CacaoWatch DECEMBER 2012

Featuring

Kakao Konek:

International Cocoa Conference and more...

N e w s l e t t e r - S p e c i a l I s s u e

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The Road to Konek : Bridging the gap

Year 2011 has left a very significant mark in the development of Mindanao ’ s cocoa industry.

It was during this year that several cocoa industry players from various parts of the country

were gathered in an event dubbed as the Philippines Cocoa Investment and Development

Workshop (PCIDW). The event provided a platform for cocoa industry players to talk about

issues, challenges and opportunities affecting the country ’ s cocoa industry.

The workshop has allowed the cocoa value chain representatives to see how vast the

opportunities that awaits the industry. However to be able to fully take advantage of the

opportunities presented, cocoa stakeholders have seen a vacuum that hinders the industry to

swiftly move forward. That is, the lack of industry leadership that will orchestrate all efforts

and steer it towards achieving the Philippines 2020 Cocoa Challenge which seeks to produce a

total of 100,000 MT of quality and fermented dried cocoa beans by year 2020.

The most significant impact of the PCIDW was the birth of a new and vibrant industry leader,

the Cacao Industry Development Association on Mindanao, Inc. (CIDAMi). An industry

association composed of various cocoa value chain players, CIDAMI has now become a

reputable cocoa industry association and has continued to gain recognition and support both

from the government and the private sector.

With its one year of operation CIDAMi has conducted several meetings, promotional

campaigns and coordination/collaboration efforts with various cocoa industry stakeholders

including the government to promote cocoa industry development and investment. CIDAMi

has also collaborated with ACDI/VOCA through the latter ’ s USDA funded CoCoPal Program to

support cocoa industry development.

Among the ACDI/VOCA and CIDAMi ’ s collaborative efforts is the conduct of the Kakao

Konek 2012: International Cocoa Conference. Kakao Konek 2012 was organized by CIDAMI

with support from ACDI/VOCA. The event has

recently became the “talk of the town ”

especially among agriculture players as it did

achieved greater heights and was able to get

a quantum leap by putting the industry ’ s

best foot forward.

Vision – Mindanao, a world-renowned quality cocoa Producer Mission – Bring positive environmental and socio-economic benefits to farmers, families and communities from sustainably-produced cocoa Values – Commitment, Service, Respect, Integrity

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Kakao Konek 2012 : A taste of a sweeter future

Davao City, Philippines – Over a thousand individuals representing various players of the

cocoa value chain from different parts of the country and international stakeholders flocked to

Davao City to join the first ever International Cocoa Conference dubbed as Kakao Konek 2012.

The event successfully brought together under one roof key individuals and groups from input

suppliers, farmers, cooperatives, nursery operators, traders and consolidators, processors and

exporters and service providers including financial institutions, academe, various development

organizations and the government from municipal, provincial, regional and national levels.

Moreover, international participation highlighted buyers and development oriented institutions

from five continents. Among them were representatives from Mars Inc., Armajaro Malaysia,

INGENIC Group from Indonesia, Malaysia, Vietnam, Papua New Guinea and India. Other

development organization and private company representatives present during event came

from France, Canada, Singapore, Guatemala, United Kingdom, USA, Australia and the

Netherlands.

Kakao Konek 2012 which was held for three days, successfully staged a mix of activities which

catered to the needs of the increasing number of cocoa industry players especially the

farmers. The Kakao Konek conference was a mix of plenary and breakout sessions which seek

to address the challenges and optimize opportunities to enable Mindanao to meet the

Philippines 2020 Cocoa Challenge.

Pool of industry experts and resource persons has joined forces to help the country achieve its

target. Among the topics delivered by individual and organization representatives during the

plenary were the following:

TOPIC RESOURCE PERSON

Day 1 - Plenary

CIDAMi’s goals and objectives. Its role in leading the Philippine Cocoa 2020 chal-lenge and how the KakaoKonek event objectives will bring about convergence of cocoa value chain actors.

Charita Puentespina – Chairperson of CIDAMi

Keynote Address: Transforming the Philippines Cocoa Industry for Global Com-petitiveness - How do policies and projects on HVCDP promote opportunities for the Cocoa stakeholders? What are some ways forward the government is taking, to support Mindanao in meeting the 2020 challenge?

