From local farmer to successful mushroom producer

Dickson

4 June 2024

By AVV

PENAMPANG: Dickson Fredzex who hails from Kg Janang Kuala Penyu is a successful mushroom producer who supplies other vendors with this commodity.

He has his own factory in his hometown that he operates from, where he produces this sought-after item. His processing company is called AFA Food Processing.

Dickson founded his first company Akiyoshi Fun Agrotech (AFA) in 2009 after graduating from an integrated agriculture school in Penampang. Initially, the business was run from the family living room with 800 used mushroom blocks purchased from a friend who had also studied at the agricultural training centre.

"My primary source of motivation and encouragement was my mother, who consistently emphasised that agriculture is not only a business but also a vital source of livelihood," he shared.

His accomplishments serve as a source of motivation and they included being recognized as an exemplary farmer in 2009.

In 2011 he successfully produced mushroom blocks independently and in 2012 he was nominated to attend a youth farmer course in Japan in 2012 by the Japan Agriculture Exchange Council (JAEC).

After a hiatus, his company became a practical training facility for aspiring agricultural graduates. He was also chosen to provide blocks for solar projects.

Through struggles and efforts, he successfully constructed a long-envisioned food processing factory.

"It wasn't a walk in the park, though. My journey to this level of achievement was a struggle," he shared.

He faced a myriad of challenges, such as products remaining unsold in supermarkets. He also endured ridicule and mockery and navigated through employee issues concerning a lack of seriousness and discipline.

The outbreak of the COVID-19 pandemic threw everything into disarray, forcing him to adapt to the Movement Control Order (MCO). He grappled with car troubles, including a breakdown that tested his resilience. During times of financial strain, he resorted to searching for loose change in the nooks and crannies of his car seats.

Dickson (front) speaking to attendees in a workshop.

A pivotal moment was the unforgettable experience of a fire that ravaged 80% of the company's equipment and buildings, halting operations altogether. Despite his passion, he found himself at odds with his mother for not continuing the business while in Japan.

Facing a financial crisis, he hit rock bottom when his savings dwindled, and suppliers demanded payment due to delayed payments from the solar project.

"The company experienced a fire incident in 2010, leading to its closure for almost a year before resuming operations in September 2011. In 2012, an opportunity arose to go to Japan, prompting the closure of the company in March 2012. Upon completing the course in April 2013, I returned to Sabah, only to find that the company couldn't operate due to the theft of many machines. I then took up a job at a private company as a distributor and marketer of health and beauty products until 2015 to raise capital."

"In January 2016, I restarted operations and began providing practical training for agricultural students, helping to reduce labour costs. In 2017, I secured a project to supply mushroom blocks to a solar plant at home, despite a significant order volume, the delayed payment for over a year resulted in financial losses, hindering cash flow and accumulating overdue debts," he shared.

"In 2019, I seized the opportunity to collaborate with an entrepreneurs' association to organise mushroom cultivation entrepreneurship courses, enabling me to sell products and expand my market size to Labuan. However, in 2020, I suffered substantial losses due to the global pandemic (PKP). Processed products couldn't be sold, leading to financial strain with increasing debts not only to banks but also to customers as their orders and deposits had been used for processing."

"To navigate to the current stage of success, it all started when the country imposed conditional movement control orders, prompting customers and banks to demand payments. The pressure was immense, leading me to consider borrowing money from a friend. Despite the unsuccessful loan attempt, there was a silver lining as the friend's advice proved invaluable. He emphasized that I am an entrepreneur and must have the strength and tenacity, advising me not to compromise entrepreneurial standards by borrowing before struggling. He taught me marketing techniques and the mindset of a problem-solving person," he stated.

He taught Dickson marketing techniques, starting with promoting products through WhatsApp and introducing the concept of urban farming.

"Within a mere 3 days, the burden of customer debts that had been weighing me down was lifted. This enabled me to promptly meet my bank payment obligations, which had previously been consistently delayed.

"I am now a member and secretary in the Agro Borneo Bayu cooperative, collaborating with them to organise agricultural education initiatives within the community."

Empowered and emboldened, he took a leap into pitching competitions and proudly secured a spot in the top 50, clinching a victory of RM10,000. He invested this prize money in acquiring machinery to ramp up their mushroom block production.

"However, a setback occurred when our sole business vehicle unexpectedly broke down. Drawing upon the advice of my entrepreneur friend, a seasoned warrior in the face of challenges, I refused to succumb to adversity and sought out alternative solutions. Leveraging the train system for transactions, I also seized a business opportunity by enlisting a friend to handle product deliveries to customers."

A breakthrough came when he received a lucrative order from a homestay owner in Labuan for a substantial supply of mushroom blocks. The demand soared further as numerous entrepreneurs who had participated in an entrepreneurship course began placing orders. The orders continued to pour in, spanning regions from Brunei and Labuan to Lawas and throughout Sabah.

"To fuel this growth, I secured loans from TEKUN and Agrobank, with a steadfast commitment to repay them in full. Our collective mission is to achieve debt-free status by the close of 2024."

His company now also produces Crispy mushroom crisps and soy milk, and soon they will produce frozen desserts.

His advice to aspiring entrepreneurs is, "Stay focused on your goals, persevere through challenges, and learn from both successful and unsuccessful entrepreneurs. Attend entrepreneurship courses, actively listen, promote your products confidently, seek guidance from mentors, and avoid hastily jumping into big projects."

Dickson was one of the entrepreneurs showcasing his product during the Harvest Festival celebration at Kuala Penyu, organised by the United Progressive Kinabalu Organisation (UPKO) recently.

He said the UPKO harvest festival was commendable as it offered a unique platform for qualified entrepreneurs to promote their products, network, collaborate and engage with government agencies, and increase sales and profits.