CENTRAL Visayas is aiming to be part of cacao’s global value chain.
Of the country’s 100,000 metric tons (MT) of dried fermented beans target for 2022, the region, composed of four provinces, is aiming to produce 2,000 MT.
The rest will be supplied by the Davao region, which is the country’s biggest producer of cacao.
“It is very negligible, but activities are underway to further promote cacao farming and production in the region,” said Nelia Navarro, Assistant Regional Director of the Department of Trade and Industry (DTI) 7.
She said they are not limiting the cacao farming promotion to existing cacao farmers but also to coconut growers and to landed private individuals to convert their idle lots into cacao farms.
Moreover, DTI 7 will also revisit its local roadmap patterned after the national roadmap and include the thrusts for Negros Oriental and Bohol.
“We are putting it together. By the end of this year, we will be unveiling it,” said Navarro.
A National Cacao Congress is slated on Aug. 8 to 9 at Grand Convention Center, Cebu City.
The two-day activity will be attended by at least 500 guests who are farmers, producers and processors. It aims to present the 2017-2022 Philippine Cacao Industry Roadmap to make the industry competitive and sustainable.
Roadmap
The roadmap, which is anchored on the value chain approach, was crafted in consultation with the various industry stakeholders. It was signed last March by the DTI and the Department of Agriculture.
The roadmap aims to produce 100,000 MT of dried fermented beans by 2022 by increasing the productivity level, expanding production areas, moving up the value chain, strengthening market presence through branding and by focusing on five flavor beans.
“We aim to encourage more farmers to plant more at a quality that the world requires,” said Navarro, adding that it is high time for Filipinos to look at cacao farming not just as a backyard pastime but as a commercial venture.
Demand for cacao globally has nearly tripled since 1970, growing at an annual rate of three percent with China and India growing at 7.9 percent on the back of key growth drivers such as its positioning as a healthy food; the shift to the “pure” and dark chocolate market, requiring more cacao content; expanding middle-income class; and higher chocolate buying capacity.
The global grinding requirement was forecast at 4.146 million MT. Major grinders are based in Europe and the Americas at 39 percent and 22 percent, respectively.
Asia’s grinding requirement stood at one million MT, but only 0.5 million MT can be supplied and these are coming from the Asean region.
Advantage
The Philippines is among the countries in Asia seen to have a competitive advantage in cacao production given its strategic location, growing condition and the over two million hectares of coconut farms which are ideal for coconut-cacao intercropping.
“Cacao is an equatorial plant (a crop that thrives well on regions occupying the equator). Luckily, the Philippines is on the equator, giving us high chances to produce high quality cacao beans,” said engineer Edwin Banquerigo, National Cacao Industry Cluster Coordinator of the DTI in past interviews.
The Philippines ranks 72nd in cacao exports with global market share of less than 0.01 percent. Its production stands between 10,000-12,000 MT from the 25,000 hectares planted, not enough to meet the local grinding requirement estimated at 40,000 MT, making the country a net importer of cacao and cacao preparations.
The country’s exports and imports of cacao and cacao preparation stand at $12 million and $178.8 million, respectively.