PHILIPPINE CACAO INDUSTRY ROADMAP

Brief about cacao

Cacao (or cocoa for some) Is a bean derived from the Theobroma cacao or cocoa tree, which grows in elevations of 1,000 meters above sea level. It is originated from South American rainforests, cocoa thrives best in wet climates with rainfall evenly distributed across the year.

Cocoa is source material for byproduct for chocolate and cocoa powder. Derived from roasted cocoa beans is cocoa butter which is prominently used by the cosmetic and pharmaceutical industries. Other uses of cocoa beans include treatments for a wide variety of diseases including diabetes. In the Philippines, most small-scale producers process their cocoa beans into “tableya,” a native chocolate confection.

Forty tropical countries produce cacao. The price has significantly increased alongside the global demand for chocolate. In 2013, the world consumed more than 4 million metric tons (MT) of cacao beans, registering a 32% increase from the past decade (ICCO, 2014). The upsurge encouraged many cocoa farmers, particularly in the two countries with account of more 50% of global production , Ghana and the Ivory Coast, to augment production.

The Phiippines is a minor player in the global cacao trade and is not properly positioned to take advantage of the surge in demand. In fact, domestic production took a dive in 1990s despite pump priming initiatives. Domestic growth of the industry is hampered by a myriad of problems ranging from fragmented market linkages, inadequate technology and expertise, availability of land for expansion, and prevalence of pests. Farmer awareness on the economic potential of cacao is very low with very few engaged in cultivation.

Variety of cacao

Varieties of Cacao There are two main species of cocoa: Criollo and Forastero. Criollo is sometimes called the prince of cacaos because it is a very high quality grade of cocoa with exceptional flavor and aroma. Less than 15 percent of the world’s cocoa is Criollo, grown mainly in Central America and the Caribbean. Forastero is a much more plentiful variety of high quality cocoa, representing most of the cocoa grown in the world. Grown mainly in Brazil and Africa, it is hardier, more productive (higher yielding) and easier to cultivate than Criollo and is used in just about every blend of chocolate that is made.

A third type of cocoa also deserves mention. Trinitario, a hybrid or cross between strains of the other two types, originated in Trinidad nearly 300 years ago. It possesses a good, aromatic flavor and the trees are particularly suitable for cultivation.

Within these main types, there are several varieties of cocoa, each with distinct qualities. Chocolate makers purchase different varieties of beans and blend them to create their chocolate products

The Production Challenge by year 2022 and onwards

There is a growing demand for cocoa products and the world may soon run out of chocolate- giving rise to the Philippine Cacao Challenge 2022 , According to the Department of Agriculture, the global demand is expected to reach between 4.7 Million to 5 Million metric tons by the year 2022, and global supply will be at a deficit of 100,000 Mietric ton. For the Philippines alone, the local consumption is at 50,000MT annually, but the local supply is only around 10,000MT, making the country a net importer. This looming deficit has given rise to the Philippine Cacao Challenge, which commits the Philippines to producing 100,000MT by the year 2022 and onwards.

Roadmap developed by Cocoa Foundation in the Phlippines

The challenge is meeting the projected demand that’s expected to increase at a rate of 2.5% to 3% in the next 10 years, or an estimated 100,000 MT annually by 2022

The Cacao Roadmap developed by the Cocoa Foundation of the Philippines is eyeing over 3.2 million hectares of farm land planted with coconuts for intercropping with cocoa.

Also, the roadmap aims to achieve an annual production of 100,000 metric tons of beans by 2020, and 50 million cocoa trees planted.

The cocoa roadmap now serves as a framework for most national/local government projects in support of the cocoa industry.

Philippine Cacao Challenge 2022

One of the main factor to achieve to sustain Philippine cacao Challenge to boost its production is to develope more farm land with quality yield of cacao production.

Cacaogrow has captured this message and understand that joining the cacao farm development is profitable business opportunity, Be a part of cacao farm development and together we grow to sustain the Philippine Cacao Challenge.

Find out more for investment products

AGRO-CLIMATIC REQUIREMENTS & CACAO VARIETIES

SHORTFALL OF SUPPLY BY 2022

100,000 METRIC TON SHORTFALL BY 2022

Predicted Global Consumption

Based on the information taken from DTI, DA forum for sterngthening PH Cacao Industry, the global demand for cacao is estimated to reach between 4.7Million to 5 Million metric tons by 2022. Philippine is committed to produce 100,000 Metric ton quality cacao by 2022.

Domestic Consumption

Cacao global shortages is also predicted at 100,00 Metric ton the same year as reported by Department of Agriculture. In the Philippines, the local consumptions is at 50,000MT every year and the local supply is about 10,000 metric ton.