Ms. Jenny Remoquillo, National Coordina-tor High Value Crops Development Program (HVCDP) - Department of Agriculture

United States Department of Agriculture – Food for Progress – How can CoCoPal Program help smallholder farmers improve food production and incomes / USDA Capacity Building Programs in the Philippines

William Verzani – US Embassy Agricul-tural Attaché Foreign Agricultural Service U.S. Department of Agriculture

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TOPIC RESOURCE PERSON

Day 1 - Plenary

Exploring regional & global markets for Mindanao’s 2020 cocoa economy

Nicholas Richards, ACDI/VOCA Chief of Party

Emerging global trends in cocoa supply & demand Daniel Liew, Trading Manager - Armajaro

Positioning Mindanao Cocoa Brand for High Value and High Quality Cocoa Production

Dr. Chow Boi – Honorary secretary of the Cacao Association of Asia / Resident Consultant & Origin Expert - Mars, Inc

Mindanao, leading the Phil 2020 Cocoa Challenge: The Chocolate de San Isidro Experience

Dr. Gil Yarra, Chairman, Chokolate de San Isidro, Inc.

Constraints & Opportunities for Increasing Competitiveness for 2020 Cocoa Economy

Colin Taylor - Senior Agribusiness Specialist & Country Sector Lead, International Finance Corporation

Price Risk Management for Producers and Exporters Senen Perlada - Director, Bureau of Trade & Export Promotion, Department of Trade & Industry

Engaging Cocoa Value Chain Actors to Meet the 2020 Chal-lenge : Lending Programs for Cocoa Stake holders

Charlotte Conde Landbank of the Philippines

Engaging Cocoa Value Chain Actors to Meet the 2020 Chal-lenge : Small Enterprise Technology Upgrade Program (SETUP)

Dr. Tony Sales, Regional Director, DOSTX1

Engaging Cocoa Value Chain Actors to Meet the 2020 Chal-lenge : Investment & Financing

Gondelina Amata, President National Livelihood Development Corporation

Day 2 – Plenary

Development of Improved Cocoa Clones for Farmers Dr. Smilja Lambert, Cocoa Sustainability Research Manager Asia Pacific, Mars Inc.

Case of Phil Cocoa Clones Dr. Romulo Cena,

Case of Malaysia Cocoa Clones Dr. Haya Ramba

Case of Vietnam Cocoa Clones Dr. Pham Hong Duc Phuoc

Current Status of Cocoa Planting Materials in Indonesia

Dr.Agung Susilo Indonesian Coffee and Cocoa Research Institute

Case of Papua New Guinea Cocoa Clones Dr. Jeffrei Marfu

Developing Sustainable and Effective Nutrient Management Packages for Cocoa Production

Soetanto Abdoellah Indonesian Coffee and Cocoa Research Institute

Day 2 – Breakout Sessions

Peer2Peer Discussion on Pest &Disease Management Best Practice : Effective Pest Control for Cocoa

Peter Cruz, Mars Cocoa Development Center with Representatives from INGENIC Group

Conserving Biodiversity in Cocoa Certification Annabelle Calicdan, Certifications Manager Rain Forest Alliance

Bio-intensive Cacao Farming System Dr. Divina M. Amalin DOST / DA-BAR Project Manager

Harnessing the Potential for Farm Diversification : The Na-tional Greening Project / National Convergence Initiative

Ms. Remedios Evangelista, Chief Reforestation Division – Forest Management Bureau Department of Environment and Natural Resources

Intercropping Cacao & Banana : The Cacao Banana Agri-enterprise Development Project

Rene Dalayon, CEO Federation of Cooperatives In Mindanao

Davao: Cacao & Sustainable Agroforestry Leonardo Avila, City Agriculturist Davao City

Developing Next Generation Cocoa Farmers : Commission on Higher Education-GK Village universities

Tony Meloto, Founder Gawad Kalinga (GK)

Developing Next Generation Cocoa Farmers: The Farmer Entrepreneurship Program Experiences

