Malaysia Can Become Regional Centre For Cocoa Beans Processing, Distribution And R&D

By Harizah Hanim Mohamed SHAH ALAM (Selangor, Malaysia), May 27 (Bernama) -- Malaysia can become the regional centre for the processing of cocoa beans, distribution and research and development (R&D). Barry Callebaut Asia Pacific vice president for cocoa segment Richard Fahey said Malaysia has been an extremely important base for the company in respect of its cocoa operation strategy in Asia. Barry Callebaut is a Swiss-based manufacturer of high quality chocolate and chocolate products. Fahey told Bernama, Malaysia's contribution to the group's global cocoa beans processing stood between 10 to 15 per cent. "Our factories in Bukit Tinggi (in Pahang state) and Pasir Gudang (in Johor state), are good examples of how we look at Malaysia as part of our processing strategy," he said. Barry Callebaut holds a 40 per cent market share in the Asia Pacific cocoa industry and focuses more on value-added products, blending cocoa beans and an emphasis on R&D activities. Fahey said the sharp decline in Malaysia's cocoa production should not distort the industry but be taken in stride to make the quantum leap further into R&D. Cocoa grindings in Malaysia declined to 55,590 tonnes in the fourth quarter of last year, down 20.7 per cent from 70,064 tonnes in the same quarter of 2013. Malaysia's cocoa plantations have also declined significantly from 33,994 hectares in 2005 to 16,070 hectares last year. Back in 1980, the cultivated area for cocoa across the country stood at 123,855 hectares. Meanwhile, tailor-made cocoa liquor that goes into chocolate as well as cocoa powder is among the niche products Barry Callebaut produces in Malaysia, and among the most difficult products across the entire group. Of its total production in Malaysia, 10 per cent are cocoa beans produced and processed in Malaysia, while 90 per cent is imported. On the logistics front, Fahey said the company's processing strategy has contributed to the reduction in the cost. In another development, Nicko Debenham, global cocoa sustainability and managing director vice president said Barry Callebaut in collaboration with banking sectors, non-governmental organisation and donors is helping smallholders in Africa and Indonesia to plant cocoa. "As for Malaysia, we are keen to work with the Malaysian Cocoa Board in terms of engagement with local farmers in improving their plantations," he added. -- BERNAMA