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SABAH AGRICULTURE Oil Palm :: Cocoa :: Rubber :: Links Introduction The Agriculture sector is the backbone of the State's economy. About 70 per cent of its population live in the rural areas and are directly or indirectly involved in the agriculture sector. Out of total land area of 2.1 million hectares identified suitable for agrilculture, 1.25 million hectares have been developed. The Agriculture sector contributes about 30 per cent of the State Gross Domestic Product and provides for about 33 per cent to employment and 35 per cent to the State's export earnings. The main agriculture crops planted are oil palm, cocoa and rubber. Sabah is presently the major producer of palm oil and cocoa in Malaysia. Palm oil is the largest contributor to the State's export earnings accounting for about 33 per cent of the total export revenue. The Oil Palm Sector is a very important sector to the State's economy. In terms of export earning, this sector contributes more than 30 per cent of the total income from exports. In 1998, exports of palm oil reached a record of RM5 billion. Sabah is the largest producer of crude palm oil in the whole of Malaysia contributing about 25 per cent of the total production of crude palm oil in the country. The palm oil plantations covering more than 700,000 hectares are mainly found in the East Coast of the State where suitable agricultural land are available . Of all the States in Malaysia, Sabah's agriculture land has the highest yield of oil palm fresh fruit bunch per hectare thereby attacting numerous potential oil palm investors into the State. The State's Oil Palm Sector is mainly confined to the primary processing of oil palm. Presently, there are 58 palm oil mills in the State producing crude palm oil , palm kernel oil and palm kernel cake. There is only a small number of refineries producing higher value added oil palm products. Source : Sabah Institute Development of Studies (IDS), May 1999 Sabah is the major cocoa producing State in the country. In 1998, more than 70 per cent of the total production of cocoa beans in the country comes from Sabah. Despite the large presentation of cocoa cultivation in the State, there have been a gradual reduction in production attributed mainly to the increasing conversion of cocoa cultivated land into oil palm cultivation. Most of the cocoa land owners are small holders and there are only few large cocoa plantation owners. The cocoa cultivated land in the State is concentrated in Tawau District which is located in the East Coast of Sabah. The bulk of the cocoa products in the State is exported as cocoa beans and some are processed into cocoa butter and cocoa powder before exporting. Most of these primary processed cocoa products produced in the State are sent to Peninsular Malaysia for further downstream processing into higher value added products such as chocolate and chocolate based products. Source : Sabah Institute Development of Studies (IDS), May 1999
Recently, the Government is also encouraging the cultivation of rubber for the production of rubber wood. The Government is promoting the production of rubberwood furniture which is gaining in increasing importance in the world market. Source : Sabah Institute Development of Studies (IDS), May 1999
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Rubber is the third most
important commercial crop planted in the State after oil palm and cocoa. In 1998, its
contribution to the State's export was recorded at RM76 million. The rubber products
exported are mainly smoked rubbersheets and latex which are largely sent to Peninsular
Malaysia for further downstream processing into high value added rubber based products.
Presently, the cultivation of rubber in the State is mostly carried out by small holders.