,” he said.

Agricultural economist Professor Datuk Dr Mad Nasir Shamsudin said the situation is largely driven by rising global energy prices, which directly impact fertiliser production and overall farming costs.

“Energy is a critical component in agriculture, influencing machinery, irrigation, fertiliser manufacturing and transportation.

“As energy prices rise, these costs are transmitted across the entire food production chain, increasing overall agricultural expenses,” he said.

Mad Nasir noted that fertiliser production is highly energy-intensive, meaning higher prices will raise production costs for farmers growing vegetables, fruits and rice.

He added that this places additional financial strain on farmers already grappling with uncertain input supply.

“With shipments delayed and prices rising sharply, farmers are facing difficult decisions, including delaying planting or reducing cultivated areas,” he said.

He said that even when planting continues, higher costs often force farmers to cut fertiliser usage, which directly reduces crop productivity.

“In the near term, the combined effect is lower yields and reduced overall production, which could tighten food supply and push prices upward,” he said.

Lau said farmers are also adjusting crop choices, shifting towards lower-cost or less risky options to manage rising expenses.

He warned that these adjustments, coupled with reduced input use, could result in inconsistent quality and a less stable supply.

“Rising costs without corresponding price increases will squeeze farmers’ margins and increase volatility in the market,” he said.

Mad Nasir added that medium-cycle crops such as rice may not see an immediate impact, but prolonged disruptions could pose risks to national food security.

He said the situation reflects Malaysia’s continued dependence on imported inputs, including fertilisers and animal feed.

“This highlights how external shocks can disrupt domestic production even when local farming activities continue,” he said.

Lau said that while there is no immediate food shortage, the upstream production system is already under strain.

“If not addressed promptly, price increases and supply instability may become more evident in the coming weeks to months,” he said.

Mad Nasir said targeted fertiliser and diesel subsidies could help ease short-term pressure on farmers and sustain production levels.

He added that long-term measures should focus on strengthening domestic agriculture, diversifying import sources and improving supply chain resilience.