PEDRO TERRY R. TUASON III Agri/NRM Program Manager CRS Philippines

Developing Next Generation Cocoa Farmers : The CoCoPal Program’s Farmer Field School

Janoz Laquihon, Training and Extension Coordinator ACDI/VOCA CoCoPal Program

Developing Next Generation Cocoa Nursery Operators Alfredo Corpuz, Manager/Owner ACS Plant Nursery and Services

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Conference Highlights: A taste of a sweeter future

The Philippines cocoa industry is diverse such that each player/segment of the value chain

would have different need and different solutions. As a reemerging industry however, a

challenge that cuts across the value chain has made Philippines cocoa industry players come

together to address the same issue that affects them. That is, Philippines 2020 Cocoa

Challenge.

Kakao Konek 2012 was a very significant event that has successfully encouraged all

stakeholders to put what they ’ ve got on the table that can contribute towards achieving the

goal. The event succeeded in getting the commitment both from the private sector and the

government to support Philippines cocoa industry development initiatives. Key representatives

during the event have signified their support through a ceremonial signing of the Pledge of

Support which was witnessed by the conference delegates.

Aside from the pledge of support, actual undertakings geared towards cocoa industry

development were launched during the event which signaled the how serious the industry is in

hitting their target. Among them were the following:

MOA Signing : Partnership Agreement between Mindanao Development Authority (MinDA)

and the Cacao Industry Development Association on Mindanao (CIDAMi). The agreement

focuses on collaboration of both parties in promoting the development and expansion of the

cocoa industry in Mindanao.

MinDA is a government agency created under Republic Act No. 9996 which seeks among

other things, to establish an effective institutional mechanism to address the need for

coordinated and integrated approach in the formulation and integration of inter-regional and

Mindanao-wide programs, projects and activities. MinDA ’ s role is to promote, coordinate and

facilitate active and extensive participation of all sectors to effect the socio-economic

development of Mindanao.

Photo: MinDA and CIDAMI inked MOA for cocoa industry development cooperation during the Kakao Konek 2012 Conference

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The National Greening Program (NGP) – The National Government on its part through its

representative from the Department of Environment and Natural Resources (DENR) presented

the National Greening Program. NGP was formed through the Executive Order No. 26 signed

on February 24, 2011 and was formally launched last May 13, 2011.

NGP ’ s Declaration of Policy states that, “It is the policy of the State to pursue sustainable

development for poverty reduction, food security, biodiversity conservation, and climate

change mitigation and adaptation.

The National Greening Program shall plant some 1.5 Billion trees covering about 1.5 Million

hectares for a period of six (6) years from 2011 to 2016, in the following lands in the public

domain. NGP ’ s mission goes beyond reforestation; it seeks to address the following:

- Food Security - Poverty Reduction

- Environmental Stability - Biodiversity Conservation

- Climate Change Mitigation & Adaptation

In the NGP Commodity Roadmap 2013-2016, it targeted some 62,202 hectares of land to be

planted with grafted cocoa seedlings. This would sum up to a total of 31,101,000 grafted

cocoa seedlings. The shift to planting grafted cocoa seedlings by the project was made

possible through the initiative of CIDAMI through its collaboration efforts with the DENR.

NGP is a convergence program of the Department of Environment and Natural Resources,

Department of Agriculture and the Department of Agrarian Reform.

Photo: DENR Representative Remedios Evangelista (with microphone) the Chief of Reforestation Division, Forest Management Bureao of DENR presented the National Greening Program during the Kakao Konek 2012 conference

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Cacao Industry Profile – Joining the battle in meeting the Philippines 2020 Cocoa Challenge

is the Department of Trade and Industry (DTI). This transpired as the agency recognized the

lack of industry statistics that can guide potential investors and other cocoa stakeholders in

getting a better understanding of the country ’ s cocoa industry. In collaboration with CIDAMI,

ACDI/VOCA and other support agencies DTI compiled a comprehensive cacao industry profile,

a book which was printed with a funding from the DTI. Initial copy was launched during the

Kakao Kulinarya, a side activity of the Kakao Konek which was also a networking night held at

the Abreeza Mall in Davao City.

