Sunteți pe pagina 1din 17

of the

Philippines
Dr. WILLIAM D. DAR
President, InangLupa Movement

Paper presented during the 2016 Philippine Cacao Summit and Exposition on May 27 29, 2016 at Atrium SM Seaside-Cebu City

Share of Players in the Sales of an Average Chocolate Bar


Current Statistics (Philippines & Mindanao)

Framework for Modernizing and Industrializing Philippine Agriculture


Ten Point Agenda of the Framework for Modernizing & Industrializing
Philippine Agriculture
Challenge: Intensive yet Sustainable Production
Key Players & Functions

Share of Players in the

Sales of an Average(100Chocolate
Bar
grams = $ 0.91, P 41.86)
Note: $ 1 = P 46

17% Retailers
70%
Cocoa & chocolate
companies

Source: Make Chocolate Fair website

Intermediaries

Cacao farmers
(1980=16%)

Current Statistics
By 2020, Philippines will require
100,000 MT dried cacao beans
= almost 50-70 M trees
= area of approx. 120,000-150,000 ha
Philippines is a net importer
with annual consumption =
50,000 MT dried cacao beans

Share of Philippines to global


cacao production is less than 1%

Mindanao produces 90% of the countrys cacao


production; its target production in 2020
is 100,000 MT (global ave annual deficit)

By 2020, world market demand


for cacao beans is projected at
4.7 5 M MT
Cacao producing countries
unable to fulfill the growing
demand worldwide

Certification of cocoa beans


(follow certain social and
environmental guidelines)

Current Statistics:
Mindanao
TOTAL PRODUCTION

4,366.52 MT
88% from Davao Region
5% from Northern Mindanao

NURSERIES
167 nurseries in Davao Region
11 are accredited
7 are located in Davao Region
40-50 nurseries in Zamboanga
2.8 3 M seedlings per year
Cost per seedling: Php 18-30

AVERAGE YIELD = 590

kg/ha

PRODUCTION FEATURES
Takes 3-5 years for yields to peak
Climate of Mindanao highly suited
Theobroma cacao spp. thrives well in humid
tropical lowland
Rainfall reqt: 1,150 - 2,500 mm
Temperature reqt: 21 30 C
Expansion of cacao farming thru intercropping

Philippine Cacao Production, 2013


Island
Group/Region

Production
Volume (in MT)

% Share to RP
Production

Luzon

293.60

6%

Visayas

215.47

4%

Mindanao

4,366.52

90%

TOTAL

4,875.59

100%

Vision
A Modern and Industrialized
Philippine Agriculture

Strategy: People-centered, Innovation-based and Market-Oriented Development (PIMOD)

4 Pillars

4 Sustainable
Development
Goals

4 Major
Objectives

Inclusive

Security on:

Productivity

Science-based
Resilience

Market-oriented

Food
Economic
Nutritional
Environmental

Enabling Mechanisms
Plans and Programs
Legislative Agenda

Profitability
Competitiveness
Sustainability

Irrigation

Infrastructure &
other logistics

Credit & other


risk management
tools

Mechanization

Marketing &
agribusiness

10 Action Points for a Competitive & Market-Oriented Agriculture

Sustainable land
management

Research &
development

Adaptation to
climate change

Empowerment
& institutional
capacity devt

Reformation of
the Bureaucracy

Challenge: Intensive yet Sustainable Production


Priority Areas for Action in the next 5 years

Action Points
Research & development
Accredited nurseries
Credit & other risk
management tools
Irrigation
Credit & other risk
management tools

1.

Increased access, availability and use of good quality


clean planting materials of HYVs

2.

Improved access to and availability of inputs including


efficient nutrient management

3.

Enhanced flow and quality of extension services for


Empowerment & institutional
cacao farming to facilitate adoption of good agricultural
capacity development
practices and sustainable farming practices
Sustainable land management

4.

Improved access to good manufacturing practices


(GMP) compliant postharvest facilities and extension
services

Mechanization

Challenge: Intensive yet Sustainable Production


Priority Areas for Action in the next 5 years
5.

