HERBAL PRODUCTS... Felda Herbal Corporation Sdn Bhd, a new player in theherbal industry, has marketed 19 products under the Biofeld brand. Pix:Melati Mohd Ariff

07/10/05 KUALA LUMPUR, (Bernama) -- For almost 50 years, Felda or theFederal Land Development Authority has made numerous inroads in thecultivation of oil palm and rubber, providing a better life for itssettlers.

Today, Felda is making a mark in yet another high potential venture - theherbal business.

For this, it has incorporated Felda Herbal Corporation Sdn Bhd (FHC) onApril 29, 2004.

Herbal based products are in big demand not only by the beauty industrybut also for health requirement.

It is estimated that world market for herbal based products would reachRM760 billion a year by 2008, a three-fold increase from 2003.

The herbal industry in Malaysia was reported to have achieved an annualsales of more than RM4.5 billion and the figure is expected to double by2010.

"The herbal industry is one of the new agendas for Felda as it enters thesecond 50 year of its establishment," explained FHC Chief ExecutiveOfficer, Hairuddin Md Bakri in an interview with Bernama at his officehere.

Hairuddin joined Felda in 1973 and was involved in agriculture and estateoperations before given the task to manage FHC.

Besides a degree in agriculture from Universiti Pertanian Malaysia, he hasa degree in business administration.

"We're hoping that what Felda is doing would provide a good package forsettlers and the people of Malaysia as a whole and to make herbs as anincome earner for the nation," said Hairuddin.

THE LOCAL HERBAL INDUSTRY

Eating herbs has been a part of our everyday life since our forefathers'days.

The tradition lives on and today, herbal consumption is further enhancedby the availability of scientific explanation behind those herbs, theirspecial properties and specific instructions on how to consume them.

According to Hairuddin, herbs are more of a health food supplement.

"They are more for prevention not treatment. The treatment aspect wouldrequire more research and development (R&D)," he said.

Tongkat Ali, Kacip Fatimah, pegaga, peria (bitter gourd) and misai kucingare some of the local herbs which are increasingly making a mark thesedays.

Malaysia has thousand of herbs that have not been fully explored. TheEndau-Rompin rainforest for example is said to be the oldest in the worldand hence might contain an invaluable treasures of herbs.

Hairuddin said there are about 2,000 species of herbs in Malaysia and onlyabout one percent is being commercialised.

He said the local herbal industry is lagging 20 years behind countriessuch as India, South Korea and China.

"India, China and South Korea are very advanced. South Korea for examplehas 100 years of experience in herbal consumption. They don't need manyherbs to develop, maybe one or two like the Korean Red Ginseng," saidHairuddin.

On a more positive note, he said Malaysia could achieve a far greaterheight in the herbal industry provided all R&D efforts carried out byvarious parties, not only be doubled but also coordinated.

PRODUCTS OF BIOFELD

Established to undertake the herbal business including herbal R&D, herbalplanting, biotechnology development and marketing, FHC was only activesince April 2005, said Hairuddin.

"Ideally, we should have our own herbal plantation and extraction plant.What we're doing is the reverse as we don't have much time. We're intomarketing first as we wanted to see its potentials and customers' tasteand the products are produced by contract manufacturing," he explained.

"At the moment, we have three bumiputera contract manufacturers whom wechose with great care to safeguard their quality. We provide them with theformulation," said Hairuddin.

Despite being new to the herbal business, FHC has to date 19 herbal basedproducts, marketed under the brand Biofeld.

They include maternity set, hair care, energy drinks, herbal tea such asKhaffir Lime Leaf tea and Misai Kucing tea besides extracts of pegaga,peria (bitter gourd) and hempedu bumi which are sold in capsules.

Market for herbal based products is tough. For that reason, Hairuddin saidFHC relied on product quality to attract buyers.

According to Hairuddin, Biofeld products are marketed only aftercertification by the National Pharmaceutical Control Bureau of the HealthMinistry and fulfilled the Good Manufacturing Practices (GMP) requirement.

"The Tongkat Ali products that we worked out with UTM Skudai, for exampletook a year before we received certification from the Health Ministry thenonly we market them," he explained.

The Tongkat Ali products have been patented and received approval forexport, he added.

FHC, he said is in the midst of negotiating to export the Tongkat Aliproducts to South Korea, China and several Organisation of IslamicConference (OIC) countries.

