Bright future for cacao industry

“Chocolate is a divine, celestial drink, the sweat of the stars, the vital seed, divine nectar, the drink of the gods, panacea and universal medicine.” – Geronimo Piperni

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Mention Davao Region (Davao del Sur, Davao del Norte, Davao Oriental, Davao Occidental and Compostela Valley) and what agricultural crops come to mind?  On top of the list is banana (which the region is exporting to other countries).  Then, there’s the controversial durian (yes, the fruit which smells like hell but tastes like heaven).

In the near future, Davao will be known as the “chocolate capital of the Philippines.”  With 23,000 hectares planted to cacao, the region accounts for 80% of the national production.  (The other 10% comes from the rest of Mindanao; Luzon and Visayas contributes the remaining 10%.)

“Accounting for 90% of the local cacao production, the spotlight is now on Mindanao with Davao as the country’s chocolate capital, even as the farmers face the challenge to meet the growing demand for Philippine cacao, indicating international recognition of its quality,” said Davao City Mayor Sara Duterte-Carpio in a speech last year.

Cacao (known in the science world as Theobroma cacao) has been grown in the region for several decades now.  But it was only in recent years that cacao has caught the attention of the international market.

It all started in 2009 when Shawn Askinosie, whose Missouri-based confectionery produces the world-famous Zingerman’s Deli, ordered some high-quality fermented cacao beans from Puentespina Farms in Malagos.

“It was the first ever cacao bean export in the country after several years,” recalled Charito Puentespina, a former orchid grower who is now engaged in cacao farming.  She added that it was Mars Chocolates that helped her tie up with Askinosie.

“Dry, like a full-bodied well-aged red wine,” was how Askinosie described the Davao chocolate.  So, he ordered more and from the said shipment, he created the first batch of the now-famous Askinosie 77% Davao Dark Chocolate Bar.

Due to the success story of Puentespina, other farmers in the region are following suit.  “Today, select beans from Davao reach customers in the US and Europe through huge, high-end chocolatiers like Switzerland’s Barry Callebaut and commodity brokers like London’s Armajaro,” Lester V. Ledesma wrote in an article which appeared in an in-flight magazine.

Cacao was first cultivated by the Mayas around the 7th century A.D. They carried the seed north from the tropical Amazon forests to what is now Mexico. In the 16th century, the Spanish planted cacao across South America, into Central America, and onto the Caribbean Islands. In the 17th century, the Dutch transported the cacao to other places around the globe like Java, Sumatra, Sri Lanka, New Guinea, and the Philippines.

“In 1670, Spanish mariner Pedro Bravo de Lagunas planted the first cacao in San Jose, Batangas,” reports “The Philippines Recommends for Cacao,” published by the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development.  After that, cacao growing flourished in various parts of the country – until pod rot wiped out plantations of it.

In the 1950’s, the imposition of Import Control Law resulted in efforts to revive the industry by inter-governmental agencies and by private sector for self-sufficiency and export.  By the time the industry was blooming, pod borer infestation surfaced.  Control of the disease was quite expensive.  As a result, established plantations were again wiped out; others were abandoned.

This particularly happened in Mindanao, where most of the cacao crops were grown.  In 1990, about 18,388 hectares were planted to cacao, according to the Department of Agriculture.  By 2006, the area declined to less than 10,000 hectares.  During this period, production fell from 9,900 tons to about 5,400 tons, with two-thirds of the production coming from Davao region alone.

As production plummeted in the country, demand for cocoa beans in the international continues to grow.  “The world demand for cacao has nearly tripled since 1970 growing at an annual rate of 3% with China and India growing at 7.9%,” notes the “2017-2022 Philippine Cacao Industry Roadmap.”

There are several reasons why there is a sudden demand surge of cacao beans.  “One of the primary drivers of this increase is the growing middle class, increasing discretionary household income in developing countries, new and innovative uses of cocoa in the food, cosmetics and pharmaceutical industries, and the positioning of cacao as health food,” the cacao roadmap points out.

In a recent report, the agriculture department said the global demand is expected to reach between 4.7 million metric tons to 5 million metric tons by the year 2020.  The global supply, however, will be at a deficit of 1 million metric tons.

