THE IMPORTANT OF THE INDUSTRY

Economy
The Malaysian cocoa sector plays very important role to the countrys
economy. It provides job opportunities for 31 thousand persons employed in the
industry including estate workers, smallholder, grinders and chocolate manufacturing
which include entrepreneurs. The industry contributes to the economy as a foreign
exchange earner.
Currently, Malaysia, with a total grindings of 299,000 tonnes, is occupying the
fifth position among the largest cocoa grinders in the world and the largest in the
South East Asia (Figure 1). It was motivated by a successful marketing organization
and rather low production costs of cocoa beans. When the demand of cocoa products
increases, the land area and amount of workers increase to satisfy the demand. As a
result, the economy in Malaysia developed and the size of Ringgit Malaysia increase.

Fig. 1: World cocoa bean grinding shares (2010/11), Source: ICCO (2013)
Cocoa products have high economic importance to the Malaysian economy
and the global cocoa industry. Malaysian cocoa butter has unique characteristic of the
high melting point. This character is favorable for chocolate products in warm
countries. Therefore, Malaysian cocoa butter gets best price in the world market for
this product. Meanwhile, the cocoa powder prices were not significantly affected
because the demand for cocoa powder remained strong, due to the growth in the
utilization of its products in developing South American and Asian countries.

Social
The International Cocoa Initiative (ICI) is an independent foundation
established in 2002, as called for in the Harkin-Engel Protocol, to address the worst
forms of child labour and adult forced labour on cocoa farms in West Africa.
Supported by individual chocolate and cocoa companies, the ICI is led by a board
composed equally of industry and civil society (NGO) representatives. The
International Labour Organization (ILO) is an advisor to the Board. The ICI is
focused exclusively on labour practices (and related issues) on cocoa farms - and the
only foundation of its kind.
Reflecting the complex nature of labour issues, the ICI pursues a number of
different strategies:

Work with cocoa farming country governments to ensure appropriate and

effective policies are in place

Support capacity building at the local level
Implement community based projects to change practices
Support social protection for victims of exploitation
Share lessons learned for use in future projects
Besides, Theobroma cacoa, the scientific name of the plant from which raw

cocoa is made and the main ingredient in chocolate, literally means food of the
gods. is a famous plant with a lengthy and rich history; a symbol of love that cuts
across cultures; a power food packed with antioxidants, phytochemicals, minerals,
and the building blocks of neurotransmitters and other feel good hormones; and a
medicine backed by modern research with far-reaching implications for treating
cardiovascular disease, high blood pressure, cancer, and other chronic degenerative
diseases.
Cocoa has been treasured worldwide for its usage in the manufacturing of
chocolate and other sweet delicacies. Cocoa butter is also used as a substitute for
gelatin to enhance the flavor and aroma of food. Cocoa butter has a melting point
below the human body temperature, so it melts and provides a smooth and creamy
taste to many preparations to make them even more palatable. These benefits make

cocoa butter a healthy, plant-based alternative to include in recipes, rather than

gelatin, which is derived from animal by-products.

Eco-system
Cocoa beans are a high demand consumer item all over the world. Cocoa
farming and the production of cocoa beans are extremely fragile and labor-intensive
processes. The process begins with a Cacao plant, in which the beans are extracted
from pods that grow directly on branches. Each pod contains roughly 30 to 50 beans.
After the beans are extracted they must go through a time-consuming process of
natural fermenting and drying.
Cocoa farmers go back to the original and natural ways of farming, by
planting within the natural tree-cover and without cutting down existing trees. When
an area has already been clear-cut another possibility exists. Planting trees, especially
fruit trees around and within the plantation, help with the growth of Cacao plants.
These trees can provide shade to the Cacao plants and be a source of oxygen
replenishment to the environment. If the shade trees are fruit-bearing, this can also
provide additional income to the farmer. Shade trees return organic matter to the soil
through falling leaf litter and decaying branches. The shade provided by these trees
also helps to keep soil moist in dry seasons which results in less damaging irrigation
practices. Shade trees will raise the amount of infiltration and slow erosion of the soil.
Since shade inhibits the growth of weeds, farmers are able to use less or perhaps no
pesticides which can decrease the occurrences of Witches Broom in these crops.
Cacao plants that grow in the shade provide the environment with more biodiversity,
allowing natural populations and habitats to flourish. Finally, shade can be extremely
helpful in keeping and lengthening the productivity of old growth Cacao plants.
Farmers access pest control products such as biocides as an alternative to the
harmful pesticides being used. They also promote proper irrigation, composting,
suitable soil management, and intercropping, meaning planting other trees and fruit
crops in the surrounding land of the Cacao trees. Some farmers will burn old,
fermented pods and place them back on the soil as a form of composting and fertilizer.