EU-Asia Biomass Best Practices and Business Partnering Conference 20127-10 May 2012, Putra World Trade Centre (PWTC), Kuala Lumpur, Malaysia

Opportunities and Prospects of

Biofertilizer and Bioorganic Fertilizer

in Malaysia

Khairuddin Abdul Rahim

Malaysian Nuclear Agency (Nuclear Malaysia)

With special inputs from: Phua Choo Kwai Hoe, Ahmad Nazrul Abd Wahid, Ahamad Sahali Mardi, Pauline Liew Woan Ying (Nuclear Malaysia);Prof. Dr. Zulkifli Haji Shamsuddin, Zakry Fitri Ab Aziz, Tan Kee Zuan (Universiti Putra Malaysia); Shen Lim, Azlan Yaacob, Kogulan

Saiger (Inno Integrasi); Norhayati Md Taib, Elyana Md Shariff, Salwa Hashim, Nur Hani Ramli, (MYAGRI)

Introduction

The R&D&C

Challenges and Obstacles of the Biofertilizer Industry

Opportunities

Prospects &The Way Forward

Concluding Remarks

• Considerable visibility of biofertilizer and bioorganic fertilizers in the Malaysian

agroindustry scene over the past ten years.

• Numerous biofertilizer products displayed during agricultural exhibitions, notably the

biennial MAHA events, and new products entering the biotechnology and industrial awards

competitions.

• Public, the farmers and the large plantation industries of oil palm and rubber are

becoming more familiar with biofertilizer products, although the understanding of the term

‘biofertilizer’ may be different to different people.

• There is a marked inroad of biofertilizer products entering into traditionally chemical

fertilizer dependent agricultural industry of Malaysia.

• Organic farming is gaining recognition and is being promoted on health aspects, for

example on food safety, green technology and environmental wellbeing, which is acceptable

to a section of the public.

• Presently there is little control on the sale of products claimed as

‘biofertilizers’ that are produced locally and from abroad.

• The Malaysian Fertilizer Bill has been tabled in the Parliament and is

expected to be formalised as an Act soon.

• The Technical Committee on Fertilizer Standards is currently drafting the

quality standards for chemical and organic fertilizers, and it is hoped that

the standard for biofertilizer will be forthcoming too.

Biofertilizer - a substance that contains living microorganisms and

helps with expansion of the root system, better seed germination

and general plant growth.

Examples of biofertilizer microorganisms – N2 fixing bacteria

(Rhizobium spp., Azospirillum spp. Azotobacter spp.), phosphate

solubilising microbes (Bacillus spp., Klebsiella spp., Penicillium spp);

plant growth promoting rhizobacteria, PGPR (Azotobacter spp.,

Enterobacter spp.); arbuscular mycorrhiza.

Biofertilizers usually need a carrier as medium for the inoculants. A

suitable carrier material needs to be inexpensive; easily available;

high in organic matter content, free from microbial contamination

and can optimise the growth of the biofertilizer microorganisms.

Bioorganic Fertilizer (BOF) - biofertilizer microorganisms

incorporated into Organic Fertilizer (e.g. Compost)

6

Carrier ProductionEFB

POME

H2O

Mixing Packing 35-50 kGy

Gamma-irradiation

MINTec-Sinagama

BIOFERTILIZER PRODUCTION

Inoculum Production

Batch Culture

Mother culture

Purity test

Gamma-irradiated

bags

InoculationIncubation

28°C ± 2

Quality

AssuranceField

Experiments/

Ready for Use

Sources: Khairuddin Abdul Rahim et al. (2004, 2005, 2006);

Zakry Fitri Abdul Aziz et al. (2005; 2006)

STERILE

CONDITION

R&D products of Malaysian Nuclear Agency (NUCLEAR MALAYSIA) – multifunctional

biofertilizer and bioorganic fertilizers.

