Malaysia looks set to become largest producer of Guarana

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ALOR SETAR: Malaysia looks set to become the largest producer of Guarana in Asia.

This follows the signing of a memorandum of understanding between the  Rubber Industries Smallholders Development Authority (Risda) and Ritz Guarana Plantation Holdings Bhd yesterday.

Guarana is a crop often used to produce health, beauty and energy drink products.

Representing Risda at the signing ceremony was a member of the authority, Senator Shahanim Mohamad Yusoff, and Ritz Guarana by its Managing Director, Datuk Ibrahim Yahya.

Shahanim said after the ceremony that in the initial stage, between 30,000 to 40,000 smallholders in Kedah, Penang and Perlis, would cultivate the crop on an area of about 4,000 hectares.

The smallholders will begin commercial cultivation next month with Risda providing them seeds procured by Ritz Guarana from Brazil.

“They will be assisted with advice and direction on the guarana cultivation by Risda with the yield being resold to it at a price of RM200 per kilogramme.

“For a start, we will plant the crop at Baling, Kulim and Durian Burung in Kedah, Sungai Batu Pahat in Perlis and Tasek Gelugor, Penang.

“Our hope is that the smallholders can enhance their income at a time of uncertain rubber prices and take the guarana cultivation seriously due to the high demand from Taiwan, South Korea and Japan,” he added.

According to Shahanim, guarana is easy to cultivate and each smallholder needs a starting capital of just between RM50,000 to RM60,000 for a round of cultivation, to reap returns of RM240,000 to RM250,000 for 0.40 hectare (one acre).

He said Risda would continue to cooperate with Ritz Guarana to ensure that the interest of smallholders is taken care of.

Meanwhile, Ibrahim said his company would make guarana a key export item for Malaysia, alongside other commodities.

The demand for guarana seeds is very encouraging at present.

“Our research shows that Malaysia is very suited for guarana cultivation  and we hope the Risda smallholders will take advantage of this, as we are also ready to process the crop at our plant in Penang.

“We will continue to work with Risda to ensure the expansion of guarana cultivation and for it to be exported globally,” Ibrahim added.

Brazil is the largest producer of guarana in the world at present. — Bernama