THE COCOA INDUSTRY OF MALAYSIA -

PROGRESS AND DEVELOPMENT 2015

Lee C.H. and Ramle K.

Malaysian Cocoa Board,
5th, 6th & 7th Flr., Off Coastal Highway
Wisma SEDCO, Lock bag 211,
88999 Kota Kinabalu, SABAH, MALAYSIA
Malaysia: Cultivated Area, Production and Grindings

2014
 Malaysia: Grindings and Export Value
Tonnes

2014
Table1. Statistics: The Malaysian Cocoa Industry (2010-2015e)
Year 2010 2011 2012 2013 2014 2015e
Cultivated Area (ha) 20,083 20,848 11,748 13,728 16,127 18,427
Semenanjung 4,287 4,307 2,813 3,127 3,777 4,427
Sabah 7,108 6,983 4,120 5,050 6,330 7,530
Sarawak 8,688 9,557 4,816 5,551 6,020 6,470
Production (Tons
(Tons)) 15,654 4,605 3,645 2,809 2,000 6,700
Semenanjung 10,654 2,040 1,402 836 650 -
Sabah 3,673 1,754 1,644 1,494 850 -
Sarawak 1,327 811 599 479 500 -
Grinding (Tonnes) 302,366 299,271 299,525 285,608 245,000 290,000
Cocoa Prices (SMC2)
(RM/ton) Tawau 8,466 8,081 6,511 6,314 8,500 7,500-8,500
Raub 9,331 8,553 6,851 6,442 8,500 7,500-8,500

e: estimated
Table 2. Malaysia: Trade Statistics (2010-2015e)
Year 2010 2011 2012 2013 2014 2015e
Export (RM’000) 4,189,465 4,215,435 3,690,221 3,625,151 4,516,850 4,564,850
Cocoa Beans*
Volume (tonne) 23,708 25,439 47,705 42,926 95,000 95,000
Value (RM’000) 273,441 255,351 399,373 359,220 807,500 807,500
Cocoa Shell
Volume (tonne) 7,997 4,983 5,538 2,621 600 600
Value (RM’000) 3,699 2,515 2,937 1,467 600 600
Cocoa Butter
Volume (tonne) 105,952 117,561 100,229 99,295 105,000 110,000
Value (RM’000) 1,977,058 1,369,626 961,600 1,194,544 1,995,000 2,090,000
Cocoa Paste
Volume (tonne) 19,244 26,782 22,317 20,775 20,000 20,000
Value (RM’000) 273,316 349,527 266,527 237,060 280,000 280,000
Cocoa Cake
Volume (tonne) 21,961 33,011 16,395 12,350 8,500 10,000
Value (RM’000) 208,431 349,704 218,635 134,468 63,750 75,000
Cocoa Powder
Volume (tonne) 112,454 148,938 126,816 132,270 103,000 100,000
Value (RM’000) 1,180,650 1,547,618 1,487,563 1,266,261 978,500 900,000
Chocolate
Volume (tonne) 22,927 25,687 25,283 32,599 29,000 30,500
Value (RM’000) 272,872 341,094 353,586 432,131 391,500 411,750
Table 4. Development of New Cocoa Plantings under
RMK10 (2012-2014) in Malaysia
TB12 (2012) TB13 (2013) TB14 (2014) TOTAL
REGION Program
Ha P Ha P Ha P Ha P
PBU 150 150 165 163 170 171 485 484
Tenom 200 181 280 276 430 421 910 878
Sabah
Ranau 300 267 305 293 500 481 1,105 1,041
Tawau 100 86 180 91 100 91 380 268
TOTAL 750 684 930 823 1,200 1,164 2,880 2,671
Jengka 31 35 100 133 100 76 231 244
Peninsular
Hilir Perak 92 176 100 148 100 140 292 464
Malaysia
Machang 127 380 135 393 150 100 412 873
TOTAL 250 591 335 674 350 316 935 1,581
Sarawak Kuching 567 535 735 637 450 458 1,752 1,630

TB : New Plantings P: smallholders

Incentives of the Program on New Plantings 2012-2015
SCOPE : Incentives

No. Activity Incentive (RM)

01 Land Clearing 1,000
02 Cost of budded seedlings supplied 4,500
03 Establishment of Shade trees 750
04 Fertiliser inputs 1,100
05 Agrochemicals input 160
06 Agriculture field accessories 140
07 Training and Courses 350
Total Incentive per ha (One-
(One-off) 8,000
Terms and conditions of the Application:
• Malaysian citizen;
• Above 18 years of age at time of application;
• Highly interested in cocoa planting and capable;
• Private Land ownership; and
• Highly co-operative and compliance to agreement
TECHNOLOGY TRANSFER AND
DEVELOPMENT PROGRAM RMK-
RMK-10

