THE ORIGINS OF COCOA CULTIVATION IN MALAYSIA

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THE ORIGINS OF COCOA CULTIVATION IN MALAYSIA

• BY
• AMARJIT KAUR

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• Three decades ago, cocoa production was
  dominated by Ghana, the Ivory Coast, Nigeria and
  Brazil. Only in a decade ago Malaysia was
  recognized as the third largest producer after
  the Ivory coast and Brazil. This is a consequence
  of the development policy of export-led growth
  and the role of the state in providing necessary
  forms of encouragement and technical assistance

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• This topic discusses the origins of cocoa
  cultivation in the Malaysian territories of
  Peninsula Malaysia, Sabah and Sarawak and
  outlines the reason for its slow growth until
  1970s.

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Introduction Cocoa Cultivation and Production
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• Three phases
• in corresponding to
• i. changes in commodity prices,
• ii. the investment climate and
• iii. the nature of political control in
  Peninsular Malaysia, Sabah Sarawak

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• 1st phase (1880s mid 1940s)
• as experimental crop, overshadowed by rubber and
  palm oil.
• 2nd phase(1948 early 1960s)
• as a corollary to the policy of greater
  economic diversification.
• 3rd phase (late 1960s onwards)
• as an important commercial crop after oil palm
  and rubber

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The First Phase

• Cocoa (Theobroma Cocoa) was probably introduced
  by the Dutch in the 1700s.
• Its earliest presence in 1778, found in the
  garden of a Portuguese widow in Melaka.
• Experimented as commercial crop by European
  planters in Melaka, Penang, Singapore, Perak and
  N. Sembilan.

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• In Sabah, it was planted by natives, two or three
  groves of cocoa on the Segaluid River in 1886.
• In 1922, government of Sabah grown cocoa on
  experimental garden in Sandakan.
• In Sarawak, there were no further mention of
  cocoa.

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• In Malay Peninsula, due to the lower prices of
  rubber, led to some rubber companies
  experimenting with newly available cocoa seedling
  on old rubber areas earmarked for replanting.
• Trial planting began at Temerloh and Kuala Lipis
  (Pahang) and Serdang (Selangor) with seeds from
  Sri Lanka (forestero and nicaraguan varieties).

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• In 1934,at Federal Experimental Station (FES) in
  Serdang (Selangor), Trinitario was planted in
  small test plot.
• In 1937, the DOA established new test plots in
  FES at Cheras (Selangor), Kuala Lipis and
  Temerloh (Pahang) with seed from Java, Sabah and
  Medan (Sumatera).

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• In summaries, during first phase, cocoa was only
  minor importance to the economy because it was
  overshadowed by more profitable industrial
  crops rubber and oil palm.
• Cocoa was still undergoing trials and required
  more care and intention.

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The Second Phase

• The initiative was taken by colonial government
  through private sector to boost the cultivation
  of cocoa.
• It was a consequence of uncertain long-term
  prospects for tin and rubber industries the
  strong demand for cocoa and misgivings about
  cocoa supply from the traditional producing
  countries.

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• Provided with London finance market and
  investment from Cadburys contributed to the
  expansion of cocoa industry.
• As an integral part of the colonial governments
  strategy after WW II.

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• DOA conducted a survey of all cocoa trees to
  ascertain the total planting material in the
  country.
• Revealed the adequate number of trees to form the
  basis for crop expansion.

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• There was a feasibility study of cocoa in Malaya,
  Sabah and Sarawak done by a researcher from East
  Malling Research Station, E.E. Cheeseman.
• Cheesemans report played an important role in
  the colonial governments diversification
  strategy and as a guideline for potential
  investors.

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• His report were summarized below-
• 1. Federation of Malaya was the most important of
  the three territories for cocoa cultivation
  because of its larger population, its
  well-developed transportation system and the
  existence of the plantation company structure
  with its capital resources and supervisory staff
  which could supplement the efforts of the DOA.

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• 2. Cocoa was suitable as a smallholding crop and
  could serve very usefully as the cash crop basis
  for land settlement schemes in sparsely-populated
  areas. But, because of the farmers had limited
  land it was dangerous to substitute cocoa for
  rubber (their main source of income). Cocoa needs
  technical knowledge and provision of central
  fermentaries.

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• 3.In the Fifth Division of Sarawak was the most
  promising region for cocoa.
• 4. North Borneo (Sabah) had a first class
  andesite soils which could be used for cocoa
  cultivation. Cocoa also could be grown in a
  compact block compared to scattered districts in
  Malaya.

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• 5. The Borneo territories had other disadvantage
  compared to Malaya- they had small populations
  and were hampered poor transportation systems.
• 6. All three territories were handicapped by the
  shortage of planting material although the Borneo
  territories were worse-off than Malaya in this
  respect.

