Trade hub to add more value to cocoa processing industry

Chocolate dreams: Wee (second from left) visiting the cocoa trade hub, which is located at Port of Tanjung Pelepas in Iskandar Puteri, Johor. — Photo courtesy of Plantation Industries and Commodities Ministry

ISKANDAR PUTERI: Malaysia wants to strengthen its position as one of the world’s top cocoa bean processors following the opening of the country’s cocoa trade hub at the Port of Tanjung Pelepas (PTP) and Johor Port.

Deputy Plantation Industries and Commodities Minister Datuk Seri Dr Wee Jeck Seng said in 2021, the export value of cocoa and cocoa-based products has contributed to RM6.87bil to the Gross Domestic Product (GDP), which is an increase of 9.5% compared to RM6.27bil in 2020.

“Until July this year, the export value for cocoa and cocoa-based products has reached RM4.4bil, which is an increase of more than 11% compared to the export value in the same period in 2021.

“Therefore, I am very optimistic that we can reach more than RM7bil in total this year, in line with the target set in the National Agricommodity Policy 2021-2023,” he added.

Wee, who is also the Tanjung Piai MP, said this after launching the Malaysia cocoa trade hub at a hotel here yesterday.

He added that Malaysia is currently the second largest cocoa bean processing country in Asia and the sixth in the world, contributing as much as 6.8% of the world’s total cocoa grinding.

“Presently, the country’s cocoa grinding capacity has exceeded 300,000 metric tonnes.

“With this large amount, the ministry, together with relevant agencies, believe there must be specialty support to facilitate the process of importing and maintaining quality control of cocoa beans, especially those imported from foreign countries, to be more efficient, easy and fast,” he said.

Wee said the ministry, in collaboration with the Malaysian Cocoa Board (LKM), has carried out a feasibility study to create a cocoa trade hub in the country.

He said the study, which involved various ministries and agencies, was among the serious efforts and commitments of LKM in assessing the current landscape of the downstream sector of the cocoa industry in Malaysia, especially in Johor.

“The Malaysia cocoa trade hub is created to facilitate the process of importing cocoa beans and assist in resolving quality issues that may lead to consignment hold-ups.

“The establishment of such a hub here is based on the cocoa trade hub model that has been operating abroad such as the Amsterdam Port in the Netherlands and Singapore Port,” he said.

Wee also said that both PTP and Johor Port have complete infrastructure facilities, skilled workforce and adequate and excellent domestic network with cocoa, one of the main commodities managed by the two ports.

He added that the hub has also been equipped with a facilitation laboratory that aims to provide a screening facility to detect cocoa pests and verification services to ensure compliance with cocoa bean importation requirements.

Wee also said with the setting up of a cocoa trade hub here, LKM continues to take steps forward by looking into the potential of the cocoa downstream sector in Johor.

“Another feasible study is taking place to look at developing a conducive ecosystem for the cocoa downstream industry that will be branded as CocoaNexus @ Iskandar Malaysia.

“Through this study, the ministry and LKM are confident that it will attract more interest and increase investment opportunities, both domestic and foreign, into the local cocoa industry.”