modernizing and industrializing the cacao industry in the philippines

8/16/2019 Modernizing and Industrializing the Cacao Industry in the Philippines

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Dr. WILLIAM D. DAR

President, InangLupa Movement

Paper presented during the 2016 Philippine a!ao "ummit and #$position on Ma% 2& ' 2)

+ModernizingIndustrializing

of the

Philippines


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3/17


4/17

erti!ation o !o!o*eans(follo certain social an

environmental guidelin

Cacao producingcountries una*le to

ulll the gro7ingdemand orldide

Philippines is a netimporter ith annual!onsumption *80,000 M9 dried cacaobeans

+y ,#,#- Philippines 7ill

re:uire100,000 M9 dried cacaobeans* almost 80)&0 M trees* area of appro./ 120,000)180,000 ha

+y ,#,#- 7orld mar;e

demand or !a!ao*eans is pro0ected at ' 8 M M9

"hare o Philippines toglobal cacao production isless than 15

Mindanao produces (05 o the!ountr%


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9=9AL PR=D>9I=3

,?66.82 M95 from Davao Region

85 from 3orthern MindanaoA@#RA# BI#LD 8(0 ;gCha

3>R"#RI#"

• 16& nurseries in 4avao

5egion

• 11 are accredited

•

& are located in 4avao5egion

• 0)80 nurseries in

6amboanga

• 2. ' ? M seedlings per

PR=D>9I=3 #A9>R#"• 2a!es ?)8 %ears for yields to pea!• Climate of Mindanao highl% suited• Theobroma cacao spp. thrives ell in

humid tropi!al lo7land• 5ainfall re78t% 1,180 ) 2,800 mm• 2emperature re78t% 21 ' ?0 E• 9.pansion of cacao farming thru

inter!ropping

Current Statistics:Mindanao


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Island

roupCRegion

Produ!tion@olume -in

M9

5 "hare toRP

Produ!tion

:uzon ,;


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@ision

A Modern and

IndustrialiFedPhilippine Agri!ulture

?

Sustainabl

e@oals

4evelopment? Pillars? Ma0or

Ab0ectives

Inclusive

Science-based

Resilience

Market-oriented

Security on:

Food

Economic

Nutritional

Environmental

Productivity

Profitability

Competitiveness

Sustainability

Strategy% People$centered- Innovation$based and Mar!et$Ariented 4evelopment (PIMA4)

Enabling Mecanisms

Plans and Programs

!egislative "genda


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1 2 3 4 5

! " # 1

$

Mar;etingagri*usin

s

"ustaina*leland

management

Adaptationto !limate!hange

Resear!h & developmen

t

#mpo7erment&

institutional

Reormato the

Gureau!ra

Irrigation Me!haniFation

Inrastru!ture & otherlogisti!s

redit & other ris;

management tools

1$ Action Points for a Co%petitive & &ar'et(Oriented Agriculture


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hallenge4 )ntensive *et Sustaina+le ProductioPriorit% Areas or A!tion in the ne$t 8

%earsA!tion Points

"/ Increased access- availability and use of

good 7uality clean planting materials of D=s

• 5esearch & developmen

• Eccredited nurseries

• Credit & other ris!

management tools

,/ Improved access to and availability of inputs

including ecient nutrient management

• Irrigation


management tools


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Priorit% Areas or A!tion in the ne$t 8

%earsA!tion Points

>/ Hudicious utilization of e.isting coconut andbanana farms through cacao intercropping to

increase areas planted to cacao ith priority

given to contiguous areas

• Sustainableintensi3cation

• Increase potential

production areas in

:uzon- =isayas &

Mindanao

/ Improved physicalinfrastructure lin!ages toinput- support- and product mar!ets

• Infrastructure & otherlogistics

• Mar!et'/ 9nhanced organizational capacity of farmer

groups to become eJective economic players

• 9mpoerment &

institutional capacity

development

K/ Improved Go and transparency ofinformation at all nodes of the chain including

basic traceability system

•

5eformation of the+ureaucracy

;/ Improved access to facilities and resources to

catalyze value addition and lay the


management tools

hallenge4 )ntensive *et Sustaina+le Productio


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,e* Pla*ers + -unctions

4evelopment of ne varieties and hybrids

Short Term•

Ec7uisition of ne planting materials orimprovement of e.isting materials tomaintain competitiveness