6.

Action Points

Judicious utilization of existing coconut and banana farms Sustainable intensification


through cacao intercropping to increase areas planted to Increase potential production
cacao with priority given to contiguous areas
areas in Luzon, Visayas &
Mindanao
Improved physical/infrastructure linkages to input,
Infrastructure & other logistics
support, and product markets
Market

7.

Enhanced organizational capacity of farmer groups to


become effective economic players

Empowerment & institutional


capacity development

8.

Improved flow and transparency of information at all


nodes of the chain including basic traceability system

Reformation of the
Bureaucracy

9.

Improved access to facilities and resources to catalyze


value addition and lay the groundwork for commercial
scale processing of cocoa by-products

Credit & other risk


management tools
Mechanization
Processing
Marketing & agribusiness

Key Players & Functions


Department of Agriculture:
Private Accredited Nurseries:
Short Term
Acquisition of new planting materials or improvement
of existing materials to maintain competitiveness
Subsidized cost of planting materials
Training on nursery management

Push for accreditation of all nurseries


Long Term
R&D investment to appropriate partners in the light of
new challenges such as climate change and quality
requirement of domestic and international markets.

Key Players & Functions

Cooperative, Corporation, & Market Players:


With secured markets, farmers are more willing to invest

Improve the system of block farming where farmers


come together to cut down transaction cost & delivery
of extension services (Range in area: 50 to 400 ha)
Take great caution in the selection of planting materials
Provide and support to credit facilities (e.g. CSF)

Key Players & Functions

Crop Diversification & Intensification


Highly suitable/compatible under different
production systems (Intercropping e.g.
coconut or banana; multistory; agroforestry
farming)
Skills enhancement
Resolving land tenure status since many are
sharecroppers or tenants (explore
innovative ways of partnership)

Technical Support

Provision of pool of technical experts and


master farmers

ICT-mediated technical support

Soil Mapping
Determine soil health and produce soil maps
Soils are not only thirsty but also hungry
(effects of micronutrients)
Organize farmers and service providers to
minimize transaction costs (this will abate
inefficiencies in prices nationwide)
Efficient nutrient management is critical in cacao
farming to produce 2 t/ha from 590 kg/ha

Processors: Post Harvest & Processing

Key Players & Functions

Fermenting & Drying


27 fermentation facilities in Davao Region
Proper fermentation and drying to remove unpleasant flavors
Reduces weight of beans by 7-8%
Not done by farmers because of no access to facilities and skills
Requires good facilities: fermentation box, mechanical dryer, bean
sorter and storage to maintain the quality of the beans

Grinding/Processing
Since this basically home-based, provision of
village type grinding facility

Manufacturing
Manufacturing is a billion peso industry
Production system must improve and provide
support to entire value chain to benefit farmers
Niche markets for artisan chocolates

Traders/Manufacturers:

Key Players & Functions

Davao as the center of trading


(70-80 traders)
Need for organizing the farmers for bulk trading to minimize
transaction cost
Targeting the international market, multinational companies
can take over exporting operations directly to farms or thru
agencies, which calls for farmers organization

Exporters:
12 Exporters based in Davao
Farmers organization is very important so that they themselves
can process the beans, serve as integrators or consolidators at
the same time to directly deal with multinationals
Integrators & exporters are the two major parties oiling the
market chain because they provide pre-financing or working
capital to farmers and even act as facilitators to loans.
This can be resolved under the Framework!

Successful Cases in Cacao Industry


Rob Crisostomo, exports loads
of Philippine cacao to
Barry Callebaut, the worlds largest
supplier of high quality chocolate

Malagos 65% Dark Chocolate won a


Silver award at the 2015 International
Chocolate Awards World Drinking
Chocolate Competition in the Dark Drinking
Chocolate Category

Yes, the Filipino can!


Email me at:

Become an InangLupa volunteer, register at :

w.dar38@yahoo.com

http://inanglupa.weebly.com/become-a-volunteer.html