THE Davao City Cacao Council revealed a significant decline in cacao bean production in Davao City, with output dropping by approximately 30 to 50 percent. This downturn is attributed to escalating input costs, land conversion, and deteriorating soil health.
In response, the council is advocating for a local ordinance that would provide financial support and bolster the local cacao industry.
Wit Holganza, chairperson of the Davao City Cacao Council, emphasized the urgent need to institutionalize the cacao industry to preserve the city’s status as the “Chocolate Capital of the Philippines.” Speaking at the Business Forum held at Ahfat, NCCC Victoria Plaza on Friday, May 23, 2025, Holganza said the council is actively lobbying for legislation that would formally recognize the council as a key partner of the local government and institutionalize “Kasadya sa Kulturang Kakaw” as the city’s flagship event for cacao and chocolate stakeholders.
Despite the enactment of Republic Act 11547 in 2021, declaring Davao City the “Chocolate Capital of the Philippines” and the entire Davao Region the “Cacao Capital of the Philippines”, Holganza noted that no corresponding local ordinance has yet been passed to align with this national declaration.
She underscored the importance of such an ordinance in securing budget appropriations and ensuring the industry’s sustainable development.
The Davao City Cacao Council, which has been operating for over a decade in collaboration with the City Agriculturist Office (CAgrO), faces limitations due to its reliance on CAgrO’s budget, which cannot prioritize cacao over other agricultural commodities.
Holganza also highlighted the council’s efforts to gain a seat on the Meetings, Incentives, Conventions, and Exhibitions (Mice) Board, aiming to promote cacao products as official gifts during Mice events.
Currently, the Davao Region accounts for approximately 75 to 80 percent of the country’s total cacao yield, with about 60 percent of that coming from Davao City. Holganza emphasized the city’s significant contribution to both cacao bean production and the chocolate industry, citing the presence of numerous chocolatiers and micro, small, and medium enterprises (MSMEs).
The proposed ordinance seeks to advocate for regulatory support, provide financial and technical assistance to cacao farmers, and strengthen their capacities to cope with rising input costs and other challenges.
In 2024, SunStar Davao reported that the Department of Agriculture-Davao Region (DA-Davao) launched the Resilience Investment Inclusion for Sustainable Agrikultura (RIISA) program to support local farmers.
According to Fe Oguio, CAgrO Fruit Production focal person, the program is designed to boost productivity, restore soil health, and promote environmental sustainability.
While the Davao Region remains the country’s top cacao producer, Oguio acknowledged that it continues to struggle with low productivity, making it difficult to meet the growing global demand.
Jerick Axalan, market system development technical lead at Meda, said the RIISA program also focuses on building resilience among farmers through capacity-building initiatives and linkages with financial institutions.
He also cited initiatives like Cacao Caravan, Project Living Income, and partnerships with cooperatives as ways to enhance incentives for smallholder cacao farmers.