Dr Rundi: Ministry to work with LKM to propose establishing Cocoa Belt from Asajaya to Simunjan

KUCHING (Nov 28): The Ministry of Food Industry, Commodity and Regional Development will collaborate with the Malaysian Cocoa Board (LKM) to propose the establishment of a Cocoa Belt in concentrated areas stretching from Asajaya, Sebuyau to Simunjan to strengthen the cocoa industry in Sarawak.

Its minister Dato Sri Dr Stephen Rundi Utom said this is due to its proximity to the cocoa processing factory at LKM Kota Samarahan.

“This is necessary to ensure consistent and ample supply of dry cocoa beans for chocolate production at the factory, which has the capacity to process 50 metric tonnes of dry cocoa beans annually,” he said in his ministerial winding-up speech at the State Legislative Assembly (DUN) Sitting here today.

He said the production of cocoa beans in Sarawak was insufficient to meet the requirement of the local industry.

“Sarawak imported RM106 million worth of cocoa beans, chocolate and other food preparations containing cocoa and exported RM2 million in 2022.

“To overcome this shortage of local supply, LKM under 12th Malaysia Plan has implemented three major programmes in Sarawak namely Cocoa Production Stimulation Programme, ‘Fine Flavor: Cocoa Plant Material Development Project’ and Organic Cocoa and Agricultural Modernisation Programme,” he said.

He said for the year 2022 and 2023, a sum of RM4.2 million was allocated to implement these programmes involving 329 farmers with the total area of 311.38 hectares.

“LKM has also established Koperasi Kluster Koko Sarawak Berhad in 2019 to assist cocoa smallholders in marketing their produce at a better price,” he added.

On pepper, Dr Rundi said Sarawak pepper export had decreased by 13.7 per cent from 8,097 metric tonnes in 2021 to 6,989 metric tonnes in 2022.

“Nonetheless, the export earnings for pepper have increased by 11.6 percent from RM151.2 million to RM168.8 million in the same period,” he said.

He said as of September 2023, the total area of Sarawak pepper plantations is about 8,008 hectares, an increase of 2.6 percent from 7,806 hectares as compared to same period last year while the total number of smallholders that are registered with Malaysian Pepper Board (MPB) is 38,248.

“To sustain the pepper industry in Sarawak, MPB is currently focusing on the production of high quality or premium pepper to fetch premium prices and actively explore new markets willing to buy high quality pepper such as Sweden and Finland.

“In addition, MPB strives to create ‘smart’ pepper smallholders through Pepper Smart Farming Project utilising Hyperspectral Technology and Internet of Things (IoT), which aims to increase the effectiveness of pepper farm management in dealing with pepper diseases and nutrient problems that threaten the health of pepper vines,” said Dr Rundi.

On palm oil, he said as of Oct 2023, total production of Fresh Fruit Bunch (FFB) in Sarawak had increased by 4.1 per cent from 16.97 million metric tonnes to 17.66 million metric tonnes compared to the same period last year.

“The Crude Palm Oil (CPO) production has shown an increase by 6 per cent to 3.47 million metric tonnes in the same period.

“Likewise, the production of Crude Palm Kernel Oil (CPKO) has shown an increase of 5.5 per cent from 304,564 metric tonnes to 321,398 metric tonnes in the same period,” he said.

In terms of yield, he said the average yield of fresh fruit bunches by estates from January to October 2023 in Sarawak experienced a rise of 4.5 per cent increase to 12.13 metric tonnes per hectare from 11.61 metric tonnes per hectare in the same period last year.

“The increase in the production of FFB and palm oil is due to the increase in the number of workforces in plantations after Covid-19 pandemic, in addition to the rapid adoption of mechanisation and areas of mature palms,” he said.

He also said that Oil Extraction Rate (OER) from January to October 2023 was 19.8 per cent as compared to 19.4 per cent during the same period in 2022 which is on par with the national average.

“The OER for palm kernel oil also increased from 45.4 per cent to 45.9 per cent in the same period.

“To date, there are 86 palm oil mills in Sarawak, five Palm Kernel Crushing Factories, seven CPO Refinery plants and one biodiesel plant,” he said, adding that presently there are no Oil Palm Oleo-Chemical Plant operating in Sarawak.