Currently, Africa supplies 68% of the global production while South America provides 14%.  The Philippines contributes a measly 0.16% to the global market.  It is exporting cacao to the United States, Singapore, New Zealand and some parts of Europe.

Although it exports, the Philippines also imports as its local annual consumption is 50,000 metric tons while the production is only 10,000 metric tons.

“The growing number of restaurants and coffee shops serving cocoa-based drinks and food items, and the growing industry of medium and small-scale chocolates requiring high quality cocoa beans contributed to the attractive price of cacao in the domestic market,” the cacao roadmap reports.

The challenge now, according to the Cacao Industry Development Association of Mindanao Inc. (CIDAMI), is to produce 100,000 metric tons by 2020 and onwards.

In Mindanao, majority of cacao producers are small farm holdings.  Based on aggregate data from Philippine Provincial Agriculturist Offices, Davao Region has more than 20,000 hectares of cacao farms, with Davao City having the largest area of 6,060 hectares.

Since cacao is considered an equatorial crop (crops that thrives well on regions occupying the equator), the Philippines has a great potential growing cacao.  “I really could not believe why we cannot import cacao beans when the Philippines is ideal for cacao growing,” says Roy C. Alimoane, director of Mindanao Baptist Rural Life Center (MBRLC). “Mindanao, for instance, is best for cacao production.”

Although cacao can be grown anywhere in the country, but Mindanao has two advantages: good rainfall and good soil.  Studies have shown that the potential expansion for cacao growing is huge: about 2,000,000 hectares of coconut lands are “highly suited” to be interplanted with cacao.

Although the cacao roadmap observed that there was an increase of areas planted to cacao from 2005 to 2014, the volume of production was still at half to one kilogram per tree per year, which is way below the targeted 2 kilograms per tree per year.

“Aging cacao trees, lack of good agricultural practices, and scarcity of high-yielding planting materials are among the factors affecting the yield and production volume of the industry,” the cacao roadmap notes.

To those who want to plant cacao in their farms, here are some tips from “The Philippines Recommends for Cacao”:

  • The use of seeds is the most method of planting cacao. Seeds must be selected carefully and must come from big pods obtained from trees which are highly productive, regular bearers and free from pests. Seeds must be planted immediately since their viability is limited.
  • Seedlings to be retained in the nursery for 3-4 months must be raised in polyethylene bags. The seedlings are shaded both above and at the sides for protection against strong winds. Coconut palm fronds can be used for the purpose.
  • Transplanting can be done when the shoots become mature and the leaves become hard and dark green. Utmost care is necessary in transporting as the seedlings are very pone to transplanting shock.
  • Care should be taken to remove the polyethylene container with minimal disturbance. Seedlings are to be planted at the same depth as they were in the polyethylene bags. Topsoil is poured into the prepared hole a few centimeters at a time and then carefully pressed down.
  • Proper maintenance such as weeding, mulching, fertilizing, pest control, shade adjustment and pruning are necessary to keep the trees healthy and obtain high production. Harvesting may be done in about three to five years after planting.

Due to the high demand of cacao beans, more and more farmers are now planting cacao in their farms.  The profitability of cacao production has convinced Ramon T. Ubando, a handicapped farmer from Opao in Dapitan City, to go into cacao farming.  Because of a severe vascular disease he acquired since childhood, the middle of his right hip and knee in his right leg had to be amputated.  That was in 1973 when he was still 40 years old.

Twelve years ago, he became interested into farming.  He raised some livestock in his backyard to make both ends meet. “His farm was augmented by his inquisitive efforts of seeking crops and technologies that alleviates economic status of his family,” reports Ariel A. Lao-ay, who used to work as a technician for a cacao program initiated by the United States Department of Agriculture and the Philippine government.

That was how Ubando discovered cacao growing; thanks to a six-month training conducted by the Department of Agrarian Reform.  Equipped with technical skills and enthusiasm, he started a 100-hill cacao budwood garden in one-fourth of a hectare in his farm.  He propagated and maintained five different cacao clones.  “Cacao puts cash into my empty pocket,” he pointed out. – ###

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