• TB (New Cocoa Plantings)

2012; 2013; 2014; 2015
• Cocoa Rehabilitation
2012; 2013
• Productivity Improvement Program
2014; 2015
• Cocoa Seedlings Production Program
2012; 2013; 2014
Incentive Program for New Plantings 2014
SCOPE OF ASISSTANCE

Land Clearing/ha(RM 1,000)

Budded Cocoa Seedlings (RM 4,500)
Shade Trees (RM750)
Fertilizer inputs (RM1,100)
Agric. Pesticide (RM 160)
Small Farm Equipments (RM 140)
Courses and Training (RM 350) TERMS OF APPLICANTS

Malaysian citizens above 18 years of age

Have interest/zeal and capable
Possession of land with grant title
Willing to collaborate and sign into agreement for terms of entitlement,
 RMK 10 – NEW COCOA PLANTINGS
TB12 (2012) TB13 (2013) TB14 (2014) TOTAL
Reg. Program
Ha Farmers Ha Farmers Ha Farmers Ha Farmers
PBU 150 150 165 163 170 171 485 484

TNM 200 181 280 276 430 421 910 878

SABAH
RNU 300 267 305 293 500 481 1,105 1,041
TWU 100 86 180 91 100 91 380 268
TOTAL 750 684 930 823 1,200 1,164 2,880 2,671
JNGKA 31 35 100 133 100 76 231 244
PEN. HP 92 176 100 148 100 140 292 464
M’SIA
MCG 127 380 135 393 150 100 412 873

TOTAL 250 591 335 674 350 316 935 1,581

SWK KCH 567 535 735 637 450 458 1,752 1,630

TOTAL 1,567 1,810 2,000 2,134 2,000 1,938 5,567 5,882

PRODUCTIVITY IMPROVEMENT PROGRAM
RP 2 PPP13 PPP14
Region Program
Ha Farmers Ha Farmers Ha Farmers
PBU 260 260 630 646 595 568
TNM 300 300 1,237 1,097 958 860
SABAH
RNU 435 435 1,578 1,447 1,021 933
TWU 50 50 1,062 498 633 333
TOTAL 1,045 1,045 4,507 3,688 3,207 2,694
JENGKA 150 150 1,347 1,136 564 500
PENINSULAR HP 100 110 940 1,581 589 1,039
MCG 44 44 712 1,213 488 1,088
TOTAL 294 304 3,000 3,930 1,641 2,627
SARAWAK KCH 1,100 1,100 6,567 6,425 2,232 2,106
TOTAL 2,439 2,449 14,074 14,043 7,080 7,427
STRATEGIES TO INCREASE PRODUCTIVITY
OF EXISTING COCOA PLANTINGS

 Pay specific attention on enhancement and awareness to

problem areas on an immediate ad hoc and need basis;
 Strengthen extension activities and programs;

 Reinforce and optimise technology transfer to potential high

yielding capacity farmers;
 Encourage use and application of practicable and ease to
use R&D findings to stimulate usage/adoption of technology
among the farmers to raise their productivities; and
 Enlarge the number of high quality planting materials
available/in farms
 Incentive for Productivity Improvement
SCOPE OF ASSISTANCE

(I) Agriculture inputs (chemicals,

fertilisers, clonal seedlings, farm
equipment )
(II) Basic cocoa courses, in-situ
practical, advance cocoa courses,
farm visits and monitoring
TERMS OF APPLICANTS

Malaysian citizen & above18 years of age

Have interest in cocoa planting and capable
Possession of land/farm with title
Keen to co-operate & follow with agreement to plant cocoa
Cocoa Clonal Seedling Production 2014
No. Size Farm
UNIT Capacity TB14 PNK14
Entrep..
Entrep (Acre) workers
RANAU 23 600,000 500,000 100,000 28 35

TENOM 36 473,220 430,000 120,000 27 50

TAWAU 11 151,440 100,000 174,440 7 31

PBU 14 200,000 170,000 30,000 10 14

SABAH 84 1,424,660 1,200,000 424,440 72 130

SARAWAK 10 744,440 450,000 350,000 24 28

HILIR PERAK 7 190,000 130,000 60,000 7 11

JENGKA 2 120,000 120,000 60,000 6 8

MACHANG 2 100,000 100,000 - 6 5

PENINSULA 11 410,000 350,000 120,000 19 24

OVERALL
105 2,579,100 2,000,000 894,440 115 182
TOTAL
COCOA HECTARAGE BY SECTOR (HA)
Hectarage
Year
Estate Smallholders Total

