KUALA LUMPUR: Malaysia's cocoa market has seen steady growth and is poised to gain further momentum this year, following export values of RM8.2 billion in 2023.
The Malaysian Cocoa Board (MCB) is aiming for a cocoa product export value of RM9 billion this year, with plans to exceed RM10 billion by 2025.
The export value has shown steady growth, rising from RM6.8 billion in 2021 to RM7.8 billion in 2022.
Malaysian cocoa products have reached 205 countries, with the top five destinations being Singapore, the United States, Japan, China, and Indonesia. The primary export contributors are cocoa butter, cocoa powder, and chocolate.
Market insiders believe that Malaysia has significant potential to contribute more to the global cocoa market, which currently relies heavily on a few producing countries.
A recent shortage of cocoa beans in several countries caused by crop diseases and heavy rainfall has led to a surge in global cocoa prices and demand.
"This has underscored the urgency of revitalising domestic cocoa farming in Malaysia," the insider told Business Times.
Malaysia remains a major player in the global cocoa industry, particularly in the midstream and downstream sectors.
In May, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani announced an allocation of RM9.5 million for a 350-hectare cocoa plantation and a 2,126-hectare cocoa plantation rehabilitation project, aimed at strengthening Malaysia's position in the international cocoa market.
The minister highlighted the significant surge in cocoa prices, which have risen from RM9,000 to RM28,000 per tonne.
This upward trend is expected to continue over the next two to three years, presenting a golden opportunity for the country's small-scale cocoa farmers.
To support the government's objective of boosting cocoa production, MCB Director General Datuk Dr. Ramle Kasin announced that the agency has expanded cocoa bean production activities through the Cocoa Product Production Stimulation Program, now covering 550 hectares.
"This project provides facilities such as a mini cocoa processing facility in the farming group area to support and help to clean the dry cocoa beans from foreign contamination and ensure their good quality," he told Business Times.
Ramle further explained that MCB is promoting the adoption of research-based technologies to assist planters in combating cocoa diseases and pest issues, while also enhancing productivity through nationwide development initiatives.
"MCB encouraged the introduction of new technologies and the adaptation of existing technologies in agricultural practices to increase productivity and facilitate the farm's management.
"This is done with the application of the latest technology through mechanisation, the Internet of Things (IOT), and others. This encouragement is able to increase the interest of the youth group to participate in the upstream sector," he said.
Ramle said that the agency is also committed to promoting Malaysian cocoa, particularly the upstream sector, by encouraging plantations and estates to explore cocoa cultivation as a commercial venture.