KENINGAU: Sabah's cocoa-producing interior regions have strong potential to be further developed, says Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
These areas include Sook, Tenom, Nabawan, and Sipitang.
"In the first quarter of this year, these areas produced 54 tonnes of dry cocoa beans, contributing 37.5 per cent of the national production total of 144 tonnes," he said after opening a post-harvest technology course and group strengthening programme here.
"Some farmers in these areas have achieved yields of over 1,000 kg per hectare per year, compared to the national productivity average of 100 kg per hectare per year," Johari added.
In 2023, the cocoa industry contributed RM8.2 billion in export revenue. As of May 2024, the export revenue from the cocoa industry has reached RM4.8 billion, approximately 58 per cent of last year's total.
"Currently, there is a significant global shortage of cocoa beans due to reduced production in major cocoa-producing countries like Ivory Coast and Ghana," Johari said.
In response to the increasing demand and high prices for cocoa beans, Johari said the Malaysian Cocoa Board (LKM) has initiated several measures, including the start of the cocoa farm rehabilitation programme from this year until 2026.
He said that the programme will involve 2,084 farmers and 1,344 hectares of cocoa cultivation in Sabah.
"The board will also provide infrastructure support, such as constructing mini cocoa processing facilities that convert wet cocoa beans into high-quality dry cocoa beans."
"LKM is actively conducting research and developing technologies using the Internet of Things or IoT, automation, and mechanisation. The latest technology is expected to enhance farm management efficiency, increase production, and reduce reliance on manual labour."
Johari also added that the board is promoting large-scale cocoa cultivation to estate operators to increase national cocoa bean production and meet the country's cocoa grinding needs.
LKM is also collaborating with several agencies and plantation companies, including United Malacca Bhd and Malaysia Kuwaiti Investment Corporation, for large-scale cocoa cultivation of approximately 400 hectares in Sabah's interior.
He added that the cocoa-growing community in Keningau and Tenom has become a source of cocoa beans for bean-to-bar and single-origin chocolate producers, such as Jaws & Claws Chocolate and Nestlé, which recently launched the Kit Kat Borneo product in May.
Johari and his deputy Datuk Chan Foong Hin also attended the opening of the RM70,000 mini-cocoa processing facility in Kampung Liau, which can process up to 500 kg per batch.
TAGS: Cocoa, industry, Plantation, commodities, Datuk Johari Abdul Ghani, Chan Foong Hin, Keningau, Sabah
KUALA LUMPUR: The Plantation and Commodities Ministry (KPK) aims to expand the country’s total cocoa farming area to 10,000 hectares in five years from 5,985 hectares currently, said Deputy Minister Datuk Chan Foong Hin.
He said the focus will be on cultivating premium cocoa bean varieties, which are capable of penetrating a niche market, by growing the crop on parcels of land that have been identified.
“With the guaranteed prospects of the domestic cocoa market, it is hoped that the commodity is given the necessary allocation to increase its land area to 10,000 hectares as targeted, starting with RM3 million for 2025,” he said during the question-and-answer session in Parliament today.
He was replying to a question from Riduan Rubin (Independent-Tenom) who wanted to know about KPK’s efforts to empower the cocoa industry.
Chan also disclosed that KPK is in the midst of branding and promoting premium local cocoa products as single-origin cocoa with a unique flavour, to enable cocoa producers to promote the distinctive taste and attract local and international chocolate makers.
KPK and the Malaysian Cocoa Board are also promoting the introduction of new technologies and adoption of existing technologies as good agricultural practices to boost productivity and facilitate plantation management operations through the application of the latest technologies, including mechanisation and Internet of things.
“This initiative can enhance the youth’s interest to participate in the upstream sector, as well as strengthening marketing support for operators and smallholders to ensure sustainable cocoa cultivation,” he added.
KUALA LUMPUR: The Plantations and Commodities Ministry and the Malaysian Cocoa Board remains committed to reviving the country's cocoa industry by focusing on two primary sectors.
These sectors serve as income-generating platforms for the populace, namely the upstream and downstream sectors.
Deputy Plantations and Commodities Minister Datuk Chan Foong Hin said both sectors were capable of adding value through products that contribute to the country's economic development.
On Jan 24, Malaysia's cocoa sector had not yet achieved a satisfactory level of self-sustainability, according to Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani.
Johari noted that the production of cocoa beans in the country has declined significantly.
Responding during the question and answer session in the Dewan Rakyat today, Chan outlined several key efforts to rejuvenate the industry.
