The world market needs 3.6 million tons of cocoa every year, and this demand is growing annually by 90,000 tons. The productions come from Africa, which comprises 68 percent of the global production, and South America 14 percent.
The Philippines contributes only 0.16 percent of the total production and yet anywhere in the country is ideal to grow cocoa, according to Nic K. Richards, chief of party of the ACDI/VOCA, adding that Mindanao is ideal for cacao production, except in higher places in Bukidnon. At least, 1,400 meters altitude is okay. Mindanao is the land below the wind because it does not have typhoons, and has good rainfall and good soil. But, cacao would grow anywhere in the Philippines.
There is a big gap between the domestic demand and supply of cocoa in the country.
Some 30,000 tons of cocoa products are imported every year, which include beans, powder, butter and liquor. But, Filipino farmers can only produce about 6,000 tons of cocoa a year.
“The problem of the market is there’s not enough beans. This is really a fantastic situation. It’s getting worse and worse. The world needs more and more beans. Productions can’t keep up with demand,” Richards said.
But, the potential for export is even bigger, he said. Countries from Southeast Asia import 200,000 tons of cocoa every year from South America and Africa, but not from the Philippines which is just right at their doorsteps. “It’s because the country does not produce enough quality beans that are needed by the grinding facilities in places like Kuala Lumpur, Thailand, China and Singapore,” he added.
More cocoa farms
Richards believes that by 2020, the Philippines can produce 100,000 tons of cocoa, but this would mean 50 million more cocoa trees should be planted in the next ten years. That requires 150-200 thousand hectares of land.
“The big questions are, ‘Who will plant these trees? When will they be planted? And, who’s going to pay for it?” Richards said. He mentioned that some leaders in the banana industry are looking for other opportunities, and that cocoa is an option. A good model is that there will be larger agri-business investors who could provide the capital, lead the way in setting up nurseries, and in selling cocoa seedlings to smallholder farmers so that the country can minimize the risk of the banana industry.
By 2020, 100,000 tons of cocoa is achievable as long as the production is coordinated; there is enough funding, large-scale agri-business sector will invest in it, and financing will be set up for farmers. These, Richards said, are what the country does not have today.
“I urge farmers and agri-business sectors to invest in cacao because it’s a wonderful opportunity. It’s a wonderful crop in diversifying the existing tree crops and in making more money. And the market is there, now, waiting,” he added.
Leo Avila, chief of City Agriculture Office, agreed that cocoa production is a re-emerging industry that may complement the country’s banana export industry. “In fact, we are fully supporting this reemergence. We are closely coordinating with the Cocoa Foundation of the Philippines (CocoaPhil) to develop more cacao farms here. Cacao is also an agroforest commodity that works well with current agricultural development strategy in the uplands,” he said.
In 2006-2009, the ACDI/VOCA implemented its project, Sustainable CoCoa Enterprise Solution for Smallholders or SUCCESS Alliance Philippines Project Phase II (SA II), with funding from the United States Department of Agriculture in partnership with the CocoaPhil, World Cocoa Foundation (WCF) and MARS, Incorporated.
Being implemented also in Indonesia, Vietnam, Ecuador and Liberia, SA II helped improve the quantity and quality of cocoa grown by smallholder farmers. This was through the adoption of farmer and environment safe farming and post harvest systems and practices, to establish a regular source of income for cocoa farmers.
This had contributed to the increase of cocoa product exports by six fold. Based on the records of the Bureau of Customs 11, cocoa exports increased from 151 metric tons in 2008 to 1,112.63 metric tons in 2009. The main importing countries in 2008 were China and the United States, but the market expanded to Europe and neighboring countries in 2009.
“We are typically a development organization. Our main intention is to help people recognize the problems and help them to discuss the solutions, bring in some international partners to help the situation progress, and to introduce the supply chain to new opportunity,” Richards said.
Since 2009, the organization started the Cocopal project engaging 25,000 farmers in Western Mindanao and Southern Mindanao. This will help them earn more money from growing cacao, coconut, rice and corn for food security and cash crops projects, taking the value chain approach in development.
“We are working on projects to help farmers to look at low cost inputs to help them get better return. We help in aspects like pest and disease control, organic fertilizers, and many others,” Richards said.
The ACDI/VOCA, which provides some inputs to farmers, will be setting up 75 post-harvest processing facilities for cocoa, coconut and rice, and distributing coconut and rice seeds, and cocoa clones to farmers.
“We bring groups of 100 farmers together, work with each other, share their knowledge and information, learn new ideas and then hopefully they’ll start to build up social capital. They will start to apply that to whatever they want to do next—groups of marketing, production or exports,” Richards added. [Lorie Ann A. Cascaro]
