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AGR 553

The Decline in Malaysias


Cocoa Beans Industry
INTRODUCTION
Cocoa (Theoborma cacao L.) is grown mostly
in West Africa, Central, South America and
Asia.

Production of cocoa beans has decreased


from 2.7tonnes ( 2014) to 1.7 tonnes (2015)

Total Cocoa Area, Production, Grindings and


Import (1980-2008)
MAJOR FACTORS AFFECTING THE
DECLINE
Push Factor: Cocoa farming is no longer profitable
Pest and diseases increases as well as increases of insect attack on cocoa plants
Infestation of Cocoa Pod Borer (CPB)

A good farm monitoring and extension systems would have been able to identify
early symptoms and take precautionary measures. These push factors were
complemented by pull factors particularly better return from oil palm farming
and other non-cocoa activities.

Pull Factor
Better revenue of oil palm plantation and other, non- cocoa crops
Marketing issues in sector smallholders

Quality
Quality cocoa beans from the smallholder sector was lower when compared to
running the estates management and more regular processing.

The Small Quantity Production


Small quantities usually affects several important aspects in the marketing

Marketing systems
Marketing channels in the estate sector is more concise due to lack of involvement of
the intermediate
While marketing channels for smallholders also found to be more complicated with the
involvement of a number of intermediate branches
THE ISSUE: THE DECLINE
IN TERMS OF AREA AND PRICE
IN TERMS OF PRODUCTION AREA
Estate cocoa are decline from 201,615 ha to 827 ha (99%
reduction)
Smallholder are declined from 212,621 ha to 15,243 ha (92%
reduction)
To sum up, the estate showed rapid decline, the annual rate of
cocoa area among estate was 21% compared the 8% among
smallholders
Despite an increase of cocoa price of about 8.2% annually,
cocoa area and production of cocoa beans have decline 10%
and 17% annually which is against the theoretical preposition
that supply responses positively to an increase in price.
IN TERMS OF PRODUCERS
YEAR AREA (ha)

37% ( 46,284)
1980

51% (200, 100)


1990

95% ( 15,243)
2004
NATURE FACTOR
As a result, an area of 393,465 ha cultivated in 1990 decreased
to 190,127 ha in 1995. Reduction in area cultivated continued
severely until 33,398 ha in 2005.
CPB infestation initiated in an estate in Tawau, Sabah in 1980
before it spread rapidly to Peninsular Malaysia by 1985 and
throughout the country.
The spread was attributed to not being able to correctly identify
the problem when it first appeared and the continued dispersion
of planting materials from Sabah to Peninsular in the late 1980s.
Although, there was continuous effort to contain (restriction of
material movement across areas) and control (chemical
spraying, bagging and others) the pest in infested cocoa areas,
there was limited success.
THE SOLUTION
GOVERNMENT INITIATIVES
Cocoa Seedling Nursery Subsidies
Development Programme To encourage new plantation of
cocoa, the New Cocoa
Malaysian Cocoa Board Plantation Development Project
(MCB) has created a total was introduced.
of 41 nurseries in 2013. As at
A total of RM16 mn budget was
2013, a total of 477,537 trees allocated to provide a subsidy
were supplied. worth RM8,000/ha to new cocoa
plantation for a total of 2,000
farmers.
Cocoa planting rehabilitation programmed-
rolling plan

Patch budding and top budding.


Chip Budding on adult tree
Improve agronomic practices garden
Side-Veneer Graft adult trees.
FORMATION COCOA GROWERS
ASSOCIATION
To help the sharing of knowledge and
technical know-how among the farmers
Create easy access for the government
to channel incentives and improve the
livelihood of the rural community
CONTRIBUTION OF FEDERAL
AGRICULTURAL MARKETING
AUTHORITY (FAMA)
The Cocoa Marketing Regulations 1980 in marketing of
smallholders' cocoa in which all cocoa buyers has to be licensed
and all exported cocoa beans must undergo grading and
certification procedures by FAMA.
The Dry Beans Trading Programme to provide market outlet for
smallholders' cocoa.
Wet Bean Marketing Programme to improve the quality of
smallholders' cocoa beans through direct processing and
marketing activities.
Cocoa Grading and Certification Scheme whereby all cocoa
exported bears the Standard Malaysian Cocoa (SMC) label.
RESEARCH AND DEVELOPMENT
EFFORTS
The establishment of the Malaysian Cocoa Board (MCB):-
As a research institution that conduct and promote research on production,
processing, storage and consumption.
To conduct and coordinate activities and policies on research.
To supervise and coordinate cocoa related activities that cover processing,
storage, regulatory and marketing.

Research in cocoa undertaken by FELDA in which carried out at the 2,400 ha Tun
Razak Agricultural Research located at the fringe of the Jengka Triangle.

Research in cocoa undertaken by MARDI has embarked on several joint research


programmes, for instance with Braunschweig Technical University Research findings
have shown that yield, tolerance to disease and quality can be improved through the
adoption of clonal technology.
PREPARED FOR
MDM NUR NABILA HUDA BINTI AZIZ
By
Mawani Binti Mohd Shah
Nur Anisa Binti Mohd Fawzy
Nurul Nadia Binti Rahim
Siti Nurarysha Binti Azman
M3AT2204B

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