2008 3,614 17,798 21,411

2009 2,400 15,647 18,047

2010 1,880 18,203 20,083

2011 1,384 19,464 20,848

2012 749 10,999 11,748

2013 827 12,999 13,826

2014 827 15,318 16,145

Source: Malaysia Cocoa Board (MCB)
Note: Area size estates includes cocoa estates under Govt. Agencies
 COCOA AREA CULTIVATED ACCORDING TO
HOLDINGS (HA)
2013 2014
Cocoa
Areas Estate Smallholders Total Estate Smallholders Total

Sabah 312 4,747 5,059 312 5,947 6,259

Sarawak - 5,551 5,551 - 6,020 6,020

Peninsular 515 2,701 3,216 515 3,351 3,866

Total 827 12,999 13,826 827 15,318 16,145

Note: Estates include holdings under Govt. Agencies

MALAYSIA COCOA AREA, PRODUCTION
AND GRINDINGS
Area Production Grindings
Year
(Ha) (Tan) (Tan)
2008 21,411 27,955 323,653
2009 18,047 18,152 279,228
2010 20,083 15,654 302,366
2011 20,848 4,605 299,271
2012 11,748 3,645 299,525
2013 13,826 2,809 285,608
2014 16,145 2,665 244,423
Source: Malaysia Cocoa Board (MCB)
Note: Area size estates includes cocoa estates under Govt. Agencies
COCOA BEAN PRODUCTION ACCORDING TO
AREAS PLANTED (TAN)

Year Peninsular Sabah Sarawak Malaysia

2008 21,067 5,475 1,413 27,955

2009 13,213 3,688 1,251 18,152
2010 10,654 3,673 1,327 15,654
2011 2,040 1,754 811 4,605
2012 1,402 1,644 599 3,645
2013 836 1,494 479 2,809
2014 910 1,139 616 2,665
Source: Malaysia Cocoa Board (MCB)
AVERAGE COST OF COCOA BEAN
PRODUCTION (RM/HA)
Year Estate Smallholders

2008 3,743 3,665

2009 3,729 2,940
2010 4,112 2,940
2011 5,003 2,940
2012 5,450 2,940
2013 6,300 2,940
2014 6,000 2,940

Source: Malaysia Cocoa Board (MCB)

GRINDINGS ON A QUARTERLY BASIS FOR
THE YEARS 2011 - 2014
Quarter 2011 2012 2013 2014
81,419 74,562 72,203 62,359
First
(+10.8%) (-8.4%) (-3.2%) (-13.6%)
72,089 74,493 72,191 65,046
Second
(-4.0%) (3.3%) (-3.1%) (-9.9%)
71,451 73,454 71,150 61,428
Third
(-2.8%) (2.8%) (-3.1%) (-13.7%)
74,312 77,016 70,064 55,590
Fourth
(-7.4%) (+3.6) (-9.0%) (-20.7%)
299,271 299,525 285,608 244,423
Total
(-1.0%) (+0.1%) (-4.6%) (-14.4%)
Source: Malaysia Cocoa Board (MCB)
AVERAGE DRY COCOA BEAN PRICES,
GRADE SMC 2 (RM/TAN)
Year Raub Tawau Kuching
2008 8,045 7,360 6,751
2009 8,883 8,060 6,548
2010 9,331 8,466 7,215
2011 8,553 8,081 6,577
2012 6,851 6,511 5,009
2013 6,442 6,314 5,189
2014 8,507 8,535 8,535
Source: Malaysia Cocoa Board (MCB)
NUMBER OF COCOA HOLDINGS IN
MALAYSIA ACCORDING TO LAND SIZE
Area (Ha) 2010 2011 2012 2013 2014