For the book to be able to reflect the actual picture of the industry possible, DTI

Undersecretary Merly Cruz committed that the agency will lead in pooling all industry data

together so that these will be reflected in the final version which will be funded by the agency.

Cruz called the book a white paper that needs to be constantly updated to adjust to the

changes of time. That according to her would ensure efficiency and usability of the industry

profile publication.

And further stressing its commitment, DTI continues to collaborate with CIDAMI on

sustainable programs and projects through Industry Clustering Approach.

Photo: CIDAMI Board Members headed by their Chair Mrs. Charita Puentespina (3rd from right) during the ceremonial turnover of the Cacao Industry Profile book handed by DTI Undersecretary Merly Cruz during the Kakao Konek 2012

Networking Night held at the Abreeza Mall in Davao City. The Networking Night Event of the Kakao Konek 2012 was sponsored by the City Government of Davao

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INGENIC Asia-Pacific regional cocoa breeding group – Showing its full support to the

Philippines cocoa industry development initiatives, INGENIC Asia Pacific attended in full force

during the Kakao Konek 2012 conference. The group was led by Dr. Smilja Lambert, the

Cocoa Sustainability Research Manager for Asia Pacific of Mars Inc.

INGENIC Asia-Pacific is a regional cocoa breeding group involving regional cocoa research

institutions. INGENIC was established in June 2004 with members including the Philippines,

Indonesia, Malaysia, Papua New Guinea, Vietnam and India. The group recently had their 9th

meeting held at the University of Southern Mindanao (USM) in Kabacan, Nort Cotabato,

Philpiines.

INGENIC Asia Pacific promotes regional collaboration in cocoa breeding selection for the

following reasons:

The same pests/diseases in all countries in Asia Pacific – CPB, Phytophtora pod rot

and VSD

Regional activities complementing the national-level approach

Complementary gains that could not be achieved in a national level

More opportunities for larger long term funding

The regional exchange has encouraged institutions to send/share three (3) BEST hybrids to

other members for propagation. Each member of the group is required to send 200 seeds to

the rest of the members. As a result, each institution received 15 different hybrids for field

testing and selections of best high yielding clones adapted to local conditions. All institutions

are receiving since 5 years funding from World Cocoa Foundation for field testing of these

clones. Approximately 14,000 seeds have been exchanged in the project.

This exchange has helped cocoa farmers in the Philippines and region in several ways. For

one, the country has received hybrids made from the best clones (High yielding, Low CPB

infestation, Resistant to Phytophthora pod rot, Resistant to VSD, Big beans, High fat). New

generation superior clones are now being selected from these hybrid trees in USM, Kabacan.

Photo: ACDI/VOCA CoCoPal Project staffs with CIDAMI Chair, Charita Puentispina strike a pose with INGENIC Asia Pacific representatives during the Kakao Konek 2012 conference.

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The Davao Oriental Village Cacao Plantation Model – On her message of support for the

cocoa industry development, Honorable Governor Corazon Malanyaon of the Province of

Davao Oriental presented the Davao Oriental Village Cacao Plantation Model. A project which

falls under the Pagkain at Kita (Food and Income) program pursued to accelerate the

production of high value crops specifically cacao. The project is embodied under the six (6)

years Sectoral Plan (2011 – 2016) otherwise known as the Agricultural Development Plan of

Davao Oriental.

The Davao Oriental Village Cacao Plantation as a model is an essential means to accelerate

and enhance cacao production in a commercial level. The provincial government believes that

the approach will work in a sense that it is well organized farming, it provides linkages to

other value chain players and ensures smallholder farmers can benefit in a commercial

manner. The approach will at the same time provide the investors with the assurance of a

reliable supply and the right quality at the same time.

The project has initially started covering some five (5) municipalities in the province with a

total of thirty-one (31) Barangays. Number of farm households to benefit in this area reached

1,115 and covers a total of 2,020 hectares. Seedling distribution has already started, the

provincial government will distribute a total of 1,212,000 grafted cocoa seedlings for the first

phase.

