Cocoa: Food of the Gods

Introduction to Cocoa

Theobroma cacao, or “Food Of The Gods” is endemic to the Tropics and an irreplaceable ingredient in the near US $100 Billion dollar confectionary industry. 90% of Cocoa is grown by smallholders, 70% hailing from West Africa, whilst Asia holds 23% of global Cocoa Bean demand.

Opportunity

There is a need for sustainably and ethically sourced single origin cocoa. Demand for cocoa has been steadily growing for more than 100 years. With strong correlation between cocoa consumption and GDP growth, this upward trend shows no sign of abating thanks to the burgeoning global middle class – particularly in China and India.

90% of world cocoa supply comes from smallholders whose average annual yields are a mere 0.35MT per hectare. In contrast, managed plantations in Malaysia have achieved up to 4.6MT per hectare, with conservative figures of 2-3 MT per hectare well within reach. Efficiency is further increased through the implementation of mechanisation, and advanced Agro-management practices.

Malaysia alone has the second highest consumption in Asia, and one of the largest downstream cocoa capacities in the world. With only 1,729 MT of dry beans produced locally in 2015, Malaysian-based grinders are forced to import supply from as far as West Africa. This presents a unique opportunity to produce cocoa beans of a high and consistent quality with guaranteed offtake at our doorstep.

Advantages

Our Executive Team has a combined experience of over 150 years at the forefront of Tropical Agriculture, including decades in Cocoa cultivation. Malaysia is the highest ranked Investment Grade country in the narrow tropical belt in which Cocoa thrives. It was first plantationised here in the 1800s, and at its peak there was over 400,000 hectares of cultivated area. Malaysian planters are in demand throughout the globe thanks to their reputation as the pioneers of plantation agriculture, which gives us immediate access to a wide pool of invaluable and experienced human capital.

Another local advantage enjoyed by the Malaysian Cocoa industry is the world-class research conducted by Lembaga Koko Malaysia (LKM). LKM have continued to produce superior, high-yielding, and resilient cocoa varieties.