Cocoa growers get minimum RM10 per kg price safeguard

COCOA growers supplying SMC1 beans to Koperasi Kluster Koko Sarawak Berhad have a guaranteed minimum price of RM10 per kilogramme as the cooperative expands its chocolate business to strengthen members’ earnings.

Food, Industry, Commodity and Regional Development Minister, Datuk Seri Dr Stephen Rundi Utom said the mechanism provided a price safeguard, with current cocoa prices ranging from RM12 to RM14 per kilogramme.

“Through value-added processing into cocoa powder and chocolate products, the cooperative has remained profitable while enabling members to benefit from annual dividends and profit-sharing,” he said in his ministerial winding-up speech during the State Legislative Assembly (DUN) sitting here today.

The cooperative’s chocolate sales revenue rose to RM201,050 in 2025 from RM144,000 in 2024, an increase of nearly 40 per cent.

Dr Rundi said support from the Malaysian Cocoa Board (MCB) in downstream chocolate production had enabled the cooperative to expand its business activities and improve farmers’ incomes.

Meanwhile, Sarawak’s cocoa production more than doubled to 46 metric tonnes in August 2026 from 22 metric tonnes in the corresponding month last year.

However, the value of production increased only slightly to RM828,750 from RM818,000 over the same period.

To strengthen the industry, RM6.67 million in federal funding and RM1 million from the Sarawak government have been allocated under the 13th Malaysia Plan.

The state government also approved RM500,000 this year to develop 35 hectares of new cocoa planting areas involving 12 smallholders in Song district, with 86 per cent of the allocation spent to date.

Dr Rundi said his ministry would continue working closely with MCB to support the industry’s sustainable development.

“The success of the cooperative demonstrates that agricultural cooperatives in Sarawak can thrive when supported by effective management and strong collaboration among members,” he said.