FarmByte Food Hub to transform agro-food sector in Johor, Malaysia

13 Mar 2023 --- The Malaysian food sector is scaling up through the launch of a new hub located in Johor, which aims to support farmers with simple digital tools, market intelligence and real-time production schedules.

The initiative was launched by Johor Corporation through FarmByte, a subsidiary of Kulim Malaysia Berhad, as part of its goal to strengthen food security in Johor state and Malaysia. The FarmBye Food Hub consists of a network of farmers, processors, distributors, retailers and wholesalers connected through a hybrid setting of physical and digital centers.

“The FarmByte Food Hub will allow for the sustainable production of high-quality and high-value agro-food products,” says Datuk Syed Mohamed Syed Ibrahim, president and chief executive of the Johor Corporation and chairman of FarmByte.  

Mohamed adds that the hub aims to boost Johor’s food supply chains by creating a sustainable agro-food ecosystem that will contribute to the national and state food security agenda. 

Helping farmers navigate “fragmented” sector
The network aims to integrate all activities in the value chain to create efficiencies, transparency and trust from production to distribution. 

Mohamed adds that the new technology will allow farmers to navigate Johor’s “fragmented” agro-food sector and support their growth. 

“Our mobile app, for instance, provides farmers with access to personalized advice and analytics and helps to expand their knowledge of expert farming practices.”

Yusiani Ali, a farmer with 6.3 hectares involved in the trial, stresses that many smallholder farmers need help navigating the agro-food business. The FarmByte Food Hub will link actors in the value chain in a network to create efficiencies, transparency and trust. 

“Until now, many smallholder farmers like me have relied on experience and the limited market knowledge regarding what we produce for market and when it will be ready. Being part of the FarmByte Food Hub will give us certainty about what to plant and when demand will be highest to get the best price.” 

“The tools and analytics provided will enable us to maximize our production and make our businesses more efficient. It will enhance our farming skills and knowledge and make us even better farmers.” 

Sustainable agro-food industry 
The UN Food and Agricultural Organization (FAO) has called for a multi-pronged transformation of agri-food systems, with synergies in better nutrition, production, environment and life. Together with the UN Industrial Development Organization, FAO recently launched a program to improve food security and nutrition in the least developed countries. 

FarmByte expects an increase in production with the new hub and plans to build a new collection processing and packaging center and two new distribution centers. 

Mohamed anticipates that the food hub will help uplift the livelihoods and standards of living of smallholder farmers while encouraging the participation of the younger generation in the agro-food sector.

He concludes that FarmByte Food Hub “is a key part of the [Johor] state’s strategy to develop a sustainable agro-food industry that can compete at the international level in terms of production and product efficiency and quality.” 

Edited by Jolanda van Hal