Kakao Konek: Leading the Philippines 2020 Challenge Cocoa Industry Development Association of Mindanao (CIDAMi) Apo View

Hotel, Davao City November 21, 2012 Theme: Transforming the Philippine Cocoa Industry for Global Competitiveness Talk points for Sec. Proceso Alcala *To be represented by Dir. Jennifer Remoquillo Ipinapahatid ni Sec. Alcala ang pasasalamat sa CIDAMi sa panyaya para makasali ang DA sa Kakao Konek. Gayunman, ibinibigay niya ang paumanhin at hindi siya nakadalo dahil sa isang prior commitment. Tataas na demand Masaya kami na makita ang industriya na aktibong nag-uusap at nagbubuo ng mas malakas na ugnayan. Sa totoo lang ay malaki pa ang potential ng industriya para umunlad at paunlad din ang buhay ng cacao farmer. Cacao has the potential, inaasahang tataas ang demand para sa cocoa, at aabot ito ng 5 million tons sa 2020, kapos sa inaasahang produksyon na 4 million tons. Kapansin pansin na nitong nakalipas na mga taon, tumaas ng three percent kada taon ang demand para sa chocolate, lalo na sa India at mga estado ng Russian Federation. Maswerte tayo na maaaring mapunan natin ang demand, bastat maiayos ang taniman at magamit angwastong teknolohiya. Based on data, malaki ang potential natin for expansion about 2,000,000 hectares of coconut lands are "highly suited" to be intercropped with cacao. The High Value Crops development Program (HVCDP) of the Department of Agriculture through the Regional Field Units are working together to ensure that these lands are fit for planting and that specific initiatives are in place. DA has partnered with private sector for the establishment of cocoa agribusiness zones - in Davao City, Compostela Valley, Zamboanga del Norte, Palawan, and Camarines Sur. In these centers, we conducted Training of Trainors (TOT) and given farmers access to quality cacao planting materials. DA interventions Apart from these, the HVCDP has the following interventions in partnership with various stakeholders: Establishment/rehabilitation and maintenance of production facilities (nurseries) We have to start with good quality planting materials. If gusto

natin tulungan ng mga magsasaka, lets start with the the right planting materials. Establishment of GIS based info on cacao. We have to locate the right areas suited for cacao. Regarding postharvest and processing support, DA is partnering with framers group, NGOs, Pos, LGUs and other stakeholders in the following:

Establishment of additional community based central fermentation and drying facilities in partnership with the private sector Fabrication of prototypes equipment for cacao (in coordination with PhilMech) Improvement of processing and packing techniques for quality product Capacity building and other forms of advocacies are also major interventions:

Comprehensive Extension Program through trainings (TOT, FFS, POT) and tri media approach and even internet Strengthening/harmonizing the linkage of the cacao stakeholders Support to research and development (Benchmarking on Industry Good Practices and Product development Market-Based Research). There are still researchable areas for cacao industry.

With these, we hope to assist farmers and entrepreneurs increase the productivity and income in the industry. Obstacles Yet, let me take this opportunity to stimulate further discussions on the following, as these are the obstacles to further growth of the industry: Weak farmer organizations or lack of organized group Absence of a long term, comprehensive national program and institution to facilitate faster growth Limited investments due to affordability and limitations in current financial services offered by GFIs

Conclusion With this congress, let me reiterate the DAS support to the industry. In my first two years at the helm of the Department, I have been open to regularly meet with the different stakeholders, conduct field visits and dialogue, so that we can address the concerns immediately and with concrete solutions. Together with the CIDAMi, we work to lay out a solid foundation for a sustainable growth in the industry. Again, the market is there for our Philippine cacao, its only a matter of us working together for Philippine cacao to gain a stronghold on the world market.

Thank you and Maayong Buntag sa Tanan.