Saturday, November 15, 2008 Rising world prices of cocoa boost Davao's cacao industry
RISING world prices of cocoa is expected to benefit thousands of cacao farmers in the Philippines, particularly in Davao Region, amid a global recession next year, said Edward David, president of the Cocoa Foundation of the Philippines (CFP).
David said the country needs to produce at least 100,000 metric tons of cacao beans -- the raw material for making chocolate -- by the year 2014 from the current average output of only 6,000 metric tons yearly.
"We have to take advantage of the big world demand for cocoa beans, but our country's production output is still so small and we need to plant more cacao trees," David said.
According to the CFP president, cacao farmers in the Philippines need to plant 50 million cacao trees during the next seven years. Some 400,000 cacao trees that had been neglected will also be revived, all the way up to the year 2014 to be able to reach the country's production target of 100,000 metric tons.
Presently, the country has only 1.5 million trees producing only around 6,000 metric tons annually.
Davao Oriental, the country's top cocoa producer with nearly 4,000 hectares planted to cacao trees, has set into motion a development program to expand cacao production with plant materials using high-yielding varieties.
This includes training programs for cacao farmers in crop management and post-harvest techniques, according to agriculturist Rene Pintor of San Isidro town in Davao del Norte, now emerging as the Philippines' "cacao capital".
The 2.6 million US dollars program funded by the US Department of Agriculture with the help of Mindanao Rural Development Program (MRDP) is expected to boost the cacao production output in Davao Oriental. Other cacao-producing areas that were recipient of the US funding assistance are North Luzon, Sorsogon, Antique, Camarines Sur, Basilan, Palawan and Iloilo.
"We've been receiving so many inquiries from foreign buyers about our cacao plantation. Some of these buyers from the US and Europe came to visit us and see our cacao trees, asking about our production output and prices," Pintor said.
World prices of cocoa beans have gone up to 3200 US dollars per metric ton this year compared to last year's 1007 US dollars, according to CFP.
Bright prospect for the cacao industry in Davao City is expected to boost the exports of cacao beans and cocoa from the region, generating more dollar earnings and providing more livelihood and jobs for Filipinos, according to Department of Trade and Industry (DTI) acting regional director Marizon Loreto.
"There's a lot of potential for the cacao industry here that will surely benefit so many farmers, processors, traders and exporters in this region," Loreto said.
Global consumption of chocolate has been rising three percent annually with new market demand growing steadily in countries like Central Asia and Eastern Europe, especially mainland China, India and various states of the Russian Federation.
