Global demand for cacao beans has started to outstrip supply. contributed photo

Cacao industry players across the value chain aim to boost productivity and competitiveness to meet the growing market opportunities for cocoa over the next few years.

According to the Philippine Cacao Industry Roadmap, they target to produce 100,000 metric tons (MT) of fermented beans by 2022 for the export and domestic markets through a 40-percent annual increase in production, anchored on the value chain approach and aligned with the 2022 Cacao Challenge.

The Davao Region, being the primary cacao-growing region, committed to achieve 60 percent of the target equivalent to 60,000 MT.

The remaining 40 percent are being shared by other 16 regions from Luzon, the Visayas and Mindanao.

“With the Philippines’ location conducive for cacao production and accessible to domestic and foreign trade, heightened the interest of local farmers and exporters to push for a more dynamic and competitive cacao industry that can compete with other major cacao-growing nations,” the roadmap said.

Despite its competitive advantage, the Philippine cacao production at present only stands at 10,000 MT to 12,000 MT from the 20,000 to 25,000 hectares (ha) of land planted with cacao according to industry estimate.

The Philippines is still an importer of cocoa products such as chocolate, cocoa powder, cocoa beans and cocoa butter although it is reputed as the first country in Asia that planted cacao.

It noted the global cacao production since 1991 is lower compared to the global demand, thus industry experts forecast supply shortfall by one million MT by year 2020.

The cacao industry has been gaining recognition in the domestic and export markets in the recent years, as the supply and demand gap of cocoa beans is increasing.

The world demand for cacao has nearly tripled since 1970 growing at an annual rate of 3 percent, with China and India growing at 7.9 percent.

The roadmap attributed the rising world demand for cacao to 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.

Cocoa-based products traded in the local and international markets include wet cacao beans, ready to sow cacao seeds, cocoa nibs, cocoa powder, cocoa butter and fat/oil, chocolates and chocolate confectionery.

Given these opportunities, industry players are implementing programs, activities, and projects in a bid to generate additional export earnings of at least $250 million, enable at least 50 million cacao trees producing 2 kilogram dried beans equivalent per tree, at least 100,000 MT production volume of quality cacao beans, and at least 100,000 farmers getting additional income of P130,000 per hectare per year.