GATEWAY TO BECOME ENTREPRENEUR

Multi Level Marketing (MLM) is being used to market Biofeld products andHairuddin said FHC is the only Government-Linked Company (GLC) involved inherbal industry using this method.

"Products manufactured and sold through MLM must be of high quality andthoroughly researched," he explained.

MLM also provided opportunity for Felda settlers and their children tocarve a name as entrepreneurs, he said.

"There are settlers who became our stockist earning up to RM4,000 a monthbut you have to sweat it out," said Hairuddin.

At present FHC has 100 stockists and aimed to have 300 stockists by 2009.

There are several level of stockists, that is, state, district, settlers'cooperative and mobile stockist, each based on the value of the openingstock.

By the end of this year, the sale of Biofeld products is expected to beabout RM4 million.

According to Hairuddin, the public can also become stockists for Biofeldproducts. Those interested could contact FHC's office located at No: 3,Anjung Felda, Jalan Maktab here or call 03-26935055.

RESEARCH AND DEVELOPMENT

On R&D, Hairuddin said that the efforts towards commercialisation is stilllacking.

"There are several levels of herbs processing and in Malaysia the processinvolving standardised extract is very few. Pharmaceutical or those testedclinically is almost nil.

"We also have university doing R&D but the results are not being picked upfor commercialisation. We also face problem in getting internationalrecognition," said Hairuddin.

Elaborating on FHC's next move in R&D, he said it would be done on a largescale with institutions of higher learning and other research institutes.

He said Felda Agricultural Services which managed Felda's R&D requirementwould be working closely with those parties.

"Felda's management has also given funds to an institute of higherlearning for research works including on herbs.

"We want to focus on standardised extract which is a level belowpharmaceutical. Our main herb is still Tongkat Ali. Others include pegaga(for blood circulation and anti-oxidant) and hempedu bumi (effective forcough)," said Hairuddin.

(Standardisation is a process in the production of herbal extract in whichthe potentials of active ingredients in the product is guaranteed of itsconsistency)

He said an institution of higher learning is undertaking a study whetherTongkat Ali can be extracted for commercial reason after three or fouryears it is planted instead of five to six years as being done now.

HERBAL PLANTATION AND EXTRACTING PLANT

Felda has started to plant its own herbs. Currently, it has planted 80hectares of Tongkat Ali due to its huge market.

"We only plant herbs which have high potentials," said Hairuddin.

Besides Tongkat Ali, pegaga and turmeric are also being planted but on asmaller scale.

He also dismissed the general perception that Tongkat Ali is only good formale libido as R&D has shown the herb is also good to improve bloodcirculation.

On the planting of the herbs, he hoped that it could be expanded to thesettlers to enable them to earn extra income.

"By 2006, we plan to have our own extraction plant to enable us to controlthe overall production. We may also be able to produce 30-50 percent ofour herbs requirement next year.

"We want to be one of the respected players in the herbal industry, notonly having our own herbs plantation and an extraction plant but alsostrong in R&D and excellent in marketing," he said.

He said the location for the plant has not been finalised but would besomewhere strategic and can be developed as a herbal city.

FHC, he said has also set a joint-venture with an Indian company toproduce a new product from the Ati-Ati plant of the Indian species.

Compared to Ati-Ati Malaysia, Hairuddin said Ati-Ati India whosescientific name is Coleus Forskholli produce tubers which contained anactive ingredient called "forskhollin", which is used to treat obesity.

"This product has received approval from the US Food and DrugsAdministration (FDA). The Indian company was looking for a partner inMalaysia and we have the strength in terms of land bank. Felda has about0.8 million hectares of land. This Ati-Ati India requires a sandy loamsoil for the plant to grow well and easy to unearth the tubers. We'veplanted some on a trial basis, they're growing well," explained Hairuddin.

WORD OF ADVICE

As a word of advice to consumers, Hairuddin said herbs should not beregarded as drug but more of a health food supplement.

Herbal products also, he believed would eventually replace modern day drugwhich mostly contained chemicals.

"As human being, we eat everyday and in this modern world, there arenumerous kind of preservatives and colouring that can cause foodpoisoning. Hence, we need to take care of our health, exercise, do medicalcheckup and have a balanced diet.

"At the same time, it's necessary for us to take preventive measuresinstead of getting sick and needs treatment. Herbal based products whichhave been certified by the Health Ministry can help to enhance theprevention element and strengthen our immune system," he explained.

He said it was better for consumers to buy local herbal based productswhich they are more familiar with.

"Local products are great and may be more superior than imported ones," headded.