Ayer hitam: The Federal Land Development Authority (Felda) is undergoing an economic transformation as a shift from traditional oil palm cultivation to lemon farming is proving to be a lucrative new source of income for settlers.
According to BERNAMA News Agency, the initiative, spearheaded by Koperasi Usaha Anak Felda Berhad (KUAF) in Ayer Hitam, Johor, not only diversifies agricultural activities but also supports the national food security agenda by reducing Malaysia's reliance on imported citrus fruits. KUAF chairman Alizan Amin, 51, stated that the project was launched in 2020 as a proactive effort to diversify crops following the economic challenges posed by the COVID-19 pandemic.
"We started with just about 10 lemon saplings as a trial before gradually expanding the project. Today, we have more than 1,000 trees planted on a 1.82-hectare site," he told Bernama during a recent visit to Felda Ayer Hitam. Alizan highlighted the strong commercial value of lemons and their potential to be processed into a wide range of value-added products, offering more stable returns than conventional crops.
He noted that KUAF's success was further strengthened by support from the Ministry of Entrepreneur Development and Cooperatives (KUSKOP), which provided RM200,000 last year to build a processing facility and purchase essential equipment. Combined with RM50,000 in personal investment by Alizan, the funding enabled KUAF to produce between 2,000 and 3,000 bottles of lemon juice monthly, along with nearly 1,000 packs of dried lemon slices.
KUAF also markets various downstream products, including aromatherapy oils priced between RM4 and RM49, which have gained acceptance in the local market and provide a steady source of revenue. To strengthen its business ecosystem, KUAF has adopted a contract farming model that protects growers from price manipulation while ensuring a stable supply of raw materials.
Alizan explained, "We purchase lemons from local growers at a guaranteed floor price based on size and grade, starting from around RM1 per fruit. This protects them from exploitation by middlemen while allowing the processing facility to focus on manufacturing value-added products."
Looking forward, KUAF is seeking an additional RM100,000 to build a cold storage facility and acquire an essential oil extraction unit as part of its preparations to enter export markets. "The absence of cold storage is currently one of our biggest constraints because harvested lemons spoil quickly if they are not processed immediately. Such a facility is essential to prolong shelf life and enable us to supply more distant markets," Alizan said.
He believes the project has the potential to transform Felda Ayer Hitam into an agrotourism destination and establish Kluang as a recognised lemon-producing district. "Just as Pontian is known for pineapples and Mersing for dairy products, there is no reason why lemons cannot become Kluang's signature crop," he added, acknowledging KUAF's main challenges as limited facilities and manpower.
Although the cooperative now produces about 1.8 tonnes of lemons annually, KUAF's journey began amid scepticism from the local community. KUAF Lemon farm supervisor Asrafi Muhajir, 51, said many initially dismissed the project due to the hard, rocky soil considered unsuitable for citrus cultivation.
"Many people thought we were crazy because of the soil conditions. However, we persevered by improving the soil with nutrient-rich organic material to promote healthy root development," Asrafi said, noting lemons' natural advantages, such as high acidity repelling wild animals and resistance to common diseases.
As part of its long-term strategy, KUAF is strengthening its domestic market while preparing to expand into export markets. Rather than competing directly on e-commerce platforms, the cooperative has deliberately left those channels to local agents, creating additional income opportunities within the community.
The initiative has earned KUAF recognition under the One District One Industry (SDSI) 2.0 programme administered by KUSKOP under the 12th Malaysia Plan (2021-2025), highlighting its success as a model for rural entrepreneurship and agricultural diversification.