CORDILLERA cacao farmers are being urged to increase their production by 1,000 metric tons (MT) by 2022.
This was the challenge given by the national target of 100,000 MT quality cacao beans production of the National Cacao Industry Cluster (NCIC) Technical working group (TWG).
Cordillera alone contributes 0.5 percent (28-30 MT) of the total national cacao production with Apayao having the highest production in the region with 70 percent, followed by Kalinga with only 18 percent. In the country, Davao contributes the largest with 80 percent.
Department of Trade and Industry – Abra Director Arell Banez who is also the Regional Cacao Industry Cluster Coordinator, said there are more consumers compared to the producers of cacao.
Major cacao consumers are not producers, and the global supply shortfall is by one million metric ton. The Philippines is the first in Asia in terms of planting and growing cacao but is still a net importer.
Ninety percent of producers are still small farmers though the production cost is estimated to be around P40 per kilogram.
According to Euromonitor International, the Philippines’ chocolate market is forecast to grow by 13 percent in 2017 to $306.3 million.
With the continuous uptrend of chocolate demand worldwide, the different stakeholders in the country's cacao industry saw this as an opportunity to strengthen, develop and promote the industry.
It was estimated that 100,000 farmers will get additional income of at least P130,000 per hectare/year with an additional national earnings of at least $250 million.
Global demand for cacao never went down and even nearly tripled since 1970s with the price continually increasing.
Having the high consumption pattern in non-cacao producing countries, it was projected there would be a shortfall by one million MT by Year 2020. This is also because existing cacao producing countries cannot deliver the extra volume.
Valente Turtur, the co-chairman of the National Cacao Industry Cluster TWG, said in the Philippine setting, cacao defy the law of supply and demand.
The highest production peak and demand are the same, from October to mid-January, and is also the period where the price incredibly increase worldwide.
Global consumers are also shifting to dark and pure chocolates because it is healthier. Thus, requiring more cacao content. There is also no known substitute for cacao in chocolate production.
The projections on cacao production and demand were presented at the Investment Clinic and Techno Forum on Cacao Stakeholders last May 19-20, where more than 100 cacao farmers and representatives of line agencies from the six provinces of Cordillera attended.
Cacao is grown mainly for its beans processed into cacao powder, cake/tablea and cacao butter, which are largely used in the manufacture of chocolates, soaps, cosmetics, shampoo and other pharmaceutical products.
It is also suitable for intercropping, no need for new areas, monocropping and agro-forestry.
The 2022 Cacao Challenge aims to produce 100,000 MT of fermented beans by year 2022 for the export and domestic markets through a 40 percent annual increase in production.
NCIC aims to attain this through industry strengthening, expansion and promotion, improve farm productivity, increase production and access to quality planting materials, increase in value adding activities, strengthen market linkage and promotion, continual research and development, resource mobilization and generation. (Jenny Dayao/DA-CAR)