Activities related to biofertilizer projects, Nuclear Malaysia: Biofertilizer trials on vanilla orchid; Exhibition and

promotion at SMI event; Innovation Competition Awards; Technology Transfer Agreement signing event

The R&D&C

9

SINAGAMA Irradiation PlantCobalt-60 Gamma Irradiator

Gammacell

Source: Prof. Dr Zulkifli

Gamma Irradiation Autoclaving

No change in physical and chemical properties of the vermiculite*

Some changes in physical and chemical properties*May be produce toxic substance to some bacterial strain*Some of the vermiculite lumping

Cheaper: RM 400/t Cost and time consuming:-the autoclave consume high level of electricity and limited in vol.-60 kg of vermiculite can be sterilized/week/1 unit of autoclave.

Easy to handle -Need to re-packaging into double layer of HDPE plastic bag.

*Biofertilizer Manual by Forum for Nuclear Cooperation in Asia (FNCA) March 2006

Source: MYAGRI

MYAGRI Bio-manufacturing Complex, Nilai, MALAYSIA

Several biofertilizer and bioorganic fertilizer products manufactured and commercialised by the company Malaysian Agri Hi-Tech Sdn. Bhd. (MYAGRI), Malaysia

(photos courtesy of MYAGRI)

One of Malaysia’s bioproduct company

12

Atmosphere

78% 14N2

UPMB10 inoculum

>109 cells g-1

14N fertiliser/soil/native microbes

15N labelled14N

Removal of biomass from the land without

replenishment results in

decrease of productivity and life span of biological

assets due to diseases and soil degradation

Status and Strategy of Commercial

Application of Biofertilizers

• Several large plantation companies in Malaysia, e.g. Felda, Felcra and Sime Darby are embarking

on their own biofertilizer production, especially for oil palm. Oil palm production has been

dependent on chemical fertilizers. Their interest in biofertilizer is partly due to increasing cost of

chemical fertilizers, particularly urea, and partly to awareness on green technology for crop

production. Felcra has also shown interest in the use of biofertilizers for rice production.

• Small scale farmers, however, received fertilizers at subsidised price. Their long association with

chemical fertilizer make many quite reluctant to invest on biofertilizers to complement the

chemical fertilizers. Furthermore, they have to buy biofertilizers at market price.

• A way to encourage more use of biofertilizer is to introduce subsidy scheme to farmers, similar

to that of chemical fertilizer.

•However, the farmers have to be informed of the application, storage and efficiency of these

biological products, for good effects on their crop productivity. Everyone has to be made aware

that biofertilizers cannot replace chemical fertilizers totally; they can complement the chemical

fertilizers and other agricultural inputs for good crop productivity and well being of the people and

the environment.

Why bioorganic fertilizers are important for our agroindustry:

• Malaysia is the highest consumer of chemical fertilizer per ha of arable land (220

kg/ha, vs 80 kg/ha as average in Asian countries)

• More than 90% of chemical fertilizers are imported (issue of National Security)

• 60% of cost of production in oil palm are on fertilizers

• Malaysia is facing infertile soil due to loss of top soil and years of planting on

same soil in addition to increasing pest and diseases

• The pressure faced by Industry to become more sustainable especially pressure to

achieve the Sustainable Oil Certificate and Roundtable of Sustainable Oil Palm

• Climate Changes where the climate pattern suitable for planting, weeding and

fertilizing hardly exists providing greater stress to overall plantation management

Source: Inno Integrasi

Figures and rationalisation

•Malaysia imports 4,162,500 MT of fertilizer worth RM9.17 Billion (Year 2008);

•450,000 MT are N-based Fertilizers (Urea & Ammonium Sulphate/Chloride/Nitrate)

•For comparison purposes FIVE kg of Bioorganic fertilizer is able to supply the same

amount of nutrients as ONE kg of N-based fertilizer. Thus, if we were to totally replace N-

based fertilizers, a total of 7,250,000 MT Bioorganic fertilizers needs to be produced and

readily available. Currently that capacity is far from attainable.

•MyAgri, one Bioorganic Fertilisers producer in Malaysia intends to substitute 20% of

imported N-based fertilizer, i.e. a total of 290,000 MT of products.