40.47 - 100 17 18 7 5 5

101 - 200 5 4 1 3 3

201 - 300 2 - 1 - -

301 - 400 - - - - -

Total 24 22 9 8 8
Source: Malaysia Cocoa Board (MCB)
Note: Estate Size :> 100 acre
Cocoa plantings <40.47 ha are classified as cocoa estates due to the following:
a. “Cocoa planted on Land cultivated with other crops held under a single ownership; or
b. Areas planted with cocoa in an oil palm, rubber or coconut or other crops as estate
holdings.”
NUMBER OF COCOA SMALLHOLDERS (PK) IN
MALAYSIA, 2013 - 2014
Area Size Peninsular Sabah Sarawak Total
(Ha) 2013 2014 2013 2014 2013 2014 2013 2014
<1.0 1,135 1,135 587 587 192 192 1,914 1,914
1.0-1.9 1,097 1,747 2,702 3,902 4,221 4,690 8,020 10,339
2.0-2.9 211 211 191 191 256 256 658 658
3.0-3.9 69 69 66 66 55 55 190 190
4.0-4.9 17 17 44 44 24 24 85 85
5.0-5.9 13 13 24 24 16 16 53 53
>10<40.47 15 15 57 57 34 34 106 106
Total 2,557 3,207 3,671 4,871 4,798 5,267 11,026 13,345
Source: Malaysia Cocoa Board (MCB)
Note: Cocoa Holding size : < 100 acre
EXPORT EARNINGS OF COCOA AND COCOA PRODUCTS
2011 2012 2013 2014(Jan – Nov)

Cocoa and Quantity Value Quantity Value Quantity Value Quantity Value
Cocoa Product (‘000 (RM (‘000 (RM (‘000 (RM (‘000 (RM
tonnes) Million) tonnes) Million) tonnes) Million) tonnes) Million)

Cocoa Beans1 25.44 255.35 47.71 399.37 42.93 359.22 87.93 895.47
Cocoa Butter 117.56 1,369.63 100.23 961.60 99.30 1,194.54 94.82 1,889.73
Cocoa Powder 2 148.94 1,547.62 126.82 1.487.56 132.27 1,266.26 95.27 854.07

Cocoa Paste
26.78 349.53 22.32 266.53 20.78 237.06 22.60 329.12
Not Defatted

Cocoa Paste,
Wholly or Partly 33.01 349.70 16.40 218.64 12.35 134.47 7.23 55.02
Defatted

Cocoa Shell 4.98 2.52 5.54 2.94 2.62 1.47 1.10 0.94
Chocolate 25.69 341.09 25.28 353.59 32.60 432.13 26.90 385.09
Total 4,215.44 3,690.22 3,625.15 4,409.45
Source: Department of Statistics
Note: 1Re-export
2Including Cocoa Powder not Containing and Containing Added Sugar or Other Sweetening Matter
MAJOR EXPORT MARKETS OF COCOA PRODUCTS FOR
YEAR 2014 (JAN-NOV)
Cocoa Products Major Market / New Market
Cocoa Butter United State of America (21.5%), Japan (12.1%), Peoples’ Republic of China (9.4%),
(Market share) Mexico (7.1%), Estonia (6.8%)
New Market:
American Samoa
Cocoa Cake Thailand (40.8%), United State of America(16.3%), Russia (12.2%), Indonesia (9.3%),
(Market share) Spain(7.8%)
Cocoa Paste Singapore (37.3%), Peoples’ Republic of China (20.4%), Japan (10.2%), Australia
(Market share) (9.1%), Korea (6.3%)
New Market:
Belgium, Fiji dan Kyrgyztan
Cocoa powder containing Japan (66.9%), India (12.1%), Singapore (7.0%), Indonesia (4.7%), Pakistan (1.9%)
added sugar or other New Market:
sweetening matter Cameroon, Libya, Nigeria and Kenya
(Market share)
Cocoa powder not Peoples’ Republic of China (10.3%), Indonesia (8.3%), United State of America
containing added sugar or (8.2%), Philippines (8.1%), Egypt (6.9%)
other sweetening matter
(Market share)
Chocolate Indonesia (19.8%), Thailand (12.7%), Singapore (8.8%), Philippines (6.8%), India
(Market share) (6.7%)
New Market:
Uruguay, Senegal, Nicaragua and Timor-Leste
WORLD COCOA GRINDINGS (‘000 TONNES)
Change
No. Country 2012/13a 2013/14r
(%)
1. Netherlands 545 530 -2.75
2. Cote d’Ivoire 471 520 10.40
3. USA 413 430 4.12
4. Germany 402 410 1.99
5. Indonesia 267 322 20.60
6. MALAYSIA 293 259 -11.61
7. Brazil 241 240 -0.41
8. Ghana 225 234 4.00
9. France 125 135 8.00
10 Spain 95 99 4.21
Source: ICCO, Vol. XL No. 4, Cocoa Year 2013/14
Note:
a Estimation
R Forecast
ACKNOWLEDGEMENT
The authors would like to thank MCB Board; YBhg.
Datuk Himmat Singh, The Secretary-General and YB
Datuk Amar Douglas Uggah Embas, The Minister of
The Ministry of Plantation Industries and
Commodities, Malaysia for permission to present
this paper.

Our sincere appreciation and thanks to others who

have contributed towards this paper and to the
Government of Malaysia for all the financial
assistance rendered.