Philippine Government Commitment

To avoid impending deficits, the Philippines is committed to produce 100,000 Metric ton of fermented dried cacao beans for the export and domestic markets through 40% annual increase in production by 2022

Main Ingredient in Chocolate Production

Cacao is the main ingredient in chocolate production and there is no other crop or product that can substitute it in as far as chocolate production is concerned. There are six (6) intermediate products that can be derived from cacao beans: cocoa nibs, cocoa liquor (tablea), cocoa cake, cocoa butter, cocoa powder and chocolate confectionary blocks. Its diversified use, both for food and non-food, provides broader market opportunities. As a health food, cacao is packed with vitamins and antioxidants that make it almost a super food or a natural multivitamin.

Cocoa-based Products traded in Domestic and International markets

  • Wet cacao beans
  • Ready to sow cacao seeds (seedling purposes)
  • Cocoa nibs (beans, whole/broken, raw/roast
  • Tablea (Cocoa paste or liquor, not defatted)
  • Cocoa powder (not containing added sugar / other sweetening matter)
  • Cocoa butter, fat/oil
  • Chocolates
  • Chocolate Confectionery .

PHILIPPINE CACAO CHALLENGE 2022: 100,000 MT

Forecasted Global Demand by 2020

2022 Global Consumption = 5MT

Projected Production Shortfall

Projected Shortfall by 2022 =100,000 Metric Ton Number of cacao trees to produce 100,000MT = 50,000,000 tress with at least 2Kg/tree/year

Annual Projected Expansion

Required new farm area to produce 100,000 MT by 2022 is 50 hectares.Annual Projected Expansion : 15,000 – 17,000 Ha/year

How to achieve predicted shortfall?

All predicted data above can be achieved thru:

  1. Increase in productivity level
  2. Expand production areas or both

Captured Message of Philippine cacao Challenge 2022

Be a part of cacao farm farm development. Let’s work to grow together to sustain the Philippine Cacao Challenge 2022 to bost its production to cut the predicted shortfall of 100,000 Metric Ton worldwide. Everi little land can make a huge impact. Invest with us for a better future and we will make it happen.

CACAO NURSERY PRODUCTION

Cost of Wet Beans/Seeds

  • Cost of wet beans/kg : P35-38.00 @ average 250 pieces/kg
  • Cost of Ready to sow Seeds/kg: P200.00/kg
  • Cost of Grafting: Labor and Budstick: P3.00 – P5.00

Fully Grown Cacao Tree

250 budstiks for grafting

Nursery Production Cycle

Seedlings Production Cycle Time: 6 months (2 cycles per year)

Nurser Infra Structure

Nursery Infrastructure Cost: P70-100.00/square meter (estimate)

Seedlings Production and Cost

  • Seedling Density: 35-40 seedlings per square meter
  • 3 Cubic Meters of Potting Medium = 2,600-2,800 bags
  • Cost of Grafted Seedlings: P20.00-P25.00
  • Production Cost: P12-15.00 /Seedling

CACAO PRODUCTION

No. of Trees per hectare

  • No of Trees/Hectare: Open Area: 1,100, Inter cropped 600 trees
  • Planting Distance: Minimum 3×3 meters
  • Target Productivity level: 2 kg/tree/year

Grafted Seedlings

  • Cost per grafted seedling (Davao Price): P20.00-P25.00/seedling

Gestation Period

  • Gestation period: 18 months, 7- 10 pods; 5 Years, 80-100 pods
  • 7 pods = 1 Kilo Fresh Bean; 20 pods = 1 kilo dried Beans (Pod Index)
  • Percent recovery wet to dry: 33%, 1:3 Ratio

Fermentation

  • Fermentation Time: 5 days;
  • Drying Time (solar): 5-6 days

Labor for Farm Maintenance

  • Labor for Farm Maintenance: 1:3 .

Harvesting

  • Labor for Farm Maintenance: 1:3
  • Harvesting Frequency: every 2 weeks
  • High Peak: Oct-Dec, Med Peak: May-July, Low Peak: Jan-April
  • Production Cost: P40-45.00/kg dried beans

CACAO POCESSING YIELDS FOR TABLEYA

Cost of Wet Beans/Seeds

  • Cost of wet beans/kg : P35-38.00 @ average 250 pieces/kg
  • Cost of Ready to sow Seeds/kg: P200.00/kg
  • Cost of Grafting: Labor and Budstick: P3.00 – P5.00

Fully Grown Cacao Tree

250 budstiks for grafting

Nursery Production Cycle

Seedlings Production Cycle Time: 6 months (2 cycles per year)

Nurser Infra Structure

Nursery Infrastructure Cost: P70-100.00/square meter (estimate)

Seedlings Production and Cost

  • Seedling Density: 35-40 seedlings per square meter
  • 3 Cubic Meters of Potting Medium = 2,600-2,800 bags
  • Cost of Grafted Seedlings: P20.00-P25.00
  • Production Cost: P12-15.00 /Seedling

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