Hundreds of cacao farmers across Davao stand to benefit from rising demand for locally produced chocolate as industry players invest in programs that help growers improve productivity, product quality, and income opportunities.
The effort comes as Davao City strengthens its position as the country's chocolate capital, producing the bulk of the Philippines' cacao supply and attracting new market opportunities for farmers.
Among the companies championing a farmer-centered approach is Cacao de Davao, a homegrown chocolate manufacturer that sources cacao beans directly from local farming communities and works with growers to improve their operations beyond crop production.
Speaking during the Habi at Kape Business Forum on June 3, Cacao de Davao founder and chief executive officer Ethan Kyle Lim said the company's success depends on the growth of its farmer partners.
"Our focus is to work directly with farmers. We source our cacao beans from partner farms in Calinan and help them improve processing, quality control, and farm systems. Beyond buying their beans, we want to help them grow their businesses," Lim said.
Calinan District remains one of Davao City's major cacao-producing areas and serves as the company's primary sourcing base. Rather than relying heavily on traders and consolidators, the company purchases beans directly from selected farms, allowing growers to capture more value from their harvests.
The model reflects broader efforts within the cacao industry to strengthen the position of smallholder farmers, many of whom manage only a few hectares of land. Industry advocates say access to technical support, quality improvement programs, and reliable markets remains critical to increasing farm incomes.
According to the Department of Agriculture-Davao Region, the region contributes more than 70 percent of the country's cacao production, producing about 7,800 metric tons of dried cacao beans annually. Davao Region also hosts nearly 20,000 hectares of cacao farms, making it the country's largest cacao-producing area.
The industry's significance was formally recognized through Republic Act No. 11547, which declared Davao City as the Chocolate Capital of the Philippines and the Davao Region as the nation's Cacao Capital.
Despite its dominance, the sector continues to face challenges, including inconsistent farm productivity, post-harvest losses, and maintaining bean quality amid growing local and international demand.
Lim said expanding market access is one of the most effective ways to help farmers earn more from their produce.
"The goal is to create more opportunities for businesses in Davao while promoting our local cacao industry. We already have the quality and the supply, and we want more consumers to discover what Davao cacao can offer," Lim said.
To boost visibility for Davao-origin chocolate, the company has partnered with restaurants, cafés, and lifestyle brands that incorporate locally sourced chocolate into their products and menu offerings.
One recent collaboration involved Muni Mixology and Kitchen, which introduced beverages featuring locally produced chocolate. The company has also partnered with Lamano and Siempre, among others, to showcase chocolates made from cacao beans sourced from its partner farmers.
Lim said each partnership helps create additional demand for locally grown cacao while introducing more consumers to Davao-made chocolate products. Additional collaborations, including one with Hey Monday Davao, are expected in the coming months.
The company's farmer-focused approach is also attracting interest from local governments seeking new agricultural livelihood opportunities.
In Davao Occidental, the municipality of Jose Abad Santos is exploring a partnership with Cacao de Davao to help develop a more organized cacao industry for local farmers.
Mayor Jason John Joyce said the town sees strong potential in cacao farming because of growing market demand and the availability of agricultural land suitable for expansion.
"Nakita natin na meron talagang market ang cacao dito sa Pilipinas, and because of that, naisip ko na one of the livelihood programs sa Jose Abad Santos, maybe we can collaborate with Cacao de Davao na magsimula ng cacao farms sa JAS (We have seen that cacao has a real market in the Philippines, and because of that, I thought cacao farming could become one of the livelihood programs in Jose Abad Santos. Perhaps we can collaborate with Cacao de Davao to establish cacao farms in JAS)," Joyce said.
Although cacao trees already exist in the municipality, most are grown in backyard farms rather than commercial plantations. Local officials are studying opportunities to expand production through dedicated cacao farms and intercropping systems alongside coconut trees, which dominate the area's agricultural landscape.
Jose Abad Santos has around 70,000 hectares of land, most of which is classified as agricultural. Officials believe cacao can provide farmers with an additional source of income while diversifying agricultural production.
For industry advocates, such developments highlight the growing recognition that the future of Philippine cacao depends not only on expanding markets but also on strengthening farming communities.
As Davao chocolates continue gaining recognition in specialty markets and international trade circles, stakeholders say long-term industry growth will ultimately depend on how effectively farmers are integrated into the value chain.
For companies such as Cacao de Davao, that means ensuring that every effort to promote Davao chocolate also creates more opportunities for the farmers who grow the beans. DEF
