The Important of Cocoa Industry in term of Economy, Sosial, Eco-system

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. In 2012, cocoa beans and
cocoa products accounted for 4% of the total value of Malaysias exports of the major
commodities and their products.
Previously, Malaysia sustained an upward trend in cocoa-planted area, to hit its highest
level of over 414 thousand ha in 1989. Consequently, the production of cocoa increased to
achieve its maximum level of over 247 thousand tonnes in1990. That spectacular expansion
was motivated by a successful marketing organization and rather low production costs of
cocoa beans and consequently, its production in Malaysia was, then, a lucrative venture. This
trend, however, have changed due to many factors that led to an increase in the relative
competitiveness of competing crops such as palm oil. These factors include waning world
cocoa beans prices, increasing labour costs and loss of production due to pests and diseases.
In 2012, only about 21.7 thousand ha were under cocoa with a total production of about 3.6
thousand tonnes. The Malaysian cocoa grindings and downstream industry has however,
expanded dramatically in line with the objectives of the Industrial Master Plans 2 and 3
(NAP2 and NAP3) which encourage value added activities of local production and shifting
the focus from upstream activities downstream ones. 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 (Fig. 1). To meet the rising demand by the
grinding industry that cannot be fulfilled by the local production of cocoa beans, Malaysia
increased its imports of this commodity.

Fig. 1: World cocoa bean grinding shares (2010/11), Source: ICCO (2013)
The export patterns of cocoa bean and cocoa products over the period 1980-2012 are
displayed in Fig. 2. During the period 1980-1988 the export volume of the Malaysian cocoa
beans increased at a compound annual rate of 21% to reach a peak of 189 thousand tonnes, up
from about 31 thousand tonnes at the beginning of the period. Meanwhile, the exports of
cocoa products were increasing at a very low rate. However, the exports of cocoa beans
started a steep declining trend since 1989 while the exports of the cocoa products continued
increasing. In 2012, Malaysia exported about 48 thousand tonnes of cocoa beans, around 39
thousand tonnes cocoa paste, 100 thousand tonnes of cocoa butter, 127 thousand tonnes of
cocoa powder and 26 thousand tonnes of chocolate.

Fig. 2: Export quantities of cocoa bean and cocoa products of Malaysia (1980-2012)
(Thousand Tonnes), Source: Malaysian Cocoa Board (2010, 2013)
Malaysian cocoa butter has unique characteristic of the high melting point. This
character is favourable for chocolate products in warm countries. Therefore, Malaysian cocoa
butter gets best price in the world market for this product. Consequently, despite not being
highest contributor to the total export volume of cocoa products, it was the highest contributor
to the export earnings of this category. During the period from the mid 1990s until 2010, it
accounted for an average of 55% of them. However, its share decreased to 32 and 26% in
2011 and 2012, respectively. However, the share of cocoa powder export value increased to
37 and 40% of the total cocoa products exports by the country in 2011and 2012, respectively.
This drop in the cocoa butter export value was mainly due the decrease in the cocoa butter
price following the fall in its world price due to the debt crisis in the euro zone. In addition,
the slowdown in the United States economy influenced consumer expenditure, consequently
reducing the buying interest of semi-finished products. Particularly, market reports point
towards a decrease in the price ratio of cocoa butter resulting from the large stocks of cocoa
butter in Europe and the United States (ICCO, 2011a). 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
(ICCO, 2011b).

Fig. 3: Average percentage export earnings of cocoa bean and cocoa products of Malaysia,
2008-2012, *other products include cocoa paste, wholly, partly or not defatted, cocoa shell,
husks, raw or roasted, source: Malaysian Cocoa Board (2013)
Cocoa products have high economic importance to the Malaysian economy and the
global cocoa industry. Therefore, policy makers and other market participants are required to
find tools that will provide timely and intelligible answers for questions concerning the major
factors affecting the export demand for those products. That can be useful for them in
formulating long-term targets and strategies for modifying their supply plans to sustain their
competitiveness in the world market.

Sosial
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. It 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.
Blood pressure: Flavonoid-rich cocoa aids in lowering blood pressure and improving the
elasticity of blood vessels. These favorable changes are attributed to the presence of
antioxidants in cocoa that stimulates the production of nitric oxide, which helps to keep blood
vessels relaxed. Furthermore, this helps in maintaining a healthy circulatory system.
Brain Health: These neuroprotective benefits could also have favorable effects on learning
and memory functions. The findings have advocated that the consumption of cocoa-based
products enhances the flow of blood to the brain and they have provided evidence of the
therapeutic potential for curing vascular disorders.
Blood Cholesterol: An investigative research study has shown that cocoa has hypoglycemic
and hypocholesterolemic effects on both glucose and cholesterol levels, respectively. A diet
containing cocoa has also shown a reduction in triglycerides, LDL cholesterol and glucose
level. It has also demonstrated a noteworthy rise in the levels of healthy HDL cholesterol in
the test subjects.
Diabetes: The consumption of cocoa has been shown to be effective in improving insulin
resistance and glucose metabolism. This, in turn, aids in regulating sugar levels in the body.
Wound Healing: Cocoa extracts help in preventing the development of various kinds of
infections in the body.
Obesity: The consumption of cocoa helps in modulating lipid metabolism and reducing the
synthesis and transport of fatty acids. It has also demonstrated an improvement in
thermogenesis, the mechanism of heat production in white adipose tissues and the liver.
Mood Enhancer: Studies have shown that cocoa flavonols help to enhance mood, combat
depression, and promote improved cognitive activities during persistent mental exertion. The
presence of the neurochemical phenylethylamine in cocoa also helps in enhancing feelings of
contentment and promoting aphrodisiac effects.
Constipation: Research study advocated that regular consumption of cocoa products have
shown to encourage better bowel function by reduction in time to have bowel movements,
increase the frequency of bowel movements, and make a softer consistency of stool without
inducing any other side effects like gastrointestinal discomfort or abdominal pain.
Cancer: Cocoa has demonstrated beneficial effects in inhibiting the growth of cancer cells
without effecting the growth of normal healthy cells.
Skin Care: Research findings suggest that the consumption of flavonol-rich cocoa helps in
decreasing the effects of UV- induced erythema and reducing skin roughness and scaling. It
also aids in enhancing skin elasticity, hydration, and density. Cocoa is used in the preparation
of various skin care products.

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 byproducts.
Cocoa bean mulch: Cocoa mulch is a by-product and is produced from the discarded
shells of cocoa beans. Mulch is valuable in efforts to reduce weeds, regulate the temperature
of the soil, prevent soil erosion, and increase the nutritive value of the soil. Roasting cocoa
beans releases its shells which are further used to produce cocoa mulch. Cocoa mulch is rich
in naturally available macro-nutrients such as potassium, phosphorous and nitrogen, all of
which are valuable for plant health. Cocoa beans have water retention capability due to which
it is also capable of impeding fire.

Eco-system
Cocoa beans are a high demand consumer item all over the world. They are used in
products such as chocolate, candy bars, beverages and cocoa powder. However, cocoa
farming and the production of cocoa beans are extremely fragile and labour-intensive
processes. The process begins with a Cacao plant, or Theobroma cacao, 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. The farming process of cocoa can damage the environment
depending on the practices of the farmer, as well as be limited by the environment itself.
Global Climate Change, for example, causes longer drought seasons making it more difficult
for farmers to plant and sustain new Cacao trees. Most of the environmental impact comes
from Co2.
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
clearcut another possibility exists. Planting trees, especially fruit trees around and within the
plantation, helps with 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. To stop the process of
deforestation, it is suggested that farmers replant on their current land while using the
practices previously mentioned.