• Subsidized cost of planting materials

• 2raining on nursery management

• Push for accreditation of all nurseries

Long Term• 5&4 investment to appropriate partners in

the light of ne challenges such as climatechange and 7uality re7uirement of

1

epartment o Agri!ulture C ">s

Provision of better planting materials via e.isting nurseriesPrivate A!!redited3urseries4

,e* Pla*ers & -unctio


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Corporative• Lith secured mar!ets- farmers are more

illing to invest

• Improve the system of bloc! farming herefarmers come together to cut dontransaction cost & delivery of e.tension

services (5ange in area% ># to ?## ha)• 2a!e great caution in the selection of plantin

materials

• Provide and support to credit facilities (e/g/CSF)

ooperative, orporation, +Mar;et Pla%ers4


Farming

t



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• ighly suitablecompatible underdiJerent production systems(Intercropping e/g/ coconut orbanana1 multistory1 agroforestryfarming)

• S!ills enhancement

• 5esolving land tenure status sincemany are sharecroppers or tenants(e.plore innovative ays ofpartnership)

"oil Mapping

• 4etermine soil health and produce soimaps

• Soils are not only thirsty but alsohungry8(eJects of micronutrients)

• Arganize farmers and service providerto minimize transaction costs (this ilabate ineciencies in pricesnationide)

• 9cient nutrient management is criticin cacao farming to produce , tha fro

>;# !gha

Farming

Practices

ontH

9e!hni!al "upport

• Provision of pool of technicale.perts and master farmers

• IC2$mediated technical support


rop Diversi!ation +Intensi!ation



14/17

• ,' fermentation facilities in 4avao 5egion

• Proper fermentation and drying to remove unpleasantGavors

• 5educes eight of beans by '$K

• Not done by farmers because of no access to facilities ans!ills

• 5e7uires good facilities% ermentation *o$- me!hani!a

dr%er- *ean sorter and storage to maintain the 7ualityof the beans

3

a.

Fermenting& 4rying

Pro!essors4 Post arvest & Processing,e* Pla*ers & -unctio

• Since this basically home$based-provision of village type grindingfacility

•

Manufacturing is a billion pesoindustry

• Production system must improve andprovide support to entire value chainto bene3t farmers

•

*. @rindingProcessing

!. Manufacturing



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• 4avao as the center of trading('#$K# traders)

•

Need for organizing the farmers for bul! tradingto minimize transaction cost

• 2argeting the international mar!et- multinationacompanies can ta!e over e.porting operationsdirectly to farms or thru agencies- hich callsfor farmers8 organization

4

,e* Pla*ers & -unctio9radersCManua!turers4

• ", 9.porters based in 4avao

• Farmers organization is very important so that tthemselves can process the beans- serve asintegrators or !onsolidators at the same tim

to directly deal ith multinationals• Integrators & e.porters are the to ma0or partie

oiling the mar!et chain because they provide pr3nancing or or!ing capital to farmers and evenact as facilitators to loans/

9.port Mar!eting

5

#$porters4

2rading


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Ro* risostomo- e.ports

loadsof Philippine cacao toGarr% alle*aut- the

orld8s largest supplier ofhigh 7uality chocolate

Malagos 685 Dar; ho!olate

on a "ilver a7ard at the 2018International ho!olateA7ardsJ World Drin;ing

ho!olate ompetition in the4ar! 4rin!ing

Successful Cases in Cacao )ndustr*


17/17

Thankyou!

Email me at#

[email protected]

$ecome an Inang!upa volunteer% register at #

http://inanglupa.weebly.com/become-a-volunteer.html

Bes, the

ilipino

modernizing and industrializing the cacao industry in the philippines

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