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• This report was well received by the government
  and was followed by intensified research into
• 1. breeding and selection of superior planting
  material
• 2. trial planting on agricultural stations
• 3. plantation throughout the country

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• Received well respond from private sector,
  example
• 1. Harrison and Crosfield, Cadbury Brothers and
  Colonial Development Corporation formed a
  company known as Malayan Cocoa Limited to plant
  cocoa.
• Benefit from this formation brought together
  local plantation interests, an experienced
  manufacturer and the colonial governments
  development agency.

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• 2. Guthries in conjunction with Rowntrees
  (chocolate manufacturer) interplanted cocoa with
  oil palm.
• 3. Malayan Cocoa joined forces with Van
  Houten and Zoon NV in 1955 to form the United
  Cocoa Development Company Limited.

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• This phase also saw the promotion of cocoa as a
  smallholder crop.
• In the interests of a prosperous Malay peasantry,
  it was essential to emphasize rural development
  and increase the take-off from the backward
  peasant sector to the advanced plantation sector.

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• With the direct intervention by government, land
  settlement schemes was introduced in rural area.
• In 1953, the colonial government established a
  statutory corporation, the Rural and Industrial
  Development Authority (RIDA) which was primarily
  orientated towards economic development
  programmes for Malays.

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The Third phase

• This phase in cocoa cultivation is concomitant
  with the national governments strategy for
  economic diversification and the ruling partys
  ideology of Malay advancement in the capitalist
  sector.
• The formation of Malaysia in 1963 and the
  exclusion of Singapore in 1965 presented a new
  opportunity for the case of Malay capitalism.

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• In 1965, the Majlis Amanah Rakyat (Council of
  Trust for the People) or MARA was formed, to
  replaced the failing RIDA.
• In the decade after dependence, economic
  condition for most of the population had been
  deteriorating.
• The mean income of Malay households declined from
  68 per cent of the national average in 1957 to 64
  per cent in 1970.

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• Peasant landlessness continued unabated while
  the pace of land settlement in government schemes
  in the 1960s remained slow.
• The culmination of the first dozen years of
  post-colonial development came in the form of
  post-election race riots in May 1969.

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• Aftermath of that situation, came a drastic
  reorientation of some government programmes and
  policies.
• The strengthened position of UMNO, the ruling
  Malay party, produced new policies and programmes
  on the economic front which were to have an
  important impact on cocoa cultivation in
  Malaysia.
• New Economic Policy (NEP) was formed in
  association with the Second Malaysia Plan for
  1971-75.

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• Two prongs of the NEP were -
• 1. The eradication of poverty of the Malays.
• 2. To restructure society to reduce and
  eventually eliminate the identification of
• race with economic function.
• The measures outlined for poverty eradication
  included land settlement for some of the
  landless, government technical assistance as well
  as productivity and commodity price increases
  (for padi) for the peasantry.

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• Cocoa was introduced as a key cash crop in order
  to play an important role in the raising peasant
  incomes.
• A hybrid cocoa with superior yielding properties
  and tolerance to disease made it especially
  attractive as an intercorp with coconut.
• Research had shown that the two crops were
  complementary coconut providing shade cover to
  the cocoa.

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• The major advantages of the cocoa-coconut
  combination were
• 1. Both crops were economically useful.
• 2. Field labour requirements could be
  easily regulated, less effort, less capital
  outlay and lower technical skills.
• The interest in coco in the 1970s was revived
  largely because of the prevailing world shortage
  of cocoa and the high market prices.

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• Cocoa acreage expanded and increase in West
  Malaysia and Sabah between 1960 and 1976 .
• By the establishment of Msian Agricultural
  Research and Development Institute (MARDI), the
  research and development of cocoa and coconuts
  had been carried out.

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• In summarize, cocoa acreage expanded in the late
  1960s and 1970s, because
• 1. in response to price incentives.
• 2. involvement of both private and public
• sectors.
• 3. fostered its agricultural development
• plans by the state.

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• 4. techniques developed earlier during the rubber
  and oil palm, enabled the easy transfer of
  technology from the plantation to the
  smallholding sector.
• 5. political stability, the good infrastructure
  developed during the colonial period and the
  existence of professional bodies such as
  Incorporated Society of Planters (ISP) and East
  Msian Planters Asscociation (EMPA).

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• Other organizations were established
• 1. MCGC Msian Cocoa Growers Council to
  coordinate and promote cocoa research..
• 2. FAMA Federal Agricultural Marketing
  Authority to promote the sale of cocoa beans
  and grading scheme.
• 3. MCB Malaysian Cocoa Board to promote
  and enhanced development of cocoa industry.
  (similar role as RRI)

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Conclusion
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• The pattern of cocoa cultivation has changed
  rapidly over the past fifty years.
• Cocoa was developed first as a commercial crop
  during the colonial period by plantation and
  manufacturing interests.

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• Development by smallholders took places after the
  Independence and was fostered by the state.
• The plantation has come to play an important role
  in the economic development philosophy and plans
  of the Malaysian government.

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Thank you