“The Province of Davao Oriental is the country ’ s leading coconut producer. Huge portion of

these coconut plantation are nothing but bushes underneath. This is an opportunity that the

provincial government recognized that can add potential income for our smallholder farmers

once developed. We promote farm diversification and what more can go along well with

coconut than cocoa? This has long been demonstrated in the province. We have started with

over 2,000 hectares and the potential to expand this project is not remote. We can cover as

much as 200,000 hectares, the Provincial Government of Davao Oriental is one with the

industry in meeting the

Philippines 2020 Cacao

Challenge ” , Governor

Corazon Malanyaon on her

message of support to the

cocoa industry delivered

during Kakao Konek 2012

conference.

Photo: Left - Governor Corazon Malanyaon delivers message of support to

the cocoa industry during the Kakao Konek 2012. Right - The governor in a ceremonial

signing of the Pledge of Support

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Cocoa Gallery People Events & Places

Through the lens...

Photo: Upper left, Kakao Konek 2012 opening ceremony cutting of the ribbon. Upper

right, Resource Persons of topic: Exploring Regional and Global Markets for Mindanao’s 2020 Cocoa Economy. Left, CIDAMI Board with representatives from Davao City Government, Department of Agriculture and USDA

Photo: Right, Kakao Konek delegates flocked at the Abreeza Mall for the KK2012

networking night. Lower left, Cacao Industry players enjoyed exchanges in a cocktail hosted by the City Government of Davao. Lower right, Mr. Puentispina with City Agriculturist Val Turtur, City Investment and Promotions Chief Jayson Magnaye and City DTI Director Lou Pasawa strike a pose during KK 2012 Networking Night

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Photo: Left, Colin Taylor of IFC, Wit Holganza of CIDAMI and Senen Perlada of

BETP during the open forum of KK 2012. Right, Dr. Smilja Lambert explained the importance of cacao bean grading. Below, CoCoPal Farmer Leaders and Extension Facilitators were among the KK 2012 delegates

Photo: Various photos taken on the third day of KK

2012 where several delegates joined the Kakao farm tours held in in key cacao areas of Davao City.

Photo: Below, Kakao Konek Exhibition booths and visitors

Kakao Konek 2012 Exhibit - List of Exhibitors

Department of Agriculture Allied Botanical

Davao Region Coconut Industry Cluster Puentispina Farms

CIDAMI Gran Verde Farms

ACDI/VOCA Chokolate de San Isidro, Inc.

Chocolattea Farmtech Agri-Land Corp

Yara Fertilizers Phils. Department of Trade and Industry

Control Union Phils. Metro Ace Innovplas Corp

Rosit Cacao Farm Plantasia Agro-Forestry Management Systems Inc.

Federation of Cooperatives in Mindanao (FEDCO) Board of Investments

Cacao Watch Newsletter

Editorial Team

CacaoWatch Newsletter ACDI/VOCA 87 East Street, DBP Village, Maa, Davao City 8000, Philippines Email: mincocoa@acdivoca.org.ph Contact Number: (06382) 2986250 to 51 / Cel. No. 0915-7843325

Mr. Nicholas K. Richards

Emmanuel R. Quisol

Janoz XN Yesu S. Laquihon

Orlen Ocleasa

“I would like to personally

congratulate CIDAMI for putting

on such a wonderful Kakao

Konek 2012 conference. With

such a great turn out of people I

think CIDAMi has taken a big step

in positioning itself as the

cacao industry leader. The

wonderful cooperation

among players and all development happening around the

Philippines cocoa industry today are all good portents.

Sulawesi, watch out for the growing brother!”, Nic

Richards, Chief of Party, ACDI/VOCA.

“In behalf of Indonesian cacao farmers I would

like to say thank you Mindanao. If you must

know, Indonesia is the world’s third largest

cocoa producer. Cacao first landed in the

Island of Sulawesi in Indonesia

sometime in the 15th century. The

cacao which were brought by the

Spaniards to Sulawesi came from

Mindanao. Today, the cacao industry in Indonesia is a very important

economic driver and for that we have Mindanao to thank for. There

could have been no cacao in Indonesia if not for Mindanao cacao.

Again, thank you very much Mindanao”, Dr. Soetanto Abdoellah of

Indonesian Coffee and Cocoa Research Institute in his message

during the Kakao Konek 2012 Conference.