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Agro industry

Competitive cocoa industry

COMMERCIAL cocoa cultivation in Malaysia started some 50 years ago. The highest recorded hectarage was 414,236 in 1989 and the highest recorded production of 247,000 tonnes was in 1990. After 1990, the cocoa cultivated areas in Malaysia has been on the declining trend and in 2005 there were only 33,313 ha.

On the other hand, the Malaysian cocoa grindings and downstream industry has expanded since the early 1970’s. In 2005, Malaysia with the total grindings of 258,647 tonnes is the fifth largest cocoa grinders in the world and the largest in the South East Asia.
In 2005, Malaysia exported 9,249 tonnes of cocoa beans, 11,441 tonnes of cocoa paste not defatted and 15,504 tonnes of wholly or partly defatted cocoa paste. In the same year, Malaysia also exported 86,482 tonnes of cocoa butter, 78,679 tonnes of cocoa powder and 20,749 tonnes of chocolate. Cocoa butter was the highest contributor to the total export earnings in 2005 accounted for 60.2 per cent. This is due to the premium price received as a result of the special characteristic of the high melting point of the Malaysian cocoa butter, which is beneficial for chocolate products in warm country.
Currently, 66.9 per cent of the dried cocoa beans produced locally are consumed by local grinders and manufactures. There are 11 local grindings and more than 40 chocolate and cocoa products manufacturers.
Chocolate is the main cocoa product exported by Malaysia to UAE and the Gulf Council Countries.  In 2005, Malaysia exported 9.3 per cent or 1,929 tonnes of chocolate to UAE and Gulf Council Countries, followed by cocoa powder (1,483 tonnes), cocoa butter (517 tonnes) and cocoa paste (403 tonnes).
The Malaysian cocoa grinders and manufacturers are well equipped with the state of the art of modern machinery and technology. Most of the manufacturers have their own quality control laboratories, certified ISO 9000 standard and fulfilled the world CODEX requirements. Malaysian standard for cocoa beans, cocoa liquor, cocoa butter, cocoa powder and chocolate have been set up by the Malaysian standard agency to ensure the quality of these products.  The exported cocoa beans are also needed to be mandatory graded and exported as Standard Malaysia Cocoa (SMC).
Currently, there are many cocoa products produced by local manufacturers as well as the medium size industry or the handmade chocolate entrepreneurs. Some of the cocoa products are being given the Malaysian flavour by incorporating local fruits, such as durians and pineapple, as well as herbs such as ginger and tongkat ali.
Malaysian Cocoa Board (MCB) is the custodian of cocoa industry in Malaysia with one of its objectives of making the cocoa industry well integrated and competitive in the global market. The main functions of MCB are research and development, market development and techno-economy, regulatory and quality control as well as development of cocoa smallholders and handmade chocolate entrepreneurs. Please visit www.koko.gov.my for more information.

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