KOTA KINABALU: Malaysia is aiming to re-establish itself as a leading cocoa hub in Asia, with Sabah playing a vital role in this ambition, says Deputy Plantation and Commodities Minister Datuk Chan Foong Hin.
He said the global cocoa industry is facing significant supply disruptions due to disease outbreaks in cocoa plantations and illegal mining activities in major producers such as Ivory Coast and Ghana.
This situation has led to cocoa prices reaching record highs, presenting Malaysia with a unique opportunity to revitalise its cocoa sector.
In response, the Malaysian government plans to rejuvenate the industry by introducing programmes to boost upstream activities.
These initiatives will focus on supporting farmers and encouraging plantation companies to re-engage in cocoa cultivation.
"Given the global supply challenges, Malaysia is well-positioned to seize this opportunity by increasing local cocoa production.
By reducing reliance on imports and ensuring a stable supply, we can cater to the demands of industries such as cocoa grinders and chocolate manufacturers," Chan said.
He said this during the pre-launch of the Malaysian International Cocoa Fair (MICF) 2025 in Kota Kinabalu on Monday (Jan20).
The MICF 2025, to be held for the first time outside of Kuala Lumpur, aims to promote Malaysia as a centre of excellence in cocoa industry technology.
It will showcase developments across the upstream and downstream sectors of cocoa, including export/import (ExIm) activities and cocoa-based products for ASEAN and other international markets.
Sabah, with its rich agricultural land and favourable climate, is expected to benefit greatly from these initiatives.
Its diverse ecosystems and ideal conditions for cocoa farming make it a prime candidate for increasing cocoa production, which would provide economic opportunities for local farmers while meeting the rising global demand.
"Sabah holds a prominent position as Malaysia's main producer of cocoa beans, contributing a remarkable 60% of the nation’s total cocoa production.
With approximately 6,000 hectares of cocoa plantations, the majority of these are managed by smallholder farmers," he said.
"The state’s potential in the cocoa industry is immense. With the right support, the state can significantly contribute to Malaysia's efforts to strengthen its position in the global cocoa market," Chan added.
In the 2022/2023 cocoa season, Malaysia produced about 364,000 metric tons of cocoa bean grindings.
While the country once produced as much as 225,000 tonnes of cocoa beans, current production has dwindled to around 500 tonnes.
The government’s focus on innovation and sustainability in the cocoa sector will also be crucial for long-term success.
Efforts to introduce advanced agricultural technologies to improve yield and disease resistance will benefit both smallholder farmers and large-scale plantations, including those in Sabah.
Additionally, Malaysia aims to promote its cocoa as a premium product, improving the quality of beans and creating opportunities to tap into higher-value international markets.
This approach will stimulate rural economies and create jobs, benefiting local farmers.
"The cocoa industry has the potential to be a major contributor to Malaysia’s economy, and Sabah can be at the forefront of this growth.
With the right policies and investments, we can create a sustainable and profitable cocoa sector that benefits farmers and businesses alike," Chan said.
As Malaysia works with industry stakeholders, including cocoa processors and chocolate manufacturers, to secure the future of the sector, Sabah is poised to play a key role in the country’s efforts to position itself as a cocoa hub in Asia.
Through these strategic initiatives, Malaysia is set to meet global demands while providing new opportunities for growth in the agriculture sector.
Chan also mentioned that the Malaysian Cocoa Board (MCB) is currently developing community-based initiatives through the establishment of cooperatives to strengthen the economic value and increase farmers’ incomes.
These cooperatives have contributed to improved productivity and higher incomes for farmers.