He said the ministry aims to expand the cocoa cultivation area from 5,985ha to 10,000ha within five years.
"This initiative also focuses on premium cocoa planting varieties that can penetrate niche markets through cultivation in identified land areas.
"With the existing market prospect assurance for cocoa within the country, it is hoped that this commodity will be allocated funds to expand up to 10,000 hectares as targeted, with an initial allocation of RM3 million for the year 2025," he said.
Chan said the ministry also plans to brand and promote local premium cocoa products, such as single-origin cocoa and unique-flavoured cocoa.
He said these strategies will enable cocoa producers to showcase the distinct taste of local cocoa, attracting both local and international chocolate makers.
"The board is actively transferring technology and promoting research and technology adaptation activities.
"Generating various technologies and innovations through research and development activities to address major pest issues in the cocoa industry in the upstream sector at one time," he said.
Chan said, among others, to strengthen the cocoa marketing chain by establishing lead cooperatives in each region.
He said to date, three cooperatives are serving as umbrella bodies to ensure the marketing of farm produce and domestic smallholder cocoa processing sectors is protected, especially in terms of sales prices and providing additional value-added benefits to the products.
"With the introduction of the 'farm-to-table' approach, cocoa producers can benefit from the income chain of products from their own farms.
"Encouragement of cooperative membership participation is also actively being carried out to strengthen cooperative membership in all three cooperatives," he said.
He said the ministry and the board were promoting the introduction of new technologies and the adaptation of existing technologies in agricultural practices.
This, said Chan, was to enhance productivity and facilitate farm management with the application of the latest technology through mechanisation, Internet of Things and others.
"This initiative can increase the interest of youth groups in joining the upstream sector.
"Marketing support serves as the strength for cocoa entrepreneurs or smallholders to continue cocoa cultivation in the country and subsequently become contributors of dried cocoa beans in line with industry requirements," he said.
KOTA KINABALU (Feb 20): The cocoa sector contributed RM8.2 billion to the national income last year, which is a 5% increase compared to RM7.8 billion in 2022.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said a large part of the amount was contributed by the export earnings of semi-finished cocoa products such as cocoa butter and cocoa powder.
“At the upstream level, Malaysia’s cocoa plantation area is 6,123 hectares, a slight increase compared to 5,985 hectares in 2022.
“This increase of 138 hectares is the result of the new cocoa plant programme that has been implemented by the Malaysian Cocoa Board (LKM),” he said at the Seminar On Sustainability In Cocoa Supply Chain Through Advanced Technology: Consultation With Industry On Cocoa Advanced Technology 2024 here today.
Also present were LKM chairman Datuk Matbali Musah and LKM director-general Datuk Ramle Kasim.
Chan said as much as 89% of the cocoa plantation area in Malaysia is cultivated by smallholders, with Sabah still being the state with the largest cocoa plantation area at 3,572ha, or 58% of the country’s cocoa plantation area.
He said the world’s demand for cocoa beans is increasing, which directly contributed to the sudden increase in world cocoa bean prices, and that the price of cocoa beans in Malaysia has now reached RM17 per kilogramme compared to RM8 in 2022.
In the meantime, Chan said LKM is implementing several strategies to increase cocoa productivity, such as strengthening the efficiency of farm management using mechanisation, digital data, and the Internet of Things (IoT) technology.
He also said that LKM has been allocated RM3 million to implement mechanisation and technology in cocoa plant management for the period 2024 to 2025.
KUALA LUMPUR: Malaysia's cocoa sector has not yet achieved a satisfactory level of self-sustainability, according to Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani.
He noted that the production of cocoa beans in the country has declined significantly.
"At one point in the past, Malaysia's cocoa bean production reached as high as 225,000 tonnes, compared to the current output of only around 500 tonnes.
"The decreasing production of cocoa beans in Malaysia has led to many industries that produce cocoa products having to import cocoa beans from abroad.
"However, due to Malaysia's strong capabilities in the midstream and downstream sectors of the cocoa industry, we have become the fifth largest cocoa grinder in the world," he said after an official working visit to the Malaysian Cocoa Board (LKM) recently.
As such, Johari suggested that a key focus for the local cocoa sector should be on enhancing technological development in the midstream and downstream sectors, as well as engaging in value-added activities.
At the same time, the ministry will study how to systematically redevelop the production of cocoa beans to gradually meet the necessary domestic demand.
Also present during the working visit were Agriculture and Commodities deputy minister Datuk Chan Foong Hin, LKM chairman Datuk Matbali Musah and LKM director-general Datuk Dr Ramle Kasin.