•The Market size for bioorganic fertilizer is : RM 638.87 Million/yr

Source: Inno Integrasi & MYAGRI

Challenges and Obstacles of the Biofertilizer Industry

• The main challenge today is to produce good biofertilizer products for different

crops at affordable price.

•Biofertilizer products have to be versatile; their use has to be easy and can emulate

the functions of a compound fertilizer formulation.

• The use of gamma irradiation to sterilise carriers and substrate is only suitable for

large scale production of biofertilizer products.

• There is also the need to study the effectiveness of sterilisation techniques to

destroy pathogens, such as Ganoderma, and proper control on the quality of

biofertilizer produces. This is of particular concern, especially to plantation companies

using their agricultural wastes as carriers, since some may opt for pasteurisation or

non-sterilisation approach. This can lead to disastrous effects on certain plantation

crops.

• Good products are often backed by good practices at production stage. Quality of

products has to be maintained, at acceptable standard.

There is a need for biofertilizer companies, to self-regulate, for the

production of biofertilizer that meet quality standards.

Use of imported products have to be regularised, with stringent adherence

to quality and safety standards.

Long history of chemical fertilizer use in the country; plantation industries

need much convincing on the effectiveness of different biofertilizer

products.

Biofertilizer products – delivering ‘potentials’ of nutrients, and not exact

content of nutrients, as in chemical fertilizers. Extensive biofertilizer

multilocation trials on different crops are necessary.

Threats from products claimed as ‘biofertilizer’; the need for proper

regulation; compliance to Malaysian Fertilizer Act; Malaysian Standards for

Fertilizers; currently being drafted.

N-inorganic fertilizer for immature oil palm : 1.2 kg

Ammonium Sulfate (21% N) ≡

0.5 kg Urea (46% N) / palm / year

148 palms / ha :

148 x 0.5 kg Urea = 75 kg Urea / ha

63% Ndfa with B-10 biofertilizer :

0.6 x 75 kg Urea / ha = 45 kg fixed N / ha

(BNF)

Assumption of 25% of total planted oil palm (4.2 million ha)

using B-10 biofertilizer :

1.0 million ha x 45 kg fixed N =

45.0 million kg fixed N

Current price for urea / t :

RM 1800

However, gamma irradiation cost :

RM400 / t

effective inoculum

effective carrier

inoculum cost

carrier sterilisation/irradiation cost

transportation cost

application rate / frequency

• Less reliance on imported chemical fertilizers (many from fossil fuel

based sources) – cost savings

• Protection of biological assets from plant diseases– healthier plants

result in higher yield, longer lifespan and higher productivity

• Established high value green and biotechnology products and services

have good potential in other palm oil producing countries (Indonesia,

PNG, Western Africa) – Malaysia as hub for ‘bio and green’ technologies

• Large fertilizer production and customized blends allows for niche

product development – good potential for development of organic food

industry

• Demand for treated organic fertilizers in Japan, Korea, Europe and the

USA

Opportunities

Source: Inno Integrasi & MYAGRI

Collaboration with companies for transfer of technology and

commercialisation.

Incentives to biofertilizer companies in support of ‘Green

Technology’ for food safety and societal wellbeing.

Proposal for government subsidy of biofertilizers to farmers, as

given to chemical fertilizers.

Regulation on QC/standards of biofertilizer products.

Scientific and technical support from groups like the Forum for

Nuclear Cooperation in Asia (FNCA) – Biofertilizer Project

(www.fnca.mext.go.jp).

Biofertilizer & BOF R&D has come a long way in Malaysia.

The biofertilizer industry is flourishing, gaining acceptability in the

plantation industry.

Increasing awareness on biofertilizers by public and plantation industries;

plantation companies are embarking on own biofertilizer production.

Advanced technology (e.g. irradiation technology) can enhance quality of

biofertilizer products.

For biofertilizers to have good reputation, versatility is important, especially

in terms of function, effectiveness, ease of application and affordability.

• Biomass-SP

• MOSTI

• Malaysian Nuclear Agency (Nuclear Malaysia)

• Inno Integrasi

• MYAGRI Group of Companies

• Universiti Putra Malaysia

• FNCA Biofertilizer Project

Acknowledgment

thank you